Major NYC Landlord Targeted In Lawsuit Alleging Rent Overcharges For Rent-Stabilized Tenants, Violating Terms Of Local Property Tax Abatements
- Larry Gluck’s Stellar Management is facing a lawsuit for allegedly overcharging dozens of rent-stabilized tenants, violating the terms of property tax abatements the company receives from the city.
Fifty-nine tenants from more than a dozen of Stellar’s buildings say the landlord abused the J-51 tax abatement, a city subsidy for multifamily properties that requires landlords to keep apartments in the rent-stabilization program, the Wall Street Journal reported.
The action against Stellar in New York State Supreme Court came together following an investigation by the Housing Rights Initiative ["HRI"],(1) a nonprofit that’s inspired similar actions against New York City landlords receiving J-51, such as A&E Real Estate Holdings. It also comes in the wake of a mildly successful initiative by Gov. Cuomo to crack down on landlords who flouted J-51 regulations.
***According to the HRI’s Aaron Carr, Gluck filed 3,900 eviction cases against tenants between 2013 and 2015 alone.
See also, A group of about 60 apartment residents contends in a lawsuit filed in Manhattan that Stellar Management illegally overcharged them.
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