Dkt No 3 1 Proposed Consent Decree

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA, and
PEOPLE OF THE STATE OF NEW YORK,
by LETITIA JAMES, Attorney General of the
State of New York

Plaintiffs,

v.

LILMOR MANAGEMENT LLC and MORRIS
LIEBERMAN, et al.,

Defendants.

24 Civ. _______

CONSENT DECREE

9520

ii

TABLE OF CONTENTS

I. RECITALS ................................................................................................................................ 1
II. JURISDICTION AND VENUE ................................................................................................ 2
III. ADMISSIONS........................................................................................................................... 2
IV. DEFINITIONS .......................................................................................................................... 5
V. APPLICABILITY ................................................................................................................... 11
VI. TRANSFERS OF INTEREST ................................................................................................ 12
VII. PENALTY AND RESTITUTION PAYMENT ...................................................................... 13
VIII. HOUSING SPECIALIST ........................................................................................................ 14
IX. INJUNCTIVE REQUIREMENTS .......................................................................................... 17
X. RESTITUTION FUND ........................................................................................................... 31
XI. DEFENDANTS’ REPORTING REQUIREMENTS .............................................................. 31
XII. APPROVAL OF PLAN AND OTHER DELIVERABLES; PERMITS ................................. 32
XIII. STIPULATED PENALTIES .................................................................................................. 33
XIV. FORCE MAJEURE ................................................................................................................. 34
XV. DISPUTE RESOLUTION ...................................................................................................... 35
XVI. INFORMATION COLLECTION AND RETENTION .......................................................... 37
XVII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS ............................................... 39
XVIII. COSTS .................................................................................................................................... 40
XIX. NOTICES ................................................................................................................................ 40
XX. EFFECTIVE DATE ................................................................................................................ 42
XXI. RETENTION OF JURISDICTION ........................................................................................ 42
XXII. MODIFICATION .................................................................................................................... 42
XXIII. CERTAIN REPRESENTATIONS AND WARRANTIES ..................................................... 42
XXIV. PROPERTY REMOVAL AND TERMINATION ................................................................. 43
XXV. PUBLIC PARTICIPATION .................................................................................................... 44
XXVI. SIGNATORIES/SERVICE ..................................................................................................... 45
XXVII. INTEGRATION ...................................................................................................................... 45
XXVIII. 26 U.S.C. SECTION 162(F)(2)(A)(II) IDENTIFICATION ................................................... 45
XXIX. FINAL JUDGMENT ............................................................................................................... 45
XXX. APPENDICES ......................................................................................................................... 45

I. RECITALS

1. WHEREAS, plaintiffs United States of America (“United States”) and People of
the State of New York (“State”) have filed a complaint (the “Complaint”) asserting their respective
claims against defendants Lilmor Management, LLC (“Lilmor”), Morris Lieberman, (Morris
Lieberman, together with Lilmor, the “Lilmor Defendants”), and the entities listed in Appendix A
(together with the Lilmor Defendants, “Defendants”).

2. WHEREAS, the United States on behalf of the U.S. Environmental Protection
Agency (“EPA”) and the U.S. Department of Housing and Urban Development (“HUD”) asserts
in the Complaint that, between 2012 and the present, Defendants have routinely violated the Lead
Disclosure Rule, 24 C.F.R. Part 35, Subpart A, and 40 C.F.R. Part 745, Subpart F, and therefore
Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C. §
4852d, and Section 409 of the Toxic Substances Control Act (“TSCA” or the “Act”), 15 U.S.C. §
2689, by, among other things, failing to provide tenants entering new and (where required) renewal
leases with (i) known information relating to lead-based paint or lead-based paint hazards and/or
(ii) records in the possession or control of Defendants relating to lead-based paint or lead-based
paint hazards.

3. WHEREAS, the United States on behalf of EPA further asserts in the Complaint
that Defendants have violated the Renovation, Repair, and Painting Rule (“RRP Rule”) and
therefore TSCA by, among other things: (i) between 2012 and the present, allowing
superintendents employed by Lilmor to conduct renovations subject to the RRP Rule without
appropriate firm or renovator certifications and without maintaining records required to be
maintained by the RRP Rule; and (ii) between 2015 and 2020, employing and controlling the work
of entities for large-scale renovation projects that lacked appropriate firm or renovator
certifications and failed to maintain records required to be maintained by the RRP Rule.

4. WHEREAS, the United States also alleges in the Complaint that Defendants have
maintained a public nuisance relating to substandard conditions in housing owned or controlled by
Defendants.

5. WHEREAS, the United States further asserts that Defendants are liable for civil
administrative penalties to EPA and HUD pursuant to 15 U.S.C. § 2615 and 42 U.S.C. § 4852d,
on account of the violations of the Lead Disclosure Rule alleged in the Complaint, and to EPA
pursuant to 15 U.S.C. § 2615, on account of the violations of the Renovation, Repair, and Painting
Rule alleged in the Complaint.

6. WHEREAS, the State alleges in the Complaint, pursuant to its N.Y. Exec. Law §
63(12) authority, that Defendants have repeatedly and persistently violated the N.Y.C. Housing
Maintenance Code (“HMC”) (N.Y.C. Admin. Code §§ 27¬-2001 et seq.; “Lead Poisoning
Prevention and Control”, N.Y.C. Admin. Code §§ 27-2056.1–2056.18 [a/k/a “The New York City
Childhood Lead Poisoning Prevention Act”, Local Law 1 of 2004]; “Control of Pests and Other
Asthma Allergen Triggers,” §§ 27-2017–2019 [a/k/a “The New York City Asthma Free Housing
Act”, Local Law 55 of 2018]); “Consumer Protection from Deceptive Acts and Practices,” N.Y.
Gen. Bus. Law§ 349, and “Warranty of Habitability,” N.Y.  Real Prop. Law, § 235-b by, among

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other things, failing to timely and correctly address substandard conditions, including, but not
limited to, lead paint and indoor allergen triggers such as mold, and vermin infestations; by failing
to properly follow local law relating to lead paint remediation, disclosure, certification, annual
inquiry, investigations and record keeping as well as requirements for addressing indoor allergen
triggers. Defendants are therefore liable for civil penalties and restitution damages pursuant to the
local and state laws and rules described herein.

7. WHEREAS, to avoid the time, expense, and burden of litigation, the Parties wish
to resolve all of the United States’ and the State’s claims brought in this action by willingly
entering into this Consent Decree.

8. WHEREAS, the Parties recognize, and the Court by entering this Consent Decree
finds, that this Consent Decree has been negotiated in good faith by the Parties and is fair,
reasonable, and in the public interest.

NOW, THEREFORE, with the consent of the Parties, IT IS HEREBY ADJUDGED,
ORDERED, AND DECREED as follows:

II. JURISDICTION AND VENUE

9. This Court has jurisdiction over the subject matter of this action pursuant to 28
U.S.C. §§ 1331, 1345, 1367, 15 U.S.C. § 2616, and 42 U.S.C. § 4852d.

10. The Court has personal jurisdiction and venue lies in this District because all
Defendants reside in this state and Defendant Lilmor resides in this district within the meaning of
28 U.S.C. § 1391(b)(1) and (c)(2).  For purposes of this action and Decree, or any action to enforce
this Decree, the Parties consent to the Court’s jurisdiction and to venue in this judicial district.

III. ADMISSIONS

11. The Lilmor Defendants admit, acknowledge, and accept responsibility for the
following:

a. Defendants own, control, or manage, in whole or in part, 49 residential
buildings containing 2,539 units in New York City, all of which were built
prior to 1978.

b. Government records show that, since 2012, more than 130 children have
tested positive for elevated blood lead levels while living in an apartment
owned or controlled by one or more of the Defendants.

Disclosures and Lead Hazard Prevention

c. Prior to November 2020, the Lilmor Defendants failed to provide tenants
entering new and renewal leases with (i) known information relating to lead-
based paint or lead-based paint hazards and/or (ii) records in the possession

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or control of Defendants relating to lead-based paint or lead-based paint
hazards, as required by the federal Lead Disclosure Rule.

d. From at least the beginning of 2015 through at least the end of 2017,
Defendants failed to keep evidence of the “Annual Notice for Prevention of
Lead Based Paint Hazards – Inquiry Regarding Child” that they allege they
provided to their tenants, as required by The New York City Childhood
Lead Poisoning Prevention Act.

e. In hundreds of the apartments it rented, the Lilmor Defendants knew of
lead-based paint or previous lead-based paint hazards because of prior lead-
based paint hazard violations issued by the New York City Department of
Housing Preservation and Development (“HPD”) or the New York City
Department of Health and Mental Hygiene (“DOHMH”), but the Lilmor
Defendants did not disclose this fact to tenants as required by the Lead
Disclosure Rule and the NYC Childhood Lead Poisoning Prevention Act.

f. Prior to the dates upon which government records show that children tested
positive for elevated blood lead levels while residing in Defendants’
apartments, Defendants had received citations for lead-based paint hazard
violations from HPD or DOHMH for at least eighteen of these apartments
but the Lilmor Defendants did not disclose the fact that these apartments
contained lead-based paint to the tenants when they signed their leases or
lease renewals.

