New York Cracks Down on Landlords as First Rent Stabilization Settlement is Reached
New Yorkers are starting to see some progress in the fight to rein in “de facto” rent-stabilization buildings in New York City. Attorney General Letitia James’ office shared the news of its first settlement under the Office of the Attorney General’s Rent Stabilization Compliance Program on Sept. 28. It targets de facto rent-stabilization buildings, which are buildings that increased in unit size without registering with the city.
The press release was shared on the New York State Attorney General’s website, where it explained that more than 50 landlords had been contacted as part of the state’s new compliance program that was launched in May 2025.
Now, James’ office says that it has reached a settlement in the first of those cases, which includes a landlord named John Anderson and the company 921 Fulton St. Corp.
The news comes as the state tries to bring buildings across the city into compliance, which requires buildings built before 1974 (or those with more than six units) to offer rent stabilization. The press release says that James’ office has already made great strides, preventing 27 evictions and returning 131 units to rent stabilization status, among other successes.
The Settlement Requires Anderson to Return Units to Rent Stabilization
My office is making a Brooklyn landlord return all of his units to rent stabilization after he tried to ignore the law by failing to register units as rent-stabilized.
Our laws are clear, and my office won’t hesitate to enforce them.
I’ll always stand up for New York tenants.
— NY AG James (@NewYorkStateAG) September 29, 2026
As part of the settlement, Anderson is required to provide rent stabilization for all of the tenants located at 1075 Dean Street in Brooklyn. Anderson is also required to issue rent-stabilized leases to all of his tenants and repair any hazardous conditions. Additionally, Anderson will need to register the units within 90 days and pay any rent overcharge to his tenants within 180 days. There’s also a one-year probation period.
According to the June 16 press release about the initial lawsuit filing, Anderson was accused of failing to provide his tenants with the required rent-stabilized leases for 10 years. Additionally, a tenant accused the landlord of retaliating against her after she went to him about the lease, and she says he cut off her utilities as a result.
“New York City’s rent stabilization laws are clear, and my office will not hesitate to enforce them,” James said in the statement. “We created this compliance program to ensure that all New York City tenants are treated fairly and that all landlords are following the law. I am proud of the success this program has already shown, and I will continue to stand up for every New York tenant.”
What is Rent Stabilization?
According to the New York City Mayor’s Public Engagement Unit, rent stabilization is a program that offers New Yorkers certain benefits and protections when it comes to housing. These protections limit how much a landlord can charge a tenant.
Rent stabilization laws also gives renters protections, which include preventing their landlord from evicting them just because their lease expires. Some additional protections include something called “succession rights,” which can allow a renter to take over the lease for a family member they live with after they pass away.
Of course, there are a lot of different rules attached to these laws, so anyone with questions about their eligibility should do some research by visiting a trusted resource (like the mayor’s engagement unit) or call the 311 Tenant Helpline.
