New York Attorney General Letitia James has stopped two brothers and their spouses who own three rental buildings in the Capital Region from illegally denying housing opportunities to low-income renters. An investigation by the New York Office of the Attorney General (OAG), found that Greg and John Karian – who own or manage 24 rental units in buildings located in Glenmont, Albany, and Troy – violated New York’s human rights laws by refusing to rent to New Yorkers with housing vouchers. The Karians advertised that they do not accept Section 8 vouchers and charged exorbitant fees on late rent payments in violation of the law. As part of a settlement with OAG, the Karians and their employees must rent at least three units to applicants using housing vouchers, undergo anti-discrimination training, and take other actions to make housing more accessible for low-income renters.
Rental vouchers such as the Section 8 Housing Choice voucher program provide housing assistance to the lowest-income households to rent decent, safe housing in the private market. These programs also aid senior citizens and disabled persons on fixed incomes, displaced families, and homeless individuals with disabilities.
The OAG opened an investigation into the Karians’ alleged discrimination in September 2024 after online rental listings for their properties warned that they did not accept renters using Section 8. Throughout the investigation, OAG found multiple instances of discriminatory practices, including refusing to rent, lease, or negotiate with prospective tenants who intended to pay for some or all of their rent with housing subsidies; advertising that their rental properties do not accept Section 8 housing vouchers; and charging exorbitant fees of $100 for late rental payments.
The settlement with OAG requires the Karians: (1) to rent at least three units to applicants who use a housing subsidy within the next year, and must also renew the lease of these tenants for at least a one-year term, provided the tenant elects to renew; (2) to attend anti-discrimination training and implement an anti-discrimination policy to distribute to everyone involved in the rental process at their properties; (3) to publicly advertise their acceptance of Section 8 and other housing subsidies by placing an “Equal Housing Opportunity” sign at each of their properties and indicate they are an “Equal Housing Opportunity Provider” on any advertisement, listing, or social media post; (4) to provide OAG with copies of the application, lease, and renewal lease of any applicant or tenant who pays for all or some of their rent with housing subsidies and must update their lease to limit late fees to 5% of the monthly rent or $50, whichever is lower, and solely one late fee may be charged per month; and (5) to pay $3,000 in penalties and $6,000 more if they do not comply with the terms of OAG’s agreement.
It is illegal in New York State for any owner, managing agent, broker, or any other representative to refuse to rent, sell, or lease housing to any person based on their source of income. New Yorkers who suspect they are victims of source of income discrimination are encouraged to file a complaint online.
Read the April 15, 2025 New York State Attorney General's office press release.
