News Summary
The state of New York has reached a $3.1 million settlement with LeFrak over illegal water-usage fees charged to rent-regulated tenants. Nearly 2,000 tenants across 59 buildings will receive refunds plus interest. Governor Hochul affirmed the state’s commitment to tenant rights and holding landlords accountable, as this settlement marks a critical victory in the ongoing fight against illegal landlord charges. Compliance will be monitored independently, ensuring that tenants are protected and preventing future violations.
New York City — The state of New York has reached a $3.1 million settlement with the real estate company LeFrak for charging illegal water-usage fees to its rent-regulated tenants. The announcement was made by the Hochul administration on Friday afternoon, marking the largest settlement in the history of New York’s tenant protection unit, part of the state’s Homes and Community Renewal agency.
The settlement resolves the issue of illegal water charges that affected nearly 2,000 tenants across 59 rent-regulated buildings in New York City. Under New York City law, landlords are required to provide both cold and hot water, and rent-regulated tenants typically do not incur water charges. The settlement agreement stipulates that tenants will receive full refunds for the illegal charges plus an additional 9% interest. Furthermore, an independent monitor will be appointed to ensure compliance with the terms of the settlement, with all associated costs borne by LeFrak.
Governor Kathy Hochul emphasized the administration’s commitment to enhancing affordability and livability for all New Yorkers, highlighting the importance of reducing illegal fees charged to rent-regulated tenants. The investigation that led to this settlement was launched last year following a complaint regarding the unauthorized water charges. While the investigation was ongoing, LeFrak agreed to cease charging tenants for water usage.
The state’s Office of Rent Administration determined that the charges were improper, which consequently led to the settlement. This outcome has been praised by RuthAnne Visnauskas, the Homes and Community Renewal Commissioner, who noted that the settlement provides essential relief that extends beyond the original complaining tenants.
LeFrak, a prominent real estate company known for developing LeFrak City in Corona, Queens, which comprises over 4,500 apartments across 20 buildings, operates residential properties not only in New York but also in Miami and New Jersey. A representative for LeFrak opted not to comment on the recent settlement.
The state’s tenant protection unit has a history of upholding renters’ rights and has previously pursued settlements addressing various landlord infractions. For instance, a notable past settlement involved nearly $500,000 with Steve Croman for violations of state rent laws and tenant overcharges.
This landmark decision reflects the state’s ongoing efforts to hold landlords accountable and ensures that tenants are not unfairly burdened by illegal charges. The impact of this settlement is expected to resonate throughout New York City, restoring justice for affected tenants and reinforcing the commitment of state authorities to protect the rights of renters.
As the tenant protection unit continues its vigilant oversight, this settlement stands as a significant reminder of the importance of compliance with housing regulations and the responsibility of landlords to uphold tenant protections.
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Additional Resources
- Crain’s New York: LeFrak Settles with Hochul Administration
- Wikipedia: Tenant protection in the United States
- Crain’s New York: Rent Relief for New Yorkers
- Google Search: New York City rent regulations
- Crain’s New York: Legal Challenges Against Rent Regulation Changes
- Google Scholar: New York City tenant rights
- Crain’s New York: Mid-Lease Hikes for Rent-Regulated Tenants
- Encyclopedia Britannica: Rent Control
- Crain’s New York: NYC Tenants Call for Regulation Reform
- Google News: NYC housing market
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