The Legal Aid Society filed this lawsuit on behalf of nearly 60 formerly homeless families placed in rent stabilized apartments under the City’s “cluster-site” program. Plaintiffs claimed that the landlords’ use of multiple shell companies to charge far more than the legal rent created “illusory tenancies” that entitle them to rent stabilized leases in their own name. Although the trial court and Appellate Division ruled against the tenants, in November 2025, the Appellate Division granted plaintiffs leave to appeal to the Court of Appeals. Briefs will be filed in January 2026.