New York Attorney General Letitia James reached a settlement with Albany, New York-based Jerusalem Management and its owner, Asaf Elkayam, on April 17 following a two-year investigation into its leasing practices.

The investigation began in 2022 following a series of complaints from residents, primarily students at the University of Albany, to the city. Jerusalem Management owns and operates over 200 rental units across approximately 85 residential buildings in Albany, and all but one of its properties are located close to the University of Albany campus. 

In its investigation leading up to the settlement, the Office of the Attorney General discovered a number of unlawful, deceptive or unfair leasing practices, according to its news release. They include:

• Charging students over $20 in application fees, in violation of New York state law. 
• Charging excessive move-out fees, including a $100 cleaning fee for the refrigerator, a $100 cleaning fee for the oven and a $75 fee per day that residents stayed in their units beyond the expiration of the lease.
• Lease provisions that allowed the landlord to enter units at any hour without residents’ prior knowledge or consent. One complaint described a maintenance worker repeatedly entering a tenant’s apartment as early as 8:00 a.m.
• Lease provisions for charging unlawful late fees or legal fees.

“Asaf Elkayam took advantage of his tenants, many of whom were college students and first-time renters,” said James in the OAG’s release. “No New Yorkers should have to fear that their landlord may enter their home unannounced, or worry about paying outrageous fees just to rent an apartment.”

Elkayam and Jerusalem Management agreed to pay an $8,000 penalty to the OAG and to fully comply with all of New York’s housing laws. This includes removing any provisions from Jerusalem Management leases that violate these laws, providing notice to tenants before entering apartments and no longer collecting excessive fees. The company must also provide a copy of the attorney general’s Residential Tenants Rights guide to any new or renewing renters.

“It is disappointing that the Office of the Attorney General would characterize Jerusalem Management and Asaf Elkayam as a predatory landlord when the entire premise of our discussions was that they are a good operator who enjoys a good rapport with tenants and is always willing to improve relationships wherever possible,” Elkayam told Multifamily Dive in response to a request for comment.  “We have requested that the Attorney General’s office retract the false and inflammatory statements in its press release, but have not received a response.” 

The New York Attorney General’s office did not respond to a request for comment from Multifamily Dive on this statement.