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Re: Rent Stabilized apartment question

Posted by Anna on June 09, 2000 at 22:15:32:

In Reply to: Rent Stabilized apartment question posted by Jason on June 09, 2000 at 14:20:52:

: I am in an apartment which has been rent stabilized for almost 20 years and am the original lease holder. The new owner (third in a year) claims that since the J-51 has expired on the building, they are no longer required to renew my lease, which is in the name of my corporation. The owner claims that a business can not hold a rent stabilized lease. It was renewed two years ago (at which time the J-51 had already expired). The owner wants what he determines is market rent, which is a 100% increase.

If the J-51 notice was on the original lease, each renewal lease, and each DHCR registration, then you might lose stabilization. There should be more info in the DHCR section in NY Tenants on Tenant.Net. More importantly, go to Housing Court Decisions and search for 'j-51' for important recent court decision on this subject.

: 1. Can a corporation continue to hold a rent stabilized apartment if the corporation is using the space for business and has authorized tenant living in part of the space too?

If memory serves, the current rule is a corporation is NOT entitled to rent stabilized renewal. However, the latest decision said that as long as a human person was designated in the lease as the tenant, as in 'for occupancy by Jane Smith', it was OK. Download, read very carefully, and save this decision: it could save your tenancy. (note: a lot of it deals with wheter she has two apts or one; the discussion about corporate renewals is what you need) (note: Judge Hoffman is denying the MOTION for judgment without trial saying he needs to review the facts, if the trial is over and a decision is made, you should go to 111 Centre St, 2nd Floor, and get a copy of the trial decision)

2. If this is the first time the unit is taken off rent stabilization, should it not be a vacancy lease and a full market rent increase thus be illegal?

If they screwed up the J-51 notices, it can't become deregulated just because the lease and renewal were to a corporation for 20 years. The worst that should happen is that you have to pay a vacancy increase ~20% instead of a renewal increase 2-4%. Read the DHCR rules about the first stabilized rent after owner occupancy or commercial lease. You can call DHCR or go in person (with lease, current ConEd or MaBell bill, photo ID) to see a counselor. Be warned that they might not be aware of court decisions...

You probably want to consult a good tenant lawyer or at least go to a tenant clinic with all this redsearch and your papers.


New York Law Journal May 31, 2000


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