A.G. Reaches $1.2M Settlement in Illegal Conversion Case
New York State Attorney General Eric T. Schneiderman recently reached a $1.2 million settlement with developers who illegally converted rent-stabilized apartments to luxury condos. The developers agreed to pay $1.2 million to a city housing fund for the loss of five rent-stabilized apartments. The deal also requires them to provide two years of rent payments to tenants who stayed and to reimburse legal fees.
The developers bought the 44-unit building in 2012. In 2013, they submitted plans to convert it to condos, saying they would offer 43 units for sale “as is.” But investigators discovered the developers intended to combine units and build 24 luxury apartments. The developers also induced a dozen tenants to leave under prohibited buyout agreements, the investigation found.