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Attorneys general

New York Attorney General and HCR File Lawsuit Against Zara Realty for Rent Stabilization Law Violations

Strategic Insights

— 2 min read

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 repeatedly violating rent stabilization laws and overcharging rent-stabilized tenants in Jamaica and Elmhurst, Queens. The lawsuit alleges that Zara Realty illegally took advantage of tenants who paid their rent through New York City Department of Social Services (DSS) housing subsidy programs and brazenly disregarded rent reduction orders issued by HCR's Office of Rent Administration.

Key Takeaways:

  • The lawsuit alleges that Zara Realty illegally charged rent increases that were significantly higher than the legal amount, exploiting tenants who received DSS housing subsidies.
  • The company ignored rent reduction orders issued by the Office of Rent Administration (ORA) and continued to overcharge tenants, forcing multiple tenants into financial distress and putting them at risk of eviction.
  • The Office of the Attorney General (OAG) and HCR's Tenant Protection Unit (TPU) are seeking a court order to stop Zara Realty from charging or collecting illegally inflated rents and to refund all illegally collected rent to former and current tenants.
  • The lawsuit also seeks damages to all former and current tenants and for Zara Realty to correct all rent registrations with HCR and issue new leases to tenants.
  • Zara Realty is accused of exploiting and harassing low-income and immigrant tenants, blatantly disregarding rent laws.
  • The lawsuit is the latest action in Attorney General James' ongoing efforts to protect tenants' rights and enforce New York's rent regulation laws.

Statistics:

  • Since at least 2022, Zara Realty has ignored the legal limits to exploit tenants who received DSS housing subsidies, charging them the highest possible amount allowable under their program.
  • Tenants alleged that Zara Realty overcharged them by 100% to 443% in some cases.
  • The lawsuit alleges that Zara Realty continued to overcharge tenants despite receiving rent reduction orders from the Office of Rent Administration.
  • In one case cited in the lawsuit, a tenant was overcharged by $1,200 due to Zara Realty's actions.
  • The OAG and HCR are seeking a court order to stop Zara Realty from charging or collecting illegally inflated rents and to refund all illegally collected rent to former and current tenants.

Sources:

  • New York State Attorney General Letitia James
  • New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas
  • Chhaya Community Development Corporation
  • Department of Social Services (DSS)
  • New York City Department of Social Services (DSS)
  • Office of the Attorney General (OAG)
  • HCR's Tenant Protection Unit (TPU)

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