NY AG Sues Owners in Rent Stabilization Compliance Crackdown

Two Brooklyn landlords are the first to face litigation under a rent stabilization compliance crackdown by Attorney General Letitia James, after New York State filed lawsuits alleging they failed to properly register regulated units, attempted illegal evictions and harassed tenants.
The attorney general’s office brought the suits as part of a de facto rent stabilization compliance program, which seeks to enforce a 1974 law that categorizes buildings with five or fewer units built before that year to become stabilized if the building was altered to have six or more units. The program has prevented 26 evictions and returned 91 units to rent stabilization since its May 2025 launch, according to the AG’s office.
“Rent stabilization and tenant protection laws help keep working New Yorkers throughout our city in homes they can afford,” James said in a statement. “My office will not shy away from taking immediate action against any landlord who fails to follow the law and attempts to overcharge or illegally evict tenants.”
More than 50 landlords across New York City received letters notifying them that their buildings were found to be de facto rent-stabilized, but hadn’t been properly registered, providing an opportunity to prove exemption or comply with applicable laws.
The lawsuits mark a new step beyond the AG’s initial enforcement push, going after alleged compliance failures by Brooklyn landlords John Anderson at 1075 Dean Street and Claudette Henry at 134 Sackman Street.
Anderson allegedly failed to provide rent-stabilized leases to all of his tenants for 10 years after being notified in 2016 that his building was rent-stabilized. He also allegedly sent a friend to impersonate him in court and denied his building’s regulated status on a Department of Buildings application. A 1075 Dean Street tenant also reported that Anderson harassed her and retaliated by cutting off gas, water and electricity to her unit after she asked for a rent-stabilized lease, according to the lawsuit.
Henry allegedly failed to register her building at 134 Sackman Street, which she bought in 2004, while attempting to illegally evict tenants. The attorney general’s office allegedly contacted Henry in 2025, demanding she comply with rent stabilization laws and register her units accordingly, but she didn’t respond.
Both lawsuits seek to compel the landlords to register their buildings as rent-stabilized and offer proper leases to tenants, with restitution for every eligible tenant equal to the amount of rent overcharges, plus nine percent interest. The suits also seek civil penalties of $2,000 to $10,000 for each lawful occupant who faced harassment, as well as $500 per unit for each month it was unregistered with New York State Homes and Community Renewal.
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