NEW YORK CITY-A TriBeCa apartment complex that continued to receive J-51 tax benefits in error for two years after leaving the Mitchell-Lama program, but paid those benefits back when the error was discovered, is not subject to New York’s Rent Stabilization Law, a state appeals panel has ruled in reversing a lower court judge.

The Appellate Division, First Department, in an April 3 opinion written by Justice David B. Saxe, ruled in Denza v. Independence Plaza Association, 117673/05, that the two years of J-51 benefits were granted to the complex, Independence Plaza North, only because of a mistake made by the New York City Department of Finance. The mistake had been corrected, and had no effect on the complex’s rent stabilization status, the panel said.

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