Stuy Town apartments (Don Emmert/AFP/Getty Images)

The state's highest court has ruled that the owners of Stuyvesant Town and Peter Cooper Village should not have been raising rents to market rates while receiving a city tax credit. The 4-to-2 decision means landlord Tishman Speyer could owe thousands of tenants more than $200 million. The ruling could also make thousands of other building owners citywide liable for rent overcharges.

Senator Tom Duane appeared at First Avenue and 16th Street to savor the court ruling, as Councilman (and Stuy Town-er) Dan Garodnick looks on.

One plaintiff in the case, Tom Shamy, feels vindicated, and says thousands of units beyond Stuy Town could be effected.

I'm sure it's going to be a major upheaval. You know, it's hard to muster up pity for landlords in this city in general. They get in the pity line just behind the Wall Street traders.

Roslyn Rempell has been a resident of Peter Cooper village for over four decades and was jubilant:

My initial reaction was pure joy, and my heart was pounding with excitement.

Spencer Siskind has lived in Stuy Town for 20 years, most recently in a market rate apartment. He's hoping to receive some money back for his rent:

I think there's a bit of 'stick it to the man' sentiment and certainly then there's the financial aspect where people are just very, very happy about the potential of having affordable housing again.

But Attorney Jeff Turkel, who represents rent stabilized landlords, believes the ruling could hurt everyone. 'It's not just going to be bad for landlords because tenants live in buildings that landlords own and if landlords are in trouble or can't afford to service their buildings that impacts on tenants,' Turkel said.

The judges did not decide on damages or whether landlords would owe money retroactively. Those issues will be decided by a lower court.

In today's decision, the judges played down the dire financial consequences of the ruling and said building owners could seek legislative relief.