Unregulated Tenants in J-51 Building Can Sue for Rent Overcharge

July 31, 2010

LVT Number: #22818

Thirteen unregulated tenants sued landlord in State Supreme Court for rent overcharge. They claimed that, since 2001, landlord charged them market rents while collecting J-51 tax benefits. Tenants argued that, under the ruling of New York's highest court in Roberts v. Tishman Speyer Props LP, they were subject to rent stabilization. Landlord asked the court to dismiss the case, claiming that tenants should file their complaints with the DHCR, not the court, since the DHCR had more expertise on rent overcharge issues. The court ruled against landlord.

Thirteen unregulated tenants sued landlord in State Supreme Court for rent overcharge. They claimed that, since 2001, landlord charged them market rents while collecting J-51 tax benefits. Tenants argued that, under the ruling of New York's highest court in Roberts v. Tishman Speyer Props LP, they were subject to rent stabilization. Landlord asked the court to dismiss the case, claiming that tenants should file their complaints with the DHCR, not the court, since the DHCR had more expertise on rent overcharge issues. The court ruled against landlord. Tenants can sue landlord in court for damages based on rent overcharge. They didn't have to go to the DHCR.

Nezry v. Haven Avenue Owner LLC: NYLJ, 7/28/10, p. 26, col. 1 (Sup. Ct. NY; Edmead, J)

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