The Supreme Court of New York, Appellate Division, First Department, in West, et. al v. B.C.R.E.- 90 West Street LLC today again held that apartments, located in buildings receiving Real Property Tax Law § 421-g tax benefits, are subject to luxury deregulation provisions contained in the Rent Stabilization Law. In West, the Appellate Division found that each of the tenants’ apartments was properly deregulated pursuant to the high rent/vacancy deregulation provisions of the RSL.
This decision follows Kuzmich v. 50 Murray St. Acquisition LLC, 157 AD3d 556 (1st Dept 2018), which also found luxury deregulation applicable in buildings receiving 421-g tax benefits.
In addition, the Appellate Division further held that mortgage financing from the New York City Housing Development Corporation, which subjected apartments in buildings receiving such mortgages to rent regulation, did not bar luxury deregulation.
Belkin Burden Wenig & Goldman Litigation Department co-chair Joseph Burden and associate William Baney handled the proceedings in Supreme Court. Appeals Department partners Sherwin Belkin and Magda Cruz handled the appeal on behalf of the owner in this action.
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