Inspections, Inquiries, and Remediation

g. From at least 2015 to at least 2019, the Lilmor Defendants conducted no
annual inquiries or investigations, as required by the NYC Childhood Lead
Poisoning Prevention Act, to determine if a child under six years old resided
in the apartments they rented. Since 2020, the Lilmor Defendants failed to
conduct satisfactory annual investigations to determine if a child under six
years old resided in the apartments.

h. The Lilmor Defendants have in the past systematically failed, in violation
of The New York City Childhood Lead Poisoning Prevention Act, to
conduct annual inspections of apartments, including instances where the
Lilmor Defendants had received notice that children under 6 years of age
resided.

i. The Lilmor Defendants have also, in the past, systematically failed to
conduct proper lead paint inspection and remediation when apartments were
vacated and turned over before new tenants moved in, as required by The
New York City Childhood Lead Poisoning Prevention Act.  Because the
Lilmor Defendants failed to conduct proper turnover work, they failed to
properly certify in initial leases with new tenants that turnover work was

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done in compliance with the local law, as required by The New York City
Childhood Lead Poisoning Prevention Act.

Lead-Safe Work Practices

j. The Lilmor Defendants lacked federal certification to conduct repairs and
renovations that required lead-safe work practices pursuant to the RRP
Rule, did not provide its maintenance staff with equipment necessary to
perform RRP-Rule-compliant work, and did not train its maintenance staff
on lead-safe work practices.  The Lilmor Defendants provided no
instructions to its maintenance staff to prevent them from conducting work
that was required to be performed in accordance with lead-safe work
practices.  The Lilmor Defendants’ work-order database nevertheless
reflects that work subject to the RRP Rule was conducted by the Lilmor
Defendants’ maintenance staff.

k. By failing to conduct repairs and renovations pursuant to the federal RRP
Rule and other EPA requirements, the Lilmor Defendants also violated the
requirements for lead safe work required by The New York City Childhood
Lead Poisoning Prevention Act.

l. Through at least 2020, the Lilmor Defendants failed to follow lead-safe
work practices required by federal and local law in covered repair and
renovation projects for which the Lilmor Defendants engaged an entity that
worked solely or principally for the Lilmor Defendants. The Lilmor
Defendants would assign work orders to this entity, an employee of the
entity would send pictures of the work area to an employee of Lilmor, the
employee of Lilmor would provide instructions on how to conduct the work,
and the employee of the entity would take pictures once the work was
completed and send them to the Lilmor employee for approval of the work.
During this time, the entity did not employ lead-safe work practices.
Furthermore, although Lilmor had arranged for this entity to receive EPA
certifications required by the RRP Rule in 2010 and 2020, the entity was
not certified to conduct work covered by the RRP Rule from 2015 to 2020.

Indoor Allergen Hazard Prevention

m. The Lilmor Defendants have failed to implement a comprehensive
inspection plan for identifying and remediating indoor allergens, including
mold and vermin hazards.  In violation of the New York City Asthma Free
Housing Act, the Lilmor Defendants failed to: (i) annually inspect all
apartments for indoor allergen hazards, including for pests and mold and
keep records; (ii) properly remediate indoor allergen hazards using safe
work practices as defined by the law; (iii) clean vacant units at turnover to
ensure that they are free of pests and mold and using a HEPA vacuum where
indicated; (iv) timely establish Integrated Pest Management plans, as

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required by law, in many buildings in the portfolio; (v) provide a copy of
the NYC DOHMH Fact Sheet “What Tenants Should Know About Indoor
Allergens (Local Law 55 of 2018)” with all tenants’ initial and renewal
leases.

Health and Safety Conditions

n. In a period spanning from 2019 to the present, HPD issued violations to
Defendants under applicable housing code provisions:

(1) more than 966 times for lead-based paint hazards,

(2) more than 2331 times for rodent or roach infestations,

(3) more than 1492 times for leaks,

(4) more than 1465 times for mold, and

(5) more than 85 times for lack of heat.

o. In a period spanning from 2019 to the present, 26 buildings Defendants
own, control, or manage have been cited by HPD to be in violation of
housing codes concerning living conditions like those above 100 times or
more.

p. In a period spanning from 2019 to the present, 25 buildings that Defendants
own, control, or manage were cited by HPD to be in violation of housing
codes concerning living conditions like those above two or more times per

unit.

IV. DEFINITIONS

12. Terms used in this Consent Decree that are defined in applicable statutes or
regulations promulgated pursuant to those statutes shall have the meanings assigned to them in the
statutes or such regulations, unless otherwise provided in this Decree.  Where applicable local,
state, or federal statutes or regulations contain different definitions of terms, the applicable
standard will be the most restrictive of those definitions.  Whenever the terms set forth below are
used in this Consent Decree, the following definitions shall apply:

a. “Abatement” and methods of abatement including replacement, removal,
enclosure, and encapsulation have the meanings provided in 24 C.F.R.
§ 35.110 and 40 C.F.R. § 745.223.

b. “Chewable, Friction, or Impact Surface” has the meaning of the definitions
provided by NYC Admin. Code § 27-2056.2, 24 C.F.R. § 35.110, and 40
C.F.R. § 745.63, as applicable.

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c. “Clearance Examination” means an activity conducted after performance of
(i) Abatement activities or (ii) other paint-disturbing activities where
clearance is required (including but not limited to, for federally subsidized
units, the Lead Safe Housing Rule) to determine that those activities are
complete and that no Lead-Based Paint Hazards exist, in accordance with
Chapter 15 of the HUD Guidelines, the Lead Based Paint Activities Rule at
40 C.F.R. § 745.227(e), the Lead Safe Housing Rule at 24 C.F.R. § 35.1340,
and the New York City Childhood Lead Poisoning Prevention Act at N.Y.C.
Admin. Code §§ 27-2056.1-2056.18. The appropriate clearance standards
shall be the most restrictive of those set by: (i) N.Y.C. Admin. Code §§ 27-
2056.1-2056.18; (ii) Section 403 of TSCA and its implementing
regulations, 40 C.F.R. Part 745, Subpart D; or (iii) the HUD Lead Safe
Housing Rule, 24 CFR §§ 35.1320, 35.1340(d), where more than one
provision is applicable.

d. “Common Area” has the meaning provided by 40 C.F.R. § 745.103, 24
C.F.R. § 35.86, and N.Y.C. Admin. Code § 27-2056.2, where applicable.

e. “Complaint” means the complaint filed by the United States and the State
in this action.

f. “Completed Unit,” “Completed Common Area,” and “Completed Property”
mean a Unit, Common Area, or Property that has achieved Work
Completion; has been designated as a Completed Unit, Completed Common
Area, or Completed Property pursuant to Paragraph 75 of this Decree; and
has not had that designation removed pursuant to Paragraph 76 of this
Decree.

g. “Compliance Officer” means the person described in Paragraph 66 of this
Decree below.

h. “Consent Decree” or “Decree” means this Decree, including Appendices A
through I.

i. “Current Transfer Cap,” at a given point in time, is equal to the Transfer
Cap Base multiplied by the Current Unit Count, divided by the Initial Unit
Count, and then rounded to the nearest whole number.

j. “Current Unit Count” means the number of residential units within
Properties (excluding Newly Acquired Properties) that are (a) owned or
controlled, in whole or in part, directly or indirectly, by Defendants, or (b)
managed, directly or indirectly, by Defendants, at a given point in time.  For
the avoidance of doubt, units within Removed Properties are not included.

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k. “Date of Lodging” means the date this Consent Decree is filed with the
Court in advance of the period of public comment provided by Paragraph
155 of this Decree.

l. “Day” means a calendar day unless expressly stated to be a business day.
In computing any period of time under this Consent Decree, where the last
day would fall on a Saturday, Sunday, or federal holiday, the period shall
run until the close of business on the next business day.

m. “Deferred Unit” means a Unit designated by the Housing Specialist as a
Deferred Unit in accordance with Paragraph 81 of this Decree.

n. “Deferred Work” means any work in a Deferred Unit that Defendants were
obligated to perform under this Consent Decree at the time the Unit became
a Deferred Unit or during the time the Unit remained a Deferred Unit.

o. “Defendants” means Lilmor, Morris Lieberman, and the entities listed in
Appendix A.

p. “Deteriorated Paint” shall have the meaning set forth in 40 C.F.R. § 745.223
and shall include any “deteriorated subsurface” as that term is defined in
N.Y.C. Admin. Code § 27-2056.2.

q. “Dispute Resolution” shall mean the process set forth in Section XV
(Dispute Resolution).

r. “DOHMH” means the N.Y.C. Department of Health and Mental Hygiene
and any of its successor departments or agencies.

s. “EPA” means the United States Environmental Protection Agency and any
of its successor departments or agencies.

t. “Effective Date” shall have the definition provided in Section XX (Effective
Date).

u. “Housing Specialist” means the person hired by Defendants pursuant to
Paragraph 28 of this Decree.

v. “HPD” means the N.Y.C. Department of Housing Preservation and
Development and any of its successor departments or agencies.

w. “HUD” means the United States Department of Housing and Urban
Development and any of its successor departments or agencies.

x. “HUD Guidelines” shall mean the edition of the “HUD Guidelines for the
Evaluation and Control of Lead-Based Paint Hazards in Housing” in effect
on the date the work is conducted pursuant to this Consent Decree.

