A Manhattan developer will pay $1.2 million to New York City due to the loss of five rent-stabilized apartments on the city's Upper West Side, said New York Attorney General Eric Schneiderman.
Schneiderman made the announcement on Tuesday that some of the property was deregulated through buyout agreements that were against the law. As a result the deal, struck with Margaret Stricker Porres along with 101 West 78th LLC and New Castle Realty Services LLC, will provide two years of rent payments to tenants that have remained in the building.
Schneiderman said the settlement ends a Martin Act investigation, and will ensure that those living on West 78th Street won't be forced out by the planned condo conversion.
“This settlement puts condominium developers on notice that the rights of tenants will – and must – be protected,” Schneiderman said. “As housing prices rise across New York, more and more properties are being converted from modest residential rentals to luxury condominiums. My office will continue to hold real estate developers accountable if they disregard the law in search of profits.”
The investigation revealed that Streicker Porres intended to combine some units into 24 luxury apartments, which violates the state's Martin Act, Schneiderman said. The law allows for current tenants of apartments to have the right to buy units if they are being converted to condominiums.
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