The Real Deal New York

Judge shuts down woman’s lucrative CPW Airbnb

The subsidized tenant was raking in $6,500 a month
December 27, 2014 03:00PM

A Manhattan judge has ordered a resident of the Brookford on Central Park West to remove her duplex from Airbnb immediately.

Noelle Penraat is accussed of “profiteering” from her government-subsidized, rent-controlled Central Park duplex, according to the New York Post.

Manhattan Supreme Court Justice Carol Edmead has now issued a temporary injunction against the woman, who was sued by her landlord in October.

Records show that Penraat made $61,000 off her rent-controlled Central Park duplex in just nine months.

Penraat’s “own records indicate that she has been profiteering from a rent-controlled apartment partially subsidized by another government program,” Edmead wrote.

Penraat, 62, benefits from the Senior Citizen Rent Increase Program that exempts her from rent increases because she supposedly makes less than $50,000 a year. Her rent is around $4,200 a month for the four-bedroom pad at 315 Central Park West. But she is making roughly $6,500 a month through Airbnb.

However, the recent crackdown on Airbnb users in the city is putting pressure on legitimate bed and breakfasts, with some being forced to close. [NYP]Christopher Cameron

  • running262

    about time!

    • JEng

      her lower rent for Central Park is about what the mayor is charging for his place in Brooklyn – how would he like it if the whole city went rent control including private homes like his – it’s not fair if only a few INTOLERATED greedy slumlords are heavily governed on tenant issues – let’s make NYC a paradise for renters.

      It’s only fair.

      At least end succession rights, we’ve already had two generations of my father’s murderers family in the building – we don’t deserve a third generation which is already visiting the building on a regular basis.

      Law enforcement did not tie their non deportation and informant status on their leaving us alone as the murder victim’s family.


    she is violating the rent control rules. they need to take the apartment back because she doesn’t need 4 bedrooms.

    • JEng

      that’s NYCHA rules – the government won’t let private owners have that – it doesn’t matter if they are in a 3 bedroom that they enter into at night to sleep and not cook in while having various condos in the area or removing a bedroom to make room for their ballroom dancing practice – if you don’t have deep enough pockets to take your chance in Housing Court when the judges ruled for sushi defense and airbnb tenants before knowing how heavily guarded tenants are by special interest groups who could hurt judges appointments, then you are out of luck.

      The press won’t report that you can pay less rent if you are willing to live in unhip areas. They only report on rents that are sky high just as they will not report on what the original rents were for tenants both commercial and residential who complain about rent hikes and demand further controls.

      The new tenant group – power action – something – they’re not even representing rent regulated units – it’s about immigrants in not yet regulated places like smaller homes. And they are heavy into pushing Albany and Albany sounds so scared of anything to do with race or tenants and that fear fuels organized crime – not because crime is a race issue – but seeing government afraid to govern – oh that’s a christmas present that they didn’t earn. They love it. They love what is happening to this city.

    • Lulu Baretire

      Like the Habermans really need another large CPW apartment sitting vacant for years? They already have a few:

  • Michael Andrew Graf Rasch

    This is why landlords hate rent control, the abuse that people do. Slowly, these people will be found, then removed from the system.

    • JEng

      only if the owner has deep enough pockets like Jared Kushner – sushi defense had to go to appeal as did that early Nolita airbnb tenant

      normal unprofitable rent regulated owners can’t afford attorneys anymore and it’s designed that way so they sell their buildings – that’s why they want more free legal representation for tenants in the courts – in a city with affordable rents requiring a commmute along with the other millions of NYers unregulated including cops – did anyone notice that the cops don’t get regulated housing but their killer had access to NYCHA? And this is after decades of blind eyes to nonprimary residency in NYCHA, correct?

      How is it possible that the gang situation grew in NYCHA resulting in the 100 arrested over the summer? How is that possible? Because no one wants to touch tenant issues in NYC.

      This is NOT Texas McMansions across the border from distressed Central America encouraging enemy governments to stir up One Percenter intolerance at cold hearted rich America prompting POTUS to do what he is doing about the illegal immigration tsunami – free healthcare, free college – wow, do descendants of slaves, get that?

      This is a city that is creaking along on an overburdened infrastructure and public transportation system while the news makes it seem that everyone is doing so well EXCEPT the poor tenants who are due a handout.

      If they can find a place to move into after fighting with their wife while still keeping their job, there is no affordable housing issue for working class immigrants – there’s just a lot of money to be made to make it a political issue.

  • Justina

    Sure, allow AirBnB, and pay taxes. Good way for the city to bring in more revenue. But, not if you are subsidized, you can’t have it both ways!

  • Rex Kenneth Bicknell

    The article was poorly researched by Cameron. NYS Rent Control law is: “a minimum rent for deregulation of an apartment to $2,500”. Her rent of $4200 per month is well above the $2500 so the apartment is not under rent contol or stabliztion.. A litttle compassion for the lady who has probably lived there who whole life and is struggling to stay. At 62 she maybe on SS which has a max of $2000/month, so short of getting a rich roommate Airbnb is her only resource.

  • UWS Rent Regulated Profiteer

    Just because the rent increases to $2,500 does not mean that apartment is decontrolled. The existing tenant has to make more than $200,000 for at least two years for a high-income decontrol. The politicians who keep moving the goal posts also don’t understand the rules and don’t realize how protected rent stabilized tenants on the UWS really are. But the tenants, their lawyers and the housing advocates know the rules and they abuses them. There are hundreds, if not thousands, of rent regulated tenants abusing the system every day (AirBnB, hiding their incomes, sham “successions”, etc.) This is why there is such an imbalance in the rental market in places like the UWS or most other neighborhoods in Manhattan. There are millions of apartments that are kept at artificially low rents with little turnover. Young professionals and students can’t live in these neighborhoods because the rents for newcomers are far too expensive. So they look for housing in other boroughs and eventually those neighborhoods become too expensive too. The housing advocates call it gentrification. But it’s not. These are not all rich, white preppy students forcing their way into the next cool neighborhood. It’s just the next generation of working class New Yorkers looking for nice place to live that they can afford on stagnating salaries and rising costs of living. They are of all races, ethnicities and socio-economic classes. The wealthy are actually staying on the Upper West Side, Upper East Side or the West Village because they can actually afford the free market rents that continue to increase because of a lack of supply and of housing choices that is completely correlated to the other half of the rental market with artificially low regulated rents and very, very little turnover. Older tenants in places like Crown Heights that are now fearful of rising rents and instability in their rental market should be thanking tenants like this one at 315 CPW for their predicament.

    • Lulu Baretire

      So if I understand you correctly, you are advocating for the abusive
      landlords who, if unable to force out rent-controlled tenants through
      constructive eviction (no maintenance, no services, no repairs, no
      acknowledgement of legit succession, etc.), go the route of pricey
      lawsuits against already impoverished and struggling senior citizens who
      are trying to stay in their homes. Rising rents and instability in the
      rental market has everything to with the landlords in the city, not the
      tenants. Duh…