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Re: J-51 and rent stabilization

Posted by chelsea on March 17, 2001 at 14:44:44:

In Reply to: J-51 and rent stabilization posted by deb on March 16, 2001 at 21:56:11:

JJ is right: NO.

If a building was subject to rent stabilization before a J-51 tax exemption was in place, it remains subject to rent stabilization after. A building owner might possibly try to argue that it should be exempt because a substantial rehabilitation had taken place, but if MCI increases were granted, this cannot happen, because the owner has already received a rent increase to cover the construction costs. And there are probably other obstacles to the substantial rehabilitation in this case. It sounds as if the building was continuously occupied. And a boiler work alone is not enough for an exemption; the work must be much more extensive than that: i.e., gut renovation of a virtually empty building.


: I live here in manhattan in a 40 unit building, some rent stabilized, a few rent controlled and the rest free market. LL was granted MCI for boiler, rent increased, then he got a J-51 for that work and our rent was reduced. More building upgrades are in the works. Once that J-51 expires, does the rent stabilized and/or rent control status for those apartments end?

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