Queens tenants claim rent stabilization laws have been violated by the landlord. Here is Zara Realty’s answer.

NEW YORK — Some tenants in Queens are fed up with their rent and are suing the state in an attempt to resolve it.

The tenants say their landlord abused rent stabilization laws and that a government agency allowed it to happen. They told their story to CBS News Investigates on Friday.

They don’t just live on a street in Jamaica. They gathered at that spot because it is just outside the entrance to the state Department of Housing and Community Renewal.

They want the agency to hear their message, as do state lawmakers.

“They have allowed this landlord to continue raising rents,” said Senator John Liu.

“Rents keep rising and people keep suffering!” Senator Jessica Ramos said.

The tenants’ claims

The tenants live in rent-stabilized apartments in Jamaica owned by Zara Vastgoed, including some on 88th Avenue. They accuse Zara of abusing the state’s Major Capital Improvement program, which allows landlords to cover construction costs by increasing rents by up to 2%, in addition to increases approved by the Rent Guidelines Board.

“They inflated the cost of the work,” Gladys Perez said through a translator.

Perez is a tenant of Zara and says that the work does not meet the standard for the rent increase.

“But of course the HCR didn’t listen! And who pays now? We do!” Perez said.

It is not the first time that Zara has come under scrutiny

New York Attorney General Letitia James is suing the company. accuses the country of violating rent stabilization laws and harassing tenants.

DHCR worked with James’ office on that lawsuit and investigation, but tenants say the state has been too slow to decide pending appeals of the rent increases.

The DHCR told CBS New York Investigates it cannot comment on lawsuits.

“Zara tenants are fed up!” said one tenant.

Zara gives detailed statement

“Zara Property Holdings refutes unfounded statements made by lobbying organizations against landlords as they are once again misleading the public. The fact is that the NY State Department of Housing & Community Renewal (DHCR) inspects all major capital improvements (MCI) and requires extensive supporting documentation before approving projects to ensure that all improvements are necessary. The cases the lobbyists are currently challenging against landlords were reviewed and approved as necessary by DHCR between 2016 and 2021.

“After addressing the merits, these lobbyists are attempting to undermine a lengthy review process that New York State already has in place. It is categorically incorrect for these anti-landowner lobby organizations to claim otherwise.

“Zara is investing heavily in modernizing building infrastructure. This includes updating building exteriors, roofs, elevator systems, HVAC systems and security measures. Our efforts are consistent with the compliance requirements of various state and city climate regulations voted for by our elected officials, including:

• New York State Climate Law
• Local Law 97 Reduction of greenhouse gas emissions
• Local Law 84 Benchmarking Utility and Water Bills
• Local Law 87 Energy audit and commissioning
• Local Law 132 Lighting Upgrades and Submetering

“These mandatory upgrades are subject to review and approval by state housing agencies, ensuring improvements meet regulatory standards. Without the ability to invest in such critical infrastructure, buildings across the city would inevitably fall into disrepair.

“Let us recognize the significant economic burden of the many new climate mandates on co-ops, condo owners, homeowners and apartment complex owners, which have caused many to express concerns about the financial strain.

“In recent months, even Mayor Adams, the City Council Finance Chairman, and others in public office have spoken out and attempted to re-address the costly but important climate mandates they legislated.

“Despite the rise in inflation and construction costs, Zara and other landlords are limited to a 2% increase, but we will continue to invest so that our tenants’ homes are kept at the highest standard.

“DHCR’s process for MCIs at rent-stabilized buildings has long included tenant input and government approval prior to authorization. Then, after agency approval, a landlord can collect as little as 2% of the cost of rent annually. ( If the rent is $1,200 for a 4-room/2-bedroom unit, the MCI is capped at approximately $24/month spread over 14 years.) The landlord cannot increase the rent or MCI without approval from the city or the DHCR.

“As mandated by recently enacted city and state climate laws affecting ALL city buildings, Zara has been proactive in getting ahead of 2025 and 2030 environmental requirements, actively working to decarbonize, solarize roofs and replace of older heating systems through greener, energy-efficient solutions. efficient models.”

The tenants see it all differently, and they hope the state will agree with them.