T
enants in East Village who sued Kushner Companies for allegedly collecting rents while putting their lives at risk have won the right to proceed with their case. The Appellate Division's decision could also pave the way for similar lawsuits against other landlords. Kushner has sold off a significant portion of its East Village properties in recent months, but a spokesperson declined to comment on the lawsuit.

    The tenants' suit stems from 2020 when they claimed Kushner failed to obtain certificates of occupancy after adding penthouses to four buildings on East 9th Street. Instead, the company repeatedly filed for temporary certifications, allowing it to collect rent without meeting safety requirements. The tenants allege this was a "fraudulent" practice that put their lives at risk.

    A Housing Rights Initiative investigation found Kushner charged rent in eight apartments with expired certificates of occupancy. In response, Kushner's general counsel called the lawsuit "politically motivated harassment." However, an Appellate Division ruling last month reversed a lower court decision and reinstated the suit, granting class action status to the tenants.

    If the tenants win their case, they could potentially recoup years of rent payments, which they claim totalled $4 million as of 2020. A settlement could also return some of that money. The lawsuit's success may encourage other renters to challenge landlords over similar practices, according to the tenants' attorneys.