News Summary
New York Attorney General Letitia James has filed a lawsuit against Zara Realty, accusing the firm of charging inflated rents in rent-stabilized apartments across Queens. The lawsuit claims that Zara Realty violated New York’s rent-stabilization law, ignoring rent-reduction orders and failing to address tenant complaints regarding maintenance. The state seeks a court order to stop the alleged overcharging and compel repayment to affected tenants, amidst growing community frustration and calls for accountability.
New York City – New York Attorney General Letitia James has filed a lawsuit against Zara Realty, claiming that the real estate firm has unlawfully charged inflated rents to tenants in rent-stabilized apartments across Queens. The lawsuit, initiated in New York County Supreme Court, seeks to hold Zara Realty accountable for alleged violations of New York’s rent-stabilization law.
The lawsuit accuses Zara Realty of enforcing excessively high rents on tenants in properties located primarily in Jamaica and Elmhurst, areas known for their significant populations of rent-stabilized residents. Many tenants in these buildings reportedly rely on housing subsidy programs from the city’s Department of Social Services, which Zara Realty is said to have exploited.
Attorney General James asserts that Zara Realty has ignored rent-reduction orders issued by the Office of Rent Administration at Homes and Community Renewal, undermining tenant rights and protections. The lawsuit names over 30 limited liability companies (LLCs) associated with the firm as defendants, indicating a widespread pattern of alleged misconduct.
Notably, the grievances extend beyond rent overcharges. Tenants have voiced concerns about inadequate maintenance and essential services, submitting multiple complaints to the Office of Rent Administration. Despite these reports, Zara Realty reportedly continued to charge higher rents without addressing tenants’ requests for necessary repairs and services.
The state is pursuing a court order that would prevent Zara Realty from collecting the alleged overcharges and require the firm to repay affected tenants. The lawsuit suggests that the overcharging practices date back to at least 2022, with reported instances of tenants being charged the highest possible rent despite being entitled to lower, legally permitted amounts. For example, one tenant saw her rent increase by an alarming 44% in one year, following an earlier increase exceeding the legal limit.
Reactions from the community highlight a growing sense of frustration and demand for accountability. During a recent tenant rally, state lawmakers expressed support for those impacted by Zara Realty’s actions, arguing that the state has permitted unjust rent hikes. Additionally, some tenants accused the firm of abusing the Major Capital Improvement (MCI) program, alleging that inflated costs led to unauthorized rent increases that burdened low-income households.
Zara Realty has defended its operations, asserting that all MCI projects received approval from the state and complied with regulatory standards. The company emphasizes its commitment to investing in building improvements, particularly to align with state climate mandates and enhance tenant safety and housing quality.
This is not the first time Zara Realty has faced scrutiny. In 2019, the Attorney General’s office previously sued the firm over allegations of targeting immigrant tenants with illegal rent increases and excessive fees, an ongoing case which has renewed attention amid the current lawsuit. These repeated allegations of misconduct contribute to a larger conversation about tenant rights and protections within New York’s housing market.
As the lawsuit unfolds, tenants are calling on the state Department of Homes and Community Renewal to take decisive action regarding Zara Realty’s practices. They argue that consistent oversight is critical to ensuring compliance with rent-stabilization laws and protecting vulnerable residents from potential exploitation.
With increasing pressure from tenants and advocacy groups, the outcome of the lawsuit could significantly impact the way rent laws are enforced and upheld across New York City, especially in light of ongoing housing affordability challenges faced by many residents.
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HERE Resources
Additional Resources
- Crain’s New York
- Wikipedia: Rent Control in the United States
- PIX11 News
- Google Search: Queens Rental Housing Laws
- NY Daily News
- Encyclopedia Britannica: Fair Housing
- Patch
- Google News: Zara Realty Lawsuit
Author: STAFF HERE NEW YORK WRITER
NEW YORK CITY STAFF WRITER The NEW YORK CITY STAFF WRITER represents the experienced team at HERENewYorkCity.com, your go-to source for actionable local news and information in New York City, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York City, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
