Bronx landlord allegedly overcharged on rents despite scoring $3M in tax breaks

Building owner received an extra $92K in rents: lawsuit

New York /
May.May 25, 2017 01:30 PM

A Bronx landlord changed tenants as much as $500 more a month than was permitted under rent stabilization rules, despite scoring $3.2 million in tax breaks, a new lawsuit alleges.

Tenants represented by the Bronx Legal Services and New Settlement Apartments’ Community Action for Safe Apartments claim the owner of 1434 Ogden Avenue, SCS Realty LLC, received the tax breaks under the 421a program, DNAinfo reported.

They filed a lawsuit Manhattan Supreme Court Wednesday, arguing the landlord scored around $92,000 in extra rent. The building, completed in 2007, was meant to provide affordable housing to low-income and previously homeless people in exchange for the tax break. It is listed as rent-regulated by the city, according to DNAinfo.

Progressive Management lists the 130-unit building on its website. It has studios starting at $867 up to three-bedrooms starting at $1,292.

One resident, Fressali Santana, told DNAinfo she has been overcharged by at least $100 a month. “This city that we live in, everything is so expensive,” Fressali said. “You’re constantly thinking about rent. You don’t want to be evicted so you have to really budget yourself.”

The 421a tax abatement expired in 2016. Last month, state lawmakers voted to revive the break, which is now known as Affordable New York.  [DNAinfo]Miriam Hall


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