Governor Andrew Cuomo today sent a message through example to developers of the thousands of rental units units recently completed or under construction in Downtown Brooklyn: Charge the right rent or risk heavy fines.
That after of Cuomo announced that more than $250,000 in rent credits has been returned to tenants who were unknowingly overcharged at “The Brooklyner,” 111 Lawrence Street in downtown Brooklyn. The residential building was one of the first to go up under the massive 2004 Downtown Brooklyn rezoning, which paved the way for the growing Brooklyn skyline with thousands of units of housing – many of which were developed with subsidies for affordable housing and rent regulated components.
“This administration has zero tolerance for those who prey on renters and we created the Tenant Protection Unit (TPU) to root out these bad actors, tackle tenant harassment and ensure their rights under the law are not violated,” Cuomo said. “This recovery of rent overcharges is the latest example of the TPU’s success in cracking down on these unscrupulous practices, and we will continue working to ensure that all New Yorkers have a safe, decent and affordable place to call home.”
The TPU flagged the Brooklyner’s registrations for the rent regulated building as being unusually high, and completed an audit that found unlawful rents and overcharges for 60 tenants, some dating back four years.
Under the terms of an agreement with the owner, the TPU successfully negotiated the credits for the tenants, recouping their overpayments.
The TPU found that the owners of the building, Equity Residential, received tax benefits under the 421-a program, requiring apartments to be subject to regulation. In this case, the building’s owner began registering legal regulated rents above the amount allowed under the Rent Stabilization Law and Code.
The settlement agreement was hailed by several Brooklyn lawmakers.
“I applaud Governor Cuomo’s Tenant Protection Unit for their dutiful investigation that has resulted in 250,000 being returned to the 60 tenants at 111 Lawrence Street in Downtown Brooklyn. This is a clear message to building owners in our state who are receiving tax benefits: The law must be obeyed,” said Brooklyn Borough President Eric Adams.
“Every New Yorker deserves a safe place to raise healthy children and families, and the unlawful overcharging of rent cannot and will not be permitted to be an obstacle to that aim. I will continue to pursue all avenues to advance the welfare of tenants in our borough, particularly those being abuse or harassed by unscrupulous landlords,” he added.
State Sen. Velmanette Montgomery said the overcharge return is great news for tenants and that rent regulated apartments are vital to Brooklyn residents at a time when affordable housing is increasingly difficult to find.
“When we find tenants being taken advantage of, action must be swift. Thanks to the work of the Governor’s Tenant Protection Unit, this is another win in our continuing battle to make sure that owners are properly abiding by New York’s rent regulations, designed to protect tenants from unreasonable rents and rent increases,” said Montgomery.
Assemblymember Jo Anne Simon said it is imperative that owners who receive tax benefits under the 421-a program understand and comply with their obligations under the Rent Stabilization Law.
City Council Member Stephen Levin said, “The TPU plays a vital role in enforcing the Rent Laws in Brooklyn and throughout the city – a protection more necessary than ever in the midst of our housing affordability crisis.”
