Landlords file suit over new tenant protection agency

Say rent watchdog enforcing regulations that lack standards or a specific appeals process

New York /
Feb.February 25, 2014 05:30 PM

A group of landlords have brought a case to the Brooklyn courts that challenges the legitimacy of recent changes to rent regulations.

Two building owners and three landlord groups filed a lawsuit with the state Supreme Court in Brooklyn that accuses the city of installing a regulatory agency to investigate landlords without mandating that agents follow any standards, procedures or appeals process. The agency, known as the Tenant Protection Unit, was created by Governor Andrew Cuomo. The unit is in charge of conducting regular audits of individual rent increase. It also has the power to subpoena and investigate landlords, according to the Wall Street Journal.

“The agency has been given the responsibility for enforcing the rent laws,” said Ellen Davidson, a staff attorney at the Legal Aid Society, to the Journal. “If enforcing the law has the effect of frightening landlords — that says something about their practices.”

The plaintiffs, which also include the Community Housing Improvement Program and the Small Property Owners of New York, claim new regulations violate the statute of limitations on rent increase challenges, as well. [WSJ] Angela Hunt


Related Articles

arrow_forward_ios
Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)
Owners of some residential properties can’t hide behind LLCs anymore
Owners of some residential properties can’t hide behind LLCs anymore
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Gary LaBarbera now leads the New York City and New York State councils. (Getty)
Gary LaBarbera quietly takes helm of building trades statewide
Gary LaBarbera quietly takes helm of building trades statewide
House of Yes in Brooklyn (Getty)
New York’s venues operators say reopening isn’t “financially viable”
New York’s venues operators say reopening isn’t “financially viable”
A rendering of 85 Jay Street and RXR Realty CEO Scott Rechler (Winick, Getty)
RXR makes $220M apartment bet in Brooklyn
RXR makes $220M apartment bet in Brooklyn
(iStock)
Brooklyn, Manhattan rental markets “beginning to pivot”
Brooklyn, Manhattan rental markets “beginning to pivot”
All in all, the $212 billion budget is a mixed bag for the industry. (Getty/Illustration by Kevin Rebong for The Real Deal)
Real estate’s wins and losses in new state budget
Real estate’s wins and losses in new state budget
arrow_forward_ios

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

Loading...