Tenant's Rent and Income Exceeded Deregulation Thresholds After J-51 Benefits Expired

LVT Number: #28563

(Decision submitted by Mary D. Milone of the Manhattan law firm of Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., attorneys for the landlord.)

(Decision submitted by Mary D. Milone of the Manhattan law firm of Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., attorneys for the landlord.)

In 2013, landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment when the apartment rent was $2,500 or more. Tenant admitted in the Income Certification Form (ICF) that year that the total annual household income exceeded $200,000 in both 2011 and 2012. The DRA ruled for landlord based on tenant's admissions. Tenant appealed and lost. Tenant claimed that the apartment wasn't eligible for high-rent/high-income deregulation because the building had received J-51 tax benefits. But the apartment was subject to rent stabilization prior to the building's receipt of J-51 tax benefits, which commenced on July 1, 1991, and expired on June 30, 2008. The apartment therefore was eligible for high-rent/high-income rent deregulation. Under Rent Stabilization Law Section 26-504(c), tenant's claim would apply only if the apartment became subject to rent stabilization solely as a result of the J-51 benefits. 

Morrow: DHCR Adm. Rev. Docket No. EM410034RT (7/25/18) [6-pg. doc.]

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