Attorney General James Stops Brooklyn Real Estate Firm from Illegally Blacklisting Tenants

September 18, 2026

NEW YORK - New York Attorney General Letitia James today announced a settlement with Brooklyn real estate firm Brooklyn High Rise LLC (Brooklyn High Rise) for illegally denying housing to prospective tenants based on housing court records with prior landlords. Brooklyn High Rise also illegally charged applicants deposit fees to hold an apartment during the application process - a practice known as "good faith" deposits - and often failed to return these fees when applicants withdrew or were denied housing. This settlement continues Attorney General James' efforts to protect New York tenants by cracking down on a practice known as "tenant blacklisting," where landlords use housing court records as a basis to deny a potential tenant's rental application. Tenant blacklisting was made illegal in 2019 following changes to the Real Property Law, which outlawed efforts to deny housing to renters because of prior landlord-tenant court cases. As a result of the settlement, Brooklyn High Rise will end its unlawful tenant screening policies and pay $352,250 in penalties and restitution.

"All New Yorkers deserve to be treated fairly when applying for housing opportunities," said Attorney General James. "At a time when it is difficult to find safe and affordable housing in New York and across the country, it is unacceptable that Brooklyn High Rise used housing court records as a basis to deny housing to hard-working New Yorkers. My office will continue to stand up for all tenants and ensure that everyone has access to safe housing, regardless of their history."

In 2019, the enactment of the New York Housing Stability and Tenant Protection Act (HSTPA) made it illegal for a property owner or landlord to deny a rental application based on the applicant's past housing court records. If there is documented evidence that a property owner or landlord obtained an applicant's housing court records and subsequently denied the application, the law presumes the landlord or property owner made the decision to deny illegally based on the applicant's court records. The burden is on the landlord or property owner to prove the applicant was denied for other reasons. Since the law was enacted, the Office of the Attorney General (OAG) has been reviewing records from third-party tenant screening bureaus to assess which landlords and brokers continue to obtain housing court records when reviewing applications.

In May 2025, OAG opened an investigation into Brooklyn High Rise after learning that the broker continued to request tenant screening reports from a third-party vendor that included landlord and tenant court histories. The OAG's investigation revealed that between July 15, 2019 and September 5, 2025, Brooklyn High Rise obtained housing court records of some prospective tenants during the screening process. During this period, 203 tenants were illegally denied housing based on submitted court history.

The OAG's investigation also found that Brooklyn High Rise illegally charged applicants between $500 and $750 as a "good faith deposit" to hold an apartment while their applications were being processed. Brooklyn High Rise told applicants this fee would be applied to their first month's rent if they were approved or returned if they were denied. However, according to the terms and conditions on its website, there were circumstances in which a deposit may not be given back, including failure to submit a completed application and required paperwork by the given deadline. Between January 2020 and December 2025, an estimated 300 applicants who either withdrew their applications or were denied housing never received their "good faith deposit" back.

Brooklyn High Rise has committed to ending its unlawful tenant screening policies, including ending its practice of seeking past landlord and tenant court records. If an applicant submits court history paperwork during screening, Brooklyn High Rise must instruct the applicant to resubmit without that information, and a new leasing agent without prior knowledge of the paperwork will be assigned to review the application. Brooklyn High Rise is also required to publicly affirm compliance with New York's tenant blacklisting and anti-discrimination protection laws on its leasing platforms and portals, and will remove any questions related to court history and criminal background from its rental applications. Brooklyn High Rise will also train its leasing agents and staff on tenant blacklisting and fair housing regulations. If Brooklyn High Rise violates the agreement or engages in tenant blacklisting, OAG reserves the right to pursue further enforcement action, up to and including litigation.

Brooklyn High Rise is also required to pay $202,250 in penalties for violation of the blacklisting law, and $150,000 in restitution to applicants who paid the "good faith deposit" and either withdrew their applications or were denied housing but never received their deposit back. All tenants who applied for housing through the Brooklyn High Rise website and whose application was either denied or withdrawn between January 2020 and December 2025 will be contacted by Brooklyn High Rise and can file claims for a payment of $500 or, in some cases, $750.

To ensure compliance with state law, OAG recommends that landlords, property owners, and/or their real estate brokers and leasing agents refrain from requesting a potential tenant's landlord and tenant court records and rental histories altogether and cease relationships with tenant screening bureaus that continue to provide these court records. Any New Yorker who believes that they have been denied an apartment based on a housing court history with a previous landlord should submit a tenant blacklisting complaint online with OAG.

This is the latest action taken by Attorney General James to protect New York tenants. In July 2026, Attorney General James settled with a Brooklyn-based management company and its property manager for illegally evicting people from their homes by changing the locks on their apartment doors while they were not home. In June 2026, Attorney General James announced the first settlements with two banks and the first lawsuits against two New York City landlords reached under OAG's de facto compliance program focused on enforcing "de facto" rent stabilization in buildings throughout New York City. In May 2026, Attorney General James secured an agreement to close a predatory law firm for taking advantage of New York City tenants facing eviction. In March 2026, Attorney General James announced new protections for 25 low-income families who were forced out of their affordable housing units in Rochester. In February 2026, Attorney General James sued the owners and managers of an apartment complex in Orange County for leaving residents to endure horrific conditions.

This matter was handled by Assistant Attorney General Jane Landry-Reyes of the Housing Protection Unit, with assistance from Legal Assistant Cecily Mills, under the supervision of Unit Chief Brent Meltzer. The Housing Protection Unit is part of the Division for Social Justice, which is overseen by First Deputy Attorney General Meghan Faux.