February 28, 2025
Twenty-one Harlem apartments will return to rent stabilization after being illegally overcharged for rent.
Twenty-one apartment units in East Harlem, where a landlord overcharged tenants by more than $50,000, will be reinstated as rent-stabilized.
An investigation by New York Attorney General Letitia James revealed that Emerald Equity Group, LLC, a real estate firm with 13 buildings in East Harlem, unlawfully deregulated rent-stabilized units and overcharged tenants, Patch reports. Along with restoring the deregulated apartments to rent-stabilized status, James demands that Emerald repay $54,799.66 to unlawfully overcharged tenants.
Court documents reveal that the landlord did not maintain tenants’ security deposits in separate accounts, as mandated by law. According to James, although the landlord has filed for bankruptcy, the buildings will be transferred to Emerald’s lender, who will ensure that the new owners are held to the same settlement.
“Emerald blatantly ignored rent stabilization laws, denying many New Yorkers access to affordable, reliable housing,” James said.
The apartment buildings with illegally destabilized rentals are:
As a result of the investigation, Emerald is legally required to reinstate the 21 apartments to rent stabilization within 60 days and refund the excess rent collected from tenants within 30 days. The landlord must also notify all affected tenants about the changes and set up separate accounts for security deposits within 30 days.
James stated that if Emerald fails to meet these deadlines, the landlord will incur a $500 daily penalty until each violation is rectified.
“By returning these units to rent stabilization and ensuring tenants are reimbursed for overcharges, we are bringing justice to the families that Emerald harmed and ensuring more fair and equitable housing for future renters,” James said.
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