Crown Heights Tenants Sue Landlord Alleging De-Stabilization

"In 2010, 52 of the 53 units at 283-295 Albany Avenue were rent-stabilized, tax records show. As of early 2025, the building, which was constructed in 1941, had just 20 rent-stabilized apartments left. Some tenants believe the landlord falsely told the state they had made major improvements to their units in order to raise rents above deregulation thresholds. In a class action lawsuit filed on Thursday, 13 residents demand that their landlord, 283 Albany Equities LLC, restore the legal rents and refund them significant rent overcharges."

"In New York City, most apartment buildings constructed before 1974 with six or more units are subject to rent stabilization. In those buildings, landlords can only increase the rent by a certain percentage - which is determined by the city's Rent Guidelines Board - each year. Landlords are allowed to increase rents if they perform certain improvement projects on the building - Individual Apartment Increases or Major Capital Improvements. Until 2019, if rent in a stabilized unit rose above $2,700, the apartment could legally be removed from stabilization."

""The biggest type of rent increase is what's known as an Individual Apartment Increase. IAIs, we call them" said Roger A. Sachar, one of the lawyers representing the 283 Albany Avenue tenants. Improvements like new appliances and flooring or upgrades to bathrooms and kitchens usually qualify as IAIs, painting or refinishing floors or painting the wall usually don't. Under current state law, different IAIs allow for different rent increases."

A group of Crown Heights tenants filed a class action lawsuit against 283 Albany Equities LLC, alleging illegal destabilization of rent-stabilized apartments and rent hikes. In 2010, 52 of 53 units at 283-295 Albany Avenue were rent-stabilized, but by early 2025 only 20 remained. Tenants claim the landlord falsely reported major improvements to units to push rents above deregulation thresholds. New York City rent stabilization generally applies to buildings built before 1974 with six or more units, limiting annual rent increases. Landlords may raise rents through Individual Apartment Increases or Major Capital Improvements, with different improvement types allowing different rent increases. Tenants seek restoration of legal rents and refunds for overcharges.

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