Sunset Park

Penalty from Sunset Park slumlords will go toward affordable housing

March 9, 2023 Rob Abruzzese
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SUNSET PARK — Attorney General Letitia James announced on Wednesday that she has secured a settlement of nearly $420,000 from two Brooklyn landlords who were operating an illegal single-room occupancy (SRO) rental business out of a condominium building in Sunset Park.

Ray Qi Wang Huang, Bao Qing Tang, and their company 758 Realty LLC (758 Realty) illegally rented condo units and single rooms to non-purchasers, often without leases and for less than 30 days, in violation of the New York State Multiple Dwelling Law.

Additionally, they repeatedly lied to the Office of the Attorney General (OAG) by submitting false offering plans and related filings in violation of the Martin Act.

“While New Yorkers were struggling to find safe, stable, and affordable housing where they could thrive, Ray Huang and Bao Tang were looking for new ways to cheat the system, only looking out for themselves and their own bottom line,” said Attorney General James. “I have always fought for tenants’ best interests, and I will not allow delinquent property owners to take advantage of their neighbors.”

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As part of the settlement, Huang, Tang, and 758 Realty will correct all paperwork related to their illegal rentals, provide current tenants with rent-stabilized leases, and pay $420,000 to preserve affordable housing in New York City.

In 2017, Huang and Tang submitted an offering plan to OAG for the sale of ten residential units, two commercial units, and three parking spaces in a newly constructed condo at 881 54th Street in Brooklyn.

However, before the offering plan was accepted for filing, Huang and Tang began to receive rental payments from tenants occupying residential units in the building and tenants renting illegal SROs. These tenants paid rent in cash, were not provided with written leases, and often rented for less than 30 days, which constitutes illegal short-term rentals.

Huang and Tang repeatedly provided false information to OAG, lied about the building’s occupancy status and never informed the agency that tenants were living in the building. In addition, they lied to the New York City Department of Housing Preservation and Development (HPD) to secure a tax exemption.

Huang and Tang claimed the building would be a condo, but once they started renting units in the building, they were required to update their application with HPD to characterize the building as a rent-stabilized rental building and register the units with New York Homes and Community Renewal (HCR). However, Huang and Tang did not comply, nor did they offer the tenants the protections of rent stabilization. They continued to receive 421-a benefits under false pretenses, the AG’s Office said.

Huang and Tang will pay $355,000 in penalties and $64,500 in disgorgement of rent received since 2018, for a total payment of $419,500 to Attorney General James’ Affordable Housing Fund with HPD. In addition, they must provide all current tenants at 881 Condominium with rent-stabilized leases and will not engage in any form of tenant harassment or intimidation or efforts to force tenants to abandon their stabilized units.

This settlement is part of Attorney General James’ ongoing efforts to protect tenants and hold property owners accountable.

In November 2022, the Attorney General sued a fraudulent Brooklyn property owner for selling fake condo units and stealing more than $5 million from at least 20 Chinese immigrant families. In August 2022, she secured more than $4 million from landlords after uncovering an illegal kickback scheme to deregulate rent-stabilized apartments.


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