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

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

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
From left: Robert Mercer with 48-05 Metropolitan Avenue and Gary Barnett with 17 West 60th Street (Getty, Google Maps, Bulado General Contractors Corp)
$730M loan bundle funds slew of NYC projects
$730M loan bundle funds slew of NYC projects
Moishe Mana, Eugene Lemay and the Mana Contemporary (Getty, Wikimedia)
Moishe Mana employee indicted in $7.8M tax avoidance scheme
Moishe Mana employee indicted in $7.8M tax avoidance scheme
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Ministerial privilege: Would Tony Blair’s transfer tax loophole work in the US?
Startup wants to demystify real estate tax breaks
Startup wants to demystify real estate tax breaks
Startup wants to demystify real estate tax breaks
First Metaverse REIT could hit public exchange within a year
First Metaverse REIT could hit public exchange within a year
First Metaverse REIT could hit public exchange within a year
The agency is challenging $21 billion in deductions over a three-year period (Getty)
IRS probes promoters of tax-deductible property easements
IRS probes promoters of tax-deductible property easements
Photo Illustration of Donald Trump (Illustration by Kevin Rebong for The Real Deal)
Treasury Department must give Trump’s tax returns to Congress: DOJ
Treasury Department must give Trump’s tax returns to Congress: DOJ
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
Pandemic could cut assessed property values by 10%
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...