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How Does Today’s Court Decision Affect Class Action Lawsuits From The Stuyvesant Town Tenants?
December 14, 2009 by Neil · Leave a Comment
The agreement was reached today in state Supreme Court, after the New York State Court of Appeals ruled in favor of the tenants. The tenants successfully argued that the City’s J-51 property tax program precluded removing units in Stuyvesant Town from rent regulation.
Rents will be reduced based on each tenant’s lease starting in January. The agreement is in place until a formal agreement can be reached following a study on exactly what rents are across the complex. It affects 4,400 out of approximately 11,200 apartments, or about 39%.
The agreement, in the form of an order issued by State Supreme Court Justice Richard Lowe …was approved this morning, a spokesperson for the Stuy Town owners said in an e-mail. It would also convert the lawsuit filed by a limited number of parties to a class action lawsuit, broadly covering Stuy Town.
The East Side complex’s owners, Tishman Speyer Properties and BlackRock Realty, negotiated an adjustment to rents in each apartment in the lawsuit to a rent-stabilized level, a statement said. The apartment residents would also be covered by certain rights under rent stabilization laws, including succession and renewal rights.
“In addition, Tishman Speyer and BlackRock have reached agreement with counsel for the plaintiffs on a more inclusive, six-month agreement covering a wider range of unresolved issues beyond those addressed in the interim agreement. The six-month agreement, which is intended to achieve an expedited resolution of the Roberts case, is contingent upon consent by CW Capital, the special servicer acting on behalf of the property’s senior lenders,” a statement by Tishman Speyer and attorneys for the residents said.
Hat Tip: The Real Deal
