Vazquez, Jennifer Duprey, Juliette Vaiman, Lisavetta Reyes, Andom Ghebreghiogis, Doug
Bender, Sara Bender, Charles Goldman, Christopher Ford, Steven Katchen, Ron Yosipovich,
[*2]R.S. Salamon, and S.E. Falk, individually, and on behalf of
all others similarly situated, commenced this purported class action against Parkoff, Gramercy
Park, Seadyck Realty, 19 Seaman, and Elbridge Realty.
Plaintiffs allege that defendants used illegal and fraudulent practices in their ownership and
operation of the apartment buildings located at: (1) 144 East 22nd Street in Manhattan; (2) 1-9
Seaman Avenue in Manhattan; (3) 11-19 Seaman Avenue in Manhattan; and (4) 500 West 235th
Street in the Bronx (collectively, Parkoff Buildings). Allegedly, defendants: (1) inflated rents that
exceeded the amounts they are legally permitted to charge tenants; (2) impermissibly failed to
provide tenants in buildings receiving J-51 tax benefits with rent-stabilized leases; and (3)
misrepresented the amount of "Individual Apartment Improvements" (IAIs) performed on
plaintiffs' apartments and those of similarly situated tenants (complaint, ¶¶ 1-4).
The New York City Department of Housing Preservation & Development (HPD)
administers tax incentive programs to promote the construction and preservation of affordable,
high quality housing for low- and moderate-income families in New York City (id.,
¶ 5). One such New York City program is the so-called J-51 program, a property tax
exemption and abatement available to landlords for renovating a residential apartment building
(id., ¶ 6).
The Parkoff Buildings receive, or have received, tax abatements or exemptions pursuant to
the J-51 tax benefit program (id., ¶ 7). Landlords of these buildings are required to