Attorney General James and HCR Commissioner Visnauskas Sue Queens Landlord for Illegally Overcharging Rent-Stabilized Tenants

Strategic Insights -

New York Attorney General Letitia James and New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas have filed a lawsuit against Zara Realty Holding Corp. and its principals for violating rent stabilization laws and overcharging rent-stabilized tenants in Jamaica and Elmhurst, Queens. The lawsuit alleges that Zara Realty took advantage of tenants who paid their rent through New York City Department of Social Services (DSS) housing subsidy programs and disregarded rent reduction orders issued by HCR's Office of Rent Administration. The Attorney General's Office and HCR are seeking a court order to stop Zara Realty from charging or collecting illegally inflated rents and to refund all tenants who were overcharged.

Key Takeaways:

  • The lawsuit alleges that Zara Realty ignored rent stabilization laws and overcharged rent-stabilized tenants in Jamaica and Elmhurst, Queens, by charging the highest possible amount allowable under their DSS housing subsidy program.
  • Since at least 2022, Zara Realty has been violating rent reduction orders issued by the Office of Rent Administration, despite receiving complaints from tenants.
  • The lawsuit seeks damages, restitution, and injunctive relief to stop Zara Realty from continuing to overcharge tenants.
  • The Attorney General's Office and HCR are seeking to identify every former and current tenant that was illegally overcharged and to refund all illegally collected rent.
  • The lawsuit is part of Attorney General James' ongoing efforts to protect tenants' rights and enforce New York's rent regulation laws.
  • Zara Realty has been involved in previous lawsuits, including a 2019 case where it was accused of targeting immigrant middle- and low-income tenants by charging excessive fees and coercing them into signing improper leases.

Statistics:

  • Over $50,000 in payment was recovered in February of this year for tenants who were overcharged as part of a previous re-regulation effort.
  • 263 apartments were re-regulated in September 2024, and rents were reduced in 43 additional units.
  • A group of 29 New York City landlords paid $4 million in August 2022 after Attorney General James uncovered an illegal kickback scheme to deregulate hundreds of rent-stabilized apartments.
  • Raphael Toledano was banned from real estate business in New York in January 2022 after failing to uphold a $3 million agreement with Attorney General James.

Sources:

  • New York Attorney General's Office (August 6, 2025)
  • New York State Homes and Community Renewal (August 6, 2025)
  • The New York Times (August 6, 2025)
  • The New York Daily News (August 6, 2025)
  • The Albany Times Union (August 6, 2025)