Andrea D Alary    |    Ithaca    ,    New York 14850    Landlord Complaint 23-2806

Landlord refuses to refund services paid for, but not provided. Tenant signed a lease to begin renting a unit January 1, 2013. Due to cosmetic changes to floors, tenants were unable to occupy apartment until third week in January, 2013. Landlord's lease willfully mislead consumer (tenant) into believing the unit would either be available for occupation, or tenant would be compensated. In spite of stipulation in lease that payment for period of non-possession, landlord refused to refund any tenants for the period in which they were unable to occupy apartment. For a period of this time, there was no working toilets and floors were unable to be walked upon. Three of the four tenants were offered $50 to move their possessions off the floor, but no refund on rent. Fourth tenant, the only female, was neither offered $50 for the trouble of not being able to use any of the rooms, nor a reduction in rent. When tenant asked, the landlord outright refused to followthrough with lease stipulations. In violation of guidelines set forth by the New York State Attorney General's office and New York State Law, Hollalary Properties LLC, charges disproportionate late fees which are against public policy, and fines tenants larger fees than allowed under New York State Law. Hollalary Properties' penalties for late payment are unquestionably punitive. However, the financial and business practices of Hollalary Properties may better be described as predatory. In an apartment that costs $450/mo rent, I was charged $100 in late fees after only a fourteen day delay of payment. My delay was a result of the fact that I was out of state visiting family, and forgot to bring personal checks with me when I left. $100 is nearly 25% of my monthly rent. As the the penalty for late payment is uncapped at a rate of $5/day, my late fees would have amounted to nearly $200 by the end of the month. Regardless of stipulations in the lease, penalties far smaller than this have been consistently overturned in court as unconscionable lease clauses.According to New York State General Obligations Law § 5-501(1); New York Banking Law § 14-a(1), the rate of interest upon the loan or forbearance of any money, goods or things in action may not exceed 16% a year, or the equivalent rate for longer or shorter period. A rate of 16% constitutes civil usury, while 25% is criminal usury. After only fourteen days, my late fees for the month of April far exceeded 16%, and were just shy of 25%.