BALTIMORE — After nearly three years of litigation, a $3.25 million civil settlement has been reached between the Maryland Attorney General's Office and property rental company, Westminster Management, LLC.
The settlement also involves 25 companies whose rental properties were managed by Westminster, and covers nearly 9,000 rental units across Baltimore City, Baltimore County, and Prince George’s County.
“Tenants in Westminster properties suffered with mold, leaks, floods and infestations of rodents, roaches and bedbugs. Management hid these conditions only to reveal them to their tenants after they were locked into long-term leases,” said Attorney General Brian Frosh. “Westminster knew the condition of its properties, and it charged tenants illegal fees to live in those miserable conditions. Westminster’s conduct was unconscionable.”
During that time, Frosh sued Westminster Management and its owners claiming they demanded, collected, and retained hundreds of thousands of dollars from tenants, in violation of state law.
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On top of having to pay the state $3.25 million in civil penalties, the companies also have to foot the bill for hundreds of thousands of dollars more in restitution to tenants impacted. However, the first $800,000 in restitution will be credited towards the penalty owed to the state.
Under Maryland’s Application Fee Law, landlords can only charge up to $25 to process a rental application.
But Westminster Management allegedly overcharged anyway, and have since agreed to payback $30,068.00 in restitution for those alleged violations.
Then there are those tenants who were left with additional $12 fees to cover the costs of eviction notices they received over late rent.
As part of the settlement, Westminster Management will refund $297,950 that was collected as part of that process.
Other state laws were apparently violated when money was withheld from security deposits after the fact, for damages that weren't the tenant's responsibility.
Additionally Westminster Management reportedly engaged in debt collection practices, despite not having the proper licenses to do so.
The company also was not legally permitted to rent out units at the Dutch Village or Pleasantview Apartments.
As result they are now on the hook and liable for $79,260 in overcharges, according to the settlement.
Many of the properties are subjected to Department of Housing and Urban Development regulations because it receives federal rental subsidies.
Some other provisions of the settlement include Westminster agreeing not to charge consumers future late rent fees exceeding five percent. They also have to provide maintenance assistance within 24 to 48 hours of an initial tenant request.
Based out of New Jersey, Westminster Management is a subsidiary of Kushner Cos. formerly chaired by Jared Kushner, the son-in-law of former President Donald Trump.
Kushner was not named in the lawsuit, as he stepped down as CEO in 2017 to take a position as Presidential Special Adviser.
The company had initially rejected a settlement back in 2019, stating they refused "to be extorted" by the state.
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Properties named in the lawsuit are Carriage Hill Apartments, Carroll Park Apartments, Charlesmont Apartment Homes, the Commons at White Marsh Apartments, Cove Village Apartments, Dutch Village Apartments, Essex Park Apartments and Townhomes, Fontana Village Apartments, Gwynn Oaks Landing Apartments, Hamilton Manor Apartments, Harbor Point Estates, Highland Village Townhomes, Morningside Park Townhomes, Pleasantview Apartments, Princeton Estates Apartment Homes, Riverview Townhomes, and Whispering Woods Apartments.
To read the full settlement, click here.
