A landlord will not be able to escape the requirements of New York City’s rent stabilization program by simply paying back the J-51 tax credits it received, a state judge has ruled in a decision that real estate lawyers call an important step in clarifying the effects of the Court of Appeals’ 2009 landmark ruling in Roberts v. Tishman Speyer, 13 NY3d 270.
Justice Judith J. Gische in Manhattan (See Profile) ruled in London Terrace Gardens v. New York City, 109122/10, that London Terrace, owner of a 1,000-apartment complex in Chelsea, could not rescind its role in the J-51 program because participation did not create a contractual relationship.
