Inside Edge: Stuy Town J-51 Decision Reversed

In the September 2007 edition of the Inside Edge, we reported on the decision of Judge Richard B. Lowe of the New York State Supreme Court which indicated that accepting J-51 tax benefits from New York City did not prevent a building owner from utilizing the high rent and luxury decontrol provisions of the rent stabilization law. As of March 5, 2009, the Appellate Division of the New York State Supreme Court has reversed that decision and ruled that if you accept J-51 benefits you may not utilize the high rent and luxury decontrol provisions of rent stabilization.

This Inside Edge explains the new ruling and its impacts, which will extend far beyond Stuyvesant Town into the 350,000 units of rental housing now receiving J-51 benefits.