187 East 4th Street, Manhattan. Image credit: CityLand

East Village landlord improperly deregulated luxury apartment while receiving a City J-51 tax benefit. Until 1999, apartment 5M at 187 East 4th Street in Manhattan’s East Village was a rent-stabilized unit with a rent of $1,464 per month. When the apartment became vacant the owner, 72A Realty Associates L.P., installed new windows, closets, cabinets, countertops and other improvements totaling over $18,000 in costs. Based on the improvements, the owner obtained a J-51 real property tax abatement. At the same time the owner raised the rent by 20 percent based on the vacancy, and added an additional 1/40th of improvement costs. These increases raised the rent above the $2,000 threshold for decontrolling the apartment. (read more…)