In Ram I, v. DHCR, decided on Oct. 7, 2014, the Appellate Division, First Department unanimously held that once a building receives J-51 benefits, owners are forever barred from seeking to luxury deregulate rent-controlled apartments, even after J-51 benefits expire. In Schiffren v. Lawlor, 101 A.D.3d 456 (1st Dept. 2012), the First Department reached the opposite conclusion with respect to rent-stabilized apartments.

Ram I is the latest in a series of appellate losses for landlords following the 2009 Court of Appeals decision in Roberts v. Tishman, 13 N.Y.3d 270 (2009). The good news for landlords, however, is that the number of rent-controlled apartments actually affected by Ram I is miniscule, at most numbering in the hundreds.

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