A major Queens landlord is facing legal action for allegedly overcharging rent-stabilized tenants and ignoring state rent reduction orders, according to a lawsuit filed Tuesday by New York Attorney General Letitia James and State Homes and Community Renewal Commissioner RuthAnne Visnauskas.
The suit targets Zara Realty Holding Corp., its principals, and related companies. Officials say the group exploited tenants in Jamaica and Elmhurst, many of whom relied on city housing subsidies, by unlawfully inflating rents and then suing tenants who couldn’t pay.
“Zara Realty shamelessly took advantage of vulnerable tenants,” said Attorney General James. “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.”
The lawsuit accuses Zara of sidestepping rent laws since at least 2022 by charging Department of Social Services voucher holders the maximum allowed under the subsidy program—regardless of the actual legal rent for the apartment. In one case, a tenant saw her rent spike by 44% in one year. When she refused to pay, Zara took her to court.
HCR’s Commissioner Visnauskas called Zara a “predatory” actor that defied state rent laws and attempted “fraudulent rent increases.” The lawsuit also says Zara ignored rent freezes ordered when essential services weren’t provided, continuing to overcharge tenants for months or years.
Tenant organizers say this kind of behavior isn’t new. “For years, Zara Realty has lined their pockets by exploiting and harassing low-income and immigrant tenants,” said Maansi Shah of Chhaya Community Development Corporation. Carlos Ortiz of Catholic Migration Services added that Zara’s actions “caused hardship for so many families.”
With this lawsuit, the state is seeking a court order to stop Zara from collecting inflated rents, force refunds and damages to affected tenants, and correct rent registrations.
This marks the second major lawsuit against Zara Realty by state officials. A 2019 case against the company is still ongoing, focused on excessive fees, coerced lease agreements, and other abuses. Tuesday’s announcement also builds on a broader crackdown by James’ office on rent law violations, including multimillion-dollar settlements and re-regulation of hundreds of illegally deregulated units.
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