Stuy Town case leads to victory in Bronx

January 05, 2010 05:59PM

A Starrett subsidiary got a rude shock last month after the New York State Supreme Court ruled that it had improperly de-regulated rents at a stabilized South Bronx building at 1600 Sedgwick Avenue, Crain’s reported. The ruling against the landlord, Riverview Development, and subsequent injunction to halt the eviction of those tenants who refused to pay higher rates, was based in part on the precedent set in the Stuyvesant Town and Peter Cooper Village case, which found that developer Tishman Speyer and BlackRock Realty had illegally deregulated rents there while taking government tax breaks. In the court filing, the judge cited the Stuy Town case as an influence, noting in this instance that “once defendants prepaid their mortgage it appears that they ceased to be subject to the regulations attendant to that mortgage… [while still] benefiting from the J-51 tax abatement program.”


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