DOWNTOWN BROOKLYN, NY— A class-action lawsuit accuses AvalonBay Communities of illegally overcharging rent-stabilized tenants at three Downtown Brooklyn apartment buildings, potentially affecting hundreds of renters.
The lawsuit, filed Sept. 28 in New York State Supreme Court in Kings County, follows an investigation by the tenant watchdog group Housing Rights Initiative.
The group worked with State Sen. Andrew Gounardes and City Council Member Lincoln Restler.
The lawsuit targets AvalonBay properties at 343 Gold St., 100 Willoughby St. and 214 Duffield St.
It alleges the landlord violated New York's rent-stabilization laws by using temporary rent concessions to raise tenants' rents beyond legal limits.
Housing Rights Initiative estimates the alleged overcharges exceed $40 million.
The properties received more than $101.9 million in 421-a tax benefits since 2020, according to the group.
The tax incentive program required participating apartments to remain subject to rent regulations.
The plaintiffs accuse AvalonBay of using rent concessions designed to circumvent rent-increase limits.
In one example cited in the complaint, an apartment carried a listed monthly rent of $4,627 and a $9,254 rent credit, bringing the tenant's effective monthly rent to $3,855.83.
When the concession expired, the landlord raised the rent to $4,696, according to the lawsuit.
Housing Rights Initiative argues the increase exceeded the percentage allowed under New York's rent-stabilization rules.
The Housing Stability and Tenant Protection Act of 2019 limits increases on preferential rents to the percentage established annually by the Rent Guidelines Board, according to the lawsuit.
It seeks to invalidate the alleged improper rent increases, prevent the landlord from refusing to offer properly regulated leases and recover damages for affected tenants.
AvalonBay Communities ranks among the country's largest apartment owners, with interests in more than 300 communities and more than 90,000 apartments, according to Housing Rights Initiative.
On Aug. 18, AvalonBay merged with Equity Residential to form Vivmark Residential, according to the organization's announcement.
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