Kushner Cos. Accused of Harassing Tenants to Push Them Out

NEW YORK CITY—Gov. Andrew M. Cuomo’s tenant protection unit is investigating allegations that the Kushner Cos. illegally harassed tenants. The allegations were raised in a lawsuit filed on Sunday in a New York state court against Kushner Cos., by current and former tenants of Austin Nichols House at 184 Kent Ave. The apartment is located in the gentrifying neighborhood of Williamsburg, Brooklyn.

Gov. Cuomo’s administration announced on Monday it’s investigating whether Kushner Cos. violated New York’s housing laws and regulations.

The tenants’ lawsuit claims that in June 2015, Kushner Cos., Austin Nichols House and Westminster Management began demolition and renovations of the majority of the 338 units to transform a rent-stabilized apartment building into luxury condominiums. The complaint states people including young children still lived on the premises. It further asserts that the defendants unlawfully filed for permits falsely claiming the buildings to be unoccupied—and this was designed to harass and evict people residing in the building.

The plaintiffs allege the construction caused the release of dust containing lead, crystalline silicates, gypsum and other poisonous and carcinogenic substances. They say tenants were exposed to toxic dust that entered their apartments, kitchens and closets.

The complaint states the defendants’ activities caused constant and chronic rodent infestation, obnoxious drilling at all hours of the night, flooding, loss of hot water, broken windows, holes in walls, mold, lack of security, vibrations, raw sewage, unsanitary accumulation of garbage, prevalent fire hazards—all designed to evict tenants from their homes.

The plaintiffs requested a trial and damages of not less than $10 million.

A representative from the governor’s office tells GlobeSt.com that a tenant protection unit investigative team visited the property on Monday.

“Governor Cuomo has zero tolerance for tenant abuse of any kind and we will aggressively take on landlords who try to intimidate people out of their homes,” says New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas. “In New York no one is above the law, and we will thoroughly investigate the appalling allegations of harassment at this or any related property.”

A Kushner Cos. media spokesperson denies wrongdoing and tells GlobeSt.com that the tenants’ lawsuit “is totally without merit and we intend to defend it vigorously.”

The company states, “The residents of Austin Nichols House were fully informed about the planned renovation and all work was completed under the full supervision by the New York City Department of Buildings and other regulatory agencies, with full permits and with no violations for these claims. Tenants were never pressured to leave their apartments and the market-rate rent stabilization was—and continues to be—complied with under applicable rent guidelines.”

On Monday, the Associated Press reported that more than a dozen current and former residents at 184 Kent Ave. say they believe “the Kushner Cos.‘ relentless construction, along with rent hikes of $500 a month or more, was part of a campaign to push tenants out of rent-stabilized apartments and bring high-paying condo buyers in.”

The news agency noted “An AP investigation found that over the past three years, more than 250 rent-stabilized apartment—75% of the building—were either emptied or sold as the Kushner Cos. was converting the building to luxury condos. Those sales so far have totaled more than $155 million, an average of $1.2 million per apartment.”

The article stated that the Kushner Cos. told the AP that it did not harass tenants to get them to leave. “But the data suggest turnover at the building known as the Austin Nichols House was significantly higher than city averages for coveted rent-stabilized buildings.”