Press Releases
01/29/2020
Attorney General Tong Opens Unfair and Deceptive Practices Investigation into Former Landlord
Serves Emmanuel Ku with Civil Investigative Demand Seeking Information Regarding Derelict Clay Arsenal Renaissance Apartments That May Constitute Unfair or Deceptive Acts or Practices in Violation of Connecticut Law
(Hartford, CT) – Attorney General William Tong today announced his office has opened an investigation into former Clay Arsenal Renaissance Apartments landlord Emmanuel Ku and whether his actions as owner constituted unfair or deceptive acts or practices in violation of the Connecticut Unfair Trade Practices Act. Owned by Mr. Ku until last year, the 150-unit complex became notoriously unsafe, unsanitary, and virtually uninhabitable for its hundreds of residents.
The action today is a first step by the Office of the Attorney General to protect fair, safe, affordable housing in Connecticut. While CUTPA has been used in private housing actions in the past, this investigation is first such housing action known to this office by a state attorney general under a state unfair trade practices act.
In a civil investigative demand issued today to Ku, the Office of the Attorney General seeks comprehensive evidence as to the maintenance and management of Clay Arsenal, inspections records, rental agreements, repair records, maintenance costs, tax returns and financial records, tenant recruiting records, and other documents.
"Emmanuel Ku bought Clay Arsenal at a rock bottom price, and extracted millions in federal and local subsidies based on unfulfilled promises to provide safe, affordable housing for vulnerable Hartford residents. He let those properties rot, and subjected his tenants – who had little to no ability to leave – to dangerous, uninhabitable conditions. Tenants reported roaches, mice, bed bugs, mildew, black mold and apartments lacking the most basic of functions, including heat and hot water, working windows, and working toilets. The Connecticut Unfair Trade Practices Act gives our office broad enforcement powers to protect the public from unfair and deceptive acts and we are prepared to use the full scope of our authority to defend the rights of tenants," said Attorney General Tong. "Clay Arsenal tenants have emerged as aggressive, effective, and organized advocates for fair housing, and our state action today builds on their important leadership."
“I want to thank and commend the brave residents at the Clay Arsenal Renaissance Apartments for organizing and working hard to ensure that action is taken to improve the lives of families in their community. Unethical business practices become even more dangerous when they compromise the safety of someone’s home,” said Consumer Protection Deputy Commissioner Arunan Arulampalam. “We take these issues very seriously at our agency, and we are grateful to have the partnership of the Office of Attorney General Tong in this matter.”
“Emmanuel Ku left families living in deplorable conditions while taking millions of taxpayer dollars, and this investigation sends a strong message that Connecticut will use every tool available to hold slumlords accountable,” said Hartford Mayor Luke Bronin. “The Attorney General’s investigation is another testament to the effective organizing that began with Clay Arsenal tenants, and I want to thank him for his advocacy on behalf of our community.”
"I applaud AG Tong for taking legal action against this apparently unscrupulous landlord," said State Rep. Joshua Hall. "Mr. Ku's failure to maintain these apartments is a grave injustice against tenants who would find better housing if their income allowed them to do so. In addition, I want to commend the tenants who stood up and made their plight known to us. Their voices were heard, loud and clear, and I hope they will soon experience improvements to what has become severely, substandard housing."
"We organized to make a change. I'm proud to say I was the first to open my door. Together we made a difference. We never gave up and we never gave in. I was proud to be a part of our victory. Now we turn our efforts toward the next fight for economic justice for harms done to all of our residents," said CARA tenant leader Teri Morrison.
"We are grateful that the Attorney General is taking this decisive step to assure the residents of Connecticut that abuse of tenants and slumlord behavior will not be tolerated. It is a victory for the residents who risked so much, including their own shelter, to organize for justice," said Cori Mackey, Executive Director of the Center for Leadership and Justice.
“During the last three years, the Connecticut Fair Housing Center has seen an increase in the number of people of color losing their homes because their landlord neglected their apartments. These tenants have paid rent but have been forced to live in housing that was infested with rodents, lacked adequate security, and had little heat in the winter months. The Connecticut Unfair Trade Practices Act is a tool that can be used to remedy the problems caused by landlord’s like Mr. Ku who do not follow the law. We applaud the work of the Connecticut Attorney General’s office in using CUTPA to investigate unlawful behavior and to seek remedies for tenants living in bad conditions. The Center looks forward to working with the Attorney General on issues like this in the future," said Erin Kemple, Executive Director of the Connecticut Fair Housing Center.
CARA constitutes 150 multi-bedroom units spread over 26 properties in the North End of Hartford. The complex was bought by Emmanuel Ku through a Connecticut-registered holding company, Ah Min Holding, LLC, at foreclosure auction in 2011. Over the next seven years, Ku—who has been the subject of litigation and tenant complaints in five states other than Connecticut – extracted millions in subsidies from the U.S. Department of Housing and Urban Development, and hundreds of thousands of dollars in city tax abatements. Meanwhile, according to tenants, he violated his obligations – imposed by his HUD contract, tenant leases, and state and local ordinances – to maintain safe and habitable properties.
By 2018, Ku had racked up hundreds of HUD and city violation notices. The apartments became virtually unlivable, yet tenants were unable to leave without giving up their project-based Section 8 HUD vouchers — a benefit few could afford to lose. In May of 2018, HUD cancelled its contract with Ku; in December of 2018, Ku sold the properties for a profit of $6.5 million, more than three times his purchase price. All tenants have since been given portable Section 8 vouchers and relocated from CARA.
The civil investigative demand gives Ku until March 15, 2020, to provide requested documents, at which time the Office of the Attorney General will make a determination as to next legal steps.
Special Counsel for Civil Rights Joshua Perry is assisting the Attorney General with this matter.
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