Herrick is assessing court ruling in Stuyvesant Town/Peter Cooper Village rent stabilization case

October 22, 2009Real Estate Alert

In the closely watched Stuyvesant Town case, New York's highest court ruled that buildings enrolled in the J-51 tax abatement program are not subject to the rent stabilization law's luxury decontrol provisions. Thousands of buildings are enrolled in the J-51 program, which grants benefits based on the performance of capital improvements. The ruling upsets a decade-old assumption, supported by interpretations issued by the state agency charged with administering rent stabilization, that enrollment in the J-51 program does not preclude deregulation. Herrick is considering the myriad implications of the decision -- which raises as many questions as it answers -- and how best to protect our clients from its consequences.