Landlords lose a big one

Background: The city's J-51 program gave landlords tax breaks in return for making some property improvements and keeping apartments rent-stabilized. Until 2009, when a landlord succeeded in deregulating an apartment because of a provision in the RS law, they would simply lose a pro-rata share of the J-51 tax benefit. Everybody happy. Then the Roberts decision came along, saying that no apartment... [more]

Background: The city's J-51 program gave landlords tax breaks in return for making some property improvements and keeping apartments rent-stabilized. Until 2009, when a landlord succeeded in deregulating an apartment because of a provision in the RS law, they would simply lose a pro-rata share of the J-51 tax benefit. Everybody happy. Then the Roberts decision came along, saying that no apartment could be deregulated as long as any J-51 benefits were being received. That threw a wrench into everything, with previously-deregulated tenants suing for the extra rent they'd paid since being deregulated. The London Terrace Gardens landlord tried to get around Roberts, wanting to give back all the J-51 benefits it had ever received, in return for being able to deregulate as usual. Their theory was that J-51 is a contract that can be rescinded. The Court of Appeals just said no, it's not a contract and therefore can't be rescinded. I'd say the Legislature's due to inflict something on tenants, to help keep things in balance after the beatings landlords have gotten in the courts. [less]