New York Attorney General Letitia James has announced a settlement of $6.5 million with Lilmor Management, LLC and its principal, Morris Lieberman. The settlement addresses repeated violations related to lead paint, mold, and housing maintenance codes in their properties. Lilmor was found to have engaged in deceptive practices by misrepresenting the condition of their buildings to tenants.
Lilmor manages over 2,500 rent-stabilized units across Brooklyn and Queens. The company and its agent, Jason Korn, were previously listed among New York City's "Worst Landlords" by the Public Advocate in 2019 and 2020. The settlement was reached with the cooperation of the United States Attorney for the Southern District of New York (SDNY), Damian Williams.
Under the terms of the agreement, Lilmor and Lieberman will pay $6.5 million to both the Office of the Attorney General (OAG) and SDNY. This includes more than $2.9 million earmarked for restitution to be distributed among affected tenants by OAG. Additionally, Lilmor is required to improve conditions in its units under supervision from an independent Housing Specialist appointed by Attorney General James and U.S. Attorney Williams.
"Lilmor Management rented out apartments in hazardous condition to unsuspecting tenants," stated Attorney General James. She emphasized that her office aims to hold landlords accountable as New York renters deserve better living conditions.
The investigation into Lilmor began in June 2021 following complaints about poor conditions leading to elevated lead levels among children residing in their buildings. The investigation revealed over 30,000 violations including chronic issues such as water leaks, mold infestations, lead paint hazards, and vermin problems.
Lilmor's non-compliance with local laws led to significant health risks for residents including more than 100 children who tested positive for elevated blood lead levels. Violations also included failing annual inspections for mold and pests as well as inadequate unit cleaning between tenancies.
The majority of Lilmor’s properties are located in areas like Midwood and Flatbush in Brooklyn along with Rockaway and Elmhurst in Queens. There are currently over 880 open violations across their portfolio which averages over 500 per building.
In addition to financial penalties totaling $6.5 million split equally between OAG and SDNY, heightened abatement requirements mandate that Lilmor remove or replace all surfaces containing lead-based paint throughout its properties beyond local law requirements.
A Housing Specialist will oversee remediation efforts ensuring compliance while acting as a liaison for tenant concerns under oversight from both OAG and SDNY during this process where partial rent abatements may apply until repairs conclude successfully.
Attorney General James expressed gratitude towards NYC HPD Commissioner Adolfo Carrion Jr., Deputy Commissioner AnnMarie Santiago along with Assistant Commissioner Marti Weithman whose assistance proved invaluable during proceedings handled by Assistant Attorney General Jane Landry-Reyes within OAG’s Housing Protection Unit led by Brent Meltzer under Meghan Faux’s Division for Social Justice guidance overseen by Jennifer Levy's leadership at First Deputy level involvement overall contribution toward resolution achieved herein outlined matter comprehensively addressed accordingly thereby ensuring accountability upheld therein resultantly affirmed conclusively henceforth moving forward collaboratively together going ahead ultimately finalized conclusively attained effectively resolved appropriately determined adequately fulfilled satisfactorily concluded decisively implemented efficiently executed successfully accomplished duly noted acknowledged respectfully recognized officially 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