Huge Blow for Landlords Throughout NYC Who Deregulated Units that Were Rent Stabilized under J51

In a blow to landlords throughout NYC, the Supreme Court has ruled that the Court of Appeal's decision regarding luxury deregulation of units that became subject to rent stabilization under the J51 tax benefit program applies retroactively.  The impact of this decision is substantial.  Tenants throughout NYC who were improperly deregulated are now entitled to have their rents rolled back, and return of the amount of rent that they were overcharged.

You can read the decision here:  http://www.nylj.com/nylawyer/adgifs/decisions/080610lowe.pdf

Next week, I will post an article providing a full history of the J51 program, and describing the impact of the Court of Appeals' landmark decision in the Roberts v. Tishman Speyer Properties case.