Landlord Fined $5M for Illegal Utility Charges
More than 4,000 Minnesota renters are eligible to get money back from a property management company accused of overcharging and stealing security deposits.
Attorney General Keith Ellison announced a $5 million settlement with Investment Property Group (IPG) on Wednesday. Nearly $2 million of that goes directly to the tenants hit by those practices.
The company must also offer more than $3 million in forgiveness for rent and utility debts. IPG has also been ordered to instruct credit reporting and tenant screening companies that the debt has been satisfied.
The attorney general sued the company over eviction threats for unpaid utility bills. IPG allegedly imposed unanticipated utility charges on tenants, with some charges being over $200 a month. Though landlords can charge for some utilities separate from rent, they must follow certain regulations and laws, which IPG did not comply with, the attorney general’s office said.
As part of the settlement, IPG will not charge tenants for gas or gas-related utilities separate from rent. Additionally, the landlord ordered to stop filing, or threatening to file, eviction actions based on unpaid utilities.
IPG will also provide a $350 rent credit for tenants at certain properties who still rent from the company. Approximately 650 households will benefit from the credit, according to the attorney general’s office.
Tenants at the following properties may be eligible for the credit:
- Aldrich Avenue Apartments
- Bolero Flats Apartments
- Cambridge Towers Apartment
- Central Park Manor Apartments
- Creek Point Apartments
- Greenway Apartments
- Knollwood Towers East Apartments
- Knollwood Towers West Apartments
- Lyndy Apartments
- Maven Apartments
- Wayzata Woods Apartments
Anyone affected by the settlement will be contacted by the attorney general’s office in the coming months.
Source: cbsnews.com
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