In a decisive action against negligent property management, New York Attorney General Letitia James has secured a substantial settlement from a notable New York City landlord. According to an announcement from her office, James and Lilmor Management LLC, alongside its principal Morris Lieberman, have agreed to a $6.5 million settlement due to serious housing violations. Lilmor Management has been cited for an alarming array of housing code breaches, including lead paint, mold, and poor maintenance, coupled with deceptive practices when leasing their units.
Ranked among the worst offenders on New York City’s Public Advocate’s “Worst Landlord” list in 2019 and 2020, Lilmor has a portfolio comprising at least 49 buildings with more than 2,500 rent-stabilized apartments, predominantly in Brooklyn and Queens. As part of their agreement, Lilmor will have to cough up $6.5 million to both the Office of the Attorney General (OAG) and U.S. Attorney's Office, with over $2.9 million designated for tenant restitution. These actions follow a collaboration between the OAG and the United States Attorney for the Southern District of New York, Damian Williams. Alongside monetary payments, a rigorous improvement plan for the rental units has been mandated, the oversight of which falls upon an independent Housing Specialist appointed by the Attorney General and U.S. Attorney.
Attorney General James stated, "Tenants in Lilmor’s buildings, including children, were forced to live with leaks, mold, infestations, and elevated levels of lead." Delving into the gravity of the situation, investigations by the OAG commenced in June 2021 after worrying tenant complaints and reports of children with elevated lead levels in their blood. James further conveyed, according to an official statement, "Morris Lieberman’s days of harming tenants and their families are over."
Lilmor's pattern of violations spanned multiple legal provisions, particularly the New York City's Childhood Lead Poisoning Prevention Act. Found to fail in conducting adequate inspections and managing lead paint hazards, Lilmor's neglect led to over 100 children under six testing positive for lead exposure. In over 30,000 cases, documentation reveals that, reportedly riddled by mold and vermin-related infractions, Lilmor's buildings have had their reputation marred further due to concealing these poor conditions and misrepresenting their habitability. Now, the company is poised on the brink of a thorough correction path, as by the settlement, it is now incumbent upon Lilmor to remove or replace lead-based paint with extended measures exceeding local law requirements.
The Housing Specialist, employed and paid for by Lilmor but selected by OAG and SDNY, will serve as both monitor and project manager for this large-scale remediation effort. Current tenants can expect partial rent abatements during the renovation period, with rent hikes being deferred until after the work concludes. The payment to the OAG will primarily serve as compensation for affected tenants, with a fraction earmarked for the Housing Preservation and Development (HPD) to partially cover civil penalties due.
Lead poisoning poses severe risks to health, notably among children, and the New York City Childhood Lead Poisoning Prevention Act is a critical measure designed to protect vulnerable populations from such dangers. Attorney General James has extended her gratitude to NYC HPD officials for their assistance in bringing about this resolution.
The case against Lilmor was handled by Assistant Attorney General Jane Landry-Reyes from the Housing Protection Unit, under the supervision of Unit Chief Brent Meltzer, part of the Division for Social Justice, and under the leadership of both Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.
