A property management company associated with Jared Kushner has reached a multimillion-dollar settlement with the state of Maryland over allegations that the company charged tenants illegal fees and failed to maintain its properties.
Kushner, the son-in-law of former President Donald Trump, owns a 50% stake in Westminster Mangement LLC, which operated more than 9,000 rental units in Baltimore City and Baltimore and Prince George's counties.
Attorney General Brian Frosh said Westminster will pay a $3,250,000 penalty and restitution to customers. The restitution will take the form of refunds to tenants who were charged illegal fees such as excessive application fees, improper agent fees, writ fees and unreturned security deposits, Frosh said. The first $800,000 the company pays in restitution will be subtracted from the penalty amount.
"The tenants were not wealthy people. Many were struggling to pay rent, keep food on the table take care of their kids keep everybody healthy. And Westminster used its vastly superior economic power to take advantage of Westminster deceived the tenants before they even moved in," Frosh said. "Once they were in, they couldn't afford to get out."
Frosh said Westminster properties had mold, leaks, floods and infestations of rodents, roaches and bedbugs.
Several former tenants spokes about their problems with Westminster at a news conference Friday.
"We could clearly see that the unit that we resided in, was full of mold throughout the HVAC system, which resulted in our youngest son being diagnosed with allergy-induced asthma which he still has today," said Tiffany Dixon, a former tenant.
Under the settlement, the New Jersey-based Westminster agreed to stop charging illegal fees and provide adequate maintenance staff to make needed repairs, Frosh said.
The settlement stems from a lawsuit Frosh's office filed against the company in 2019. In the past, the company has said the lawsuit was politically motivated. Last year, Westminster sold several of its Maryland properties and said it had plans to sell additional apartment complexes.
The original lawsuit alleged that Westminster aggressively used state eviction laws to collect rent, sometimes illegally.
A request for comment from Westminster Mangement LLC was not immediately returned.
The attorney general's office said properties covered by this settlement are:
- Carriage Hill Apartments
- Carroll Park Apartments
- Charlesmont Apartment Homes
- The Commons at White Marsh Apartments
- Cove Village Apartments
- Dutch Village Apartments
- Essex Park Apartments and Townhomes
- Fontana Village Apartments
- Gwynn Oaks Landing Apartments
- Hamilton Manor Apartments
- Harbor Point Estates
- Highland Village Townhomes
- Morningside Park Townhomes
- Pleasantview Apartments
- Princeton Estates Apartment Homes
- Riverview Townhomes
- Whispering Woods Apartments