Legal Newsline

Tuesday, September 17, 2019

D.C. secures $210,000 for residents, settles with companies allegedly engaged in illegal rental scheme

By Mark Iandolo | Oct 10, 2017

WASHINGTON (Legal Newsline) — District of Columbia Attorney General Karl A. Racine announced Sept. 27 that Daro Management Services LLC and Daro Realty LLC will pay $210,000 to long-term residents of two rent-controlled apartment buildings.

According to allegations, the management companies allowed short-term-rental firms to treat the apartments like hotels. The buildings are The Phoenix, at 1421 Massachusetts Ave. NW; and The Rodney, at 1911 R Street NW. Ginosi USA Corporation and owner Eric Ginosian were allegedly allowed operate short-term rentals out of as many as 36 apartments in the buildings since Aug. 2015.  

“Rent control laws are crucial to maintaining affordable housing in the district, and this settlement helps prevent those laws from being flouted,” Racine said. “Preserving housing for low- and middle-income residents in the district is a priority for our office, and we will continue to pursue individuals and companies that seek to circumvent our laws.”

In addition to the $210,000 payments to residents, the Daro entities will stop working with Ginosi and cease business with companies that sell illegal short-term rentals. The Daro entities will pay the district $100,054 in penalties and costs.

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Government of the District of Columbia