Court Grants Preliminary Injunction Against Landlord in Case Claiming Harassment

The DHCR and the NY State Attorney General sued landlord and its various entities in 2019, seeking an injunction to stop landlord from "persistently and flagrantly" violating the Rent Stabilization Law by illegally collecting fees and rents in excess of the legal regulated rents permitted for apartments in landlord's buildings. The agencies claimed that landlord and its related entities illegally collected broker's fees, security deposits, additional "key money" required to gain access to apartments, late fees, vacancy fees, and additional rent, and imposed other lease requirements, including waivers, not permitted by law. The DHCR and the AG also claimed that landlord's conduct amount to harassment of tenants. In 2023, the plaintiffs asked the court for permission to amend their complaint and add new defendants to the case. They also sought a preliminary injunction to stop defendants from collecting broker's fees or any other fees in excess of the legal regulated rents from rent-stabilized tenants.

The court ruled for the agencies in part and permitted amendment of the complaint to add additional defendants. The court also granted in part the plaintiffs' request for a preliminary injunction, agreeing to bar the current defendants from collecting broker's fees or any other fees in excess of the LRR but denying application of the preliminary injunction to the proposed new defendants since they hadn't been served with the plaintiffs' motion papers. 

DHCR v. Zara Realty Holding Corp.: Index No. 450245/2019, 2023 NY Slip Op 32843(U)(Sup. Ct. NY; 8/16/23; Edwards, J)