Tenants at StuyTown and Peter Cooper Village are suing to block Blackstone from deregulating thousands of apartments after a regulatory agreement expires this year. Per the agreement, Blackstone could raise rents in those 1,400 units by 5 percent each year starting this summer, TRD noted.
- Dig Deeper: As part of its massive $5.3 billion agreement to buy the two complexes in 2015, Blackstone and Ivanhoe Cambridge agreed to maintain 45 percent of the apartments in the complex — 5,000 units — as affordable, according to the DailyNews. The lawsuit points out that it conflicts with the new rent law and Blackstone should adjust the deal.
- Blackstone responds: “We are confident that the court will reaffirm the 2012 Roberts settlement, which explicitly stated that these J-51 units should no longer be subject to rent regulation as of June 2020.”
- Worth Noting: On Friday morning, the city sided with the tenants. The De Blasio administration emailed: “Rent reforms ushered in a new era for New York City tenants, providing greater security for families and strengthening neighborhoods. The terms of the earlier litigation make clear that these homes are subject to the stricter rent laws and tenant protections and they must remain under those protections.”