In its landmark ruling in Roberts v. Tishman Speyer Properties, L.P., 13 N.Y.2d 270, 890 N.Y.S.2d 388 (2009), the Court of Appeals held that owners of rent stabilized apartments in buildings receiving J-51 benefits could not seek to recover such apartments through luxury deregulation. The J-51 program is a New York City tax program that encourages owners of residential property to upgrade building systems in exchange for real estate tax abatements and exemptions. The tenants in Roberts had sought a declaration that their apartments “would remain rent-stabilized ‘until the last applicable J-51 tax benefits…have expired,’”1 thereby conceding that any prohibition against luxury deregulation ended once J-51 benefits ended.
In two post-Roberts cases, the Division of Housing and Community Renewal (DHCR) has been asked to determine whether luxury deregulation is available once J-51 benefits expire, a factual distinction from Roberts, wherein J-51 benefits were still in effect. DHCR has ruled that luxury deregulation is available for rent stabilized apartments once J-51 benefits end, but not for rent controlled apartments.
‘Schiffren’
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