Van Ness landlord Equity Residential has been ordered to pay $2 million to the District and to residents of 3003 Van Ness for what Attorney General Karl Racine calls a “rent hike scam.”
“[A]t every step in the rental process, from online advertisements to apartment searches, tours, and applications, Equity misled prospective tenants, ultimately placing them in an impossible financial situation,” Racine said in a May 25th statement.
Residents of 3003 Van Ness, a rent-controlled building formerly known as Van Ness South apartments, complained to the Office of the Attorney General in 2016 after they’d received notices of rent increases with some eye-popping numbers. Equity was listing “current rent charged” in the $3,000-plus range – a shock to residents who were paying closer to $1,800 to $2,000 per month in the first year of their lease, and were unaware that those rates were what landlords call “rent concessions.” In year two, Van Ness South Tenants Association President Harry Gural says, the rent demanded would “skyrocket” by as much as $1,500 per month.
“For a while, Equity entirely omitted any indication about its use of concessions on the website. When the company did add details, they made it almost impossible to read or find within the apartment’s advertisements,” Racine said.
Racine sued in 2017, and in 2018, the Rental Housing Commission ruled that Equity was basing its rent increases on an “arbitrary, fictitious number.” Still, the case dragged on, and it went to a bench trial in December 2020.
In October 2021, a DC Superior Court judge ordered Equity to pay $985,122.79 to tenants of 3003 Van Ness for the amount they were overcharged plus 2% interest. The District is getting $1,010,493 from Equity to cover the costs of bringing the lawsuit.
Gural told WAMU/DCist that his email was “exploding” with fellow residents who wanted to know how they were going to get their share of Equity’s payment. “People were traumatized,” he said.
We asked Gural if there was anything else he’d like to say about this case. His response:
“The important thing to know is that the OAG went after Equity for just one building – but it has six other rent-stabilized buildings. I have FOIA’ed info on them. It’s likely that the same thing was done in those buildings. Private attorneys should help people seeking restitution for overcharges.”
Lori Vorhees says
I’d like to know the other 6 buildings he mentioned but didn’t name.
Harry Gural says
Last time I checked, all these apartment buildings were owned by Equity Residential and are of the vintage that would make them rent-stabilized:
1500 Massachusetts Avenue
Connecticut Heights (4850 Connecticut Avenue)
The Calvert-Woodley (2601 Woodley Place)
Alban Towers (3700 Massachusetts Avenue)
Corcoran House Apartments (1616 18th Street)
Cleveland House Apartments (2727 29th Street)
I made a FOIA request for rent records for those buildings in 2017, then made a second FOIA request for additional records in 2019. See halfway down the page at this link:
https://fairrentdc.org/foia
Teri Osborn says
Oh no! We just rented an apartment at 3003 Van Ness! Ugh…
Gerome says
I remember seeing complaints about this rent scam when reviewing the 3003 Van Ness’ ratings on yelp and google.
And where was all their money going? Clearly not to the building – their parking lot had cement falling from the ceiling. It would not surprise me if there building has a partial collapse like the Florida building.
Green Eyeshades says
Cleveland House is definitely covered by rent control and had a very active tenants’ association for many years.
1500 Massachusetts Avenue is famous in the District’s history of landlord tenant law, and was a leading case in tort law when I was in law school in the late 70s. Decisions in favor of tenants at 1500 Massachusetts Avenue set precedents that landlords in the District owe a duty of care to their tenants to protect them from criminal activity on the premises.
A Bloomberg Law website offers this “synopsis” of the leading decision by the federal appeals court in DC:
“Landlords have a duty to take steps to protect tenants from foreseeable criminal acts committed by third parties in common areas of landlord’s property.” (links to follow)
The leading case is reported as Kline v. 1500 Massachusetts Ave. Apartment Corp., 439 F.2d 477 (D.C. Cir. 1970).
Teri Osborn says
Fascinating! I am moving here from Iowa, I can’t wait to learn everything about my new neighborhood. I’m a political junkie and love all things history…and yes I stop for every historical marker, of which there are only two or three in my current city of Des Moines. LOL
Gerome says
Plenty here. Once you step into Rock Creek Park, you’ll be stopping every few minutes.
Teri Osborn says
I am deliriously excited!! We just found out Soapstone Park is closed now for two years, that was a little sad since it was so close to 3003 Van Ness where we will be living.
Anna Marie says
Not quite as close as Soapstone, but if you walk about 10 minutes south on Connecticut Ave you can enter the park on the Reservation 630 Trail between Sedgwick & Rodman. It takes you down into the park and connects with lots of other trails. Or you can walk down Tilden on the sidewalk to Peirce Mill. Lots of beautiful exploring in the area!
Teri Osborn says
Thank you, thank you! I’m saving this info for my hubs, he’s the hiker of the two of us, he will be the one hitting the trails every day that he can. We are both sailors and we are very excited about finding our next vessel in our new home.
Green Eyeshades says
The Bloomberg Law website offering the synopsis of 1500 Mass. Ave is here:
https://www.casebriefs.com/blog/law/torts/torts-keyed-to-prosser/owners-and-occupiers-of-land/kline-v-1500-massachusetts-ave-apartment-corp/
The full text of the D.C. Circuit opinion in 1500 Mass. Ave. is here:
https://law.justia.com/cases/federal/appellate-courts/F2/439/477/337203/
Cece Benedict says
Has anyone recently complained about their rental office? I want to but so far have found no way to so-inform their company, and I’ve tried. Any ideas? Thanks