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y. “Indoor Allergen Triggers” or “Underlying Defect” shall mean those
housing conditions which cause an indoor allergen hazard, such as a water
leak or water infiltration from plumbing or defective masonry pointing or
other moisture condition or causes an infestation of pests, including holes
or entryway paths for pests requiring remediation measures to be
implemented pursuant to the Asthma Free Housing Act, N.Y.C. Admin.
Code §§ 27-2017 et seq.

z. “Initial Unit Count” means 2,539 units.

aa. “Interim Controls” shall have the meaning provided in 40 C.F.R. § 745.223.

bb. “Lead-Based Paint Activities Rule” means the regulations at 40 C.F.R. Part
745, Subpart L.

cc. “Lead-Based Paint” means paint or other surface coatings that contain lead
equal to or exceeding the stricter of any federal, New York State, or New
York City law in force at the relevant time.  For avoidance of doubt, that
standard is currently 0.5 milligram per square centimeter as defined under
N.Y.C. Admin. Code § 27-2056.2(7).

dd. “Lead-Based Paint Inspection Determination” shall mean a written
determination of a certified Lead-Based Paint inspector or risk assessor.

ee. “Lead-Based Paint Hazards” shall mean the standards set in 40 C.F.R.
§ 745.65 and those set by N.Y.C .Admin. Code § 27-2056.2, as applicable.

ff. “Lead-Based Paint Laws” means all federal, state, or local requirements
relating to the protection of occupants and workers from Lead-Based Paint
and Lead-Based Paint Hazards, including but not limited to the Lead
Disclosure Rule, the Lead Safe Housing Rule, the RRP Rule, the Lead-
Based Paint Activities Rule, and the New York City Childhood Lead
Poisoning Prevention Act, N.Y.C. Admin. Code §§ 27-2056.1-2056.18.

gg. “Lead-Based Paint Work” means Lead-Based Paint inspections, Lead-
Based Paint risk assessments, Abatement, work to implement Interim
Controls, work to which the RRP Rule or Lead Safe Housing Rule applies,
the implementation of Lead Safe Work Practices, or any other work
designed to identify, prevent or eliminate Lead-Based Paint Hazards.

hh. “Lead Disclosure Rule” means the regulations set forth at 24 C.F.R. Part
35, Subpart A, and 40 C.F.R. Part 745, Subpart F.

ii. “Lead Safe Housing Rule” means the regulations set forth at 24 C.F.R. Part
35, Subparts B through R.

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jj. “Lead Safe Work Practices” means work practices compliant with the Lead
Safe Housing Rule, the RRP Rule, and The New York City Childhood Lead
Poisoning Prevention Act, N.Y.C. Admin. Code §§ 27-2056.1-2056.18.

kk. “Lead Warning Statement” means the statement described in 40 C.F.R.
§ 745.113, and 24 C.F.R. § 35.92(b)(1).

ll. “Lilmor” means Lilmor Management, LLC, and all predecessor and
successor entities, and all persons or entities controlled by Lilmor
Management, LLC.

mm. “Lilmor Defendants” means Lilmor and Morris Lieberman.

nn. “Lilmor-Managed Property LLCs” means the Entities listed in Appendix A.

oo. “Newly Acquired Properties” means residential properties in which, after
the Effective Date, one or more Defendants come to hold a controlling
interest in or come to operate, manage, or otherwise control, in whole or in
part, directly or indirectly.

pp. “Paragraph” means a portion of this Decree identified by an Arabic
numeral.

qq. “Parties” means the parties to this Consent Decree: the United States, the
People of the State of New York and the Defendants.

rr. “Plaintiffs” means the United States and the People of the State of New
York.

ss. “Previously Transferred Properties” means the residential properties listed
in Appendix B.

tt. “Properties” means (i) the residential properties listed in Appendix C, and
(ii) the Newly Acquired Properties, except as provided in Section VI
(Transfer of Interests) and Paragraphs 150-153 of this Decree.

uu. “Removal” or “Removed Property” refers to a Property removed, pursuant
to Section XXIV (Property Removal and Termination), from the list of
Properties to which this Consent Decree applies, except as to any provision
of this Consent Decree that expressly obligates Defendants for a period of
time extending beyond the date of that Removal.

vv. “Renovation, Repair, and Painting Rule” or “RRP Rule” means the
Renovation, Repair and Painting Rule, promulgated at 40 C.F.R. Part 745,
Subpart E.

ww. “Section” means a portion of this Decree identified by a Roman numeral.

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xx. “Substandard Conditions” means conditions that violate applicable state or
local housing, building or health codes (other than Lead-Based Paint Laws)
or Indoor Allergen Trigger laws and include any nuisance conditions that
are “dangerous to human life or detrimental to health” (N.Y.C. Admin.
Code § 17-142).  Substandard Conditions include widespread or recurring
mold; infestations of vermin or pests; continued failure to provide adequate
heat, hot water, or cooking gas; recurring failure to properly handle sewage
or garbage; failing to timely remediate leaks or holes; unsafe electric wiring;
fire safety hazards; recurring failure to maintain properly functioning
elevators; continued failure to maintain functioning locks on both a
building’s and each apartment’s front door and mailboxes; continued failure
to maintain a functioning doorbell, buzzer, or intercom system; and
continued failure to provide adequate lighting in Common Areas.
“Substandard Conditions” do not include a third-party utility provider’s
failure to provide services to a Unit or Property where Defendants did not
cause or contribute to that failure.

yy. “Transfer Cap Base” means 800 minus the total number of units transferred
pursuant to Paragraph 19 over the course of the Consent Decree.

zz. “Two Excluded Multifamily Properties” means the residential properties
identified as such in Appendix D.  Morris Lieberman, Lillian Lieberman,
and Lilmor each represent and warrant that these properties are held in a
trust over which Morris Lieberman, Lillian Lieberman, and Lilmor have no
control, and that Morris Lieberman, Lillian Lieberman, and Lilmor have
never managed or exercised control over either of these properties.

aaa. “Two Excluded Single-Family Properties” means the residential properties
identified as such in Appendix E.  Morris Lieberman, Lillian Lieberman,
and Lilmor each represent and warrant that these properties are single-
family houses that Lilmor has never managed or exercised control over.

bbb. “Unit” means a residential apartment, excluding any Common Areas.

ccc. “United States” means the United States of America.

ddd. “Work Unit”, “Work Common Area”, or “Work Property” means a Unit,
Common Area, or Property for which work remains to be performed
pursuant to Paragraph 46 (Lead-Based Paint Inspection and Risk
Assessment), Paragraph 49 (Comprehensive Abatement of Lead-Based
Paint), Paragraph 60 (Current Substandard Conditions), or Paragraph 61
(Future Substandard Conditions) of this Decree.

eee. “Work Completion,” for a given Unit, Common Area, or Property means
the time at which Defendants have completed all work to be performed at
the Unit, Common Area, or Property pursuant to Paragraph 46 (Lead-Based

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Paint Inspection and Risk Assessment), Paragraph 49 (Comprehensive
Abatement of Lead-Based Paint), Paragraph 60 (Current Substandard
Conditions), or Paragraph 61 (Future Substandard Conditions).

V. APPLICABILITY

13. The obligations of this Consent Decree apply to and are binding upon the
Defendants and any successors, assigns, or other entities or persons otherwise bound by law.

14. Defendants shall grant authority or access to one another and the Housing Specialist
as needed to accomplish the work required by the Consent Decree.  Defendants shall not take any
action to frustrate or obstruct the work required by the Consent Decree, including but not limited
to, by obstructing access to any Common Areas at the Properties that safely and in accordance
with law may be used by tenants to hold tenant meetings relating to this Consent Decree or to
receive updates from the Housing Specialist or its agents.

15. Defendants shall provide a copy of this Consent Decree to all officers, employees,
and agents of Defendants whose duties might reasonably include compliance with any provision
of this Decree, as well as to any contractor retained by a Defendant to perform work required under
this Consent Decree.  Defendants shall condition any such contract upon performance of the work
in conformity with the terms of this Consent Decree, whether the work is to be performed by the
contractor or one or more subcontractors.

16. In any action to enforce this Consent Decree, Defendants shall not raise as a defense
the failure by any of their officers, directors, employees, agents, or contractors to take any actions
necessary to comply with the provisions of this Consent Decree.

17. Notwithstanding any other provisions in this Consent Decree: (a) Defendants’
obligations under this Consent Decree with respect to Newly Acquired Properties shall be limited
to: (i) Paragraphs 44, 51, 53-56, 59, 61, 64, 89, 91-94, and 125-131; (ii) Paragraphs regarding the
Housing Specialist (including Paragraphs 28-43, 52, and 89-98) as they relate to obligations in the
Paragraphs enumerated above in (i); and (iii) Sections XIII (Stipulated Penalties), XIV (Force
Majure), XV (Dispute Resolution), XVII (Effect of Settlement/Reservation of Rights), and XXIX
(Final Judgment) as they relate to obligations in the provisions enumerated above in (i) and (ii);
(b) the acquiring Defendants shall specifically request the transferor of Newly Acquired Properties
to provide the acquiring Defendants with all documents and information for the Newly Acquired
Properties that are required to be disclosed under 24 C.F.R. § 35.88(a)(2) and (4) and 40 C.F.R.
§ 745.107(a)(2) and (a)(4), and shall obtain a representation from the transferor that it has done so,
and (c) the acquiring Defendant shall inform Plaintiffs and the Housing Specialist in writing of a
Newly Acquired Property within 30 days of the property becoming acquired and confirm that the
requirements of (b) have been satisfied.  Newly Acquired Properties shall be treated as Completed
Properties upon acquisition.

