Landsman Real Estate Bilked Rochester Tenants

New York – In a stunning betrayal of trust, Landsman Real Estate Services, Inc., and Landsman Development Corp. (Landsman) have been caught in an elaborate scam that left 25 low-income families without homes in Rochester’s Los Flamboyanes affordable housing complex.

Attorney General Letitia James has announced new protections for the affected tenants after a thorough investigation revealed that Landsman failed to notify them of their right to return to their homes upon completion of the redevelopment. Not only that, but Landsman also denied these families adequate relocation payments, effectively leaving them vulnerable and financially strapped.

The saga began in April 2024 when Landsman notified tenants of a renovation project, setting off a domino effect that would ultimately force them out by March 2025. Instead of providing the required full disclosure or financial support, Landsman issued a meager $9,570 lump sum as relocation assistance, far from sufficient for the costs incurred.

James’ office found that Landsman’s actions violated tenant rights laws, and an initial settlement in April 2025 secured over $271,000 in additional Replacement Housing Payments (RHP) to help those who were shortchanged. However, Landsman failed to honor this agreement.

Further investigation revealed that many tenants faced exorbitant rental costs and utility bills, spending up to 30 percent of their income on these necessities. The stress of the situation led some to choose between paying rent and buying new furniture, only to find themselves in a worse position when eviction loomed.

Attorney General James has now secured a second settlement with Landsman, ensuring all entitled tenants receive additional compensation and are informed of their right to return home upon completion. The settlement also guarantees protection from eviction and utility shut-offs, putting an end to this shocking case of housing fraud in Rochester.