Real Estate

Brooklyn Firm Illegally Denied Renters Housing, AG Says

Some apartment applicants could now get money back.

BROOKLYN, NY— A Brooklyn real estate firm illegally denied housing to 203 applicants after finding records of their previous landlord-tenant court cases, according to a settlement with the New York attorney general’s office.

Brooklyn High Rise LLC, a brokerage that handles apartment rentals and building sales, agreed to pay $352,250 in penalties and restitution after an investigation found it used housing court records in tenant screening despite a New York law banning the practice.

The settlement also requires the firm to stop seeking housing court records, remove certain questions from its rental applications and repay some applicants who paid deposits to hold apartments.

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How Did The Firm Use Housing Court Records?

Between July 2019 and September 2025, Brooklyn High Rise obtained tenant screening reports from Weimark Credit Information Services, a screening company whose reports included landlord-tenant court records, according to the settlement.

The firm processed about 2,558 rental applications during the period. About 1,015 contained landlord-tenant court information.

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The attorney general’s office found that 203 applicants whose reports contained those records later had their applications denied after Brooklyn High Rise reviewed their court histories.

New York law has prohibited landlords and other housing providers from using an applicant’s past or pending landlord-tenant court involvement as a reason to deny housing since 2019. The law also creates a presumption of an illegal denial when a landlord obtains such records and then rejects the applicant.

Brooklyn High Rise admitted the attorney general’s findings.

The firm stopped requesting landlord-tenant court records from Weimark around Sept. 5, 2025, after receiving a subpoena from the attorney general’s office, according to the settlement.

What Other Rental Practices Did The Investigation Find?

Brooklyn High Rise also required applicants to pay deposits of $500 to $750 to hold apartments while their applications were being processed, according to the settlement.

New York law limits residential rental application fees to $20, or less when an applicant provides a qualifying tenant screening report. The attorney general’s office found the larger “good faith deposits” violated the law.

The firm told applicants the deposits would be applied to their first month’s rent if they signed leases or refunded if their applications were denied.

But its online application also said applicants could forfeit the money if they failed to complete paperwork within a deadline, failed to sign a lease within five days of approval or withdrew their applications.

About 300 applicants who withdrew their applications or were denied housing between January 2020 and December 2025 did not receive their deposits back, according to the attorney general’s office.

The firm has removed the deposit requirement.

What Will Applicants Get Back?

Brooklyn High Rise must place $150,000 into a restitution fund for applicants who paid deposits that the firm did not return.

Applicants who applied through the firm’s website between January 2020 and December 2025 and later withdrew their applications or were denied housing can submit claims.

Payments will generally total $500. Applicants who can show they paid a $750 deposit can receive up to $750. Each household can file one claim.

The firm must contact eligible applicants and post information about the fund on its website and social media accounts.

The fund will remain open for three years or until the money runs out, whichever comes first.

Another $202,250 will go toward penalties for violating the state’s tenant-blacklisting law. The firm must also pay $50,000 to a New York City affordable-housing fund, with another $52,250 due by Dec. 31, 2027.

What Will The Firm Have To Change?

Brooklyn High Rise must stop requesting landlord-tenant court records or rental histories as part of its screening process.

If prohibited court records accidentally reach the firm, it must have the applicant submit a new screening report without the records. A different leasing agent, who has not seen the prohibited information, must then review the application.

The firm also must remove questions about criminal convictions from its rental applications before making a conditional housing offer.

It had previously asked applicants: “Have you ever been convicted of a crime?”

Brooklyn High Rise must train its leasing agents and staff on state and city fair-housing laws and provide the attorney general’s office with proof of the training.

The agreement remains in effect for three years.

If Brooklyn High Rise violates its terms, the attorney general’s office can seek further enforcement, including court action.

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