"New York state's housing agency announced a settlement with the LeFrak Organization 14 months after Gothamist uncovered the water surcharges while reporting on a rash of evictions at the company's sprawling LeFrak City apartment complex in Queens in August 2024. New York state rules prohibit landlords from charging tenants for water or other "essential services" in rent-stabilized apartments. In a written statement, Gov. Kathy Hochul said the state "will not allow illegal fees to drive up costs for millions of rent-regulated tenants.""
"Under the terms of the settlement, the LeFrak Organization will pay back nearly 2,000 tenants who it illegally billed for water at 59 buildings across the city. The reimbursement will come in the form of future rent credits and includes 9% interest. The 20-building LeFrak City complex in Corona features 4,605 units, nearly all of them rent-regulated. A company spokesperson declined to comment on the settlement Friday."
LeFrak Organization will pay $3.1 million in penalties to refund rent-stabilized tenants who were illegally charged water fees. The state housing agency announced the settlement after water surcharges and evictions at LeFrak City in Queens were revealed in August 2024. State rules prohibit landlords from charging tenants for water or other "essential services" in rent-stabilized apartments. Under the settlement, nearly 2,000 tenants at 59 buildings will receive reimbursements as future rent credits with 9% interest. Court records show at least 35 of 121 evicted households were charged water in addition to rent, with some monthly fees over $250. A tenant leader hailed the settlement; the company declined to comment.
Read at Gothamist
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