Brooklyn landlord will return Crown Heights building to rent stabilization, first deal reached under new program

A Brooklyn landlord will return all units in his Crown Heights apartment building to rent stabilization as part of the first settlement reached under a new state program. New York Attorney General Letitia James on Monday announced that John Anderson will provide every tenant of his building at 1075 Dean Street with rent-stabilized leases and fix any hazardous conditions. The deal comes after James sued Anderson and another landlord in June for failing to register units as rent stabilized and overcharging tenants, enabled by a new compliance program launched by the state to enforce de facto rent stabilization. Since its launch in May 2025, the program has prevented 27 evictions and secured the return of 131 units to rent stabilization.

“New York City’s rent stabilization laws are clear, and my office will not hesitate to enforce them,” James said. “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.”

Apartment buildings in New York City are typically exempt from rent stabilization laws if they are built after 1974 or contain less than six units. “De facto rent stabilization” was created as a judicial doctrine to allow buildings with five or fewer units built prior to 1974 to become rent stabilized if the building was altered to have six or more units, as 6sqft previously noted.

Under a compliance program that launched last year, the attorney general sent letters to more than 50 landlords who owned buildings found to be de facto rent stabilized but had not been registered with the state’s Homes and Community Renewal (HCR). Owners were asked to prove the buildings were exempt. The office first sent compliance letters to Anderson in August 2025, but he failed to comply.

In June, James sued Anderson for failing to register the units as regulated with HCR. Anderson, along with Claudette Henry, who owns 134 Sackman Street, were the first to face litigation under the new compliance program.

According to the attorney general’s office, Anderson failed to provide stabilized leases for tenants at 1075 Dean Street for 10 years, lied about the building’s status on an application with the city’s Department of Buildings, and had a friend impersonate him in court. A tenant also said Anderson cut off her gas, water, and electricity after she asked for a rent-stabilized lease.

As part of the settlement, Anderson must provide the rent-stabilized leases to all tenants of the building within 120 days of stipulation and pay any rent overcharge within 180 days.

While city records show the Dean Street building officially containing three units, Anderson was issued multiple citations by the Department of Buildings for illegal partitions and extensions within units. The building currently has over 130 open violations.

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