Connors v Kushner Cos., LLC

Holding The court affirmed the lower court’s determination that units subject to a temporary student housing exemption resumed rent-stabilized status upon the exemption’s expiration, but could be lawfully deregulated under the then-applicable luxury deregulation provisions if the legal regulated rent met the statutory threshold. The court held that the defendants failed to meet their burden of proof to establish that specific units were legally deregulated or substantially altered to qualify for a first stabilization rate.

The court’s words

Expiration of a temporary exemption is not a deregulating event.

2026 NY Slip Op 06092, at the official text

Division of Housing and Community Renewal Annual Apartment Registration statements are insufficient to meet the defendants' burden

2026 NY Slip Op 06092, at the official text

the defendants failed to provide evidence of the work performed, and therefore failed to establish that the outer dimensions were substantially altered

2026 NY Slip Op 06092, at the official text