One of New York City’s largest landlords will pay $3.1 million in penalties to refund rent-stabilized tenants who were forced to pay water fees on top of their rent in violation of housing law, state officials said Friday.

New York state’s housing agency announced a settlement with the LeFrak Organization 14 months after Gothamist uncovered the water surcharges while reporting on a rash of evictions at the company’s sprawling LeFrak City apartment complex in Queens in August 2024. New York state rules prohibit landlords from charging tenants for water or other “essential services” in rent-stabilized apartments.

In a written statement, Gov. Kathy Hochul said the state “will not allow illegal fees to drive up costs for millions of rent-regulated tenants.”

Under the terms of the settle

See Full Page