AG James’ Rent Stabilization Compliance Program Has Prevented 26 Evictions and Returned 103 Units to Rent StabilizationDeutsche Bank and US Bank Will Pay $90,000, Return 12 Units to Rent StabilizationNew York Attorney General Letitia James today announced the first settlements reached as part of her office’s compliance program focused on enforcing “de facto” rent stabilization in buildings throughout New York City. The Office of the Attorney General (OAG) has secured $90,000 from Deutsche Bank National Trust Company (Deutsche Bank) and U.S. Bank National Association (US Bank) as a result of their failure to register units in Brooklyn as rent-stabilized with New York State Homes and Community Renewal (HCR) following prior court decisions that found the buildings to be de facto rent stabilized. As a result of OAG’s compliance program, the banks will return a total of 12 units to rent stabilization and pay $90,000. Since its launch in May 2025, OAG’s de facto rent stabilization compliance program has successfully prevented 26 evictions and secured the return of 103 units to rent stabilization.
“No matter how big or powerful they are, banks are not above the law, and they cannot get away with failing to protect their tenants,” said Attorney General James. “My office created this compliance program to ensure all New York City tenants are treated fairly. We will not hesitate to take action against any bank that attempts to circumvent our rent stabilization laws.”
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. 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 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 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.
Deutsche BankAn investigation by OAG found that Deutsche Bank obtained 392 Rockaway Parkway (392 Rockaway) in Brooklyn at a foreclosure sale in October 2024 and improperly attempted to evict tenants from four units, claiming the units were not rent stabilized. The OAG informed Deutsche Bank that the units were rent stabilized and Deutsche Bank ended the eviction cases. In August 2025, OAG reached out to Deutsche Bank and provided a deadline for the bank to comply with rent stabilization requirements, but the bank did not respond and failed to meet OAG’s deadline. Under the terms of the settlement, Deutsche Bank will register four units as rent stabilized and pay $42,000 in penalties.US BankAn investigation by OAG found that US Bank obtained 8624 Glenwood Road (8624 Glenwood) in Brooklyn at a foreclosure sale in September 2023. In 2025, 8624 Glenwood was found to be covered by rent stabilization laws. However, US Bank failed to comply with the rent stabilization laws. In August 2025, OAG reached out to US Bank and provided a deadline for the bank to comply with rent stabilization requirements, but the bank did not respond and failed to meet OAG’s deadline. Under the terms of the settlement, US Bank will register eight units as rent stabilized and pay $48,000 in penalties, as well as additional civil penalties for failing to register the buildings with HPD.
New York Attorney General Letitia James today announced the first settlements reached as part of her office’s compliance program focused on enforcing “de facto” rent stabilization in buildings throughout New York City. The Office of the Attorney General (OAG) has secured $90,000 from Deutsche Bank National Trust Company (Deutsche Bank) and U.S. Bank National Association (US Bank) as a result of their failure to register units in Brooklyn as rent-stabilized with New York State Homes and Community Renewal (HCR) following prior court decisions that found the buildings to be de facto rent stabilized. As a result of OAG’s compliance program, the banks will return a total of 12 units to rent stabilization and pay $90,000. Since its launch in May 2025, OAG’s de facto rent stabilization compliance program has successfully prevented 26 evictions and secured the return of 103 units to rent stabilization.
“No matter how big or powerful they are, banks are not above the law, and they cannot get away with failing to protect their tenants,” said Attorney General James. “My office created this compliance program to ensure all New York City tenants are treated fairly. We will not hesitate to take action against any bank that attempts to circumvent our rent stabilization laws.”
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. 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 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 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.
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