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VI. TRANSFERS OF INTEREST

18. No less than 30 Days before entering into any agreement that involves the transfer
of any interest in any of the Properties (except as to any mortgage of the Properties), Defendants
shall provide a copy of this Consent Decree to the proposed transferee and shall simultaneously
provide written notice of the prospective transfer, together with a copy of the proposed written
agreement, to the Plaintiffs in accordance with Section XIX (Notices).  Any transfer of ownership
or operation of the Properties by Defendants without complying with this Paragraph constitutes a
violation of this Decree, except as to any mortgage of the Properties.  No transfer of ownership or
operation of the Properties by Defendants (including by foreclosure), whether in compliance with
the procedures of this Paragraph or otherwise, shall relieve Defendants of their obligation to ensure
that the terms of the Decree are implemented (subject to Defendants’ being granted access in the
case of foreclosure) unless the Plaintiffs consent, which consent may be contingent on the
transferee’s becoming a party to, and liable as Defendant under, this Decree.

19. Notwithstanding Paragraph 18, Defendants may invoke this Paragraph in writing
delivered to the Plaintiffs in accordance with Section XIX (Notices) to transfer their interests in a
Property if (a) that Property is a Completed Property under Paragraphs 75 and 76 or would be a
Completed Property but for the presence of one or more Deferred Units, and has been maintained
as such for a period of no less than six months; (b) Defendants have provided to the transferee (i)
all documents and information that is required to be disclosed by the Defendants to the transferee
pursuant to the Lead Disclosure Rule, including under 24 C.F.R. § 35.88(a)(2) and (4) and 40
C.F.R. § 745.107(a)(2) and (a)(4), and (ii) a list of any Deferred Units at the Property with a
statement describing the work that has been deferred; (c) the transferee agrees to provide
Defendants notice of the initial vacancy of any Deferred Units; (d) Defendants have provided the
occupants of any Deferred Units with a notice in the form of Appendix F advising the occupants,
with at least 60 days’ notice, that obligations under this Consent Decree to complete the Deferred
Work prior to vacancy will no longer apply after transfer if occupants do not provide access, and
that Defendants will perform any Deferred Work for which occupants provide access after
receiving this notice; (e) the Housing Specialist has confirmed that the tenants of any Deferred
Units do not wish for the Deferred Work to be performed prior to transfer or the Housing Specialist
determines that such tenants cannot be reached or made to respond; (f) the transfer would not
reduce the value of any Financial Assurance, unless property or interests of equal value replace
the value of the transferred Property; and (g) Properties containing, in aggregate, no more than the
Current Transfer Cap are transferred pursuant to this Paragraph; provided that the Current Transfer
Cap does not apply (1) for a Property that is not owned or controlled, in whole or in part, directly
or indirectly, by any Defendant and for which Lilmor and Morris Lieberman have been removed
from management by the owners; or (2) with respect to Properties not owned or controlled, in
whole or in part, directly or indirectly, by any other Defendant, if Lilmor, Morris Lieberman, and
Lillian Lieberman no longer remain engaged in the business of residential property management

13

or ownership, excepting direct or indirect minority1 ownership interests in purely passive
investments.  If, through transfers pursuant to this Paragraph, Defendants transfer their interests in
a Property such that the Property is no longer owned or controlled, in whole or in part, directly or
indirectly, by Defendants, then, upon such transfer, such Property shall no longer be considered a
Property subject to this Consent Decree, except that Paragraph 126 shall continue to apply to such
Property with “the termination of this Consent Decree” replaced by “the date of the last transfer
pursuant to Section VI,” and Defendants shall remain obligated pursuant to Paragraph 81 to
perform the Deferred Work in a Deferred Unit upon vacancy (subject to Defendants’ being granted
access).  If Defendants are not granted access to such a transferred Deferred Unit upon vacancy,
Defendants shall so advise the Housing Specialist (if prior to the termination of the Consent
Decree), as well as the United States and the State, within seven days of the new owner’s refusal;
if, after speaking with the Housing Specialist, the United States, or the State, the new owner grants
access to the Deferred Unit, Defendants shall complete the work pursuant to Paragraph 81.
Notwithstanding the foregoing, Defendants may satisfy their obligation to complete work in a
transferred Deferred Unit by paying the new owner the reasonable cost of such work in return for
an agreement by the new owner promptly to complete that work.

20. For avoidance of doubt, nothing in this Consent Decree shall: (a) prohibit or place
any restriction upon any current or future mortgage-holder’s right or ability to foreclose on a
mortgaged Property in an arms-length transaction not designed to remove that Property from the
coverage of this Consent Decree, consistent with any mortgage agreements applicable thereto; or
(b) place any obligations or restrictions upon a current or future mortgage-holder upon foreclosure
of the Property or upon a subsequent third-party purchaser (not affiliated with Defendants) of a
foreclosed Property, provided that Defendants are granted required access to the Property in the
case of foreclosure.

VII. PENALTY AND RESTITUTION PAYMENT

21. Within 30 Days after the Effective Date, Defendants shall pay the total sum of
$3,250,000 as a civil penalty to the United States.  Fifty percent of this penalty shall be deemed
paid on account of violations asserted in the Complaint on behalf of EPA and fifty percent shall
be deemed paid on account of violations asserted in the Complaint on behalf of HUD.

22. Within 180 Days after the Effective Date, Defendants shall pay the total sum of
$325,000 to the State of New York, Office of the Attorney General as a civil penalty made payable
to the N.Y.C. Department of Housing Preservation and Development.

23. Within the timeframe provided by Paragraph 27, Defendants shall pay the total sum
of $2,925,000 to the State of New York, Office of the Attorney General for restitution that the

1 For purposes of this provision, Morris Lieberman and Lillian Lieberman shall qualify as having a “minority
ownership interest” in a particular residential property only if their aggregated direct and indirect ownership
interests—including interests held by any entities in which Morris Lieberman or Lillian Lieberman hold any direct or
indirect interest, including as beneficiaries of a trust—amount to less than 50% of the ownership of that residential
rental property.

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State will make available to tenants affected by Defendants’ conduct, as provided in Section X
(Restitution Fund) below.

24. Defendants shall pay the civil penalty described in Paragraph 21 to the United
States at https://www.pay.gov to the U.S. Department of Justice account, in accordance with
instructions provided to Defendants by the United States Attorney’s Office for the Southern
District of New York.  The payment instructions shall include a Consolidated Debt Collection
System (“CDCS”) number, which Defendants shall use to identify all payments required to be
made in accordance with this Consent Decree.  At the time of payment, Defendants shall send
notice to the United States by email and by regular mail in accordance with Section XIX (Notices).
Such notice shall reference the CDCS number and DJ # 90-5-1-1-11797.

25. Defendants shall pay $325,000 of the amount owing to the State described in
Paragraph 22 as a civil penalty by certified bank check sent directly to the NYC Department of
Housing Preservation and Development sent to Housing Litigation Division, 100 Gold Street, 6th
Floor, New York, NY 10038, Attention: Tasonia Ragin, with simultaneous written notification to
the Office of the Attorney General by email and regular mail in accordance with Section XIX
(Notices).  Such notice shall reference the civil index number for this action.

26. Defendants shall not deduct any penalties paid under this Decree pursuant to
Paragraphs 21-25 or Section XIII (Stipulated Penalties) in calculating its federal, state or local
income tax.

27. Restitution Payment.  No later than the later of 180 Days after the Effective Date,
Defendants shall pay $2,925,000 of the amount owing to the State described in Paragraph 23 as
restitution by wire transfer, attorney check, or corporate or certified check or bank draft which
shall be made payable to the “State of New York” (the “Restitution Fund”), to be distributed to
tenants and permitted occupants of the Properties who meet the criteria for “Substandard
Conditions Restitution” described in Section X (Restitution Fund).  At the time of payment,
Defendants shall send notice to the State of New York by email and by regular mail in accordance
with Section XIX (Notices).  Such notice shall reference the civil index number of this matter.
Within 5 business days of receipt of payment, the State of New York shall release from escrow to
Lilmor Defendants, the signed HPD letter agreement releasing them from civil penalty liability,
an unsigned copy of which is attached to this Consent Decree at Appendix G.

VIII. HOUSING SPECIALIST

28. Housing Specialist.  Defendants shall engage, at their own expense pursuant to the
budget provisions below, as an independent contractor, a Housing Specialist chosen by Plaintiffs
prior to the signing of this Consent Decree.  The Housing Specialist, which may be an individual
or a firm, shall have expertise and experience with Lead-Based Paint Laws and with the
commercial operation and management of housing.

