QUEENS, NY— A class action lawsuit filed against one of New York City's largest residential landlords alleges that A&E Real Estate illegally raised rents on hundreds of rent-stabilized apartments in Queens, charging tenants millions of dollars more than allowed under state law.
The lawsuit, filed by Newman Ferrara LLP on behalf of tenants, follows an investigation by Housing Rights Initiative that examined five A&E-owned buildings containing more than 600 apartments.
The investigation estimates that tenants were overcharged by at least $5 million through improper rent increases tied to claimed individual apartment improvements, known as IAIs.
Under New York's rent stabilization laws, landlords can increase rents after completing certain qualifying improvements.
The lawsuit alleges A&E claimed those improvements occurred, but failed to provide evidence that the work was completed.
A&E Real Estate has not publicly responded to the allegations in the lawsuit.
Michael Shank, organizing director of Housing Rights Initiative, said the group plans to continue investigating A&E properties.
"They are the poster child for 'bad landlord' and HRI won't rest until all A&E tenants have a properly stabilized lease and are compensated for any and all overcharges," Shank said.
Investigators reviewed public building records, including permits, and compared them with rent increases reported by tenants.
At one apartment at 34-15 Parsons Boulevard, the rent increased from $1,398 to $2,941 between 2018 and 2019.
According to the investigation, that increase would have required about $62,000 in documented improvements to comply with state rules.
The Housing Rights Initiative report found no building permits indicating that the claimed renovations took place.
The lawsuit alleges similar patterns across additional A&E properties.
Tenants affected by illegal rent overcharges may be entitled to:
The lawsuit represents only the first phase of Housing Rights Initiative's investigation into A&E's portfolio.
The group plans to continue reviewing additional properties.
The lawsuit comes after increased attention on A&E's management of thousands of rent-stabilized apartments across New York City.
A&E controls nearly 15,000 housing units across four boroughs, according to Housing Rights Initiative.
In January 2026, Mayor Zohran Mamdani's administration announced a $2.1 million settlement with A&E requiring the company to address more than 4,000 building code violations.
Shortly afterward, the New York City Public Advocate's annual Worst Landlord Watchlist placed A&E executives in the top two positions.
Queens Borough President Donovan Richards Jr. said tenants have faced both financial pressure and building conditions that require action.
"For far too long, A&E Real Estate has taken advantage of tenants across Queens, forcing working-class families to pay more than they should have in rent while simultaneously allowing their buildings to fall into startling disrepair," Richards said.
Tenants who believe their apartments may have been illegally deregulated or overcharged can review their rental history, gather lease documents and rent records, and seek legal assistance.
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