Vernon & Ginsburg, LLP News » Roberts v Tishman Speyer

Gov. Paterson Introduces Bill to Limit Luxury Deregulation

admin — Thu, 17 Jun 2010 16:16:12 +0000

As reported in the New York Law Journal and the New York Times, Governor David Paterson last week introduced new legislation [PDF] that would raise the threshold at which a landlord may seek to deregulate an apartment–from a monthly rent of $2,000 to $3,000.

In addition, the bill would address apartment deregulation for buildings receiving J-51 tax benefits, which were excluded from deregulation by the 2009 Court of Appeals decision in Roberts v. Tishman Speyer Properties LP. The new law, if passed, would allow current J-51 benefit recipients to deregulate apartments after October 22, 2009, provided the apartments did not become regulated as a result of receiving the J-51 benefit. The bill would establish a formula for determining overcharges in apartments improperly deregulated prior to the Roberts decision. The law potentially affects many tens of thousands of units. Tenants, regulated and deregulated alike, should consult with counsel to determine their rights.

Court of Appeals Limits Luxury Deregulation in J-51 Buildings.

admin — Thu, 22 Oct 2009 19:32:00 +0000

The Court of Appeals ruled today in Roberts v. Tishman Speyer that rent-stabilized apartments in buildings receiving J-51 tax benefits are not subject to luxury deregulation. This ruling will affect several groups of tenants. First, tenants who are presently in a luxury deregulation proceeding in a J-51 building will have direct and immediate benefit. Second, tenants whose apartments were already luxury deregulated and moved out of a J-51 building as a result may have claims based on the ruling. And third, those whose apartments have been luxury deregulated in a J-51 building and who have remained, now paying a rent likely well in excess of their rent-stabilized rent, may have substantial overcharge claims and a right to return to the pre-luxury-deregulation rent. As appears from the majority opinion’s final paragraph, the court left open issues concerning statutes of limitation, retroactivity and other issues. It is thus important to seek counsel promptly.