The legal wranglings of AI tech in the tenancy world have struck a new chord in Pennsylvania, with Attorney General Dave Sunday announcing a significant settlement with property management company Home365, LLC. The Vegas-based company, which leaned into AI to manage its operations, came under fire for failing to quickly address repair needs and for withholding security deposits from tenants.
Under the settlement, an Assurance of Voluntary Compliance, Home365 is to pay $45,000, which includes $30,000 for consumer restitution and $15,000 in costs. This comes after tenants complained of maintenance delays that left many to deal with serious issues like water and sewage leaks and structural concerns. Attempts to swiftly fix these problems were allegedly bogged down by the company's AI platform. The Office of the Attorney General also accuses Home365 of leasing unsafe housing.
"As artificial intelligence finds its way into many aspects of modern society, it is imperative that those choosing to use this new technology ensure it is working effectively," Sunday said in a statement provided by the Office of the Attorney General. "This company left many tenants waiting for fixes to water and sewage leaks and structural flaws, and failed to return security deposits to others. This outcome is another demonstration of my office fulfilling its core mission to protect consumers."
The settlement claims Home365 violated Pennsylvania’s consumer protection laws by failing to provide safe living conditions, timely repairs, and essential utilities such as heat and water. The company is also accused of improperly withholding security deposits, in breach of the state’s Landlord-Tenant Act. Tenants who previously filed complaints are set to receive refunds ranging from $375 to $10,450, as per the Office of the Attorney General. Others have 90 days to file a claim. As part of the agreement, Home365 must reform its business practices to prevent future violations.
If you believe you’ve been impacted by Home365’s practices, you can file a complaint online or contact the Bureau of Consumer Protection at 1-800-441-2555. Senior Deputy Attorney General Amy L. Schulman is responsible for the settlement filing with the Allegheny County Court of Common Pleas, which is currently pending court approval.
