Twenty-one apartment units in East Harlem, where a landlord overcharged tenants by more than $50,000, will be reinstated as rent-stabilized.
An investigation by New York Attorney General Letitia James revealed
that Emerald Equity Group, LLC, a real estate firm with 13 buildings in East Harlem, unlawfully deregulated rent-stabilized units and overcharged tenants, Patch reports. Along with restoring the deregulated apartments to rent-stabilized status, James demands that Emerald repay $54,799.66 to unlawfully overcharged tenants.Court documents reveal that
the landlord did not maintain tenants’ security deposits in separate accounts, as mandated by law. According to James, although the landlord has filed for bankruptcy, the buildings will be transferred to Emerald’s lender, who will ensure that the new owners are held to the same settlement.“Emerald blatantly ignored rent stabilization laws, denying many New Yorkers access to affordable, reliable housing,” James said.
The apartment buildings with illegally destabilized rentals are:
- 203 West 107th Street
- 210 West 107th Street
- 220 West 107th Street
- 230 West 107th Street
- 124 – 136 East 117th Street
- 215 East 117th Street
- 231 East 117th Street
- 235 East 117th Street
- 244 East 117th Street
- 316 East 117th Street
- 322 East 117th Street
- 326 East 117th Street
- 1661 Park Avenue
As a result of the investigation, Emerald is legally required to reinstate the 21 apartments to rent stabilization within 60 days and refund the excess rent collected from tenants within 30 days. The landlord must also notify all affected tenants about the changes and set up separate accounts for security deposits within 30 days.
James stated that if Emerald fails to meet these deadlines, the landlord will incur a $500 daily penalty until each violation is rectified.
“By returning these units to rent stabilization and ensuring tenants are reimbursed for overcharges, we are bringing justice to the families that Emerald harmed and ensuring more fair and equitable housing for future renters,” James said.
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