29. Within 30 days of the second anniversary of the Effective Date, and every two years
thereafter until the termination of this Consent Decree, Plaintiffs shall either reappoint the current
Housing Specialist or replace the Housing Specialist; provided that in the absence of such

15

reappointment or replacement by such date, the Housing Specialist shall continue in place until
such reappointment or replacement occurs.  In addition, the Housing Specialist may be removed
or replaced by Plaintiffs on 60 days’ notice, or for cause; the Housing Specialist may not be
removed by Defendants, except that Defendants may request that Plaintiffs remove the Housing
Specialist for cause.  If the Housing Specialist position becomes vacant during the term of this
Consent Decree, Plaintiffs shall promptly select a replacement.  At least 30 days prior to choosing
a new Housing Specialist, Plaintiffs shall provide notice to Defendants of their proposed Housing
Specialist and permit Defendants an opportunity to provide their views to the Plaintiffs regarding
the choice.  Should Defendants disagree with Plaintiffs’ choice, Plaintiffs shall meet with
Defendants to discuss their concerns.

30. In addition to the specific responsibilities set forth elsewhere in this Consent
Decree, the Housing Specialist shall verify Defendants’ compliance with the injunctive terms of
this Decree.

31. The Housing Specialist will exercise its judgment and discretion independently of
Defendants, although it will consult with Defendants to the extent appropriate or necessary under
this Decree. For avoidance of doubt, Defendants acknowledge that the Housing Specialist is not
an employee of Defendants; that the Housing Specialist will not have an attorney-client
relationship with any counsel for Defendants; that Plaintiffs may communicate with such Housing
Specialist without including or notifying counsel for Defendants; and that the Housing Specialist
need not share information with Defendants except as required by this Consent Decree.

32. The Housing Specialist is not an agent or agency of Plaintiffs.

33. The Housing Specialist will confer with the Defendants, tenants residing in
Defendants’ buildings, and tenant groups associated with Defendants’ buildings to implement a
tenant outreach plan for the purpose of educating tenants residing in Defendants’ buildings about
the provisions of the Consent Decree, the health and safety risks of lead paint, indoor allergens,
and other substandard conditions, and tenant rights and responsibilities during the lead paint,
indoor allergen, and substandard conditions abatement and remediation period.

34. The Housing Specialist shall have full access to the Properties, Defendants’
principals, employees, contractors, and subcontractors, and Defendants’ files and information
systems, as they reasonably pertain to matters addressed by this Consent Decree, for the purpose
of performing its functions under this Consent Decree in a manner that does not unreasonably
interfere with occupants’ quiet enjoyment of the Properties or with the operation of Defendants’
business subject to the parameters of this Consent Decree.  This provision does not permit access
to information protected by attorney-client privilege or attorney work product protection without
Defendants’ consent nor to information not relevant to the Housing Specialist’s performance of its
functions under this Decree.

35. The Housing Specialist shall be charged with managing and disbursing funds from
the Restitution Fund as provided in Section X (Restitution Fund), in consultation with and under
the direction of the State of New York, Office of the Attorney General.

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36. Housing Specialist Budget.  Within 60 days of appointment and no later than 30
days before the beginning of each calendar year thereafter and in consultation with the Defendants,
the Housing Specialist shall submit to the Plaintiffs a detailed budgetary estimate of anticipated
fees, costs, and expenses for the calendar year for the Plaintiffs’ review and approval (the
“Budget”). Such fees, costs, and expenses shall be sufficient to allow the Housing Specialist to
fulfill the Housing Specialist’s duties for the calendar year pursuant to this Consent Decree in a
reasonable and efficient manner, including by engaging staff, expert consultants, or other third
parties. Defendants may submit an opposition to said budgetary estimate within two weeks of the
Housing Specialist’s submission to the Plaintiffs if they believe that any aspect is unreasonable.
The Housing Specialist may respond to any opposition within one week. Plaintiffs may approve
the budget in whole or part.  Once the Plaintiffs approve the Housing Specialist’s budgetary
estimate (or portion thereof), such estimate or portion thereof shall be deemed an “Operative
Budget.”

37. The Housing Specialist’s Budget may not increase by more than 15% from the
previous calendar year without a showing that the costs are reasonably necessary to effectuate the
purposes of this Consent Decree.

38. If Defendants object to an approved Operative Budget, they may invoke the Dispute
Resolution provisions set forth in Section XV (Dispute Resolution). The Operative Budget will
remain in effect, and payments shall be made by Defendants thereunder, until Dispute Resolution
has concluded.

39. The Housing Specialist may amend the Operative Budget upon a showing of
necessity; such amendment will be subject to the process set forth in Paragraphs 36-38.

40. The Housing Specialist shall notify the Plaintiffs and Defendants when the Housing
Specialist has spent 75% of the Operative Budget for the current calendar year.

41. Within 30 days of receiving an invoice from the Housing Specialist for costs
covered by an Operative Budget, Defendants shall pay that invoice. If the Housing Specialist
incurs fees, costs, or expenses that are not covered by an Operative Budget but that are reasonably
necessary to perform his or her duties under this Consent Decree, the Housing Specialist must
amend the Operative Budget with a reasonable itemization of such increased fees, costs, or
expenses and may not submit an invoice to Defendants for those costs until the amendment has
been approved by Plaintiffs. The amendment may not result in an increase of the annual budget by
more than 10% from the previous calendar year without a showing that the costs are necessary to
effectuate the purposes of this Consent Decree.

42. Reporting by Housing Specialist.  Each year, on the anniversary of the Effective
Date, the Housing Specialist, after undertaking due diligence, shall submit a report to the Plaintiffs
concerning Defendants’ compliance with this Consent Decree (the “Annual Housing Specialist
Report”). The Annual Housing Specialist Report will be made publicly available on a website
maintained by the Housing Specialist.

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43. Consultation with Plaintiffs.  If requested by either Plaintiff, the Housing Specialist
shall (i) provide copies of all documentation it receives from Defendants pursuant to this Consent
Decree and (ii) consult with such Plaintiff prior to approving or disapproving any deliverable under
this Consent Decree.  A Plaintiff’s request under this Paragraph shall be made by email or
otherwise in writing and may address all documentation and deliverables under the Consent
Decree; specific documentation or deliverables; or categories of documentation and deliverables.
A Plaintiff may modify or withdraw a request previously made under this Paragraph.  For
avoidance of doubt, nothing in this Paragraph should be construed to alter the obligations of the
Housing Specialist set forth in other Paragraphs of this Consent Decree.

IX. INJUNCTIVE REQUIREMENTS

Lead-Based Paint

44. Compliance In General.  Defendants shall fully comply with all applicable Lead-
Based Paint Laws.

45. Supplemental Lead-Based Paint Disclosure to Tenants. Within 120 days of the
Effective Date, Defendants shall provide by regular mail, email (where an email address is known
by Defendants), or hand delivery signed for by a tenant, to every lessee of a Unit in the Properties,
except for Units that would otherwise be exempt from the Lead Disclosure Rule, the following:

a. All information required to be provided to tenants upon the signing of an
initial lease pursuant to 40 C.F.R. §§ 745.107 and 745.113(b), and 24 C.F.R.
§§ 35.88 and 35.92(b), including a Lead Warning Statement, which
Defendants shall request that tenants sign, date, and return.

b. An N.Y.C. DOHMH pamphlet “Lead Paint Hazards in the Home.”

c. A written notice requesting that occupants report to Defendants
Deteriorated Paint and, if applicable, failure of encapsulation or enclosure,
including the name, address, telephone number, and email address of the
Compliance Officer.

46. Lead-Based Paint Inspection and Risk Assessment. Within one year of the Effective
Date, Defendants shall conduct: (1) through EPA-certified risk assessors and inspectors approved
by the Housing Specialist, an inspection (within the meaning of 40 C.F.R. § 745.227(b)) and
consistent with Chapters 5 and 7 of the HUD Guidelines and N.Y.C. Admin. Code § 27-2056.4)
of all Units and Common Areas, except as to any Unit or Common Area that was subject to such
an inspection by a certified Lead-Based Paint inspector to identify any Lead-Based Paint in that
Unit or Common Area on or after December 1, 2021, provided documentation of such a prior
inspection is provided to the Housing Specialist and found to meet the requirements of this clause
(1); and (2) through EPA-certified risk assessors approved by the Housing Specialist, where the
inspections in subsection (1) identify the presence of Lead-Based Paint in Units or Common Areas,
a risk assessment of the Units or Common Areas in accordance with 40 C.F.R. § 745.227(d),
N.Y.C. Admin. Code § 27-2056.4 and consistent with Chapter 5 of the HUD Guidelines (together,

18

the “Inspection and Risk Assessment”). Notwithstanding the foregoing deadline, the Inspection
and Risk Assessment shall occur no later than: (i) 90 Days after the Effective Date for all Units in
which Defendants have received notice that a child under six years or a pregnant occupant has
come to reside as of the Effective Date and related Common Areas;  and (ii) the date provided in
any NYC DOHMH Commissioner’s Order to Abate (“COTA”), if such date occurs sooner than
one year after the Effective Date. Each Unit must be inspected and evaluated rather than a sampling
of Units.  With each quarterly Progress Report, Defendants shall provide to (a) such Unit’s
occupants a report containing the information specified by 24 C.F.R. § 35.125; and (b) the Housing
Specialist a report containing the information required by 40 C.F.R. § 745.227(b)(4) (for
inspections) and/or 40 C.F.R. § 745.227(d)(11) (for risk assessments), as applicable (a “LBP
Inspection and Risk Assessment Report”).

