New York probes alleged tenant harassment by Jared Kushner's family firm
NEW YORK (Reuters) - The administration of New York Governor Andrew Cuomo has opened a probe into allegations that the real estate firm once led by U.S. President Donald Trump’s son-in-law Jared Kushner harassed tenants at one of its largest residential buildings.
New York State Homes and Community Renewal on Monday said its tenant protection unit would investigate alleged abuses by Kushner Companies toward tenants at the 338-unit Austin Nichols House in the Williamsburg section of Brooklyn.
The probe was announced one day after 20 tenants and former tenants filed a $10 million lawsuit accusing the Kushner firm of using construction crews to create “intolerable” conditions at the building, including exposure to dangerous toxins and dust, rodent infestation, mold and the loss of hot water.
They said the firm did this with a goal of driving out rent-stabilized tenants and transforming the building into a luxury condominium. New York limits the amounts by which landlords can raise rents each year for rent-stabilized tenants.
Kushner Cos had no immediate comment on the state probe.
The firm also said it will defend against the lawsuit, which it called “totally without merit.” It said tenants were never pressured to leave their apartments and were kept informed about the construction, which it said was completed properly.
Jared Kushner is now a Trump adviser and is not a defendant in the lawsuit.
Cuomo, a Democrat seeking his third term as governor, and other New York officials have pursued a wide array of lawsuits and probes related to Trump, a Republican, and his family businesses.
“Governor Cuomo has zero tolerance for tenant abuse of any kind,” RuthAnne Visnauskas, the commissioner of New York State Homes and Community Renewal, said in a statement.
Kushner’s family firm was part of a venture that in 2015 paid $275 million for the landmarked Williamsburg building, located at 184 Kent Avenue overlooking the East River and Manhattan.
The century-old building was once used as a warehouse for Wild Turkey bourbon before being converted into luxury rentals.
Sunday’s lawsuit was supported by the Housing Rights Initiative, a watchdog group that advocates for tenants.
The group in March accused the Kushner firm of falsifying work permits to conceal rent-regulated units at 34 buildings, and avoid the potential for stricter oversight of construction crews during renovations.
New York City’s Department of Buildings opened a related probe the same month.
Reporting by Jonathan Stempel in New York; Editing by Dan Grebler and Marguerita Choy