Chelsea tenants OK’d to proceed in rent hike class action

Ruling involved a reading of the landmark Stuy Town J-51 decision

TRD New York /
Sep.September 11, 2013 06:14 PM

Tenants of London Terrace Gardens, a 921-unit rental building in Chelsea, can proceed with a lawsuit alleging illegal rent hikes related to a tax abatement program as a class action, a judge ruled.

The case involved the same issues at the heart of the Stuyvesant Town-Peter Cooper Village case, where tenants claimed that then landlords Tishman Speyer and MetLife had deregulated apartments while taking tax breaks for apartment improvements, known as the J-51 program. An appeals court found in 2009 that this was illegal.

The landlord of London Terrace Gardens, at 435 West 23rd Street, said it relied on a determination from the Department of Housing and Community Renewal, which administers rent-control issues under J-51, that preceded the Stuy Town decision.

The judge was not persuaded, however, saying the decision applies retroactively.

“Defendant was not deprived of fair notice because it relied on DHCR’s faulty interpretation of a current statute, the plain text of which was readily available for defendant to read and interpret for itself,” the judge said.

Attorneys involved in the case did not immediately respond to Law360’s requests for comment. [Law360]Julie Strickland


Related Articles

arrow_forward_ios
State Senator Julia Salazar and Assemblymember Harvey Epstein (Credit: Getty Images)

Pols take aim at private equity with plan to tax mezz debt

Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

Trump’s Opportunity Zone program is under investigation

Staten Island City Councilman Joe Borelli and City Council Speaker Corey Johnson (Credit: Getty Images)

Gentrification tax? Pols pitch fix for “completely screwed” system

Rep. Alexandria Ocasio-Cortez and Governor Andrew Cuomo (Credit: Getty Images)

House votes to lift SALT deduction cap — but don’t celebrate

(Credit: iStock)

What’s wrong with J-51? Plenty, landlord reps say

Senator Brad Hoylman and Billionaires' Row (Credit: StreetEasy, NY Senate)

Pied-à-terre tax to make a return in Albany, lawmakers say

From left: New York Governor Andrew Cuomo, New York State senator James Sanders Jr., and New York City Mayor Bill de Blasio (Credit: Getty Images, iStock, and NY Senate)

“This program will either be a boom or a bust:” State senator has plans to redesign Opportunity Zones

212 Fifth Avenue and Jeff Bezos (Credit: StreetEasy and Getty Images)

June was the best month ever for New York’s luxury market. July is another story.

arrow_forward_ios
Loading...