News

COURT OF APPEALS LIMITS LUXURY DEREGULATION IN J-51 BUILDINGS.

October 22nd, 2009 The Court of Appeals ruled today in Roberts v. Tishman Speyer that rent-stabilized apartments in buildings receiving J-51 tax benefits are not subject to luxury deregulation. This ruling will affect several groups of tenants. First, tenants who are presently in a luxury deregulation proceeding in a J-51 building will have direct and immediate benefit. Second, tenants whose apartments were already luxury deregulated and moved out of a J-51 building as a result may have claims based on the ruling. And third, those whose apartments have been luxury deregulated in a J-51 building and who have remained, now paying a rent likely well in excess of their rent-stabilized rent, may have substantial overcharge claims and a right to return to the pre-luxury-deregulation rent. As appears from the majority opinion’s final paragraph, the court left open issues concerning statutes of limitation, retroactivity and other issues. It is thus important to seek counsel promptly.