Last week, a federal judge ruled that Laurence Gluck did not illegally deregulate units at his 1,300-unit Independence Plaza apartment complex in TriBeCa "and therefore doesn't owe the federal government a refund for subsidies it sent him for tenants in a special housing assistance program," according to an article today at crainsnewyork.com by Theresa Agovino.

"The ruling contrasts with one made last summer by a state judge, who ruled that Mr. Gluck had illegally deregulated apartments by removing them from rent-regulation while accepting tax breaks known as J-51s. Last month, the debt on the three-building complex in TriBeCa was transferred to a special servicer to facilitate a deal to extend the mortgage," the article said.

"Stephen Meister, Mr. Gluck's lawyer, had filed a notice of appeal on last year's state verdict. He hopes that the federal judge's finding will help his client's case. However, Mr. Meister expects the federal government to appeal," the article said, adding that "a spokesperson for the U.S. Attorney's office declined to comment on the decision by the U.S. District Court for the Southern District of New York."

"The cases stem from Mr. Gluck's move in 2004 to take Independence Plaza out of the Mitchell-Lama Housing Program, which is for moderate income families, and to raise the rents to market rates. However, the federal government paid the difference between the lower rents and market rates for some building tenants. The government asked for the money back when the state judge ruled the apartments never should have been deregulated. Mr. Meister says the government never specified an amount," the article said.