EotR Slumlord Sued for Housing Code Violations and Defrauding Rapid Re-Housing Program
Lawsuits Allege Tenants in Wards 7 and 8 Are Being Forced to Live with Pest Infestations, Piled-Up Trash, Broken Doors and Windows, and Illegal Construction
September 9, 2024
Attorney General Brian L. Schwalb today announced two separate lawsuits against Ali “Sam” Razjooyan and his related property entities and managers for (a) extreme housing code violations that pose serious health and safety threats to tenants at apartment complexes in Wards 7 and 8, (b) disregarding repeated orders to stop illegal construction work, and (c) defrauding DC’s rapid re-housing program by falsely certifying that properties are safe, habitable and code-compliant in order to collect government subsidized rents.
In the lawsuit involving 1644-1656 W Street, a housing complex in Ward 8, the Office of the Attorney General (OAG) alleges that Razjooyan and his related entities have subjected, and continue to subject, tenants to a litany of dangerous conditions—while at the same time, Razjooyan, in violation of the District’s False Claims Act, has falsely certified, and continues to falsely certify, that the property is up to code so as to fraudulently collect tens of thousands of dollars from the Rapid Re-Housing program, a DC-funded voucher program for residents experiencing homelessness. In a separate suit involving Minnesota Commons, a Ward 7 housing complex, OAG alleges that Razjooyan and his related entities have neglected, and continue to neglect, nearly all maintenance responsibilities, forcing tenants to live in deplorable conditions. OAG’s complaint also alleges that Razjooyan is and has been engaged in illegal construction at both complexes and has wilfully ignored multiple Stop Work Orders from DC’s Department of Buildings (DOB). The suits seek to force Razjooyan to fix the egregious health and safety violations, stop illegal construction, pay restitution to harmed tenants, and pay penalties to the District.
“Razjooyan’s business model involves forcing tenants to live in deplorable, unsafe, horrific conditions that are shocking to the conscience,” said Attorney General Schwalb. “No District resident should have to endure such treatment. The Office of the Attorney General will not allow slumlords, in order to line their pockets, to flout our laws, threaten District residents’ safety, or defraud the District’s housing programs while preying on the disadvantaged families those programs are intended to support.”
“Tenants at Minnesota Commons have lived through truly deplorable conditions that no one should have to endure,” said Caroline Hennessy, Program Director of Tenant Services at Housing Counseling Services. “We are all grateful to see this important step taken towards holding their landlord to account, as these cases represent two of so many instances across the district where the most vulnerable tenants are taken advantage of and left in unsafe and unlivable housing conditions without other options. We hope that this case can have a positive impact for not only the tenants at Minnesota Commons but for many living in similar situations across the District.”
Razjooyan is a landlord and property manager who owns and manages multiple properties in the District. Razjooyan’s business model involves purchasing rent-controlled apartment complexes and then renting to tenants who receive housing vouchers or other subsidies, enabling him to collect higher rents than would otherwise be permitted under DC’s rent stabilization law. When he purchases buildings, Razjooyan illegally, sloppily, and unsafely renovates vacant units—while severely neglecting occupied units and common areas—then rents the illegally renovated and unsafe apartments to DC voucher-holders at market or above-market rates. After construction, Razjooyan’s neglect of the properties continues, leaving DC voucher-holders—including residents previously experiencing homelessness—to withstand unsafe and unsanitary housing conditions.
1644-1656 W Street SE
1644-1656 W St SE is a 32-unit rent-controlled apartment complex in Ward 8. Razjooyan purchased the property in 2020. In a lawsuit against Razjooyan, 1644 W St SE DE, LLC, and Geneva Holding Trust, OAG alleges that conditions at the building have become so bad that they “shock even seasoned housing investigators,” and that defendants violated the law by:
Forcing tenants to live in dangerous and unlawful conditions: Conditions at the complex pose an imminent danger to the health, safety, and welfare of tenants. Apartments teem with rats, mice, roaches, and spiders, including infestations so severe that DOB wrote that one building was “unfit for human occupancy.” Razjooyan has forced tenants to live with chronic water leaks, high levels of mold growth confirmed by lab tests, cracked walls and ceilings, doors and gates that do not lock, and nonoperational fire safety systems, in violation of the District’s Tenant Receivership Act and Consumer Protection Procedures Act.
Engaging in illegal construction and ignoring stop work orders: Razjooyan has engaged in illegal and hazardous construction at the property, including excavating a gaping hole in the front yard that posed a risk to residents and neighbors, and illegally installing high-capacity electrical systems without required permits. Razjooyan ignored multiple DOB Stop Work Orders.
Defrauding the District’s Rapid Re-Housing program: Razjooyan, in violation of the District’s False Claims Act, has engaged in a pattern of falsely certifying that this property was in habitable condition and would be kept up-to-code going forward in order to collect as much as $19,000 per month from DC’s Department of Human Services for residents participating in the Rapid Re-Housing program. Razjooyan entered into at least 12 Rapid Re-Housing contracts, enabling him to collect higher rent than otherwise allowed under rent control laws—and subjecting DC residents who were formerly unhoused or transitioning from shelters to dangerous and unlawful housing conditions.
OAG is asking the Court to ensure repairs are made at the building and seeking restitution for tenants who were forced to live in dangerous conditions, penalties for violating DC housing code and consumer protection law, and damages for defrauding the District.
A copy of OAG’s lawsuit is available here.
Minnesota Commons (4069, 4071, 4073, 4075, 4077, 4079, 4081, 4083, 4085, 4087, and 4089 Minnesota Avenue NE)
Minnesota Commons is an 83-unit rent-controlled apartment complex in Ward 7 with eleven residential buildings. Most tenants moved out in the face of deteriorating conditions, but 15 units remain occupied, primarily by seniors who have lived at the property for many years. Razjooyan is part of a corporate group that purchased the property in April 2024 and allowed conditions to deteriorate so severely that DOB designated three of the buildings as “blighted,” meaning they “threaten the health, safety, or welfare of the community.”
OAG filed suit against Razjooyan, Oscar Portillo Padilla, 4069-4089 Minnesota Ave NE LLC, US Realty LLC, and Elite Residential Services LLC, alleging they violated DC law by:
Forcing tenants to live in deplorable conditions: Minnesota Commons is in dilapidated condition, with ground floor windows and doors broken or missing and open to the elements. When an OAG investigator visited the property in July 2024, only one of eleven buildings had a door with a working lock, and every building had broken windows. Razjooyan has allowed trash and construction debris to pile up. On July 1, there was a trash fire, and there has been no trash pick-up for tenants since mid-July. Occupied apartments are in severe disrepair, suffer from extreme rodent infestations, and some tenants had no air conditioning in summer.
Engaging in illegal construction and violating stop work orders: Razjooyan has performed extensive and dangerous illegal construction at the property—unoccupied units were demolished without permits, even as serious issues in occupied apartments were disregarded. Between April and July of 2024, DOB issued seven stop work orders, all of which have been ignored.
With this suit, OAG is seeking to halt the hazardous illegal construction, asking the court to appoint a receiver to make repairs, and seeking restitution for harmed tenants and penalties for violating DC law.
A copy of OAG’s lawsuit is available here.