47. Lead-Based Paint Hazard Reduction. Defendants shall control (by Interim Controls
and/or Abatement) Lead-Based Paint Hazards identified during the Lead-Based Paint Inspection
and Risk Assessment using Interim Controls and/or Abatement within 30 days of issuance of an
LBP Inspection and Risk Assessment Report.  If Defendants learn of Lead-Based Paint Hazards
or of Deteriorated Paint on surfaces that are not without Lead-Based Paint by means other than a
Lead-Based Paint Inspection and Risk Assessment (including a visual assessment for Deteriorated
Paint as provided in Paragraph 48), they shall control (by Interim Controls and/or Abatement) such
Lead-Based Paint Hazards or Deteriorated Paint within 30 Days of such Lead-Based Paint Hazards
or Deteriorated Paint being made known to Defendants. If Defendants are notified by a government
entity of a legal requirement to undertake additional risk assessment, inspections, remediation,
Abatement, or other actions required by applicable law to be undertaken in light of Lead-Based
Paint Hazards or violations, Defendants shall perform such additional actions as required by law.
Defendants shall provide notice to the Housing Specialist of Interim Controls or Abatements in
advance of conducting that work where they are required to provide notice to a local, state, or
federal agency by law.

48. Lead-Based Paint Operations & Maintenance Plan; Visual Assessments. Within
180 days of the Effective Date, for all Units and Common Areas that have not yet received a Lead-
Based Paint Inspection Determination, Defendants shall implement a Lead-Based Paint Operations
& Maintenance Plan requiring annual visual inspection of each Unit and Common Area for
Deteriorated Paint, to be completed by June 1 of each year and requiring control of Deteriorated
Paint that is or may be a Lead-Based Paint Hazard using Interim Controls and/or Abatement within
30 days of the visual inspection. The Lead-Based Paint Operations & Maintenance Plan is subject
to the approval of the Housing Specialist, in consultation with the Plaintiffs and Defendants, and
must also comply with the New York City Childhood Lead Poisoning Prevention Act requirements
for annual inquiry about children under six residing in the units, annual investigatory and
inspection follow-up, as provided in N.Y.C. Admin. Code § 27-2056.4, and the requirements of
the Lead Safe Housing Rule for any federally subsidized (including insured) units, see, e.g., 24
C.F.R. Part 35, Subpart M (for tenant-based voucher rental assistance); id. Subpart G (for
multifamily mortgage insurance); id. Subpart H (for project-based assistance). Defendants shall
comply with the approved Lead-Based Paint Operations & Maintenance Plan.

49. Comprehensive Abatement of Lead-Based Paint.  Within five years of the Effective
Date, Defendants shall: (1) Abate by replacement or removal all Lead-Based Paint identified on

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Chewable, Friction, or Impact Surfaces within the Properties in a manner compliant with local,
state, and federal law, including 24 C.F.R. § 35.1325 and 40 C.F.R. § 745.227(e) and the New
York City Childhood Lead Poisoning Prevention Act, N.Y.C. Admin. Code §§ 27-2056.1-2056.18
and obtain a Lead-Based Paint Inspection Determination that those surfaces are free of Lead-Based
Paint, and (2) abate by replacement, removal, permanent enclosure, or permanent encapsulation—
with the choice of these four methods to be made solely in the discretion of Defendants, subject to
the HUD Guidelines and applicable federal, state, and local law—all other Lead-Based Paint
identified within the Properties.  Defendants shall obtain a Lead-Based Paint Inspection
Determination identifying areas (other than Chewable, Friction, or Impact Surfaces) where Lead-
Based Paint remains but has been Abated by permanent enclosure or encapsulation. For the
avoidance of doubt, “permanent” shall have the meaning set forth in 24 C.F.R. § 35.110.
Notwithstanding the foregoing deadline, Defendants shall abate Units and associated Common
Areas by the following earlier dates, where applicable: (i) the vacancy turnover of a Unit; (ii) 45
days after notification by a government agency of a violation of Lead-Based Paint Laws; (iii) 45
days after learning that a child under 6 years old or pregnant occupant has come to reside in a Unit;
or (iv) where N.Y.C. DOHMH has issued a COTA, the deadline for Abatement set in the COTA.
Defendants’ time to complete the abatement work required by this Paragraph may be extended by
the Housing Specialist, on a Unit-by-Unit basis, if Defendants establish to the Housing Specialist’s
satisfaction that Defendants were diligent in attempting to complete this abatement work in a
particular Unit but, for reasons outside of Defendants’ control (not to include financial
circumstances), Defendants need additional time to do so.

50. Abatement Plan.  Within 15 months of the Effective Date, Defendants shall submit
a plan (“Abatement Plan”) to the Housing Specialist and Plaintiffs setting forth a schedule for
completing the comprehensive abatement required by Paragraph 49.  The Abatement Plan shall
include interim deadlines for accomplishing portions of the abatement.  Once approved by the
Housing Specialist, Defendants shall implement the Abatement Plan. Defendants may seek
amendments to the Abatement Plan schedule, which shall be approved by the Housing Specialist
so long as they are consistent with the deadline for Abatement set forth in Paragraph 49.

51. Renovation and Interim Control Standards. When disturbing Lead-Based Paint
during Renovations (as defined by 40 C.F.R. § 745.83) and Interim Controls (as defined by 24
C.F.R. § 35.1330), or any other activity besides Abatement, Defendants shall employ Lead-Safe
Work Practices (or, if acting through contractors or subcontractors, ensure that the contractor or
subcontractors do so) and comply with the following requirements, in addition to following any
other applicable legal requirements, including but not limited to N.Y.C. Admin. Code §27-
2056.11:

a. Ensuring that only properly trained and certified firms and workers are
assigned to perform work to which Lead-Safe Work Practices apply in
accordance with 24 C.F.R §§ 35.1330(a)(4), 35.1350(b) and/or 40 C.F.R.
§§ 745.85(a), 745.90, as applicable.

b. Obtaining and maintaining certification as a certified renovation firm if any
of the workers described in this Paragraph are Defendants’ employees, and

20

the work they do is covered by 40 C.F.R. Part 745, Subpart E, in accordance
with 40 C.F.R. §§ 745.81, 745.89.

c. Ensuring equipment, supplies, and materials necessary to perform Lead-
Safe Work Practices in accordance with 24 C.F.R § 35.1350 and 40 C.F.R.
§ 745.85 are readily available to trained and certified workers, as applicable.

d. Ensuring that firms and workers assigned to perform Renovations or Interim
Controls use the RRP Renovation Checklist attached to this Consent Decree
as Appendix H and establish and maintain records necessary to demonstrate
compliance.

e. Ensuring that occupants of Properties in which Renovations or Interim
Controls to which Lead-Safe Work Practices apply will be performed are
informed of the work to be performed and the risks involved in accordance
with 24 C.F.R § 35.1345(b)(2) and 40 C.F.R. §§ 745.84 and 745.85.

f. Complying with the occupant notification and information distribution
regulations set forth at 24 C.F.R. § 35.125 and 40 C.F.R. § 745.84, as
applicable.

g. Containing or causing to be contained any work area for which Lead-Safe
Work Practices are required under applicable law by isolating the work area
and waste generated so that no dust or debris leaves the work area in
accordance with 24 C.F.R. § 35.1345 and 40 C.F.R. § 745.85(a), as
applicable.

h. Containing, collecting, and transporting waste from the renovation in
accordance with 40 C.F.R. § 745.85(a)(4).

i. Performing cleanup of any work area to which Lead-Safe Work Practices
apply until no dust debris or residue remains above de minimis levels in
accordance with 24 C.F.R. §§ 35.1340, 35.1345, 35.1350 and 40 C.F.R.
§ 745.85(a) and (b) and conducting and passing a Clearance Examination
in accordance with 24 C.F.R. § 35.1340 (including follow-up as required by
that section’s subsection (e) after any clearance failures), as provided by 40
C.F.R. § 745.85(c), before tenants are permitted into the work area, in
accordance with Paragraph 54.

j. Retaining records required by 24 C.F.R. § 35.175, 40 C.F.R. § 745.84, and
N.Y.C. Admin. Code §27-2056.17.

52. The Housing Specialist may, at its discretion, conduct inspections of the work being
conducted under this Section of the Consent Decree in a reasonable manner to ensure that it is
being done in compliance with the Consent Decree. If the Housing Specialist determines that work
has not been done in compliance with the Consent Decree—either by inspection or by a review of
the records provided by Defendants— the Housing Specialist may direct Defendants to correct the

21

deficiencies in the work or the documentation and may require re-testing or additional work to
affect a correction.  The Housing Specialist shall allow Defendants a reasonable time for such
correction.  The Housing Specialist may require additional reporting to demonstrate the corrective
action.

