Tenants across New York City are slated to receive a $3.1 million windfall, following a settlement announced by Governor Kathy Hochul targeting improper water surcharges by the Lefrak Organization. A Tenant Protection Unit (TPU) investigation into 59 rent-regulated buildings shed light on unauthorized water consumption charges, prompting swift action by the state to protect nearly two thousand tenants from further financial burdens.
According to details shared by the Governor's office, the large real estate firm has agreed to not only stop the collection of these fees but also offer full refunds with a generous nine percent interest. Caught by an audit that began in 2024, the Lefrak Organization will also adopt ongoing independent auditing designed to enforce adherence to the settlement's terms.
“We are committed to making the State more affordable and livable for all New Yorkers and will not allow illegal fees to drive up costs for millions of rent regulated tenants,” Governor Hochul asserted in a press release. Each affected tenant is now poised to get a credit, covering the entirety of water charges incurred from the start of their tenancy.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas offered praise for the settlement and described it as a win for both the tenants and the Lefrak Organization. "This is how government works best, delivering decisive successes for New Yorkers and safeguarding affordability," she told the Governor's office.
This resolution comes in the wake of previous TPU actions, which just last year, settled a $400,000 case against Bottem Realty for similar offences including overcharging, and a $514,000 settlement against Steve Croman for violating rent laws. Tenants suspecting overcharges or experiencing harassment can reach out to the TPU for assistance and potential redress.
