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NYC Landlords Charged with Defrauding Tax Break Program

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And the program has drawn the ire of many on the left, who see it as being overly lenient on the real estate industry. That idea was reinforced by cases of developers and property owners accused of flaunting the rules associated with the program.

On Wednesday, prosecutors indicted six developers and their companies on charges ranging from 2011 to 2019, including 13 counts of large-scale theft and more than 50 counts of city tax fraud. In Brooklyn, Mr. Bragg’s prosecutors asserted their jurisdiction, citing the involvement of the city’s Housing Conservation and Development Agency, which is based in Manhattan and is responsible for approving income tenants.

It is not immediately clear how often criminal charges will be filed in such cases, but lawsuits are common. sues the landlord, News site City Limits reportedThe lawsuit used information gathered in an investigation by the nonprofit Housing Rights Initiative, which found several instances of landlords circumventing 421a regulations.

Aaron Carr, executive director of the Housing Rights Initiative, said: said the group conducted An audit found over 1,500 buildings that may be “noncompliant” with 421a.

October 2020, 4 developers agreed to pay more than New York state attorney general fined $600,000 after accusing it of violating 421a rules, including failing to provide tenants with stable rent and illegally overcharging some tenants rice field.

Regulators have struggled to provide broader oversight. For example, state agencies charged with investigating complaints of illegal rent increases have backlogs, some of which have gone unresolved for years. The New York Daily News reported this month.

Bragg, whose father was the director of the city’s homeless shelter, pledged to change that during the campaign. When announcing the formation of his unit last week, he promised to use his office’s resources to target the illegal activities of landlords and developers.

“By taking a targeted approach to complex and pervasive criminal activity, we can root out the bad guys who seek to manipulate the system for profit at the expense of ordinary New Yorkers,” he said in a statement. said in

Susan C. Beachy Contributed to research.

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