Consumer Protection Commissioner Bryan T. Cafferelli on Monday issued a civil investigative demand to JRK Property Holdings and JRK Residential Group surrounding complaints at Concierge Apartments, a five-building complex in the town of Rocky Hill. The demand seeks both answers under oath and documents detailing tenant complaints dating back to 2021, including allegations of no heat in some units and no hot water in others, Attorney General William M. Tong said in an announcement.
Tenants also cited alleged failures to clear snow and broken lights, appliances and elevators, Tong's office said. The town evacuated residents after pipes burst across the property and units were deemed unsafe, according to the AG.
He also said three deaths occurred at Concierge during the last year.
"Concierge management is sitting on billions of dollars in assets while Connecticut families cannot safely remain in their homes," Tong said in a Monday statement.
"We will not hesitate to use the full weight of our law enforcement authority to hold this multi-billion dollar out of state landlord accountable," he added.
Cafferelli's demand for answers and records followed a back-and-forth volley of letters in recent days.
Last Wednesday, Tong and two Connecticut lawmakers, Sen. Matt Lesser and Rep. Kerry Wood wrote to JRK, demanding the company prorate rent and potentially reimburse other tenant damages.
"We are aware of numerous complaints from residents who have been unable to get straight answers from the management at Concierge Apartments," the lawmakers wrote.
"Instead, Concierge has instructed some tenants to seek their own accommodations and submit claims to their renters insurance," they continued. "We understand that as of yesterday, after days without hot water and pressure from municipal officials, Concierge finally agreed to pay for some tenants' lodging while their apartments are uninhabitable."
The letter warned the company its practices may violate state law.
On Thursday, Robinson & Cole LLP partner Brian J. Wheelin responded in an email on behalf of JRK unit Century Hills Property Owner LLC, saying the landlord had invested $22 million in investments to the property since 2013 to address "deferred maintenance existing at the time of its acquisition." There were "currently no open violations or citations relative to plumbing," according to Wheelin's response.
"As such, Century Hills respectfully disagrees with the characterizations in your correspondence as to its efforts in maintaining the aged apartment complex and addressing tenant concerns," he replied.
Wheelin blamed some of the problems on a recent cold snap that plunged Connecticut into several straight days of temperatures on either side of zero.
"All units currently have heat and running water," he said.
According to Wheelin, only four units reported heating losses, and all were fixed within 24 hours. He said 61 units lacked hot water to at least one fixture.
Contractors had been ripping down wallboard, replacing pipes and fixing other woes at an alleged cost of $2 million, according to Wheelin. He said impacted tenants had been offered lodging and that some will receive a one-month rent credit.
Those concessions meant tenants could not break their leases, he added. Personal property damage claims should be addressed through each tenant's insurance, he said.
Wheelin did not respond to a Law360 message Monday.
Tong replied Friday calling the letter "tone deaf" and "callous." He noted that the town of Rocky Hill had ordered the entire complex evacuated the night before.
"The Office of the Attorney General last evening heard from a resident who had to leave his unit by midnight by the town's order but had not received a response from Concierge on a hotel accommodation, other than that the management office denied his request to book the hotel and seek reimbursement," Tong wrote.
The attorney general said Concierge should pay for all out-of-pocket tenant expenses, including lost time at work, childcare and personal property losses.
"It is unconscionable to demand that tenants, who are mostly working people now struggling to put a roof over their heads during the coldest stretch in recent memory, honor their contractual obligations to a Los Angeles-based real estate empire that boasts $15 billion in real estate assets under management in 23 states," Tong said. "This is particularly appalling when Concierge itself is likely in breach of its legal and contractual obligations."
"I am hard pressed to believe that a Connecticut court would see it any other way – and I anticipate that a Connecticut court would strongly consider these contracts to be voidable," he continued.
"This catastrophe has made Concierge, and its shadowy web of ownership interests, the poster child for everything that is wrong with private equity and financial investor[s] who utterly fail the people that they serve," he added.
JRK Property Holdings' general counsel Michael Lynn responded via a Sunday letter, apologizing for Wheelin's letter.
"It was not intended to be callous and we deeply regret that it created the misimpression that Century Hills is indifferent to the health and safety of the more than 500 residents of Concierge Apartments," Lynn wrote.
According to Lynn, damaged areas of the complex should be fixed by the end of this week. Lynn promised a one-month credit to all residents, an additional one-month credit or the opportunity to break a lease, and reimbursement for out-of-pocket costs, as demanded by Tong.
Tong announced the civil investigative demand Monday.
"We are launching this investigation today to get real answers to how conditions got this bad and what Concierge is doing now to make sure this never happens again," he said in a press release.
In a Monday evening statement to Law360, Concierge Apartments said some residents would be home as soon as Tuesday.
The property owner said progress was stymied Monday morning when the Connecticut Department of Labor issued a stop-work order because its out-of-state contractors did not have state-specific worker compensation insurance.
According to Concierge, its crews have universal insurance coverage and are in the process of obtaining Connecticut-specific coverage.
"Claims that residents have been without heat for days or weeks are completely false," the property owner added.
--Editing by Patrick Reagan.
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