Gateway Plaza Settlement

If you reside at Gateway Plaza, or you resided at Gateway Plaza for any period of time since April 1, 2008, you could get a payment from a Settlement in In re Gateway Plaza Residents Litigation, Index No. 651023/2014. Please use the Proof of Claim form (“Gateway Plaza Claim Form” below) that you must complete and mail, postmarked on or before April 16, 2020, to participate in the Settlement. More details are listed below and in the Gateway Plaza Long Form Notice.

The total value of the benefits achieved through the Settlement as follows:
a. Capital Improvements………………………………………………. $18-20 mil
b. Settlement Amount………………………………………………….. $10 mil
c. Contractual Rent Increase Limitation…………………………. $13 mil
Estimated Total Benefits Achieved…………………. $42 mil

The capital improvements acknowledged by the Settlement Agreement accrued to the entire Class, as they were ongoing over a three-year period and were largely completed by August 1, 2017. The capital improvement costs are estimated to be between $18 million and $20 million. These expenditures included PTAC replacements, submetering upgrades, window replacements, make-up air systems, and insulation. These expenditures significantly improved the habitability of the units at Gateway Plaza.

The Settlement Amount portion of the Settlement consists of $10 million in cash and rent abatements to be distributed amongst members of the Class. It is intended to compensate tenants who inhabited the units under subpar conditions during the Class Period.

The final part of the Settlement includes the Contractual Rent Increase Limitation, which will be initiated for Current Tenants. The Contractual Rent Increase Limitation is expected to be in place for a period of two years, beginning July 1, 2020, and will allow for a maximum rent increase of no more than 5% per year, on average. Based on an analysis of historical data provided by Marina Towers for the Class Period showing average rent increases between 4% and 7%, Class Counsel estimates that the Contractual Rent Increase Limitation has a potential value of up to $13 million.