NYC passes rule to close 'Kushner loophole' in construction

Combined Shape

NEW YORK (AP) — New York City lawmakers voted Wednesday to close the “Kushner loophole” that critics say encourages landlords to file false paperwork with the city.

The rule approved by the City Council will require regulators to double-check that landlords are telling the truth in construction permits when they claim to have no specially protected tenants who pay low rates. Mayor Bill de Blasio is expected to sign the new rule into law.

It follows an Associated Press report last year that found Jared Kushner’s family real estate company had falsely claimed it had no rent-regulated tenants in dozens of buildings when, in fact, it had hundreds. Kushner is President Donald Trump’s son-in-law and adviser.

Critics say many landlords file false paperwork to avoid extra scrutiny that could stop them from using repairs and construction to drive out such tenants and replace them with ones who pay more.

The AP cited a study by the watchdog group Housing Rights Initiative that found New York City landlords filed paperwork falsely claiming they had no rent-regulated tenants more than 10,000 times in the 2 ½ years through June last year. It also found that the Kushner Cos. filed false paperwork at least 80 times for 34 buildings over a three-year span when the company was run by Jared Kushner.

Trending:
CNN Fact Check Shows Biden Made Up Fake People to Support Jobs Plan

The city fined Kushner Cos. $210,000 for false filings last year after the AP report.

The Kushner Cos. has said that the paperwork was filled out by third parties and mistakes were corrected soon after they were discovered. It has said it does not use construction to push out tenants who pay low rates.

The rule approved Wednesday will require regulators to check with tax records to make sure landlords are telling the truth. If the paperwork is false, the city’s investigations unit and the state attorney general’s office, among other authorities, must be alerted and all the landlord’s buildings audited.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →






We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Conversation