
A New York City law firm and a housing group have sued to get the state housing agency to release the names of buildings owners who violated the rules of a property tax break program.
The law firm, Grimble & LoGuidice, used the states Freedom of Information Law to request the information back in February. Plaintiffs say the state rejected the FOIL request on the grounds that providing the information would, "interfere with law enforcement investigations or judicial proceedings".
Aaron Carr, executive director of the Housing Right Initiative, a tenant advocacy group, joined the lawsuit and said the state failed to provide any details on investigations or procedures that would be harmed by disclosing the information.
"We do not think that the state should be shielding real estate companies who have been caught cheating tax payers," Carr said.
The state Department of Homes and Community Renewal said it would not comment on pending litigation.
The program that offers the tax breaks is called J-51. Landlords who renovate and improve their buildings are eligible for it. In return for either a tax abatement or exemption, they must keep their apartments rent stabilized for the duration of the benefit, which can last more than 30 years. According to the city's Department of Finance, the total cost of the J-51 program was $294 million in fiscal year 2018.
For years advocates have complained that misuse of the program was rampant.
In 2016, the governor pledged to crack down on landlords evading J-51 requirements and return 50,000 apartments to the rent stabilization system. New York State Homes and Community Renewal sent 4,000 letters to building owners asking them to comply, but only 1,900 apartments were returned to the rent regulation system.
"We are losing precious affordability," Carr said. "That's why the state needs to act as quickly as possible."
If you want to check whether your building is receiving a J-51 tax break, look here.