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The AP is reporting that the NYC Department of Buildings has launched an investigation of “illegal activity” involving applications for permit applications made on 13 of Kushner Co.’s buildings.
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NYC agency investigating more than a dozen Kushner buildings
Kushner Cos. stated in more than 80 permit applications that it had zero rent-regulated tenants in its buildings when it, in fact, had hundreds.
The false filings were made while Kushner Cos. was run by Jared Kushner, now senior adviser to his father-in-law, President Donald Trump. The false filings were all signed by a Kushner employee, sometimes by its chief operating officer. None were signed by Jared Kushner himself.
The false documents allowed the Kushner Cos. to escape extra scrutiny during construction at 34 of its buildings, many which showed a sharp decline in rent-regulated units following the work. Housing Rights Initiative, a watchdog group that uncovered the false filings, says that made it easier for the Kushner Cos. to harass the low-paying, rent-regulated tenants so they would leave, freeing up apartments for higher-paying tenants.
Kushner Co. falsified the documents in order to push out rent controlled tenants and raise rents.
Jared Kushner's Company Regularly Filed False Paperwork on New York City Housing, Report Says
(NEW YORK) — When the Kushner Cos. bought three apartment buildings in a gentrifying neighborhood of Queens in 2015, most of the tenants were protected by special rules that prevent developers from pushing them out, raising rents and turning a tidy profit.
But that’s exactly what the company then run by Jared Kushner did, and with remarkable speed. Two years later, it sold all three buildings for $60 million, nearly 50 percent more than it paid.
Now a clue has emerged as to how President Donald Trump’s son-in-law’s firm was able to move so fast: The Kushner Cos. routinely filed false paperwork with the city declaring it had zero rent-regulated tenants in dozens of buildings it owned across the city when, in fact, it had hundreds.
Kushner Co. has a long history of predatory practices. In a feature by ProPublica, Alec MacGillis exposed Kusher Co.’s exploitative tactics used on low income tenants of a Baltimore property:
The Beleaguered Tenants of ‘Kushnerville’
Tenants in more than a dozen Baltimore-area rental complexes complain about a property owner who they say leaves their homes in disrepair, humiliates late-paying renters and often sues them when they try to move out. Few of them know that their landlord is the president’s son-in-law.
Kushner Co. owns and manages over 30,000 units in distressed, multifamily buildings, many of which were purchased from Freddie Mac Mortgage company in 2012.
Jared Kushner stepped down as chief executive of Kushner Companies in January. But he remains a stakeholder in the company — his share of company-related trusts is estimated to be worth at least $600 million — and the company says it has no intention of selling off its multifamily holdings. (JK2 Westminster was formally dissolved in December, but Kushner Companies still owns the complexes through other entities; lawsuits against tenants are now typically filed in the names of the complexes themselves.) Because Kushner retains his interest in the complexes, the White House told The Baltimore Sun in February that he would recuse himself from any policy decisions about Section 8 funding, as many of his tenants rely on it for their rent. But even as Kushner now busies himself with his ever-expanding White House portfolio, his company is carrying on its vigorous efforts in court.
Despite charges of illegal activity while still CEO of Kushner Co., Jared Kushner maintains a Secret level Security Clearance in the White House, which had recently been downgraded from Top Secret.