John Kuzmich v. 50 Murray Street Acquisition, LLC, William T. West v. B.C.R.E. - 90 West Street, LLC
The New York Court of Appeals addressed whether apartments in buildings receiving tax benefits under Real Property Tax Law (RPTL) § 421-g are subject to the luxury deregulation provisions of the Rent Stabilization Law (RSL). The Court concluded that they are not, reversing the Appellate Division's decisions in two consolidated cases, John Kuzmich, et al. v. 50 Murray Street Acquisition LLC, and William T. West, et al. v. B.C.R.E. - 90 West Street, LLC, et al. The ruling hinged on the interpretation of RPTL 421-g (6), particularly its "notwithstanding" clause, which the Court found unambiguously subjects such units to full rent control, overriding conflicting RSL provisions for luxury deregulation during the benefit period. The Court rejected arguments from the defendants and the dissenting opinion that legislative intent and the lack of an explicit exemption in the RSL for 421-g buildings indicated the applicability of luxury decontrol. This decision ensures that apartments in buildings receiving 421-g benefits remain subject to rent stabilization protections.