53. Abatement Standards. In performing any Abatements, whether pursuant to this
Consent Decree or otherwise, Defendants shall comply with the following (or, if acting through
contractors or subcontractors, ensure that the contractors or subcontractors comply with the
following), in addition to any other applicable legal requirements, including but not limited to
N.Y.C. Admin. Code § 27-2056.8:

a. Defendants shall ensure that each firm performing the abatement is certified
as an abatement contractor in accordance with 40 C.F.R. §§ 745.220(a) and
745.227(a)(2).

b. Defendants, or their abatement contractors, shall ensure that a certified
supervisor shall be onsite or otherwise available in accordance with 40
C.F.R. § 745.227(e)(2), and that all other workers performing abatement
are, at a minimum, certified abatement workers.  40 C.F.R. §745.227(e)(1).

c. Defendants, or their abatement contractors, shall notify EPA of Lead-Based
Paint Abatement activities electronically using EPA’s Central Data
Exchange (CDX) in accordance with 40 C.F.R. § 745.227(e)(4), or by
alternate means permitted by EPA if CDX is not operational.

d. Defendants, or their abatement contractors, shall notify occupants of Lead-
Based Paint Abatement activities in the same manner as required for
activities covered by the RRP Rule pursuant to 40 C.F.R. § 745.84.

e. Defendants, or their abatement contractors, shall prepare and implement
written occupant protection plans for all Abatement projects in accordance
with 40 C.F.R. § 745.227(e)(5).

f. Defendants, or their abatement contractors, shall specify methods of
collection and laboratory analysis in accordance with 40 C.F.R.
§ 745.227(f).

g. Defendants, or their abatement contractors, shall ensure that a Clearance
Examination is performed; that clearance is attained before tenants are
permitted into the work area, in accordance with Paragraph 54; and that a
clearance examination report is provided by a Lead-Based Paint
inspector/risk assessor certified and licensed as applicable for the property
location, in accordance with 40 C.F.R. § 745.227(e)(8)-(9).  The Lead-
Based Paint inspector/risk assessor must be independent of the Lead-Based
Paint Abatement firm, supervisor, and contractors performing the
Abatement work, in accordance with 24 C.F.R. § 35.1340(f).

22

h. Defendants, or their abatement contractors, shall ensure that the certified
supervisor on each Abatement prepares an Abatement report in accordance
with 40 C.F.R. § 745.227(e)(10) within 15 days of the conclusion of all
work.

i. Defendants shall maintain records in accordance with 40 C.F.R.
§ 745.227(i) and 24 C.F.R. § 35.175.

54. Clearance Examinations.  As part of any Abatement, Interim Controls, or
Renovation, Defendants shall ensure that the following requirements are complied with, by
including the requirements in all of their contracts with certified firms and persons conducting
Abatement, Interim Controls, or Renovation:

a. Daily and final cleanups shall be conducted in accordance with Chapter 14
of the HUD Guidelines and the Lead-Based Paint Activities Rule at 40
C.F.R. § 745.277(e).

b. Clearance Examinations shall be conducted by a certified lead risk assessor
or inspector, who is a third party, independent of the owner, in each Unit,
Common Area, or building upon completion of final cleanup.  If the
Clearance Examination report and analysis of dust samples from an EPA-
accredited laboratory indicate that clearance is not achieved, Defendants
shall repeat the cleaning procedures identified above under Paragraph 54(a),
repeat dust clearance sampling within five (5) calendar days of the failed
clearance examination, and repeat this procedure until clearance has been
attained.  Containment will be maintained, and tenants will not be permitted
into the work area until, clearance is attained.

55. Defendants shall ensure that Clearance Examinations are not conducted by the same
individual or same or affiliated business entity conducting the rest of the Lead-Based Paint Work
that is being evaluated by the Clearance Examination.

56. Child with an Elevated Blood Lead Level.  During the course of this Consent
Decree, if Defendants learn of a child under the age of 18 residing in a Unit who has an elevated
blood lead level as defined by New York City Health Code § 173.13(d)(2), Defendants shall
comply with that provision and all other applicable laws and additionally shall report the
occurrence to the Housing Specialist.  The Housing Specialist will take appropriate steps to limit
further disclosure of the identity of children with elevated blood lead levels, except where
necessary in the Housing Specialist’s judgment to the effective implementation of this Consent
Decree.

57. Occupant Education on Lead-Based Paint Hazards.  Defendants shall implement
once at each Property occupant education on the hazards of lead-based paint and methods of
minimizing potential exposures.  In particular, Defendants shall, at each Property: (a) set up, in the
lobby or other common space adjacent to the Property’s main entrance, a table (the “Lead
Education Table”) at which occupants can receive information on the hazards of lead-based paint

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and methods of minimizing potential exposures; (b) maintain the Lead Education Table—meaning
that the Lead Education Table remains stationed in the lobby or other common space adjacent to
the main entrance, with copies of the required educational material refreshed throughout the day—
for at least ten days; (c) for at least three days, ensure that the Lead Education Table is staffed for
at least two hours each day (after 7 p.m. for at least two of the three days) by a qualified trainer
(the “Trainer”) who is experienced in educating occupants on the hazards of lead-based paint and
methods of minimizing potential exposures, who will be available to answer occupants’ questions;
(d) post notices in locations reasonably designed to inform occupants of the Lead Education Table,
and the dates and times the Trainer will be staffing it, at least one month before it is established
and notify Housing Specialist of the same; (e) make available at the Lead Education Table copies
of EPA’s Protect Your Family From Lead Paint in Your Home pamphlet English, Spanish, Arabic,
French, Chinese, Russian, Somali, Tagalog and Vietnamese (copies in these languages may be
found https://www.epa.gov/lead/protect-your-family-lead-your-home-english); (f) make available
at the Lead Education Table copies of the NYC Health Department flyer “Protect Children From
Lead Hazards” in English, Haitian-Creole, Korean, Polish, Bengali and Urdu, all available at:
https://www.nyc.gov/site/doh/health/health-topics/lead-poisoning-prevention.page; and (g)
certify in the next Progress Report that the Lead Education Table was implemented and these
requirements complied with at that particular Property. The Housing Specialist, in its discretion,
may visit one or more Lead Education Tables.

58. Prioritization of Lead-Based Paint Work.  In scheduling Lead-Based Paint
Abatement or Interim Control activities, priority shall be given to those Units and Properties where
Defendants have been informed that or are otherwise aware that children under the age of six or
pregnant women presently reside.

59. Lead-Based Paint Compliance Policies.  Within 180 days of the Effective Date,
Defendants will submit a written policy (the “LBP Compliance Policy”) to the Housing Specialist
designed to ensure that all of Defendants’ employees, contractors, and subcontractors performing
responsibilities related to the Lead-Based Paint Laws comply with those laws. This policy will
provide:

a. For the Lead Disclosure Rule: (a) adequate training of employees, (b) adequate
protocol to ensure that leasing agents know of and disclose Lead-Based Paint and/or
Lead-Based Paint Hazards within Units and Common Areas, and (c) adequate
supervision of employees, contractors, and subcontractors, including regular and
unannounced paper audits by Defendants.

b. For Lead Safe Work Practices: (a) adequate training of employees, (b) adequate
controls to ensure that contractors and subcontractors perform work in accordance
with this Consent Decree, (c) adequate supervision of employees, contractors, and
subcontractors, to include regular, unannounced spot checks while work is being
done, and (d) regular and unannounced audits of records.

Once such a policy is approved by the Housing Specialist, in consultation with Plaintiffs,
Defendants shall implement and abide by the approved policy for the duration of the Consent

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Decree.  The Housing Specialist, in consultation with Plaintiffs, may approve modifications to this
policy proposed by Defendants in the future.

Substandard Conditions

60. Current Substandard Conditions.  By 180 days after the Effective Date, Defendants
shall correct, to the satisfaction of the Housing Specialist, all Substandard Conditions in Properties
(i) of which Defendants have received actual notice as of the Effective Date or (ii) for which a
violation has appeared on N.Y.C. HPD’s “HPD Online” website on or before the Effective Date.
Nothing in this Paragraph shall relieve Defendants from their obligations under applicable law to
correct violations identified by N.Y.C. HPD or other governmental agencies pursuant to the
timeline for correction set out in applicable law or agency order, which may require correction
sooner than 180 days.

61. Future Substandard Conditions.  At all times thereafter, Defendants shall take all
reasonable steps to prevent Substandard Conditions from occurring.  “All reasonable steps” shall
include, but are not limited to, compliance with applicable Indoor Asthma and Allergen Trigger
laws with respect to all Properties and Units therein.  Upon receiving actual notice of any
Substandard Condition or having a violation related to such condition appear on N.Y.C. HPD’s
HPD Online website (a “Known Substandard Condition”), Defendants shall promptly remediate
it. If, in the view of the Housing Specialist, a Known Substandard Condition threatens an
occupant’s health or safety, the Housing Specialist shall issue an Action Plan directing Defendants
to take action with respect to that Known Substandard Condition and shall have the power to
implement some or all of the actions required by an Action Plan should Defendants fail to
implement the Action Plan.

62. Substandard Conditions Screen. Within one year of the Effective Date, Defendants
shall conduct, through contractors approved by the Housing Specialist, a visual inspection for
Substandard Conditions, including for pests and other asthma allergen triggers, in all Properties.
Each Unit must be inspected rather than a sampling of Units.  Within 15 days of completing a
Substandard Conditions Screen for a Unit or Common Area, a written report addressing the
findings of the Substandard Conditions Screen (a “Substandard Conditions Inspection Report”)
shall be provided to tenants and the Housing Specialist.

63. For the purpose of Paragraphs 60 and 61, “actual notice” includes (but is not limited
to) conditions that have been reported by a tenant to Defendants or their employees, or that the
Housing Specialist has reported to Defendants, even if Defendants have not yet acted on that
report.

64. Substandard Condition Remediation at Turnover. Without limiting Defendants’
obligations to remediate Substandard Conditions at other times, upon tenant turnover, Defendants
shall remediate all visible mold and pest infestations and any underlying defects in the Unit,
thoroughly cleaning and vacuuming all carpeting and furniture, if provided, consistent with safe
work practices outlined in the N.Y.C. Asthma Free Housing Act.

