NYC’s Shocking $10 Million Settlement: A&E Real Estate’s Dangerous Secrets Exposed! What You Must Know!

In a significant move aimed at improving tenant rights, New York City has reached a $2.1 million settlement with A&E Real Estate and its principals, Douglas Eisenberg and Margaret Brunn, along with registered managing agent Brian Garland. The announcement, made on January 16 by Mayor Zohran Mamdani and incoming Housing Preservation and Development Commissioner Dina Levy, addresses long-standing issues of tenant harassment and hazardous living conditions across 14 residential buildings located in Brooklyn, Manhattan, and Queens.

The settlement includes civil penalties and mandates that A&E correct more than 4,000 outstanding building condition violations. Importantly, it also imposes court-ordered injunctions that prohibit any future harassment of tenants. This action, spearheaded by the Department of Housing Preservation and Development (HPD)’s Anti-Harassment Unit, highlights a robust commitment to ensuring safe housing and addressing the persistent safety and habitability issues that tenants have faced in these properties.

“Every tenant in New York City has a right to a safe and livable home and our administration is taking decisive action to deliver exactly that. This settlement will bring real accountability and relief for the tenants of these buildings, who have been suffering from poor conditions and harassment for far too long,” stated Mayor Mamdani.

The affected buildings span several locations, including:

• 150-45 73 Avenue, 35-64 84 Street, 37-06 81 Street, 35-16 34 Street, 48-16 46 Street, 37-25 81 Street, 80-01 37 Street, and 37-30 81 Street in Queens;
• 2 Ellwood Street, 342 Fort Washington Avenue, and 350 Fort Washington Avenue in Manhattan;
• 65 Ocean Avenue and 230 Ocean Parkway in Brooklyn.

The HPD’s initial investigation revealed extensive unsafe conditions at these properties. When A&E failed to address these violations, the agency escalated its enforcement efforts, seeking civil contempt findings, additional court-ordered repairs, and increased penalties. During litigation, over 1,000 violations were corrected as a result of court orders and enforcement actions. Moreover, the HPD executed nearly $488,000 in repairs through its Emergency Repair Program.

City officials have emphasized that failure to comply with the settlement's terms could lead to further court actions and additional penalties, thereby underscoring the city's commitment to protecting tenant rights and ensuring safe living conditions.

This settlement comes as part of a broader initiative by the city to hold landlords accountable for maintaining safe and habitable living conditions, particularly in a rental market as competitive and challenging as New York City. Tenants across the city have increasingly voiced their concerns over unsafe living conditions and harassment, and this case exemplifies a growing recognition of their rights in the face of such challenges.

As the city moves forward, the implications of this settlement may serve as a precedent for other landlords who similarly neglect their responsibilities to tenants, reinforcing the message that tenant rights must be upheld and respected.