East Harlem Landlord Overcharged Tenants $50K, Officials Say

EAST HARLEM, NY — Twenty-one East Harlem apartments will be returned to rent-stabilized units next month after Attorney General Letitia James found the landlord illegally inflated the prices.

According to James's investigation, Emerald Equity Group, LLC, a real estate company with 13 buildings in the East Harlem area, illegally deregulated rent-stabilized units and overcharged tenants, she said.

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The landlord failed to keep tenants' security deposits in separate accounts, as required by law, according to court documents.

In addition to returning the deregulated apartments to rent-stabilized units, James is also requiring Emerald to repay $54,799.66 to the tenants who were illegally overcharged, she said.

“Emerald blatantly ignored rent stabilization laws, denying many New Yorkers access to affordable, reliable housing,” James said.

As a result of the investigation, Emerald is required by law to return the 21 apartments to rent stabilization within 60 days and has 30 days to return the excess rent money they illegally collected directly to the renters.

Emerald must also notify all impacted tenants of the changes and establish separate accounts for security deposits within 30 days, James said.

If Emerald can't meet these deadlines, the landlord must pay a $500-a-day penalty until each violation is resolved, according to James.

“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.

The apartment buildings with illegally destabilized rentals are:

• 203 West 107th Street
• 210 West 107th Street
• 220 West 107th Street
• 230 West 107th Street
• 124 - 136 East 117th Street
• 215 East 117th Street
• 231 East 117th Street
• 235 East 117th Street
• 244 East 117th Street
• 316 East 117th Street
• 322 East 117th Street
• 326 East 117th Street
• 1661 Park Avenue

Emerald filed for bankruptcy and these buildings will be transferred to Emerald's lender, who will ensure the new owners will be bound to the same settlement, James said.

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