DHCR J-51 BUILDING HIT LIST
On Friday, February 1st, DHCR published a list of multifamily properties which the agency claims are, or have been, receiving J-51 real estate tax benefits, but are not properly registered on DHCR’s rent-stabilized apartment database (click here for the DHCR website).
One of the effects of Roberts v. Tishman Speyer Properties, L. P. was the requirement that owners re-register apartments in buildings receiving J-51 tax benefits, which had been previously “improperly” deregulated based on high rent deregulation. DHCR and the Governor have at various times in the past issued statements directing multifamily owners to re-register such apartments, or face penalties such as a rent freeze and/or treble damages.
In its February 1st website posting, DHCR claims to have audited its rent registration database and identified multifamily properties receiving, or which had previously received J-51 benefits, where the owner failed to register all of the apartments as required by the Rent Stabilization Law and the Roberts decision. Unfortunately, there is a reason to believe the DHCR’s information is incorrect in some respects, regarding some of the properties on their list. We urge you to check the website link to determine if any of the listed multifamily properties are those you own or have an interest in. If one or more of your properties are erroneously listed, you should notify DHCR as soon as possible to remove them from the website to minimize the possibility of erroneous action being taken by DHCR or one of your current tenants. If your property is properly on the list (or if you are unsure) you should contact us to determine the proper status of your property and the best course of action.
We are experienced in correcting regulatory agency errors and dealing with Roberts issues and complaints. If you would like to discuss this matter, please contact one of us.
Very Truly Yours,
ROSENBERG & ESTIS, P.C.
Contributing Advisors
