In Roberts v. Tishman Speyer Props., L.P., 13 NY3d 270 (2009), the Court of Appeals, reversing DHCR’s long-standing policy, held that apartments in J-51 buildings could not be luxury deregulated while J-51 benefits remained in effect. Roberts left a host of unanswered questions, including whether its ruling should be applied retroactively.

On Aug. 18, 2011, in Gersten v. 56 7th Ave. LLC, 88 AD3d 189 (1st Dept. 2011), the First Department held that Roberts should be retroactively applied. On March 6, 2012, the appeal to the Court of Appeals in Gersten was withdrawn and discontinued. 18 NY3d 954 (2012).