Homeowner in New York to pay tenants $ 1 million in compensation: what he did to them

A homeowner in the Bronx has been accused of defrauding tenants for several years. Now he must pay the affected residents $ 1 million in compensation, reports New York Daily News.

Tenants at 3045 Godwin Terrace in Kingsbridge stated that landlord - Godwin Realty Associates - Ignored City a law requiring 100% of his apartments to have a fixed (regulated) rent, although he received the tax credits that were due. The tenants filed a lawsuit with the Bronx Supreme Court in 2018. They say they have been charged overcharged rents since at least 2007.

Huge $ 1 Million Settlement Amount To Be Divided Among Approximately 40 Victims tenants... One family will receive over $ 100.

What the tenants say

44-year-old David Chen lived in a six-story building since 2007. The landlord was constantly raising rents, and Chen had no idea that the house was on the rent-regulated building list.

“I am very grateful that many tenants have learned about what is happening. If it weren't for them, we would never have known about it, ”Chen said. He declined to disclose how much money he would receive from the settlement deal.

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Chen's apartment rent was nearly $ 1700 a month when tenants in the building sued Godwin in 2018.

The company abused the benefits

Housing supervision organization HRI has investigated the 73-apartment building. Employees of the organization warned residents that they might be deceived. According to HRI, about a third of the house's residents lived in apartments for which the regulated rent requirement was not met.

In doing so, the homeowner saved money through J-51 tax breaks. These benefits are given to landlords in exchange for regulation rent for apartments. New York's Adjustable Rent Act prohibits rent increases at the request of a landlord.

HRI analyzed tax returns for the Godwin Terrace building. He testified that the landlord received tax breaks, although the regulation of the rent of many apartments was not respected.

Roger Sachar, Newman Ferrara's attorney who filed the lawsuit, said the NYS Department of Housing and Utilities should scrutinize homeowners more closely for potential tax credit default.

“If there is a speed limit, but there is no police officer to issue a fine, everyone will violate that speed limit,” he said.