A group of Crown Heights tenants has launched a sweeping class‑action lawsuit alleging that their landlord engineered an illegal campaign to deregulate rent‑stabilized apartments by claiming tens of thousands of dollars in renovations that tenants say never happened.
The case centers on 283–285 Albany Avenue, a pair of buildings where rent‑stabilized units have quietly vanished over the past decade. In 2010, 52 of the 53 apartments were stabilized. Today, tenants say only 20 remain — a drop they argue is no coincidence.
According to the lawsuit, the landlord, 283 Albany Equities LLC, a Shamco Management subsidiary, reported extraordinarily high Individual Apartment Improvement (IAI) costs to justify steep rent increases. But tenants say the apartments themselves tell a different story: no new kitchens, no gut rehabs, no visible work that could possibly account for the price tags the landlord submitted.
One unit’s legal rent soared by 186% in a single year — a jump that would have required more than $83,000 in improvements. Another apartment’s rent rose above $3,000 per month, which would have required nearly $93,000 in IAIs. Tenants say neither apartment shows evidence of anything close to that level of investment.
“The math doesn’t lie — and it doesn’t support the landlord’s story.”
Roger A. Sachar, a partner at Newman Ferrara LLP and one of the attorneys representing the tenants, said the numbers alone raise serious questions.
“These rent increases simply don’t match reality,” Sachar said. “When you break down the rent histories and compare them to the renovation costs required by law, the math doesn’t add up. It is highly unlikely anyone spent $90,000 renovating multiple units in this building.”
Sachar noted that the pattern mirrors other cases across the city, where landlords allegedly used inflated IAI claims to push stabilized units out of regulation.
Housing Watchdog: “A pervasive scheme to overcharge tenants.”
The Housing Rights Initiative (HRI), which conducted a months‑long investigation before the lawsuit was filed, said the allegations reflect a broader trend in New York’s rent‑regulated housing market.
“Our investigation uncovered what appears to be a systematic and pervasive scheme to illegally overcharge tenants,” said Aaron Carr, HRI’s founder and executive director. “When a landlord overcharges a tenant, they’re not just taking money — they’re undermining that tenant’s ability to live.”
City records show the building currently has more than two dozen open housing violations, including missing smoke detectors, leaks, broken windows, and electrical hazards — conditions tenants say contradict any claim of recent high‑end renovations.
Local Officials: “This is part of a larger pattern.”
Council Member Crystal Hudson, who represents the district, said the allegations reflect a familiar pattern of abuse in rent‑regulated housing.
“Any landlord who preys on low‑income Black and brown tenants must be held accountable,” Hudson said. “I stand with the tenants of 283–285 Albany Avenue in their fight to recover thousands of dollars in illegal rent increases.”
What the Tenants Seek
The lawsuit asks the court to:
- Restore rent‑stabilized status to units that were allegedly deregulated illegally
- Correct the legal rents for affected apartments
- Award damages for overcharges
- Require the landlord to issue proper stabilized leases
If successful, the case could become another high‑profile example of tenants using data‑driven analysis to challenge deregulation tactics that have quietly reshaped New York’s housing landscape.
Sachar said the case is ultimately about transparency — and accountability.
“Landlords who manipulate the IAI system rely on tenants not knowing how the numbers work,” he said. “But once you run the calculations, the truth becomes impossible to ignore.”
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SOURCE:
“Crown Heights tenants sue landlord for allegedly de-stabilizing apartments after fake renovations,” Brooklyn Paper
https://www.brooklynpaper.com/crown-heights-tenants-sue-landlord-rents