False Construction Permits Go 'Unchecked' in New York

New York habitually lets property owners begin construction without disclosing that their buildings are rent-stabilized or occupied by tenants.

1 minute read

September 26, 2018, 5:00 AM PDT

By Elana Eden


Brooklyn Construction

Andrew tenBrink / Shutterstock

Landlords throughout New York City have falsified more than 10,000 applications to renovate or expand their properties, according to a new report from the Housing Rights Initiative. The move is often part of a ploy to drive tenants out of rent-stabilized units so they can be replaced with market-rate, advocates explain.

The issue gained attention after Kushner Companies was fined $210,000 for the illegal practice, Politico reports. Kushner's practices also recently shed light on New York's lax enforcement of building codes.

Currently, a fine is the only penalty for applications that falsely report being unoccupied or exempt from rent stabilization; the permits are still routinely granted and construction allowed to proceed. Legislation from City Councilmember Ritchie Torres attempts to increase oversight by requiring the Buildings and Finance departments to improve their information-sharing practices.

New York has seen a net loss of nearly 150,000 rent-stabilized units since 1994, Politico notes.

Monday, September 24, 2018 in Politico

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business

Large spinning swing ride at Chicago's Navy Pier.

The Subversive Car-Free Guide to Trump's Great American Road Trip

Car-free ways to access Chicagoland’s best tourist attractions.

July 3 - Streetsblog Chicago

Aerial view of downtown San Antonio, Texas at night with rotating Tower of the Americas in foreground.

San Antonio and Austin are Fusing Into one Massive Megaregion

The region spanning the two central Texas cities is growing fast, posing challenges for local infrastructure and water supplies.

July 3 - Governing