3117. IN RE WILLIAM BRAMWELL, pet-ap, v. NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, res-res, 1225 PARK CORP., Intervenor-res-res — Katsky Korins LLP, New York (Adrienne B. Koch of counsel), for ap — Mark F. Palomino, New York (Sandra A. Joseph of counsel), for New York State Division of Housing and Community Renewal, res — Belkin Burden Wenig & Goldman, LLP, New York (Magda L. Cruz of counsel), for 1225 Park Corp., res — Order and judgment (one paper), Supreme Court, New York County (Joan B. Lobis, J.), entered December 9, 2015, denying the petition to annul a final order of respondent New York State Division of Housing and Community Renewal (DHCR), dated February 4, 2015, which affirmed an order of the Rent Administrator, dated July 23, 2014, that deregulated petitioner’s rent stabilized apartment, and dismissing the proceeding brought pursuant to CPLR article 78, unanimously affirmed, without costs.
DHCR correctly determined that petitioner’s apartment continued to be subject to high rent/high income luxury decontrol after the expiration of J-51 tax benefits, because the building was rent stabilized prior to the receipt of those benefits (see Rent Stabilization Law of 1969 [Administrative Code of the City of NY] §26-504[c]; RPTL 489[7][b][2]). “[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… . [Reversion to pre-J51 status] includes the right of an owner to seek luxury deregulation in appropriate cases” (Matter of Schiffren v. Lawlor, 101 AD3d 456, 457 [1st Dept 2012]). Contrary to petitioner’s argument, the owner was not required to serve a J-51 notice/J-51 rider to petitioner’s leases to trigger reversion of his rent stabilized apartment to the original rent-regulation regime (72A Realty Assoc. v. Lucas, 101 AD3d 401, 402 n [1st Dept 2012]). Under Administrative Code §26-504(c) and RPTL 489(7)(b)(2), a notice informing petitioner that his apartment would cease to be rent stabilized after the J-51 benefits expired would have been incorrect; those statutes provide that such an apartment will remain rent stabilized after the expiration of J-51 tax benefits.
