One of the questions left unanswered by the Court of Appeals’ 2009 decision in Roberts v. Tishman Speyer Properties1 was whether owners could take advantage of high income luxury deregulation once J-51 benefits expired. Tenants argued post-’Roberts’ that a building’s receipt of J-51 benefits permanently barred high income deregulation in that building, even after benefits were no longer being received. Owners argued to the contrary.

After several years of litigation, the rule with respect to rent stabilized apartments is clear, although the result depends on whether the apartment was stabilized before J-51 benefits were ever received. For rent controlled apartments, there is no clear rule.

Background

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