Suit Alleges that Zara Realty targeted tenants in at least 38 rent-stabilized buildings by charging excessive fees, coercing them into signing improper leases, illegally raising rents, and denying tenant rights
Attorney General Letitia James and Governor Andrew M. Cuomo announced a lawsuit against Zara Realty Holding Corp., its principals, and affiliated entities for repeatedly violating rent stabilization laws and harassing tenants at their Queens apartment buildings. The defendants, who own and manage at least 2,500 rent-stabilized apartments in 38 buildings in and around Jamaica, Queens, have taken advantage of their tenants, who are largely immigrant middle- and low-income families, by charging them illegal fees and rents, and requiring that they sign illegal leases. The Tenant Protection Unit of New York State Homes and Community Renewal (HCR) uncovered these practices over the course of a two-year investigation and partnered with the Attorney General to file the suit.
“For years, Zara Realty has engaged in an egregious pattern of tenant harassment and exploitation,” said Attorney General Letitia James. “Evading our rent regulation laws and forcing low-income tenants to pay exorbitant fees for fake services is deception of the worst kind. This is a notice to all unscrupulous landlords who seek to hurt New Yorkers, we will not tolerate this behavior.”
"Any landlord that harasses or cheats tenants will be punished to the fullest extent of the law - period," said Governor Andrew M. Cuomo. "New York State has zero tolerance for the unscrupulous behavior described in these allegations and our Tenant Protection Unit will continue to root out bad actors who take advantage of tenants and deliberately flout New York’s stringent rent regulation laws."
“With today’s action, and through all of the work of the Governor’s Tenant Protection Unit, New York State is sending a strong message to the landlord community: We are watching, and if you mistreat your tenants, we are coming for you,” said New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas.
The complaint, filed today in New York Supreme Court, alleges that Zara Realty has spent years evading and circumventing rent stabilization laws in order to scam tenants out of thousands upon thousands of dollars. Zara Realty often illegally demands and charges new tenants illegal key money, room reservation fees, advanced rent, and excessive security deposits. Tenants who continue to reside in Zara Realty buildings are often illegally charged late fees and fees for services to which they are entitled to for free such as regular apartment maintenance.
Zara Realty regularly charges tenants moving into its buildings and tenants moving apartments within the same building a broker’s fee under the name “Jasmine Homes, LLC,” a company controlled by the Subraj family, though the Rent Stabilization Code prohibits landlord from collecting a broker’s fee. In addition, Zara Realty also charges tenants security deposits that equal three- to four-times the monthly rent, though the Rent Stabilization Code allows a landlord to collect only one month’s rent as security.
The complaint also alleges that when Zara Realty takes over a new building, it changes the building’s front door lock and requires that tenants pay fees of up to $200 per key for the new lock. It also requires that tenants submit to background checks or sign new leases if they want a key. The investigation found that some tenants paid more than $11,000 simply to move into their rent-stabilized apartment.
In the filing, the Attorney General seeks an injunction against Zara Realty on behalf of HCR, and it additionally seeks disgorgement, restitution, and other equitable relief under the New York Executive Law.
The Attorney General’s Office and the Tenant Protection Unit and would like to thank Catholic Migration Services, Woodside on the Move, Chhaya CDC, Asian Americans for Equality, Legal Services NYC, the Legal Aid Society, New York Legal Assistance Group, the Jewish Association Serving the Aging, and the Urban Justice Center for their critical cooperation in this case.
They would also like to thank TPU’s Senior Attorneys Shirali Shah, Monique Thomas and Stephanie Cunningham, as well as Assistant Counsel Karis Rasmussen, Acting Legal Director Argyro Boyle, and Acting Deputy Commissioner/Bureau Chief Gregory C. Fewer for their hard work and dedication in bringing this case to fruition.
