Tenant Remains Rent Stabilized Due to Improper J-51 Lease Riders

Landlord sued to evict tenant after the lease expiration, claiming that tenant's apartment was unregulated after expiration of the building's J-51 tax benefits. Tenant claimed that he was rent stabilized because he had received improper J-51 lease riders. The court ruled for tenant and dismissed the case. Landlord appealed and lost. Tenant's J-51 lease riders didn't properly notify tenant that the apartment would be deregulated at the end of the tax abatement period. Tenant's original lease rider stated that the J-51 benefits would expire on June 30, 1991, when the actual expiration date was June 30, 1997. Landlord claimed that this was a minor error, but landlord had improperly given tenant a fair market lease in 1995. The court also properly considered events going back more than four years to determine whether the apartment was regulated.

254 PAS Property LLC v. Gamboa: NYLJ, 8/1/07, p. 35, col. 1 (App. T. 1 Dept.; McKeon, PJ, Davis, Heitler, JJ)