Attorney General James Files First Lawsuits Under Rent Stabilization Compliance Program

June 16, 2026

NEW YORK - New York Attorney General Letitia James today filed the first lawsuits against two New York City landlords as part of her office's compliance program focused on enforcing "de facto" rent stabilization in buildings throughout New York City. Following the Emergency Tenant Protection Act of 1974, de facto rent stabilization was created as a judicial doctrine to allow buildings with five or fewer units built before 1974 to become rent stabilized if the building was altered - legally or illegally - to have six or more units. Since its launch in May 2025, the Office of the Attorney General's (OAG) de facto rent stabilization compliance program has successfully prevented 26 evictions and secured the return of 91 units to rent stabilization.

The OAG is suing two New York City landlords, John Anderson and Claudette Henry, for failing to register units in Brooklyn as rent-stabilized with New York State Homes and Community Renewal (HCR) following prior court decisions that have found the buildings to be de facto rent stabilized. The lawsuits also allege that the landlords attempted to illegally evict tenants from their units and violated tenant harassment laws. Attorney General James is asking the court to order the buildings' units returned to rent stabilization and refund all tenants who were overcharged with interest. Attorney General James is also seeking civil penalties for failing to register the buildings with HCR.

"Rent stabilization and tenant protection laws help keep working New Yorkers throughout our city in homes they can afford," said Attorney General James. "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. Our housing laws are clear, and any landlord who violates them will be held accountable."

Buildings can be exempt from rent stabilization laws if a landlord can prove a building was built after 1974 or has fewer than six units. The buildings subject to OAG's compliance program were found by a court or the New York State Homes and Community Renewal (HCR) to be subject to rent stabilization laws because a current or former landlord had added enough units to bring the total units in each building to six or more. Rent stabilization status remains even if the total units go below six, such as when the owner subsequently removes a newly added apartment.

As part of Attorney General James' de facto rent stabilization compliance program, OAG sent letters to more than 50 New York City landlords who owned buildings that were found to be de facto rent stabilized through prior court or HCR decisions but had not been registered with HCR. Landlords who received compliance letters from OAG were given an opportunity to prove that their buildings are legally exempt from rent stabilization. Landlords that were unable to prove exemption were asked to take the following steps to move into compliance with rent stabilization laws:

• Register the legal regulated rent for all units in the building with HCR;
• Issue rent stabilized leases to tenants at the proper legal regulated rent;
• Send a notice to each tenant in the building explaining that the owner is sending the new lease based on OAG's finding that the tenant is rent stabilized and explaining their rights as a rent stabilized tenant; and
• Provide OAG with sworn certification that the landlord has taken the above actions.

To date, OAG, through the compliance program, has had 21 landlords provide a certification that they have complied with the program resulting in 91 units being returned to rent stabilization and has successfully prevented 26 evictions.

The lawsuits filed against Anderson and Henry are the first to be filed under OAG's de facto rent stabilization compliance program. After receiving compliance letters from OAG, Anderson and Henry failed to return their buildings' units to rent stabilization. Attorney General James alleges that the landlords failed to register their buildings with HCR and attempted to illegally evict tenants from their units. The lawsuits further allege violations of tenant harassment laws, including a case of retaliation against a tenant for requesting a rent-stabilized lease.

John Anderson
John Anderson is the owner of 1075 Dean Street (1075 Dean) in Brooklyn. In 2016, 1075 Dean was found to be de facto rent stabilized. The OAG alleges that for 10 years, Anderson has failed to provide rent stabilized leases to all of his tenants. The OAG also alleges that in an attempt to continue flouting the law, Anderson sent his friend to impersonate him in court and Anderson lied about 1075 Dean's rent stabilized status on an application with the New York City Department of Buildings (DOB). A tenant of 1075 Dean reported that Anderson harassed and retaliated against her after she asked for a rent stabilized lease by cutting off her utilities such as gas, water, and electricity.

Claudette Henry
Claudette Henry bought 134 Sackman Street (134 Sackman) in Brooklyn in 2004. The OAG alleges that after the building was found to be covered by the rent stabilization laws, Henry failed to register the building with HCR and has been attempting to illegally evict tenants. Henry was ranked number eight in the Public Advocate's Worst NYC Landlords list of 2025. In August 2025, OAG reached out to Henry to demand she comply with rent stabilization laws and immediately register with HCR. Henry did not respond to OAG's initial communication or any subsequent outreach from OAG.

The lawsuits filed by OAG seek to have the landlords immediately register both buildings as rent stabilized with HCR and offer rent stabilized leases to tenants. The lawsuits also seek restitution for every current rent stabilized tenant equal to the amount of rent they were overcharged, with nine percent interest. The OAG is demanding additional civil penalties from Anderson and Henry between $2,000 and $10,000 for each lawful occupant who faced harassment, among other penalties, including $500 per unit for each month it was not registered with HCR.

This is the latest action taken by Attorney General James to protect New York tenants. In May 2026, Attorney General James secured an agreement to close the predatory law firm for taking advantage of New York City tenants facing eviction. In March 2026, Attorney General James announced new protections for 25 low-income families who were forced out of their affordable housing units in Rochester. In February 2026, Attorney General James sued the owners and managers of an apartment complex in Orange County for leaving residents to endure horrific conditions. In October 2025, Attorney General James stopped a Montgomery County property owner and his companies from illegally discriminating against low-income New Yorkers. In April 2025, Attorney General James secured a settlement with property owners in the Capital Region for illegally denying housing to low-income renters who were using housing assistance. In December 2025, Attorney General James announced a settlement with Steven Kashanian and BlueSky for violating city construction codes and creating unsafe and unsanitary conditions for hundreds of tenants.

This matter was handled by Assistant Attorney General Justin La Mort of the Housing Protection Unit, with assistance from Legal Assistant Cecily Mills, under the supervision of Unit Chief Brent Meltzer. The Housing Protection Unit is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.