NEW YORK CITY-A TriBeCa apartment complex that continued toreceive J-51 tax benefits in error for two years after leaving theMitchell-Lama program, but paid those benefitsback when the error was discovered, is not subject to New York'sRent Stabilization Law, a state appeals panel has ruled inreversing a lower court judge.

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

Justices Angela Mazzarelli and Nelson Roman concurred in theopinion by the four-judge panel. Justice Leland DeGrasse dissentedon one procedural point but otherwise also concurred.