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J-51 Question

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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J-51 Question

Postby bluegrasslady » Mon Jan 30, 2023 6:06 pm

Hello all,

I live in a 59-unit building containing rent-stabilized, rent controlled and market rate apartments. I live in a RS unit. Recently our rent bills have included a surcharge called "J51." I thought that J-51s were tax breaks that landlords receive. Why would the landlord be charging tenants for them?

It's only $1.58 per month but it strikes me as weird. Am I wrong?

Thanks for any enlightening info.
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Re: J-51 Question

Postby TenantNet » Mon Jan 30, 2023 6:21 pm

I'm trying to research this, but have you asked the LL for an explanation? Ask for a citation of the law that allows this. Are all other tenants getting this as well, including the RC and unregulated tenants?

When was the building constructed? Were all the RS units RS prior to the J51? If so, they would continue to be RS. Some buildings have units that are RS only because of the J51 and RS for those units would expire. Here's one source: https://hcr.ny.gov/system/files/documen ... 7-2022.pdf

But that doesn't explain the surcharge.
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Re: J-51 Question

Postby bluegrasslady » Mon Jan 30, 2023 6:34 pm

Hi TenantNet,

TYSM for the quick reply!

I didn't talk to the LL yet because I wanted to ask here first if anyone had ever heard of charging tenants for "J51."

Not sure about the RC and unregulated tenants being charged, but yes to RS.

The building was erected in the late 1930's so AFAIA all RS units were definitely RS prior to the J51 (having changed from RC to RS once the original tenant died/moved).

I will email and call the LL to ask for an explanation but that may be an exercise in futility. If I hear anything back I'll post it here.

I thought the tenants were supposed to get a DISCOUNT because of J-51's, not an increase, but it's been years since I had my head in Landlord-Tenant war land.
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Re: J-51 Question

Postby TenantNet » Mon Jan 30, 2023 6:38 pm

As a follow-up, we heard from a tenant attorney, who says:

No such thing. Is the tenant sure this is not a 421-a building where "phase in" surcharges are specifically permitted pursuant to a 2.2% rider. I have had people come to me and demand I sue on a J-51 building overcharge claim when they lived in a 421-a building before.


So check if it's really a 421-a situation and/or ask the LL for a written explanation. If the situation warrants, you can file an overcharge complaint with DHCR, or just withhold it from the rent (but document everything, keep copies of everything).
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Re: J-51 Question

Postby bluegrasslady » Mon Jan 30, 2023 6:51 pm

Hmm. I'm absolutely positive that the landlord did get J-51's for at least one or two MCI's that we organized around and fought many years ago (looked up all that at the time).

I'm not aware of any 421-a and I don't think they would have been eligible for a 421-a, because the building was definitely built before 1974. The handy link you included in your reply says "Many buildings built since 1974, which ordinarily would not be subject to rent regulation, have been placed under rent regulation only because the building owner chose to receive 421-a tax benefits." If all 421-a benefits could only be obtained for buildings erected after 1974, then our guy would not have been eligible to receive them. Our building is definitely from the late 1930's.

However, these people can be very disorganized and it wouldn't surprise me at all if their billers were directed to give tenants a discount but instead added a surcharge.

I tried calling. No voicemail -- line rang 15 x and just went dead (they've been pretty out of it since COVID). I'll email the owner (who "loves" me and might answer).

Thank you again Tenant Net!!
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Re: J-51 Question

Postby TenantNet » Mon Jan 30, 2023 7:15 pm

Get something in writing from the LL and then that will let you research whether it's valid or not.
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Re: J-51 Question

Postby bluegrasslady » Mon Jan 30, 2023 8:03 pm

Wrote him and one of his minions will respond, probably tomorrow. Will keep you posted. Thanks so much again, TN!!
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