tenants: tax abatements j-51's

The J-51 tax incentive to landlords can also be an unexpected benefits to tenants

Do you know if a old building is fully rehabilitated or a new building is constructed the owner can receive what is a J-51 tax abatement.

When the owner gets this tax abatement, the building is placed under rent stabilization and the expiration of the J-51 does not always mean the expiration of the rent stabilized status.

If the building was rent stabilized before the tax abatement, it remains rent stabilized after the benefits. But, if the building only became rent stabilized because of the J-51 tax abatement, whether or not it loses that protection depends on whether the landlord gave proper notice in the lease and each lease renewal.

If the lease contained the proper notice then the rent stabilization ends when the benefit period expires, however, without the notice, the tenant retains the full benefits of rent stabilization, including the right to a renewal lease.

It is also important to remember that under Roberts v. Tishman Speyer a rent stabilized apartment in a building that is receiving a J-51 abatement is not subject to the Luxury Deregulation provision until the tax benefit expires.

It is simple and easy to check if your building has a J-51 at this website: