Case Type

Rent Overcharge

Housing Type

Rent Stabilized

Court

Appellate Division, Second Department

County

Kings County (Brooklyn)

Slip Opinion Number

2026 NY Slip Op 04832

Petitioner

William Armstrong, Jennifer Mancini, Propel-ant, Inc., Norman Yun, Nam Hee Lee, Nusrat Durrani

Respondent

Dumbo Lofts Rental, LLC

Judge

Barros, Betsy (J.P.); Brathwaite Nelson, Valerie; Warhit, Barry E.; Goldberg Velazquez, Elena

Decision/Order Date

2026-08-05

Posture

Post-Judgment Motion by Tenant

Disposition

Reversed for Tenant

Winner

Tenant Substantially Won

Synopsis

Appellate Division reversed Supreme Court's dismissal of tenants' claims that building owner engaged in a fraudulent scheme to deregulate J-51 apartments, holding under Burrows v 75-25 153rd St., LLC that tenants adequately pled a colorable claim of fraudulent deregulation even under the pre-2024 pleading standard. Court also reinstated claims for a rent freeze under RSL § 26-517(e) based on unreliable DHCR registrations, and declaratory relief, noting landlord had conceded the apartments are rent stabilized.

Keywords

Rent Overcharge and Fraudulent Deregulation Claims Based on Landlord's Receipt of J-51 Tax Abatement Prior to 2024 Chapter Amendments Held Adequately Pled Under Burrows and Reinstated – Tenants Entitled to Rent Freeze Under RSL § 26-517(e) From Date of Initial Reliable Rent Registrations – Landlord Concedes Tenants are Rent Stabilized

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