Tenants in New York City have just received a bit of good news as Attorney General Letitia James and New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas announced the return of 21 apartments to rent stabilization. These residences, previously managed by Emerald Equity Group, LLC, were found to be illicitly deregulated, with the company also guilty of overcharging renters and mishandling security deposits, according to an official press release by the New York Attorney General's Office.
"Emerald blatantly ignored rent stabilization laws, denying many New Yorkers access to affordable, reliable housing," Attorney General James expressed, highlighting the gravity of the wrongdoing which not only exploited tenants financially but also went against the staple of New York’s housing regulations, in a move ensuring that justice and fair housing practices are a priority these units have been restored under rent stabilization and affected individuals will see reimbursements totaling $54,799.66. Commissioner RuthAnne Visnauskas backed the announcement with praise for the enforcement partnership between HCR’s Tenant Protection Unit and the Attorney General’s Office, an effort solidifying the protection of rent-regulated tenants and supporting Governor Hochul's push for better tenant protections.
This resolution comes on the heels of OAG and HCR investigations into Emerald's activities that began separately in March 2020, which unearthed illegal unit deregulations and rent overcharges in violation of New York's Rent Stabilization Law, and the discovery that the company neglected to handle tenants' security deposits correctly, by not storing them in separate accounts that would safeguard the funds from improper use and ensure they accrued interest, the findings prompted corrective actions now mandated for Emerald, including the adjustment of rents, notification to tenants about changes, and creation of segregated accounts for security deposits, and Emerald must heed these commands or face a hefty daily fine of $500 for each non-compliance until all issues are addressed.
Emerald's financial troubles have extended to a bankruptcy filing for several of its rent-stabilized properties, which led to an audit unearthing discrepancies in at least 20 units where the registered rents did not match the legal regulated rent; corrections are underway as part of the settlement, although the troubled properties are set to transfer to Emerald’s lender, the lender has agreed to uphold the terms of the settlement thus ensuring continued compliance with rent regulations after the ownership switch. The OAG and HCR's actions are but the latest in a series of interventions by Attorney General James, who has previously secured millions in restitution and rent credits from landlords engaging in illegal activities, reflecting her steadfast commitment to enforce rent regulation laws across New York City.
The case handling by OAG was led by Housing Protection Unit Chief Brent Meltzer with the help of Assistant Attorney General Jane Landry-Reyes, all under the Division for Social Justice operated by Chief Deputy Attorney General Meghan Faux and directed by First Deputy Attorney General Jennifer Levy. The official press release can be found on the New York Attorney General's Office website, detailing further the multi-pronged effort to secure fair housing practices and uphold the law on behalf of New York's renters.
