Tenants of one of Brooklyn’s biggest landlords are set to receive $2.9 million in restitution after an investigation found “repeated and egregious” violations of housing maintenance codes, including issues with lead paint, mold and pest infestations.
On Friday, New York Attorney General Letitia James announced a $6.5 million settlement with Lilmor Management, LLC, and its principal, Morris Lieberman, which manages at least 49 buildings across NYC with 2,539 rent-stabilized units in Brooklyn and Queens.
The settlement, negotiated in partnership with the office of U.S. Attorney Damian Williams for the Southern District of New York, includes over $2.9 million in restitution for tenants, alongside measures to improve living conditions in Lilmor properties.
Lilmor’s Brooklyn buildings are in Midwood, Flatbush Crown Heights, Gravesend and Prospect Lefferts Gardens. Lilmor also has buildings in Inwood, Manhattan, Rockaway and Elmhurst in Queens.
“Lilmor Management rented out apartments in hazardous condition to unsuspecting tenants, putting thousands of people in harm’s way,” James said in a statement. “Tenants in Lilmor’s buildings, including children, were forced to live with leaks, mold, infestations, and elevated levels of lead. I expanded and strengthened the Worst Landlord list when I was Public Advocate specifically to take on bad actors like Lieberman and Lilmor Management.”
The investigation, launched in June 2021, revealed more than 30,000 Housing Maintenance Code violations across Lilmor’s portfolio. The Department of Housing Preservation and Development documented an average of 500 violations per building, including chronic water leaks, vermin infestations, and lead paint hazards.
According to the Office of the Attorney General (OAG), more than 130 children under six were exposed to elevated lead levels.
The probe found that Lilmor had failed to comply with New York City’s Childhood Lead Poisoning Prevention Act by neglecting to identify apartments with young children, conduct annual inspections, or address lead paint hazards. Additionally, Lilmor routinely ignored laws requiring proactive measures to prevent mold and pest infestations.
According to OAG’s findings, Lilmor further misled tenants by failing to disclose hazardous conditions and falsely representing the habitability of apartments.
As part of the settlement, Lilmor and Lieberman will pay $3.25 million each to the Attorney General’s Office and the U.S. Attorney’s Office — and 90% of the funds allocated to the state will be returned to impacted tenants. The remaining 10% will go to HPD to cover civil penalties related to unresolved violations.
Lilmor must also undertake extensive remediation efforts, including removing or encapsulating lead-based paint, addressing mold and pest issues, and ensuring apartments meet legal habitability standards. An independent Housing Specialist, selected by state and federal authorities, will oversee the repairs and act as a liaison for tenants.
During the remediation process, tenants will be eligible for rent abatements, and landlords cannot collect increased rents until repairs are complete. The OAG noted that all previous and current tenants will receive a notice informing them of the settlement.
Lilmor and its agent, Jason Korn, were among the top offenders on the New York City Public Advocate’s “Worst Landlord” list in 2019 and 2020.