Two New York City landlords rented apartments at market rate that should have been rent-stabilized, according to a pair of lawsuits the New York attorney general\u2019s office filed Tuesday.<\/p>\n
Attorney General Letitia James accused property owners John Anderson and Claudette Henry of failing to register units in two Brooklyn buildings as rent-stabilized and trying to illegally evict tenants from their homes. Her office is asking the court to order that the apartments be returned to rent stabilization and that all tenants who were overcharged receive refunds with interest.<\/p>\n
The attorney general is also seeking civil penalties for the alleged violations.<\/p>\n
The issue at the center of the lawsuits is \u201cde facto\u201d rent stabilization, which applies to buildings that did not initially qualify for rent stabilization because they had too few units, but that now meet the parameters because more units were added. The civil suits are the first of their kind filed through a new program in the attorney general\u2019s office to enforce compliance with \u201cde facto\u201d rent stabilization.<\/p>\n
\u201cRent stabilization and tenant protection laws help keep working New Yorkers throughout our city in homes they can afford,\u201d James said in a statement. \u201cMy office will not shy away from taking immediate action against any landlord who fails to follow the law and attempts to overcharge or illegally evict tenants. Our housing laws are clear, and any landlord who violates them will be held accountable.\u201d<\/p>\n
Anderson and Henry could not immediately be reached for comment.<\/p>\n
About 1 million units across New York City are rent-stabilized, which means that the rent can only increase by a certain amount, approved by a board<\/a>, and tenants have special protections from evictions.<\/p>\n Apartment buildings constructed before 1974 that initially have five or fewer units typically don\u2019t qualify for rent stabilization. But if more units were added at any point, they become \u201cde facto\u201d rent-stabilized, even if units were later removed, according to the attorney general\u2019s office.<\/p>\n The attorney general\u2019s office said its new compliance program sent letters to more than 50 landlords across the five boroughs who owned buildings that New York State Division of Housing and Community Renewal found were \u201cde facto\u201d rent stabilized, but that had not been registered with the agency. More than 20 landlords have complied so far, but not Anderson and Henry, the office said.<\/p>\n Anderson owns 1075 Dean St., a Crown Heights building that officials determined to be covered by New York\u2019s rent stabilization laws in 2016. But he failed to register any apartments in the building with state housing officials, which means the information was hidden from current and prospective tenants, according to the lawsuit.<\/p>\n Anderson also failed to pay an annual fee for rent-stabilized units. The attorney general\u2019s office said it gave the landlord several opportunities to comply with the law, including sending three letters in the mail and physically delivering one to his home, but that he has refused to do so.<\/p>\n The building faces 116 open violations<\/a> for roach and mouse infestations, broken doors and other issues, according to data from the New York City Department of Housing Preservation and Development. Several tenants and city officials have also sued Anderson, accusing him of hazardous conditions or tenant harassment.<\/p>\n At least one tenant said Anderson harassed her by cutting off her gas, water and electricity in retaliation for seeking a rent-stabilized lease, according to the attorney general\u2019s lawsuit.<\/p>\n Henry owns 134 Sackman St. in Ocean Hill, which state judges found to be covered by rent stabilization laws in 2017. Like Anderson, Henry did not register any apartments in the building with housing officials, keeping tenants in the dark about their rent-stabilized status, the attorney general\u2019s office said in its lawsuit.<\/p>\n Henry has also failed to pay annual fees for the units. After receiving multiple letters by mail and in person, the property owner refused to comply with the rent stabilization law, the lawsuit said.<\/p>\n Henry is ranked eighth on the public advocate\u2019s annual list of worst New York City landlords<\/a>, based on the number of open violations in her buildings. Henry\u2019s buildings had more than 1,700 open violations between November 2024 and October 2025, according to the list.<\/p>\n As of late last month, city housing officials had documented 38 open violations at 134 Sackman Street, according to the lawsuit.<\/p>\n The attorney general\u2019s office is also accusing Henry of attempting to illegally evict tenants without informing them that they lived in a rent-stabilized building.<\/p>\n