Over the past several years, courts have struggled with the issue of whether an owner, in order to obtain high-rent high income luxury deregulation in a building that formerly received J-51 benefits, must first serve the tenant with a so-called J-51 notice (also known as a J-51 rider). This article will survey the relevant case law over the last four years.
Building Types
There are two types of rent-stabilized buildings that can receive J-51 benefits. The first type, which we will refer to as “Type A” buildings, are buildings that were first subject to rent stabilization for reasons that had nothing to do with the receipt of J-51 benefits, but received J-51 benefits thereafter, usually for minor work such as a new boiler/burner. The buildings at Stuyvesant Town and Peter Cooper Village are typical examples of Type A buildings.
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