New York Attorney General Letitia James and New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas have announced the re-regulation of 21 apartments in New York City. These units, owned by Emerald Equity Group, LLC, were found to have been improperly deregulated. The Office of the Attorney General (OAG) and HCR investigation revealed that Emerald had overcharged tenants and failed to maintain security deposits in separate accounts as required by law.
“Emerald blatantly ignored rent stabilization laws, denying many New Yorkers access to affordable, reliable housing,” said Attorney General James. She emphasized that returning these units to rent stabilization ensures justice for affected families and promotes fair housing practices.
Commissioner Visnauskas noted the significance of the case: “This case exemplifies how the longstanding enforcement partnership between HCR’s Tenant Protection Unit and Attorney General James continues to protect New Yorkers from unlawful schemes to deregulate apartments and overcharge tenants.”
Investigations into Emerald's properties began in March 2020. Both OAG and HCR found violations of New York’s Rent Stabilization Law. They also discovered that Emerald did not keep tenant security deposits in separate savings accounts, a requirement meant to protect tenant funds.
As part of the settlement, Emerald must return 21 units to rent stabilization within 60 days, adjust inflated rents, notify impacted tenants within 30 days, repay overcharges directly to renters, establish segregated accounts for security deposits, and comply with rent regulation laws moving forward. Non-compliance will result in a $500 daily penalty per violation.
Emerald has filed for bankruptcy on several properties involved in this settlement. An audit conducted during bankruptcy proceedings identified discrepancies between registered rents and legal regulated rents for at least 20 units.
The company owns multiple properties across New York City including locations on West 107th Street and East 117th Street which are subject to ongoing bankruptcy proceedings. A lender agreement ensures new owners will adhere to the settlement if compliance is not met before property transfer.
Attorney General James has actively pursued tenant protection measures previously re-regulating hundreds of apartments with HCR's collaboration since September 2024. Past actions include securing financial settlements from landlords involved in illegal deregulation schemes.
The OAG effort was led by Housing Protection Unit Chief Brent Meltzer with assistance from Assistant Attorney General Jane Landry-Reyes under Division for Social Justice oversight by Chief Deputy Attorney General Meghan Faux.