This is a preview of the full Summer 2025 Quarterly Newsletter. Click Here to read the full newsletter.
Recent NYS Court of Appeals Decisions Affecting Rent Regulated Properties
The article, written by Magda L. Cruz, summarizes two key 2025 rulings by the New York State Court of Appeals that affect rent-regulated properties. In Burrows v. 75-25 153rd St., LLC, the Court clarified that the fraud exception to the four-year lookback rule under the Rent Stabilization Law applies only when tenants present substantial evidence of a fraudulent scheme, and it upheld the legality of limited rent concessions. In Matter of LL 410 E. 78th St. LLC v. DHCR, the Court affirmed the DHCR’s authority to deny unverified rent registration amendments, reinforcing the agency’s role in maintaining the integrity of the rent system.
Owners of Rent Stabilized Buildings Must Advise Tenants That Buildings Contain Regulated Units
The New York City Council unanimously passed the Rent Transparency Act, requiring building owners with at least one rent-stabilized unit to post a multilingual notice near the entrance stating the building contains such units and providing DHCR contact information. The notice must include specific language about tenant rights and annual filings, and be available in English, Spanish, and other designated languages. This update was written by Anthony Morreale, a partner in BBG’s Administrative Law Department.
The Loft Board’s Egress Regulations Are Here
Michael Bobick reports that the New York City Loft Board has enacted new egress regulations, effective May 31, 2025, aimed at improving safety in interim multiple dwellings (IMDs). These rules require owners to inspect fire escapes and staircases within 14 days of annual registration, self-report any issues, and post notices prohibiting storage in egress areas, with steep penalties for noncompliance. Owners must also certify inspections and complete repairs by set deadlines or face fines up to $25,000 for registration failures.
Court Denies Motion to Dismiss Condo Board’s Water Charge Claims
BY LLOYD F. REISMAN AND JAMES CUTTING
In a recent case, a court denied a commercial unit owner’s motion to dismiss a condominium board’s claims for six years of unpaid water charges and submeter installation costs. The court found that the bylaws required the unit owner to pay for submetered water usage, and a prior release did not apply to the current dispute. It also ruled that the unjust enrichment claim could proceed alongside the breach of contract claim due to unresolved questions about charges incurred before the submeter was installed.
Exclusives & Radius Restrictions in NYC Retail Leases
In his article, Michael A. Mulia explains how exclusive use clauses and radius restrictions are essential tools in New York City retail leases, especially as the market recovers post-COVID. Exclusive use clauses protect tenants by preventing landlords from leasing nearby spaces to competitors, while radius restrictions limit tenants from opening similar businesses within a defined area. These provisions must be clearly negotiated and documented to avoid disputes and ensure both parties’ interests are protected, particularly when rent is tied to sales performance. Legal remedies for violations include specific performance, injunctive relief, and damages.
Requirements for Installing Natural Gas Detecting Devices in NYC
In this article, Diana R. Strasburg outlines the new rules under NYC Local Law 157 of 2016, which took effect on May 1, 2025. It mandates that natural gas alarms be installed in all residential buildings with gas service, including private dwellings and Class A and B multiple dwellings, with specific placement and certification standards based on NFPA 715-2023. While licensed electricians must install most alarms, battery-powered or plug-in models may be installed by building staff or occupants. Both owners and tenants share responsibility for maintenance, and non-compliance may result in fines, with enforcement handled by the NYC Department of Housing Preservation and Development.
Optimizing Development Through HPD Programs: Key Considerations for MIH, UAP, and VIH
In her article, Brenda Slochowsky explains how recent zoning and programmatic changes in New York City—particularly the introduction of the Universal Affordability Preference (UAP) and updates to the Mandatory Inclusionary Housing (MIH) program—offer developers new opportunities to optimize floor area and tax benefits. UAP, which replaced the Voluntary Inclusionary Housing (VIH) program, applies citywide and simplifies compliance while offering a 1:1 zoning bonus for permanently affordable housing. MIH now requires more equitable distribution of affordable units within buildings and allows off-site compliance under certain conditions. Together, these programs, especially when paired with the 485-x tax exemption, provide strategic tools for maximizing development potential in NYC.
The City’s Vision for Neighborhood Growth and Development: Update on City Planning’s Rezoning Proposals
BY RON MANDEL AND FRANK NORIEGA
In their article, Ron Mandel and Frank Noriega provide an update on New York City’s major rezoning initiatives aimed at encouraging neighborhood growth and development. The recently adopted Atlantic Avenue Mixed-Use Plan will enable nearly 4,600 new housing units, including over 1,400 affordable units, along a 21-block stretch in Brooklyn. Meanwhile, the Midtown South Mixed-Use Plan, Jamaica Neighborhood Plan, and Long Island City Rezoning Neighborhood Plan are all progressing through public review and propose significant zoning changes to support mixed-use development and Mandatory Inclusionary Housing (MIH). These rezonings are expected to unlock thousands of new housing units, commercial space, and community facilities, while also requiring developers to include affordable housing components. The authors emphasize that these changes present substantial opportunities for developers, especially when paired with real estate tax incentives.
Recent Transactions of Note
View a summary of selected recent transactions involving BBG’s Transactional Department including both leases, buy/sell refinancing transactions, and recent notable matters handled by our Construction team.
Co-Op/Condo Corner
Aaron Shmulewitz and Lloyd F. Reisman head the Firm’s co-op/condo practice, consisting of more than 300 co-op and condo Boards throughout the City, as well as sponsors of condominium conversions, and numerous purchasers and sellers of co-op and condo apartments, buildings, residences and other properties. Read their summaries of recent decisions in this space.
BBG Continues to Expand and Welcomes New Hires
The firm operates a Summer Associate program, through which we recruit law students seeking valuable hands-on experience. Summer Associates have the opportunity to work closely with our experienced real estate attorneys and engage actively in the firm’s day-to-day operations. We are pleased to announce the arrival of two individuals for the summer of 2025.
Click Here to read the full newsletter.