Zara Realty Accused of Overcharging Rent-Stabilized Tenants in Queens

New York – New York Attorney General Letitia James and HCR Commissioner RuthAnne Visnauskas have filed a lawsuit against Zara Realty Holding Corp., its principals, and affiliated entities for systematically overcharging rent-stabilized tenants in Jamaica and Elmhurst, Queens. The duo accuses the company of exploiting tenants who rely on DSS housing subsidies by charging them the maximum amount allowable under their program, regardless of legal rent limits. Zara Realty is also accused of defying rent reduction orders from the Office of Rent Administration (ORA) and taking tenants to court for unpaid overcharged rents.

“While hardworking families are battling an affordable housing crisis, Zara Realty shamelessly took advantage of vulnerable tenants,” said Attorney General James. “Any landlord who tries to cheat their tenants will hear from my office.”

HCR Commissioner Visnauskas added, “Our Tenant Protection Unit is fighting every day for New Yorkers against predatory landlords who try to overcharge and defy our state’s rent laws. The message is clear: we will not hesitate to take action on behalf of rent-regulated tenants.”

The lawsuit claims that Zara Realty ignored legal rent increase limits, such as charging a tenant an 8% rent increase in 2023 despite the legal limit being 3.25%. Another case shows a 44% rent hike over two years for a tenant who refused to pay overcharged rents.

In addition to seeking a court order to stop Zara Realty from further illegal charges, the OAG and HCR’s TPU are demanding refunds for all affected tenants. The legal action underscores New York’s commitment to protecting renters from predatory landlords.

Source: NY AG | State: New York