New York Attorney General Letitia James has secured $90,000 from Deutsche Bank National Trust Company and U.S. Bank National Association after her office said the banks failed to follow rent-stabilization requirements at Brooklyn buildings.
The settlements are the first reached under the attorney general's compliance program focused on enforcing "de facto" rent stabilization in New York City buildings.
James' office said the banks will return 12 units to rent stabilization and pay $90,000. Since the program launched in May 2025, the office said it has prevented 26 evictions and returned 103 units to rent stabilization.
"No matter how big or powerful they are, banks are not above the law, and they cannot get away with failing to protect their tenants," James said. "My office created this compliance program to ensure all New York City tenants are treated fairly."
De facto rent stabilization applies to some buildings with five or fewer units built before 1974 if the building was altered, legally or illegally, to contain six or more units. The attorney general's office said rent-stabilization status remains even if the number of units later falls below six.
The office said Deutsche Bank obtained 392 Rockaway Parkway in Brooklyn through a foreclosure sale in October 2024 and improperly attempted to evict tenants from four units by claiming the units were not rent stabilized. Under the settlement, Deutsche Bank will register four units as rent stabilized and pay $42,000 in penalties.
The attorney general's office said U.S. Bank obtained 8624 Glenwood Road in Brooklyn through a foreclosure sale in September 2023. The building was later found to be covered by rent-stabilization laws, but the bank failed to comply, according to the office. U.S. Bank will register eight units as rent stabilized and pay $48,000 in penalties, along with additional civil penalties for failing to register the buildings with the city Department of Housing Preservation and Development.
The compliance program has sent letters to more than 50 New York City landlords whose buildings had been found to be de facto rent stabilized but were not registered with New York State Homes and Community Renewal.
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