NY Attorney General’s Office Secures $6.5M Settlement to Protect Tenants

New York Attorney General Letitia James recently announced a $6.5 million settlement with Lilmor Management, LLC, and its principal, Morris Lieberman, following years of housing code violations and tenant mistreatment. The settlement addresses persistent hazards in its buildings, including lead paint, mold, pest infestations, and other unsafe conditions. The property management company oversees over 2,500 rent-stabilized apartments across Brooklyn and Queens and was repeatedly listed among New York City’s “Worst Landlords” in recent years.

The settlement includes $2.9 million in restitution for current and former tenants, compensating them for the unsafe and uninhabitable conditions they endured. The remaining funds will help cover penalties and support HPD’s enforcement efforts. The agreement also mandates comprehensive repairs to bring its buildings up to code, overseen by an independent Housing Specialist appointed by the Attorney General’s office. This specialist will monitor the progress of repairs, conduct inspections, and address tenants’ concerns.

The investigation into the company launched in 2021 after numerous complaints. It revealed widespread violations of the Childhood Lead Poisoning Prevention Act and local housing maintenance laws. Over 100 children in its properties tested positive for elevated lead levels. Specifically, the company:

• Repeatedly failed to adequately determine if a child under the age of 6 lived in any of its apartments;
• Failed to conduct annual inspections in apartments and buildings where it knew a child under the age of 6 lived; and
• Failed to undertake legally required measures to inspect for and address any lead paint hazards in between tenancies.

The company also repeatedly and persistently violated local laws related to proper abatement of mold and vermin. The investigation found that the company addressed mold and vermin issues only in response to the placement of city and state housing code violations and failed to take any of the legally required proactive and ongoing steps to inspect for or prevent these hazards. Specifically, the company:

• Didn’t ask all tenants about mold and pests every year, as required by law;
• Didn’t annually inspect all apartments for indoor allergen hazards (mice, roaches, rats, and mold);
• Didn’t document compliance with law that requires that vacant units be thoroughly inspected and properly cleaned before new tenants moved in; and
• Didn’t demonstrate that it established an Integrated Pest Management plan, not just to exterminate for pests in a single unit, but to address extermination throughout the buildings.