NYC landlord to pay $2.1M to resolve 4,000+ building-code violations
Streetview of 35-64 84th Street © 2017 Google
A major New York City landlord will pay $2.1 million to settle thousands of violations across its properties under a settlement announced by Mayor Zohran Mamdani on Friday. The deal covers 14 A&E Real Estate-owned buildings, requiring the landlord to pay fines, fix more than 4,000 building-code violations, and bar further harassment of tenants. The settlement concludes a year-and-a-half legal battle that began under former Mayor Eric Adams and is the largest in the history of the Department of Housing Preservation and Development’s (HPD) Anti-Harassment Unit, according to Gothamist.
The deal involves 14 buildings across three boroughs, including: 150-45 73 Avenue, 35-64 84 Street, 37-06 81 Street, 35-16 34 Street, 48-16 46 Street, 37-25 81 Street, 80-01 37 Street, 37-30 81 Street, and 150-40 73 Avenue in Queens; 2 Ellwood Street, 342 Fort Washington Avenue, and 350 Fort Washington Avenue in Manhattan; and 65 Ocean Avenue and 230 Ocean Parkway in Brooklyn, according to a press release.
Two of the Queens buildings involved in the settlement are part of a 12-building, 1,200-unit complex in Kew Gardens where A&E is facing foreclosure. In October, the landlord defaulted on a $165 million loan tied to the property, Crain’s reported.
Mamdani made the announcement at one of the Jackson Heights buildings included in the settlement, which A&E purchased in 2021 and has since repaired more than 1,400 violations, as reported by Crain’s.
“Every tenant in New York City has a right to a safe and livable home and our administration is taking decisive action to deliver exactly that,” Mamdani said. “This settlement will bring real accountability and relief for the tenants of these buildings, who have been suffering from poor conditions and harassment for far too long.”
He added, “From our first day in office, we have made addressing the housing crisis a priority. Enforcement actions like these are just one of the many tools that we will use to deliver on an affordability agenda for New Yorkers.”
The mayor noted that the settlement is only the first step in the administration’s actions against A&E, as the landlord has reportedly racked up more than 140,000 total violations, including 35,000 in the past year alone, according to the Queens Eagle.
During HPD’s initial investigation, the agency found widespread unsafe conditions at four buildings. When the landlord failed to fix them, HPD escalated enforcement by filing motions for civil contempt, additional orders to correct, and further civil penalties.
Over the course of litigation, A&E addressed more than 1,000 violations, while HPD completed an additional $488,000 in repairs through its emergency repair program. If A&E fails to comply with the settlement, HPD may pursue additional court orders and penalties.
The deal continues Mamdani’s efforts to protect tenants from negligent landlords and unsafe living conditions, a central tenet of his campaign platform. On his first day in office, Mamdani revitalized the Office to Protect Tenants, led by Cea Weaver, executive director of Housing Justice for All and the New York State Tenant Bloc.
He also signed a series of executive orders aimed at building new housing and safeguarding tenants. The orders were signed at a Flatbush property owned by Pinnacle Realty, a landlord responsible for more than 5,000 housing violations across 83 buildings, and included a plan for city intervention in the landlord’s bankruptcy sale.
However, earlier this month, a federal bankruptcy judge denied Mamdani’s bid to halt the sale of the thousands of rent-stabilized units. The mayor had requested a delay to allow more time to evaluate a deal that would transfer ownership to Summit Properties USA. Despite the attempt, the judge rejected the request, likely paving the way for Summit’s potential acquisition of nearly 90 buildings.
“We will not stand by when bad landlords let buildings decay and tenants suffer. This settlement is a statement of values: that every New Yorker has a right to feel safe in their own home,” Leila Bozorg, deputy mayor for housing and planning, said.
She added, “We will continue to use city tools to deliver real results for tenants, whether through enforcement actions like this or working in partnership with owners who are committed to providing safe and quality housing to New Yorkers.”
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