NYAG recovers $422K in security deposits from LI landlord

New York Attorney General Letitia James is getting Fairfield Properties, Long Island’s largest apartment landlord, to return more than $422,000 in security deposits. 

The Office of the Attorney General entered into an agreement with Fairfield for the return of “illegally withheld full or partial security deposits” to 899 former tenants. The AG’s office said that the landlord failed to provide tenants a written itemized list of deductions, inspected apartments without the tenants present and didn’t allow tenants to make repairs before vacating their apartment to avoid penalties. 

Besides returning $422,598.21 in security deposits and interest, Fairfield agreed to pay $90,000 in penalties, according to a statement from the AG’s office. 

The AG’s office said it had received complaints that the landlord, which owns and operates more than 13,000 rental units in Nassau, Suffolk and Queens counties, was withholding security deposits. State law requires landlords to provide an itemized list of any deductions on security deposits within 14 days or else a security deposit must be returned in full.

The AG said Fairfield withheld full security deposits or returned partial deposits without providing tenants with a written itemized list of deductions, according to the statement. The law also requires landlords to give tenants written notice of their right to be present when the apartment is inspected and must allow tenants the opportunity to clean or fix anything that would be deducted from their security deposit. The AG’s office said Fairfield routinely inspected apartments without the tenant present and did not give tenants the opportunity to make repairs or clean their apartment before vacating it. 

“New Yorkers shouldn’t have to worry that their landlord will illegally withhold money that belongs to them,” James said in the statement. “Fairfield withheld thousands of dollars that belonged to hardworking people, and today, we are returning that money to tenants who were shortchanged.”  

In addition to returning the security deposits and the associated penalty, Fairfield will be required to provide reports to the AG’s office about its compliance with the agreement. The company must also send certificates affirming their compliance every year or whenever requested by the AG’s office for three years and train current staff on correct security deposit procedures, according to the statement. 

Attorney Allen Perlstein, of the Lake Success-based law firm Harfenist Kraut & Perlstein, who represented Fairfield in the settlement with the attorney general’s office, said the company fully cooperated with the investigation.  

“Fairfield diligently processes security deposit returns, however in many cases the security deposits, net of deduction for damages and unpaid sums, were not returned within the 14-day period required by law. Fairfield has always provided an itemization of damages with the return of tenant security deposits,” Perlstein said in an emailed statement. “During the period of time that the settlement covers, Fairfield processed approximately 8,000 tenant move outs and the number of former tenants who were affected by the delay related to only approximately 12 to 15% of tenants who moved out during that period.” 

Perlstein added that the COVID-19 pandemic had a significant impact on the company’s operations during that period. 

“Fairfield has made significant improvements to its internal procedures to comply with all applicable laws,” Perlstein said. “Fairfield greatly values its relationship with its tenants and seeks to provide the highest quality communities.”