T
enants at a Jamaica apartment building are suing Shorewood Real Estate Group and its CEO, S. Lawrence Davis, alleging they manipulated rental concessions to receive millions in benefits from the 421a affordable housing tax program without following requirements. The lawsuit, filed in New York County Supreme Court, claims that Shorewood hid tactics such as charging tenants more than the maximum amount for rent-stabilization benefits, and having them sign agreements that waived their rights to rent stabilization upon occupancy. Over 100 units may have been impacted by these agreements, according to the suit. The plaintiffs are seeking unspecified damages. This is not the first time Shorewood has faced scrutiny over its approach to 421a regulations, with a nonprofit housing group calling out the developer for "defrauding" taxpayers. Shorewood purchased the site in 2018 and developed a 23-story building with 315 units, including 95 affordable units, which qualify them for tax breaks under the program.