Tenant Deregulated When J-51 Benefits Expired

Tenant complained of a rent overcharge. She claimed that landlord had improperly deregulated her apartment after the building's J-51 benefits expired. The DRA ruled for tenant and ordered landlord to refund over $48,000. The DRA found that landlord gave tenant her initial J-51 rider too late, so she remained subject to rent stabilization after J-51 ended in the building.
Landlord appealed and won. Tenant claimed that she moved into the apartment with her sister in 1984. But tenant's initial lease was dated June 7, 1991, for a lease term commencing on July 1, 1991. Tenant signed a J-51 lease rider on July 10, 1991. And landlord gave tenant an additional J-51 rider with each renewal lease after that. Tenant didn't deny signing the 1991 J-51 rider. And it didn't matter whether there were J-51 riders before that date, because tenant didn't have a lease before then even if she lived in the apartment as her sister's roommate. Landlord gave tenant proper J-51 rider notice that her rent-stabilization status would end when the building's J-51 status ended. So landlord could now charge market rent, and there could be no claim of a rent overcharge.

Columbia 304 Mulberry Street LLC/Nathan: DHCR Adm. Rev. Docket Nos. XC410028RO, XC410019RT (8/13/09) [4-pg. doc.]