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Q & A: Putting a Time Limit on Rent Stabilization

By Adam Leitman Bailey


By: Jay Romano

October 15th, 2010

Q: For the last 30 years I’ve lived in a “J-51” rental building and have been informed that my rent-stabilization status will expire in a number of years. Is this legal?

A: Adam Leitman Bailey, a Manhattan real estate lawyer, said that the under New York City’s J-51 program, building owners agree to be subject to rent stabilization in exchange for certain tax benefits on new construction projects or the rehabilitation of multiple-dwelling rental buildings. The time period can be either 34 years — generally for “affordable housing” buildings — or 14 years. “As long as the leases and renewals warn the tenants that the benefits are going to expire at a particular time,” Mr. Bailey said, “the landlord is allowed to take an apartment out of rent stabilization at the end of that period.” He notes that if a lease or renewal does not contain the warning, the tenant can remain rent-stabilized for as long as he or she occupies the apartment. “But even then,” he said, “the next tenant would normally be unregulated.”

Adam Leitman Bailey, P.C.

NEW YORK REAL ESTATE ATTORNEYS