Wednesday, March 25, 2009

Late Fees Illegal for Rent Stabilized Tenants

Late fees are illegal for rent stabilized tenants in this building because they were not provided for in our Mitchell-Lama leases.

Our lawyer stopped Stellar from imposing them in 2006, but it appears that building manager Tobias Sahl has been threatening to impose them.

By e-mail on March 25, 2009, Stellar agrees that they may not be imposed and will speak with Tobias. If you get a letter threatening a late fee, please report it to a member of the Executive Committee: Sue, Na'ava, Joan, Prue, or Steve.

In 2006, the CPG Tenants' Association's lawyer wrote to Stellar Management:

"On October 7, 2005, I wrote to you and informed you that late fees
were being charged to tenants despite the fact that the Mitchell Lama
leases had no provision for late fees and therefore that condition
cannot be imposed under the Rent Stabilization Law. Susan Susman,
president of the Tenants' Association, advised Hezi Mizrahi, Francine
Schiff and Ofer Shaul several months ago that the late fees were
illegal. Despite my letter and Ms. Susman's complaint, tenants at
Central Park Gardens are still being billed for late fees. If we do
not receive a representation from you within 10 days that this
practice will be discontinued we intend to file a formal complaint
with the Attorney General of the State of New York based on deceptive
practices."

And remember that there is no legal "grace period" for paying the rent. It is due on the 1st of the month.

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