Emerald Equity Hit with Rent Stabilization Reversal, $54K Repayment Demanded

New York Attorney General Letitia James and New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas today announced a significant victory for New York City tenants. Emerald Equity Group, LLC, a real estate firm operating in East Harlem, Manhattan, has been forced to re-regulate 21 of its apartments and repay $54,799.66 in overcharged rent to tenants.

The Office of the Attorney General (OAG) and HCR investigation revealed that Emerald had engaged in illegal deregulation of rent-stabilized units, leading to unfair rent increases for tenants. Emerald also violated the law by not keeping tenants’ security deposits in separate accounts as required.

Attorney General James commented, ‘Emerald blatantly ignored rent stabilization laws, denying many New Yorkers access to affordable, reliable housing.’ She emphasized that the return of these units to rent stabilization and the reimbursement of overcharges are crucial steps towards justice for the affected families and a fairer housing market.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas highlighted the effectiveness of the enforcement partnership between her agency and the Attorney General. ‘By systematically rooting out fraudulent deregulation, we are securing the rights of millions of rent-regulated tenants,’ she said.

The investigation began in March 2020 when Emerald was found to have overcharged tenants for rent, illegally deregulating units, and failing to segregate security deposits. Emerald must now return the apartments to rent stabilization within 60 days, correct improperly inflated rents, and establish separate accounts for all tenant security deposits.

Emerald has filed for bankruptcy for several properties, including those involved in this settlement. The company’s audit revealed at least 20 units with incorrect rent registrations, which are now being corrected.