Crown Heights Tenants Allege Landlord Illegally Deregulated Apartments
A group of Crown Heights tenants has filed a sweeping class‑action lawsuit accusing their landlord of illegally deregulating dozens of rent‑stabilized apartments by claiming high‑cost renovations that tenants say were never performed. The suit, brought by residents of 283–285 Albany Avenue, alleges that the landlord used fabricated Individual Apartment Improvements (IAIs) to justify dramatic rent hikes and push units out of stabilization.
According to the complaint, 52 of the building’s 53 units were rent‑stabilized in 2010. Today, only 20 remain. Tenants argue that the rapid loss of stabilized units was no accident but the result of a deliberate strategy to inflate rents beyond legal thresholds.
The lawsuit targets 283 Albany Equities LLC, a subsidiary of Shamco Management Corp., and claims the company reported renovation costs so high they would have required tens of thousands of dollars in work per unit — work tenants say is nowhere to be found.
One apartment’s legal rent jumped 186% in a single year, a spike that would have required more than $83,000 in improvements. Another unit’s rent rose to over $3,000 per month, which would have required nearly $93,000 in IAIs. Tenants say the apartments show no evidence of such extensive upgrades.
Roger A. Sachar, a partner at Newman Ferrara LLP and one of the attorneys representing the tenants, said the numbers speak for themselves.
“These rent increases simply don’t match reality,” Sachar said. “When you analyze the rent histories and compare them to the costs required to justify these jumps, the math doesn’t add up. It is highly unlikely anyone spent $90,000 renovating multiple units in this building.”
The Housing Rights Initiative (HRI), which investigated the building before the lawsuit was filed, said the alleged conduct goes beyond paperwork manipulation.
“Our investigation uncovered what appears to be a systematic and pervasive scheme to illegally overcharge tenants,” said Aaron Carr, HRI’s founder and executive director. “When a landlord overcharges a tenant, they’re not just taking money — they’re undermining that tenant’s ability to live.”
City records show the building currently has more than two dozen open housing violations, including missing smoke detectors, broken windows, leaks, and electrical hazards. Tenants say these conditions further undermine the landlord’s claims of extensive renovations.
Local elected officials have also weighed in. Council Member Crystal Hudson said the allegations reflect a broader pattern of abuse in rent‑regulated housing.
“Any landlord who preys on low‑income Black and brown tenants must be held accountable,” Hudson said. “I stand with the tenants of 283–285 Albany Avenue in their fight to recover thousands of dollars in illegal rent increases.”
The lawsuit seeks to restore rent‑stabilized status to improperly deregulated units, correct legal rents, and award damages for alleged overcharges. If successful, the case could become another high‑profile example of tenants using data‑driven analysis to challenge landlords’ deregulation tactics.
Sachar said the case fits a familiar pattern seen across the city.
“Landlords who manipulate the IAI system rely on tenants not knowing how the numbers work,” he said. “But when you break down the math, the truth becomes impossible to ignore.”
SOURCE:
“Crown Heights tenants sue landlord for allegedly de-stabilizing apartments after fake renovations,” Brooklyn Paper
https://www.brooklynpaper.com/crown-heights-tenants-sue-landlord-rents