New York Attorney General Letitia James and New York State Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas have filed a lawsuit against Zara Realty Holding Corp., its principals, and related entities. The suit alleges that Zara Realty repeatedly violated rent stabilization laws by overcharging tenants in Jamaica and Elmhurst, Queens, particularly those using New York City Department of Social Services (DSS) housing subsidy programs. According to the complaint, Zara Realty disregarded rent reduction orders from HCR’s Office of Rent Administration and initiated eviction proceedings against tenants who could not pay the higher rents.
“While hardworking families are battling an affordable housing crisis and fighting to make ends meet, Zara Realty shamelessly took advantage of vulnerable tenants,” said Attorney General James. “New Yorkers should not have to worry that their landlords are willfully deceiving them just to line their own pockets. Let this be a warning: any landlord who tries to cheat their tenants and evade our rent stabilization laws will be hearing from my office.”
“Our Tenant Protection Unit is fighting for New Yorkers every day by protecting them from predatory landlords who try to illegally overcharge their tenants and defy our State’s rent laws,” said HCR Commissioner Visnauskas. “The message from our office and Attorney General James is clear – if landlords fail to abide by the rent laws, if landlords seek fraudulent rent increases, or initiate unlawful evictions – we will not hesitate to take action on behalf of millions of rent-regulated tenants in New York.”
The lawsuit claims that since at least 2022, Zara Realty ignored legal limits on rent increases for units covered by DSS subsidies, charging the maximum amount allowed under the subsidy program rather than following rates set by the Rent Guidelines Board. The OAG and TPU argue this resulted in significant overcharges for many tenants.
Additionally, Zara Realty is accused of ignoring orders from the Office of Rent Administration (ORA) that required reductions or freezes on rents due to failures in providing essential services or maintaining property standards. Even after receiving these orders based on tenant complaints, the company allegedly continued overcharging.
Examples cited include a tenant whose lease was increased by eight percent in one year—despite a legal limit of 3.25 percent—and then again by 44 percent the next year. When she refused payment, Zara Realty began court proceedings against her. Another case involved a tenant whose rent had been frozen but continued being charged at previous rates for two years; when ordered to provide credits and stop overcharging, Zara Realty did not comply.
Attorney General James and HCR are seeking court intervention requiring Zara Realty to cease illegal charges, identify all affected current and former tenants, refund overcharged amounts with damages, correct official registrations with HCR, and issue new leases as needed.
Attorney General James previously sued Zara Realty in March 2019 for similar alleged practices targeting immigrant middle- and low-income renters across at least 38 buildings through excessive fees, improper leases, and illegal rent hikes; that litigation remains ongoing.
“We applaud Attorney General James and HCR Commissioner Visnauskas for holding these bad actors accountable and for sending a clear message that this type of predatory behavior will not be tolerated,” said DSS Commissioner Molly Wasow Park. “The allegations are particularly appalling since the defendants sought to enrich themselves by taking advantage of subsidies intended to support low-income New Yorkers with a history of housing instability. DSS has taken concrete steps to change rental subsidy processes to prevent bad actors from being able to overcharge tenants in receipt of city-administered rental subsidies in the future. We look forward to further collaboration with the Office of the Attorney General and HCR to ensure vital government resources are protected.”
“For years, Zara Realty has lined their pockets by exploiting and harassing low-income and immigrant tenants, blatantly disregarding rent laws,” said Maansi Shah, Tenant Organizer at Chhaya Community Development Corporation. “This lawsuit is a major victory for tenants to recover stolen rent and a critical first step in holding this predatory landlord accountable. But the fight for justice is far from over—we need stronger oversight, increased penalties, and closed loopholes to prevent landlords from weaponizing the system against vulnerable tenants.”
“For years, our clients living in Zara-managed buildings have worked hard to ensure Zara provides all essential services for every tenant. Zara must be held responsible for ongoing violations and the hardship they have caused so many families,” said Carlos Ortiz, Tenant Organizer at Catholic Migration Services. “We thank the Attorney General’s Office for taking this legal action to help all Zara tenants get the justice they have waited for and often been denied. This lawsuit and the stories it highlights should remind HCR and our elected officials that we urgently need stronger laws and real accountability. We continue to call on HCR and our elected officials to pass and enforce measures that protect New York’s tenants from landlords like Zara who ignore their responsibilities and duty to provide a decent place to call home.”
This legal action follows other recent enforcement efforts led by Attorney General James targeting violations within New York’s rental market regulation system. In February 2025 she announced restoration of 21 stabilized apartments along with more than $50,000 returned in overcharges; last September she helped re-regulate 263 illegally deregulated apartments while reducing rents elsewhere; earlier cases secured millions in settlements or bans against other violators including Raphael Toledano.
The investigation into this matter was conducted by members of both OAG’s Housing Protection Unit—part of its Division for Social Justice—and HCR’s Tenant Protection Unit (TPU). In recent years TPU updated its audit systems with new algorithms designed specifically for identifying patterns such as non-compliance or harassment among landlords; settlements totaling hundreds of thousands have resulted from these efforts.
