Tenants sue Two Trees over alleged 421a rent overcharges at 300 Ashland

What happened

Tenants at 300 Ashland Place in Fort Greene, Brooklyn, have filed a class-action lawsuit against Two Trees Management. They allege illegal rent increases on rent-stabilized apartments in the 379-unit building, which receives the 421a tax break. Gothamist reported the suit in a story published 10/30/2026 and said it was filed that Friday. The Real Deal followed on 11/02/2026.

The tenants claim Two Trees calculated renewal increases on the full legal rent instead of the lower preferential rent tenants first agreed to pay. Preferential rents can reflect concessions such as free months at lease signing. The Housing Stability and Tenant Protection Act of 2019 requires increases to be applied to the preferential rent. According to Gothamist, the complaint cites a 20th-floor apartment and six other units. Housing Rights Initiative's Aaron Carr said those increases broke state law because the Rent Guidelines Board has not approved an increase above 3.25% since 2021. The tenants allege overcharges of more than $30 million over the past five years.

The law firm Newman Ferrara represents the tenants, working with Housing Rights Initiative. The two outlets describe Two Trees' response differently. The Real Deal said Two Trees denies the accusations and quoted executive David Lombino: "Frivolous litigation like this drives up the already extraordinary cost of building and operating housing in New York City." Gothamist said Two Trees is reviewing the suit. Gothamist also said HCR declined to comment on ongoing litigation.

The Real Deal reported that Newman Ferrara has filed class actions against more than a dozen landlords since August over rent increases following concessions. These include a case at 420 Kent Avenue in Williamsburg tied to former Gov. Eliot Spitzer's firm and a suit at three Rockrose Development buildings in Long Island City that alleges more than $50 million in 421a overcharges.