The developer of a Rego Park building was forced to pay a combined $100,000 in restitution and back wages after ignoring legal obligations for receiving tax benefits, according to Attorney General Eric Schneiderman.
The state settled with Tuhsur Development LLC after the firm violated mandates of the 421-a program, which offers tax incentives from the city when constructing buildings.
In exchange for benefits under 421-a, landlords and developers must add properties to the rent regulation system, and building workers must receive prevailing wages.
However, Tuhsur neglected to pay prevailing wages to workers at 63-36 99th St. in Rego Park. The firm was forced to pay nearly $10,000 in back wages to three building service workers and $90,000 in restitution to the city.
“Tax breaks offered to developers and landlords are not freebies,” Schneiderman said. “They come with legal obligations to New York taxpayers — ones that developers and landlords agree to abide by when they accept the tax incentives.”
In addition, B&S Management LLC, which owns 138-06 35th Ave. in Flushing, failed to register units in the building under the state’s rent regulation registry. It will provide rent regulated leases to eight families and was forced to pay $10,000 in restitution to the city.
The money collected in restitution from the firms will be used by the Department of Housing Preservation and Development to develop homes for low-income families.