Charges allege illegal fees, failure to properly maintain rentals

BALTIMORE (WBAL & AP) — Maryland's attorney general has field charges against Westminster Management LLC, alleging violations that include failure to address rodent and vermin infestations and mold growth.

Maryland Attorney General Brian Frosh announced Wednesday that the Consumer Protection Division filed charges against the New Jersey-based Westminster Management, which is part of Kushner Cos., and the 25 companies that own or previously owned 17 residential communities managed by Westminster Management in Maryland.

The properties in question contained nearly 9,000 rental units across Baltimore City and Baltimore and Prince George's counties.

Kushner, a senior adviser to President Donald Trump, stepped down as CEO of the family business before joining the White House. But he still has an ownership stake in the subsidiary.

Laurent Morali, the president of the Kushner Cos., says the company looks forward to fighting "these bogus allegations." Morali says the attorney general cares more about "scoring political points" than fighting crime.

According to the statement of charges, Westminster Management and the rental property owners misrepresented the quality of the rental units and the level of maintenance that they would provide, and they routinely failed to address hazardous conditions in the properties, including rodent and vermin infestations, water leaks and mold growth, forcing tenants to vacate their homes or live in unsanitary conditions.

It was further alleged that Westminster Management and the owners have demanded, collected and retained hundreds of thousands of dollars in illegitimate fees from prospective and actual tenants, including charging application fees that exceeded the amounts permitted under Maryland law.

Under Maryland's Application Fee Law, landlords can only charge $25 or their actual costs to process the application. It's alleged that Westminster Management and the owners did not incur costs of more than $25 to process tenant applications, but routinely charged application fees in excess of $25.

In addition, the attorney general claimed that when Westminster Management and the owners filed eviction actions against tenants who were late paying their rent, they frequently charged additional fees that they never incurred, as well as fees that they were not entitled to collect under Maryland's eviction laws.

Westminster Management and the owners are also accused of repeatedly violating Maryland's Security Deposit Law, which allows landlords to collect security deposits from their tenants, but requires the deposits to be returned to the tenant, along with an accounting of any amounts deducted for lost rent, damages due to breach of lease, and damages to the rental property in excess of ordinary wear and tear.

According to the charges, Westminster Management and the owners routinely withheld damages from tenants' security deposits that were not caused by the tenants and constituted ordinary wear and tear, such as worn carpeting.

The charges also allege that Westminster Management engaged in illegal debt collection practices, as it did not maintain a license to collect debt, and the owners of two Baltimore City properties, Dutch Village Apartments and Pleasantview Apartments, failed to maintain the multi-family dwelling licenses required to legally rent apartments to consumers.

"We allege that the property owners and their property management company violated numerous consumer protection laws, which harmed thousands of Maryland consumers," Frosh said in a statement. "We're charging that Westminster and the rental property owners in this case took advantage of consumers, primarily low- and middle-income families, collecting fees and other unlawful costs from them and often failing to make the repairs needed to maintain suitable environments for their tenants."

The properties at issue include:

  • 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
  • Whispering Woods Apartments

The respondents named in the attorney general's charges include:

  • Westminster Management LLC
  • Carriage Hill Investment Limited Partnership
  • Carroll Park Holdings LLC
  • Commons at Whitemarsh I, II, V, LLC
  • Commons at Whitemarsh III LLC
  • Commons at Whitemarsh IVA LLC
  • Commons at Whitemarsh IVB LLC
  • Dutch Village LLC
  • Essex Park Holdings LLC
  • Fontana LLC
  • Hamilton Manor Apartments LLC
  • Harbor Point Estates I, II, IV, LLC
  • Harbor Point Estates III LLC
  • Highland No. 179 LLC
  • Highland No. 241 LLLP
  • Highland No. 689 LLC
  • Morningside Park Holdings LLC
  • Pleasantview LLC
  • Princeton Estates Limited Partnership
  • Riverview Apartments LLC
  • RP Cove Village LLC
  • SRH Charlesmont LLC
  • SRH Fox Haven LLC
  • SRH Woodmoor LLC
  • Whispering Woods No. 250 LLC
  • Whispering Woods No. 299 Limited Partnership