New York Attorney General Letitia James today recovered more than $422,000 for hundreds of tenants whose security deposits were illegally withheld by Fairfield Properties (Fairfield), one of the largest residential property owners on Long Island. The real estate company illegally withheld full or partial security deposits without providing tenants with a written itemized list of deductions, inspected apartments without the tenant present, and did not allow tenants to make repairs before vacating their apartment to avoid penalties. As a result of today’s agreement, Fairfield must return security deposits that it illegally withheld to approximately 900 former tenants, including interest, and pay $90,000 in penalties.
“New Yorkers shouldn’t have to worry that their landlord will illegally withhold money that belongs to them,” said Attorney General James. “Fairfield withheld thousands of dollars that belonged to hardworking people, and today, we are returning that money to tenants who were shortchanged. We will always go after landlords that violate the law and the rights of New Yorkers.”
Fairfield owns and operates 196 rental buildings with 13,620 rental units in Nassau, Suffolk, and Queens counties. The Office of the Attorney General (OAG) received complaints from tenants that Fairfield was withholding their security deposits, and after an investigation, OAG found that the real estate company routinely violated several housing and tenant protection laws.
New York law requires landlords to provide an itemized list of any deductions on security deposits within 14 days or else a security deposit must be returned in full. Fairfield withheld full security deposits or returned partial deposits without providing tenants a written itemized list of deductions. New York law also requires landlords to give tenants written notice of their right to be present when the apartment is inspected and must allow tenants the opportunity to clean or fix anything that would be deducted from their security deposit. Fairfield routinely inspected apartments without the tenant present and did not give tenants the opportunity to make repairs or clean their apartment before vacating it.
As a result of today’s agreement, Fairfield will return $422,598.21 back to 899 former tenants who had some or all of their security deposits withheld. Fairfield will contact former tenants and send them their checks. The company will also pay $90,000 in penalties to the state and will be required to provide reports to OAG about its compliance with this agreement. The company has agreed to comply with all laws regarding security deposits and must send certificates affirming their compliance every year or whenever requested by OAG for three years. They will also train current staff on correct security deposit procedures and will provide annual trainings in the future.
“Enforcement by the New York Attorney General is the key to tenants’ rights actually being obeyed in the marketplace,” said Ian Wilder, Executive Director, Long Island Housing Services. “It is unfortunate that law enforcement is forced to step in to make sure that tenants are protected. As both a Fair Housing and HUD-certified Housing Counseling agency, we see that laws passed by the legislature to ensure that tenants are on equal footing with their landlords are often ignored. Tenants regularly find themselves without the resources to ensure that their rights are obeyed. We appreciate that the New York Attorney General stepped forward to protect our fellow Long Islanders.”
“We applaud Attorney General James for fighting to protect renters’ rights, a large portion of tenants across the region are young professionals, minorities, and millennials who work tirelessly to afford quality housing on Long Island,” said Dan Lloyd, Founder and President, Minority Millennials. “We should not have to stress about property owners taking advantage of us and pocketing our earnings.”
This agreement is part of Attorney General James’ ongoing efforts to protect tenants and hold bad landlords accountable. In December, Attorney General James barred a Queens property manager from locking tenants out of their homes. In November, she stopped real estate company Compass from denying housing to low-income New Yorkers. In October, Attorney General James and the Tenant Harassment Prevention Task Force announced a settlement with Greg Fournier and his real estate company, Greenbrook Holdings, for harassing tenants and engaging in unlawful practices in managing its buildings in Brooklyn. In September, Attorney General James secured $4 million from landlords after uncovering an illegal kickback scheme to deregulate apartments.
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