NEW YORK (1010 WINS/AP) -- A tentative legal agreement has been reached that reduces rent for the next six months for thousands of tenants at a massive middle-class Manhattan complex as both sides work to reach a permanent settlement.
Sonia Rincon Reports
The agreement in state Supreme Court was announced Monday, about a month after the state Court of Appeals upheld rent controls at the Peter Cooper Village and Stuyvesant Town complex. Tenants at the complex said Tishman Speyer Properties and previous owner MetLife illegally deregulated rents on their apartments.
The appeals court decision left the lower court to work out issues with the rent escrow in place since April 1 and the application of the ruling in resetting rents for about 4,000 units to stabilized levels, which were raised by amounts ranging from a few dollars to about $2,500 monthly.
Monday's agreement reduces rents depending on each tenant's lease based on "good faith" estimates, as a study is completed on exactly what rents are across the complex. Lawyers will meet following the study to sort out a permanent figure.
The East River enclave has more than 11,000 apartments. It was built to house World War II veterans returning to the city.
The complex was sold in November 2006 for $5.4 billion in one of the biggest residential real estate deals in history.
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