Blackstone settles case with NYC renters over rent-stabilization violations, paying out compensation to tenants.
Blackstone, a prominent private equity firm, has agreed to pay more than $100,000 each to certain New York City renters to settle claims of overcharging for rent-stabilized apartments. This significant payout totaling nearly $15 million involves multiple tenants who will receive substantial compensation, making it one of the largest settlements in the state’s history. The resolution stems from a class-action lawsuit filed in 2018 by residents of Parker Towers in Queens against the former property owner, Jack Parker Corporation, and Blackstone, which acquired the property that year. With over 1,300 units, the building had received tax incentives to renovate apartments while maintaining rent stabilization.
The settlement, facilitated by the Housing Rights Initiative, a nonprofit organization led by Aaron Carr, aims to provide financial relief to affected families facing the high cost of living in New York City. Blackstone, known for its global real estate investments, took steps to resolve the case shortly after purchasing the complex but faced legal challenges from the tenants’ representation, Newman Ferrara.
The agreement underscores the complexities of rent regulations and the responsibilities of property owners in ensuring compliance with housing laws. By addressing overcharging allegations and compensating tenants accordingly, Blackstone demonstrates a commitment to resolving disputes and upholding tenant rights. This case serves as a reminder of the importance of transparency and fairness in the rental market, especially in high-demand urban areas like New York City.
Source: The NY Times
