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Attorney General James Secures $420,000 for Affordable Housing

Ray Huang and Bao Tang operated an illegal single-room occupancy rental business in Sunset Park.

New York Attorney General Letitia James today announced she has secured nearly $420,000 from two Brooklyn landlords who ran an illegal single-room occupancy rental business out of a condominium in Brooklyn’s Sunset Park neighborhood.

“While New Yorkers were struggling to find safe, stable, and affordable housing where they could thrive, Ray Huang and Bao Tang were looking for new ways to cheat the system, only looking out for themselves and their own bottom line,” said James. “I have always fought for tenants’ best interests, and I will not allow delinquent property owners to take advantage of their neighbors."

A settlement has been reached with Ray Qi Wang Huang, Bao Qing Tang, and their company 758 Realty LLC for illegally renting condo units and single rooms to non-purchasers, often without leases and for less than 30 days. This is in direct violation of the New York State Multiple Dwelling Law. As a result of the settlement Huang, Tang, and 758 Realty will correct all paperwork related to 881 Condominium, provide current tenants with rent-stabilized leases, and pay $419,500 to preserve affordable housing in New York City.

In April 2017, Huang and Tang submitted an offering plan for the sale of ten residential units, two commercial units, and three parking spaces in a newly constructed condo at 881 54th Street in Brooklyn. In the paperwork filed with OAG, Huang and Tang represented that the building was vacant, and units would be offered for sale as condo units. Instead, Huang and Tang began receiving rental payments from tenants occupying residential units in the building and tenants renting illegal individual rooms within units in the building. These tenants paid rent in cash, were not provided written leases, and often rented for less than 30 days, constituting illegal short-term rentals. 

Huang and Tang never informed OAG that tenants were living in the building, instead, they continued to represent that the building was vacant. They repeatedly provided false information to OAG and submitted multiple affidavits lying about the building’s occupancy status. An investigation revealed that tenants had lived in the building at various times since 2018.

As a result of today’s agreement, Huang and Tang will pay $355,000 in penalties and $64,500 in disgorgement of rent received since 2018, for a total payment of $419,500 to James’ Affordable Housing Fund. Huang and Tang must provide all current tenants at 881 Condominium with rent-stabilized leases and will not engage in any form of tenant harassment or intimidation, or efforts to force tenants to abandon their stabilized units.