Independent 435 CPW Tenants' Assn. v. Park Front Apts., LLC, 2025 NY Slip Op 01716 (2025)

Citation: Independent 435 CPW Tenants' Assn. v. Park Front Apts., LLC, 2025 NY Slip Op 01716 (2025)
Parent Document: Independent 435 CPW Tenants' Assn. v. Park Front Apts., LLC, 2025 NY Slip Op 01716 (2025)
Jurisdiction: New York (state)
Effective Date: 2025-03-20
Original Source: https://www.courtlistener.com/opinion/10360824/independent-435-cpw-tenants-as... ↗

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In this action, plaintiffs seek declarations that their apartments are subject to rent stabilization and, further, bring claims for nonfraud overcharges predating the Housing Stability and Tenant Protection Act (HSTPA). As relevant here, the owner of the building previously received guidance from both the New York State Division of Housing and Community Renewal (DHCR) and the United States Department of Housing and Urban Development (HUD) indicating that federal regulation of the building would preempt the New York Rent Stabilization Law (RSL) (Administrative Code of City of NY § 26-501 et seq.) and Rent Stabilization Code (RSC) (9 NYCRR § 2520 et seq.) until at least April 1, 2026 (see 435 Cent. Park W. Tenant Assn. v Park Front Apts., LLC, 164 AD3d 411, 413 [1st Dept 2018]). On August 2, 2018, in a related action this Court held that the building would no longer be subject to rent stabilization as of April 12, 2011, when the original HUD loan matured (id. at 414). In deciding a subsequent appeal in the related action, this Court found "sufficient evidence to raise an issue of fact of whether defendant," among other things, "tampered with a recertification process provided for under the [HUD] Use Agreement . . . for the purpose of improperly raising rents at Use Agreement 'Market' rates far higher than the Use Agreement 'Contract' rates" (435 Cent. Park W. Tenant Assn. v Park Front Apts., LLC, 183 AD3d 509, 510 [1st Dept 2020]).

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