Peak Capital’s Rent-Regulation Cheating

New York Attorney General Letitia James and HCR Commissioner RuthAnne Visnauskas have filed a lawsuit against Peak Capital Advisors, LLC (Peak), for their brazen attempt to deregulate at least 159 rent-stabilized apartments in Brooklyn and Queens. The developers stand accused of deceitful practices that not only violated state housing laws but also exploited tenants and investors alike.

According to the complaint, Peak, along with its operators Juan David Gomez, Alex Rabin, Amnay Labou, Michael Lohan, Bryan Anderson, Alex Kaskel, and Alex Mendik, misrepresented the condition of several buildings, falsely claiming they met the ‘substantial rehabilitation’ exemption for deregulation. This was a flagrant abuse of an intended incentive to rehabilitate seriously deteriorated properties, not the average or good condition of Peak’s buildings before renovation.

The OAG and HCR investigation revealed that Peak’s business strategy was to target gentrifying neighborhoods like Sunnyside, Astoria, Long Island City, and Greenpoint. By taking advantage of an exemption meant for renovating substandard buildings, the company aimed to maximize profits by renting apartments at inflated rates.

The lawsuit demands the return of overcharged rents, treble damages for tenants, enforcement of rent stabilization on the units, penalties for law violations, and the appointment of an independent administrator to audit Peak’s entire portfolio for further illegal activities. AG James emphasized that her office will not tolerate housing laws being flouted by corporate developers.

HCR Commissioner Visnauskas added, “We look forward to returning these buildings to their proper status under rent stabilization law, and ensuring that unlawful profiteering and deregulation do not undermine New York’s affordable housing crisis.” The joint investigation between the OAG and HCR’s TPU has sent a strong message: no developer can think they are above the law in New York City.