(DNAINFO) Gustavo Solis and Danielle Barnes | October 23, 2017 — A Harlem landlord enjoyed nearly $100,000 in tax breaks under a city housing program despite illegally deregulating the majority of rent-stabilized apartments in his building, according to a class action lawsuit filed by tenants Wednesday.

The building, 746 St. Nicholas Ave., is part of the city’s J-51 program, which gives landlords tax breaks for renovating buildings as long as all residential units on the property are rent stabilized.

Since 2007, the city has given the landlord, 746 Realty Corporation, $94,984 in J-51 tax breaks, records show. However, 59 of the units have been deregulated, making the property ineligible for the subsidy, according to the lawsuit.

“I’m sure it happens all over New York but I’m surprised that they were able to get away with it for so long because it was so obvious,” said Max Mulready, who has lived in the building for four years.

It wasn’t a city or state agency that uncovered the alleged fraud. An investigation by the nonprofit, the Housing Rights Initiative found that the majority of the building’s 91 units was not rent stabilized, said the nonprofit’s director Aaron Carr.

Source: City Didn’t Police Tax Breaks Landlord Got for Deregulating Apts.: Lawsuit – Central Harlem – New York – DNAinfo