A New York judge ruled in favor of a landlord by denying a Manhattan couple's request for a rent rollback. They claimed that their apartment had been illegally deregulated, and that their $7,250 a month penthouse apartment was still subject to rent stabilization law. The case was being watched closely by advocates for both tenants and landlords because the landlord was receiving a tax abatement from a program designed to encourage the conversion of from office space into residential space.
In the decision dated last week, Justice Shlomo Hagler of New York County Supreme Court ruled that the landlord had property deregulated the unit at 85 John Street because the luxury threshold had been breached. For landlords with residential buildings in Lower Manhattan that have been converted from office space, the decision means that the likelihood of a rent challenge on a similar issue has drastically been reduced.
The Wall Street Journal has more.