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    Home»Real Estate News»NY AG Sues Owners in Rent Stabilization Compliance Crackdown

    NY AG Sues Owners in Rent Stabilization Compliance Crackdown

    Team_WorldEstateUSABy Team_WorldEstateUSAJune 17, 2026No Comments3 Mins Read
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    Two Brooklyn landlords are the primary to face litigation beneath a hire stabilization compliance crackdown by Legal professional Basic Letitia James, after New York State filed lawsuits alleging they did not correctly register regulated items, tried unlawful evictions and harassed tenants.

    The legal professional common’s workplace introduced the fits as a part of a de facto hire stabilization compliance program, which seeks to implement a 1974 regulation that categorizes buildings with 5 or fewer items constructed earlier than that yr to change into stabilized if the constructing was altered to have six or extra items. This system has prevented 26 evictions and returned 91 items to hire stabilization since its Might 2025 launch, in line with the AG’s workplace.

    “Lease stabilization and tenant safety legal guidelines assist preserve working New Yorkers all through our metropolis in houses they’ll afford,” James stated in an announcement. “My workplace is not going to draw back from taking instant motion in opposition to any landlord who fails to comply with the regulation and makes an attempt to overcharge or illegally evict tenants.”

    Greater than 50 landlords throughout New York Metropolis obtained letters notifying them that their buildings had been discovered to be de facto rent-stabilized, however hadn’t been correctly registered, offering a possibility to show exemption or adjust to relevant legal guidelines. 

    The lawsuits mark a brand new step past the AG’s preliminary enforcement push, going after alleged compliance failures by Brooklyn landlords John Anderson at 1075 Dean Road and Claudette Henry at 134 Sackman Road.

    Anderson allegedly failed to offer rent-stabilized leases to all of his tenants for 10 years after being notified in 2016 that his constructing was rent-stabilized. He additionally allegedly despatched a good friend to impersonate him in courtroom and denied his constructing’s regulated standing on a Division of Buildings utility. A 1075 Dean Road tenant additionally reported that Anderson harassed her and retaliated by chopping off fuel, water and electrical energy to her unit after she requested for a rent-stabilized lease, in line with the lawsuit.

    Henry allegedly did not register her constructing at 134 Sackman Road, which she purchased in 2004, whereas making an attempt to illegally evict tenants. The legal professional common’s workplace allegedly contacted Henry in 2025, demanding she adjust to hire stabilization legal guidelines and register her items accordingly, however she didn’t reply. 

    Each lawsuits search to compel the landlords to register their buildings as rent-stabilized and supply correct leases to tenants, with restitution for each eligible tenant equal to the quantity of hire overcharges, plus 9 % curiosity. The fits additionally search civil penalties of $2,000 to $10,000 for every lawful occupant who confronted harassment, in addition to $500 per unit for every month it was unregistered with New York State Houses and Neighborhood Renewal.

    Learn extra

    AG turns up pressure on Brooklyn condo sponsors over alleged fund misuse


    Rent-stabilized landlord settles another case for $6.5M






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