Property Management
In New York City, a landlord who 'warehouses' apartments (keeps stabilized units vacant rather than renting them to avoid rent regulation) may face:
AA bonus tax credit for preserving housing stock
BPotential enforcement action under NYC housing laws and possible loss of tax benefits✓ Correct
CNo legal consequences because landlords may choose when to rent units
DA DHCR order to reduce rents in all other units in the building
Explanation
Warehousing apartments (deliberately keeping stabilized units vacant to avoid rent regulation or in anticipation of deregulation) violates the spirit of rent stabilization and may expose landlords to enforcement actions under NYC housing codes (such as HPD actions for failure to maintain habitable conditions), loss of tax benefits (like J-51 or 421-a), and scrutiny by DHCR. NYC has taken steps to discourage this practice.
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