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Kushner Cos. Filed False Documents     03/19 06:18

   NEW YORK (AP) -- 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.

   While none of the documents during a three-year period when Kushner was CEO 
bore his personal signature, they provide a window into the ethics of the 
business empire he ran before he went on to become one of the most trusted 
advisers to the president of the United States.

   "It's bare-faced greed," said Aaron Carr, founder of Housing Rights 
Initiative, a tenants' rights watchdog that compiled the work permit 
application documents and shared them with The Associated Press. "The fact that 
the company was falsifying all these applications with the government shows a 
sordid attempt to avert accountability and get a rapid return on its 

   Kushner Cos. responded in a statement that it outsources the preparation of 
such documents to third parties that are reviewed by independent counsel, and 
"if mistakes or violations are identified, corrective action is taken 

   "Kushner would never deny any tenant their due-process rights," it said, 
adding that the company "has renovated thousands of apartments and developments 
with minimal complaints over the past 30 years."

   New York City Council members are calling for an investigation into the AP's 

   For the three Queens buildings in the borough's Astoria neighborhood, the 
Kushner Cos. checked a box on construction permit applications in 2015 that 
indicated the buildings had zero rent-regulated tenants. Tax records filed a 
few months later showed the company inherited as many as 94 rent-regulated 
units from the previous owner.

   In all, Housing Rights Initiative found the Kushner Cos. filed at least 80 
false applications for construction permits in 34 buildings across New York 
City from 2013 to 2016, all of them indicating there were no rent-regulated 
tenants. Instead, tax documents show there were more than 300 rent-regulated 
units. Nearly all the permit applications were signed by a Kushner employee, 
including sometimes the chief operating officer.

   Had the Kushner Cos. disclosed those rent-regulated tenants, it could have 
triggered stricter oversight of construction crews by the city, including 
possibly unscheduled "sweeps" on site by inspectors to keep the company from 
harassing tenants and getting them to leave.

   Instead, current and former tenants of the Queens buildings told the AP that 
they were subjected to extensive construction, with banging, drilling, dust and 
leaking water that they believe were part of targeted harassment to get them to 
leave and clear the way for higher-paying renters.

   "It was noisy, there were complaints, I got mice," said mailman Rudolph 
Romano, adding that he also bristled at a 60 percent rent increase, a hike the 
Kushner Cos. contends was initiated by the previous landord. "They cleaned the 
place out. I watched the whole building leave."

   Tax records show those rent-regulated units that numbered as many as 94 when 
Kushner took over fell to 25 by 2016.

   In Kushner buildings across the city, records show frequent complaints about 
construction going on early in the morning or late at night against the rules, 
improper or illegal construction, and work without a permit.

   At a six-story walk-up in Manhattan's East Village that was once home to the 
Beat poet Allen Ginsberg, the Kushner Cos. filed an application to begin 
construction in late 2013 that, again, listed zero rent-regulated tenants. Tax 
records a few months later showed seven rent-regulated units.

   "All of a sudden, there was drilling, drilling. ... You heard the drilling 
in the middle of night," said one of the rent-regulated tenants, Mary Ann 
Siwek, 67, who lives on Social Security payments and odd jobs. "There were rats 
coming in from the abandoned building next door. The hallways were always 
filled with lumber and sawdust and plaster."

   A knock on the door came a few weeks later, and an offer of at least $10,000 
if she agreed to leave the building.

   "I know it's pretty horrible, but we can help you get out," Siwek recalls 
the man saying. "We can offer you money."

   Siwek turned down the cash and sued instead. She said she won a year's worth 
of free rent and a new refrigerator.

   New York City Council member Ritchie Torres, who plans to launch an 
investigation into permit applications, said: "The Kushners appear to be 
engaging in what I call the weaponization of construction."

   Rent stabilization is a fixture of New York City that can bedevil developers 
seeking to make money off buildings. To free themselves of its restrictions, 
landlords usually have to wait until the rent rises above $2,733 a month, 
something that can take years given the small increases allowed each year.

   Submitting false documents to the city's Department of Buildings for 
construction permits is a misdemeanor, which can carry fines of up to $25,000. 
But real estate experts say it is often flouted with little to no consequences. 
Landlords who do so get off with no more than a demand from the city, sometimes 
a year or more later, to file an "amended" form with the correct numbers.

   Housing Rights Initiative found the Kushner Cos. filed dozens of amended 
forms for the buildings mentioned in the documents, most of them a year to two 

   "There is a lack of tools to go after landlords who harass tenants, and 
there is a lack of enforcement," said Seth Miller, a real estate lawyer who 
used to work at a state housing agency overseeing rent regulations. Until 
officials inspect every construction site, "you're going to have this incentive 
for landlords to make life uncomfortable for tenants."

   New York City's Department of Buildings did not comment in general about the 
false filings by the Kushner Cos., but said it disciplined a contractor who 
filed false documents while working on two of the Queens buildings, which are 
currently under investigation by a tenant-harassment task force. It added that 
the department is also ramping up its monitoring of construction, hiring 72 new 
inspectors under city laws recently passed to crack down on tenant harassment.

   "We won't tolerate landlords who use construction to harass tenants --- no 
matter who they are," spokesman Joseph Soldevere said.

   Exactly how much money the Kushner Cos. earned from the buildings mentioned 
in the documents is unclear. Of those 34 buildings, only the three in Queens 
and a fourth in Brooklyn appear to have been sold. The company also likely made 
money by reducing the number of rent-regulated tenants and bringing in those 
who would pay more.

   Jared Kushner, who stepped down as CEO of the Kushner Cos. last year before 
taking on his advisory role at the White House, sold off part of his real 
estate holdings as required under government ethics rules. But he retained 
stakes in many properties, including Westminster Management, the Kushner Cos. 
subsidiary that oversees its residential properties. A financial disclosure 
last year showed he still owns a stake in Westminster and earned $1.6 million 
from the holding.

   Back in Queens, the mailman Romano was one of the few rent-regulated tenants 
who fought back.

   He hired a lawyer who found out he was protected from the 60-percent rent 
hike by law, something Romano did not know at the time. And he said his rent, 
which was set to increase to $3,750, was restored to $2,350.

   Romano is still in the building where he has lived for nine years, with his 
wife, four children and his guests from the construction days --- the mice.

   "I still haven't gotten rid of them."


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