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Tenants

New York Attorney General Secures Agreement to Preserve Affordable Housing and Refund Overcharged Tenants

Strategic Insights

— 2 min read

New York Attorney General Letitia James today announced an agreement with a landlord and real estate management company to preserve affordable housing and secure refunds for rent-stabilized tenants who were overcharged. The investigation, initiated in May 2019, found that the landlord had illegally raised rents, used unproven apartment improvements as excuses for unlawful rent increases, and fraudulently provided tenants with unregulated leases. Under the terms of the agreement, the landlord will recalculate rent for 59 rent-stabilized tenants and provide refunds totaling tens of thousands of dollars.

Key Takeaways:

  • The agreement resolves an investigation into repeated violations of rent-stabilization laws at 560-568 Audubon Avenue in Manhattan and overcharging dozens of tenants in rent.
  • 560-568 Audubon Realty and its affiliates are required to properly recalculate the legal rents for 59 rent-stabilized tenants and issue refunds to tenants who were overcharged.
  • The investigation found that the landlord had been illegally raising rents, using unproven apartment improvements as excuses for unlawful rent increases, and fraudulently providing tenants with unregulated leases.
  • The companies were also allegedly registering non-existing tenants on annual registration statements submitted to the New York State Division of Housing and Community Renewal (DHCR).
  • The agreement requires the landlord to comply with all rent-stabilization laws, recalculate rent for rent-stabilized tenants, properly register stabilized units with DHCR, and provide refunds to tenants who were overcharged.
  • The case was handled by Senior Enforcement Counsel Rachel Hannaford and Housing Protection Unit Chief Brent Meltzer, with assistance from Research and Analytics Director Jonathan Werberg and Senior Data Analyst Akram Hasanov.

Statistics:

  • 59 rent-stabilized tenants were affected by the overcharging scheme.
  • Tens of thousands of dollars in refunds will be issued to tenants who were overcharged.
  • The investigation found that the landlord had been overcharging tenants since 2016.
  • The New York State Division of Housing and Community Renewal (DHCR) was allegedly deceived by the landlord's false registration statements.
  • The agreement requires the landlord to recalculate rent for 59 rent-stabilized tenants.

Sources:

  • [1] Office of the New York Attorney General, "New York Attorney General Announces Agreement to Preserve Affordable Housing and Refund Overcharged Tenants."
  • [2] U.S. Representative Adriano Espaillat, "Statement on Attorney General James' Ongoing Commitment to Preserve Affordable Housing."
  • [3] Manhattan Borough President Mark Levine, "Statement on Attorney General James' Agreement to Preserve Affordable Housing."
  • [4] State Senator Robert Jackson, "Statement on Attorney General James' Work in Bringing Justice to Working-Class Tenants."
  • [5] Council Member Carmen De La Rosa, "Statement on Attorney General James' Steadfast Commitment to Holding Predatory Landlords Accountable."
  • [6] Northern Manhattan Improvement Corporation (NMIC), "Statement on Attorney General James' Enforcement of Tenant Rights."

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