Wednesday, September 27, 2017

ICON to Pay $500,000 in Penalties, Fees and Costs for Tenant Harassment, Hazardous Living Conditions




Governor Andrew Cuomo, Attorney General Eric Schneiderman and Mayor Bill de Blasio today announced a first of its kind settlement between the Tenant Harassment Prevention Task Force and ICON Realty Management. This settlement provides tenants broad relief, requiring the landlord to end harassment and hazardous living conditions for the hundreds of tenants in buildings owned and managed by ICON.

Tenants in several ICON-owned rent-regulated buildings in the East Village, the Lower East Side, and Brooklyn were forced to live in adverse conditions, enduring excessive dust and debris from construction in the building common areas and apartments, inconsistent and irregular heat and hot water, and lack of cooking gas and elevator service for extended periods. The Task Force investigation found that, on multiple occasions, ICON failed to obtain Department of Buildings work permits, performed construction outside the scope of permits issued, and failed to appropriately clean or maintain the construction work areas. The Task Force investigation also found that ICON ignored tenants' requests for repairs, failed to timely correct housing and building code violations, and subjected tenants to long-lasting interruptions of heat, hot water, and cooking gas services.

The Assurance of Discontinuance (AOD), executed today by the Attorney General's office, requires ICON to adopt policies and procedures to prevent future violations and safety risks; corrects all outstanding housing, maintenance, and building code violations; establishes safe construction practices; provides rent abatements to tenants during disruptions of essential services; appoints a tenant liaison to immediately address tenant concerns; and establishes an independent monitor to ensure ICON's compliance with the agreement. The settlement also requires ICON to pay $300,000 to the State of New York (on behalf of the Task Force) and over $200,000 in penalties, fees, and costs to New York City's Housing Preservation & Development and Department of Buildings.

"This settlement agreement makes it clear that we have zero tolerance for a landlord's illegal and harmful construction that exposes tenants to harassing and hazardous living conditions," Governor Cuomo said. "I am proud of the TPU and all the work we've accomplished with the Task Force to protect rent-regulated tenants from predatory and abusive landlords. New Yorkers have the right to safe decent homes that do not jeopardize their health and safety."

"Unscrupulous landlords should be on notice: we'll use every legal tool at our disposal to protect New York's tenants," Attorney General Schneiderman said. "Too often, bad landlords see rent-regulated apartments as a goldmine - looking to make a quick buck by using construction to harass tenants out of their homes. No New Yorker should have to fear for their health or their safety in their own home. This settlement marks another win for New York's tenants as our Task Force continues to protect their rights and hold landlords accountable."

Mayor Bill de Blasio said, "Property owners in this City have a clear legal responsibility to their tenants and those duties were repeatedly violated by this company. We will continue to work hand in glove with our law enforcement partners to protect New York tenants and punish deadbeat landlords."

The Tenant Harassment Prevention Task Force was created in 2015 in response to growing complaints that landlords were using construction as a mean to harass and endanger the health and safety of tenants. It includes the Governor's Tenant Protection Unit, the New York State Attorney General, and New York City's Department of Housing Preservation and Development and Department of Buildings (DOB). The Task Force combines multi-agency resources to address actions that jeopardize affordable housing and endanger tenants. It executes unannounced top-to-bottom inspections of buildings in New York City, interviews tenants, and shares agency data to build investigations and provide tenants with comprehensive relief. The work of the Task Force has led to criminal prosecutions, such as the case against Daniel Melamed, and/or civil litigation or settlement, such as today's settlement with ICON.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "All New Yorkers deserve a safe home. No one should be subjected to unsafe living conditions at the hands of their landlord. Under Governor Cuomo's leadership, the TPU will continue to ensure New York remains a safe place for tenants to live, free from harassment."

Maria Torres-Springer, Commissioner of New York City Department of Housing Preservation and Development, said, "Landlords like ICON are exactly why Mayor de Blasio recently enacted eighteen new pieces of legislation strengthening New York's protections against tenant harassment and increasing penalties for owners who continue to engage in it. One of these new bills, Intro. 1549, specifically addresses this type of behavior and ensures tenants have the right to sue landlords for harassment for repeated disruption of essential services. Landlords know that engage in construction harassment will face consequences."

 Since its creation in 2012, the Governor's TPU enforcement activities have led to the registration of over 60,000 improperly deregulated apartments and the recovery of over $4.1 million in overcharged rent for unsuspecting tenants through settlement agreements and administrative proceedings. The TPU has been on the forefront of new initiatives designed to shield tenants from harassment and to preserve affordable housing. To date, the TPU has entered into several comprehensive, compliance settlement agreements with landlords who were systematically harassing rent-regulated tenants.  The TPU has also referred several landlords for criminal prosecution to the Brooklyn District Attorney and the Attorney General.

On behalf of the affected tenants, the Governor wishes to especially recognize the diligent work by the Tenant Protection Unit, the Attorney General, the Department of Buildings, the Department of Housing Preservation and Development, and the Department of Taxation and Finance for their assistance in the investigation and prosecution of this matter.

Tenants who live in rent-regulated apartments and believe they are being harassed should contact the TPU at (718) 739-6400 or TPUinfo@nyshcr.org. 

For more information about the Governor's Tenant Protection Unit go to: http://www.nyshcr.org/TPU.

Source: Press Office, Governor Andrew M. Cuomo

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