The Rent Is Too D@&! High

The Rent Is Too D@&! High

The First Department Appellate Division ruled last month that an apartment that is rent stabilized before receiving J-51 tax benefits reverts to its previous stabilized status after those benefits expire and is subject to luxury deregulation. The Dec. 11 opinion, as reported by the NYLJ, follows an earlier First Department ruling, 73 Warren Street v. DHCR, 96 A.D.3d 524, handed down in June. The Court stated that, “The plain language of Administrative Code §§11-243 and 26-504(c) supports the conclusion that the Legislature intended to provide that a building that is already regulated when it receives J-51 benefits will continue to be regulated under the original rent-regulation scheme when the tax benefits expire,” the panel wrote. “We conclude that the reversion to pre-J-51-benefit rent-regulation status includes the right of an owner to seek luxury deregulation in appropriate cases.” A win for landlords in a very tenant friendly environment.

By | 2013-01-18T13:53:59+00:00 January 18th, 2013|