The owner of an apartment complex will give tenants $5.1 million in cash payments and waived rent and utility bills after a series of water line breaks, flooding and electrical failures led the town to declare the buildings unsafe and hundreds of residents were displaced for weeks.
Connecticut Attorney General William Tong announced the settlement agreement with JRK Property Holdings, owner of Concierge Apartments in Rocky Hill, on Thursday. Tong opened an investigation into Concierge management on Feb. 9 and under the Connecticut Unfair Trade Practices Act demanded detailed records regarding tenant complaints, work orders, inspection reports, leases, relocation efforts, and documentation regarding repairs.
“Following our investigation and negotiations, Concierge management has committed to an unprecedented $5.1 million in financial relief to tenants to address unlivable, exceptional health and safety violations, disruption to their lives and loss of property,” Tong said in a statement Thursday, noting “the responsiveness of Concierge management” to his office’s investigation and concerns.
“Still today, hundreds of Concierge residents are living in hotels, some far from their community, their jobs and schools,” Tong said. “The work required to address years of neglect and mismanagement will cost millions upon millions of dollars. This $5.1 million in direct financial relief to Concierge residents will provide a measure of immediate compensation for these harms. “
The 544-unit complex has been plagued by resident complaints for years but frigid temperatures in late January and a massive snowstorm triggered a cascading maintenance crisis. Anywhere from 1,000 to 2,000 tenants were displaced, with some allowed to return to their units last week. Others are expected to get clearance to return the first week in March.
During that time, residents were forced into hotels throughout the state, incurring food and travel costs and making it difficult for students to get to school.
Tong said as a result of his negotiations JRK agreed to pay those tenants who were displaced the longest — in buildings A, B and C — cash payments of $1,100 to $1,700 per unit depending on the number of residents; three months of free rent and waived water and utility bills for February. According to Tong, compensation per unit is estimated at $15,104. Those residents will be allowed to break their leases with no penalty, Tong said, something JRK had initially refused.
Residents in buildings D and E were displaced for a shorter period of time and will receive $500 per unit cash payments, one month of free rent and the February waiver of water and utility bills at an estimated compensation per unit of $3,397, Tong said.
Along with the compensation, JRK will allow any tenant who is current on rent to renew their lease with no increase through the end of the year, Tong said.
In addition to the compensation for residents, Tong said a second agreement being negotiated by the Office of the Attorney General and Concierge owner JRK Property Holdings is forthcoming. Completion of the second, to address health and safety concerns at the property, will resolve his investigation, Tong said.
The second agreement, which will be enforceable in court, will address ongoing inspections and accountability measures and improved lines of communication between property management, the Town of Rocky Hill and residents.
“We continue to negotiate a second agreement that will put in place strong new accountability measures and communications standards. This should never have happened and cannot happen again,” Tong said. “I appreciate the responsiveness of Concierge management to our investigation and their commitment to addressing these serious concerns.”
Rocky Hill Mayor Allan Smith, who was joined by state Reps. Kerry Wood and Matt Lesser in lobbying for the safety and welfare of Concierge residents, said he was pleased with the resolution.
“I look forward to working with the Attorney General to hold JRK accountable for better communication, maintenance and ensuring the health and safety of residents over the long term,” Smith said in a statement.
“What’s happened in Rocky Hill is an absolute travesty,” Lesser said. “I am so frustrated on behalf of the residents who have experienced real hardships and lasting trauma. I am incredibly grateful to Attorney General William Tong for stepping up and helping us negotiate an unprecedented package of concessions for our residents.
“While nothing can fully compensate the residents for the emotional toll of the past month or more, I remain willing to assist residents going forward and will continue to hold Concierge and its owners accountable for their obligations,” Lesser said.
Residents must opt in to the agreement to receive the cash payments and rent and utility waivers through a form to be provided by Concierge, Tong said. Residents should contact 860-955-3465 or email [email protected] with questions.
The town of Rocky Hill sued Concierge owners in 2021, alleging violations of health, fire and building codes. In 2023, it shuttered five units due to mold.
Wood said that despite the complex’s history, she was hopeful the agreements would bring increased stability and safety to Concierge residents.
“This agreement provides financial compensation for residents — the first step in righting the wrongs of the past. I look forward to the company’s renewed commitments to building repairs and improved communication with tenants and the town,” she said.