ALBANY, N.Y. (Legal Newsline) — The state of New York has reached a settlement with two previous New York City cooperative corporations over charges they avoided the state's rent stabilization laws by operating their buildings as "for-profit rental buildings."
According to the New York Attorney General's Office, co-op president Labe Twerski used his buildings near Central Park and in Washington Heights as rental buildings that denied tenants of "rent-stabilized" leases and affordable rent. New York laws require most apartments in co-ops to provide home ownership opportunities, the Attorney General's Office said.
After converting his properties in the 1980s from residential to co-ops, Twerski no longer sold shares to homebuyers, reacquired the previously sold shares and rented his apartments at "market rate," according to the Attorney General's Office.
“My office is dedicated to preserving and promoting access to affordable, rent-stabilized housing for the people of New York,” New York Attorney General Letitia James said in a statement. “Landlords should be on notice that they cannot circumvent our state’s rent stabilization laws through the use of sham co-ops. We will always crack down on landlord greed and protect the rights of tenants.”
Under the settlement, the apartments in the buildings will be re-registered with the state's Division of Housing and Community Renewal, and all tenants will be able to get rent-stabilized leases, according to James' office.