Tenants Who Never Got J-51 Riders Remain Rent Stabilized

LVT Number: #19546

Tenants claimed that they were rent stabilized. Landlord claimed that they were deregulated. The building had received J-51 tax benefits for 20 years, starting in 1977. Landlord argued that the building wasn't otherwise subject to stablization and that tenants were exempt when the J-51 benefits expired. The DHCR ruled for tenants, finding them rent stabilized. Landlord appealed and lost. There was no proof that landlord ever gave tenants the required notices of when the J-51 benefits would expire. So, by law, tenants remained rent stabilized even after the J-51 benefits expired.

Tenants claimed that they were rent stabilized. Landlord claimed that they were deregulated. The building had received J-51 tax benefits for 20 years, starting in 1977. Landlord argued that the building wasn't otherwise subject to stablization and that tenants were exempt when the J-51 benefits expired. The DHCR ruled for tenants, finding them rent stabilized. Landlord appealed and lost. There was no proof that landlord ever gave tenants the required notices of when the J-51 benefits would expire. So, by law, tenants remained rent stabilized even after the J-51 benefits expired.

Lomagno v. DHCR: NYLJ, 4/6/07, p. 38, col. 2 (App. Div. 2 Dept.; Rivera, JP, Santucci, Angiolillo, Dickerson, JJ)