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65. Indoor Allergen Supplemental Disclosure. Within 120 days of the Effective Date,
Defendants shall provide by regular mail, email (where an email address is known by Defendants),
or hand delivery signed for by a tenant, to every lessee in the Properties an indoor allergens
information fact sheet from the N.Y.C. DOHMH entitled “What Tenants Should Know About
Indoor Allergens (Local Law 55 of 2018).” This disclosure may be included in the same mailing
and email as the supplemental lead-based paint disclosure required by Paragraph 44.

Compliance Officer

66. Compliance Officer.  Defendants shall employ a qualified Compliance Officer
acceptable to the Plaintiffs for the duration of the Consent Decree.  In consultation with the
Housing Specialist, within 90 Days of the Effective Date, Defendants shall appoint an individual
with appropriate qualifications and experience, acceptable to the Plaintiffs, to serve as Compliance
Officer, who will oversee Defendants’ compliance with all applicable legal requirements,
including this Consent Decree, and will serve as the point of contact between Defendants,
Plaintiffs, and the Housing Specialist. The Compliance Officer may be an existing officer or
employee of Defendants, if they are otherwise appropriately qualified. In the event that
Defendants’ Compliance Officer ceases to work in that position, Defendants shall appoint a
replacement within 30 Days.

Progress Report

67. Within 20 Days following the end of each calendar quarter ending more than 180
Days after the Effective Date, Defendants shall provide to the Housing Specialist a quarterly report
(the “Progress Report”), with copy to counsel for Plaintiffs, including:

a. Proof, in the initial Progress Report, of notifications sent pursuant to Paragraph 45;

b. A list of Units, Common Areas, and Properties for which a report of an Inspection
and Risk Assessment or a Substandard Conditions Inspection Report was issued in
the prior quarter, with a copy of such reports if not previously provided to the
Housing Specialist;

c. A list of Units, Common Areas, and Properties for which an Inspection and Risk
Assessment has identified Lead-Based Paint Hazards, or a Substandard Conditions
Screen has identified Substandard Conditions during the prior quarter, with the date
on which such Lead-Based Paint Hazards and Substandard Conditions were or are
to be eliminated.

d. For Lead-Based Paint Hazards and Substandard Conditions identified in subsection
(c) that have not yet been eliminated, a proposed schedule according to which each
such condition will be eliminated.

e. A list of Units for which the Defendants have been unable to obtain access to
conduct activities required by this Consent Decree, including any documented
efforts to reach those tenants, during the prior quarter;

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f. A list of Units and Common Areas in which Renovations, Interim Controls, or
Abatements were performed in the prior quarter, with records showing compliance
with Lead-Based Paint Laws during such activity;

g. A list of Units, Common Areas, and Properties for which Defendants received a
Lead-Based Paint Inspection Determination in the prior quarter, with a copy of that
determination;

h. The status of compliance with any Action Plans issued under Paragraph 69;

i. A list of Units, Common Areas, and Properties that Defendants ask the Housing
Specialist to designate as Completed Units, Completed Common Areas, or
Completed Properties, respectively, and any Property that Defendants ask the
Housing Specialist to determine that it would qualify as a Completed Property but
for the presence of Deferred Units;

j. Any housing or health code notices issued by any state or local governmental
authority relating to Substandard Conditions in the prior quarter;

k. Other information and records necessary to document Defendants’ compliance (and
any non-compliance) with the Consent Decree during the prior quarter;

l. Other information requested by the Housing Specialist to be included in Progress
Reports to facilitate the Housing Specialist’s performance of its duties under this
Consent Decree, including but not limited to information necessary to apply the
rent abatement credit in Paragraph 84; and

m. A list of any violations of the Consent Decree known to Defendants and not already
known to the Housing Specialist that occurred during the prior quarter, the cause of
the violation, and the remedial steps taken, or to be taken, to prevent or minimize
such violation.

68. The initial progress report shall contain the information described in Paragraph 67
not only for the prior quarter but since the Effective Date.

Housing Specialist Plans

69. Action Plans.  No later than 30 days after receipt of a Progress Report, the Housing
Specialist shall issue an Action Plan identifying specified actions that Defendants must take to
eliminate Lead-Based Paint Hazards and Substandard Conditions identified in the Progress Report
and to prevent their recurrence, including through changes to certain policies or procedures, and
specified deadlines for taking such actions.  Such actions and deadlines may, but need not, be the
actions and deadlines proposed by Defendants in the Progress Report. Defendants shall comply
with Action Plans, which may be modified by the Housing Specialist upon request of the
Defendants.

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70. Interim Deadlines.  Action Plans shall include interim deadlines for any actions that
cannot be completed within 60 days.

71. Considerations for Plans. In Action Plans, the Housing Specialist shall endeavor to
(i) prioritize matters presenting the greatest health and safety risks, (ii) ensure that work performed
meets legal and professional standards and is of a quality that will reduce the likelihood of
recurrence, (iii) ensure that all work performed will be performed in such a way as to protect the
health and safety of occupants of the Properties; and (iv) ensure that the Action Plans call for
actions that are cost-effective methods to ensure the health and safety of occupants of the
Properties.

72. For avoidance of doubt, nothing in Action Plans shall relieve Defendants of their
obligation to affirmatively inspect for, identify and eliminate conditions under applicable local,
state, or federal law or pursuant to the terms of contracts with governmental entities or under this
Consent Decree.

73. The Housing Specialist shall seek to consult with affected tenants prior to issuing
an Action Plan.

74. The Housing Specialist may amend an Action Plan or issue a replacement.

Work Completion

75. Work Completion.  For each Unit, Common Area, or Property that Defendants have
proposed to be a Completed Unit, Completed Common Area, or Completed Property pursuant to
Paragraph 67(i), the Housing Specialist will promptly determine, through inspection of relevant
documentation or, as the Housing Specialist reasonably determines in its discretion is appropriate,
inspection of the Unit, Common Area, or Property or confirmation with the Unit’s occupants,
whether Work Completion has occurred and shall notify Defendants in writing of its conclusions.
For each Property that Defendants have asked the Housing Specialist to determine pursuant to
Paragraph 67(i) would have been a Completed Property but for the presence of Deferred Units, the
Housing Specialist will promptly determine, through inspection of relevant documentation or, as
the Housing Specialist reasonably determines in its discretion is appropriate, inspection of the
Property or confirmation with the Property’s occupants, whether Work Completion has occurred
but for Deferred Units and shall notify Defendants in writing of its conclusions.  The Housing
Specialist shall make best efforts to complete these reviews and inspections within thirty days of
each Progress Report.  If the Housing Specialist has determined that the Work Unit, Work
Common Area, or Work Property has achieved Work Completion, it will be deemed a “Completed
Unit,” “Completed Common Area,” or “Completed Property,” provided, however, that
“Completed” status will not impact the jurisdiction of local, state, or federal regulators to issue
violations found in Units, Common Areas, or Properties. If the Housing Specialist determines that
any Unit, Common Area or Property that Defendants included in a Progress Report pursuant to
Paragraph 67(i) is not Completed, the Housing Specialist shall specify the work needed to be done
for that Unit, Common Area, or Property to be designated as Completed in the Action Plan for the
following quarter.

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76. The Housing Specialist shall, in the Action Plan for the following quarter, state the
Units, Common Areas, or Properties the Housing Specialist has determined to be Completed since
the last Action Plan was issued.  If the Housing Specialist thereafter identifies non-compliance
with Lead-Based Paint Laws related to the condition of Lead Based Paint or a Substandard
Condition in a Completed Unit, Completed Common Area, or Completed Property, or in a Property
that the Housing Specialist had determined would be a Completed Property but for the presence
of Deferred Units,  that Unit, Common Area, or Property will lose its designation as “Completed”
(or its status as a property that would be a Completed Property but for the presence of Deferred
Units) until such time as the Housing Specialist determines that non-compliance with Lead-Based
Paint Laws or Substandard Condition has been corrected.

Guaranty of Performance; Failure of Performance

77. Financial Assurance. To guarantee its remediation and compliance work under this
Consent Decree, including the cost of the testing and Abatement required by Paragraphs 46 and
49 above, which Defendants estimate will cost at least $10,000,000, within 30 Days after the
Effective Date, Defendants shall provide financial assurance, in the form of cash held by a
nationally chartered financial institution in an interest-bearing account pursuant to an escrow
agreement or trust agreement acceptable to the Plaintiffs, with a value of $2,000,000 (the
“Financial Assurance”).  At least once a year thereafter, the Housing Specialist will estimate the
cost of the remaining work to be performed under this Consent Decree in the following year and
notify the Parties of that revised amount.  If that revised amount is less than the then-current value
of the Financial Assurance, Defendants may reduce the value of the Financial Assurance to the
cost estimate amount.  If the revised amount is greater than the then-current value of the Financial
Assurance, Defendants must increase the value of the Financial Assurance in a form agreed to by
the Plaintiffs by the difference within 60 Days after the notification. Should Defendants dispute
the Housing Specialist’s new estimated cost, the dispute shall be resolved per the dispute resolution
provisions in Section XV (Dispute Resolution) below.  The escrow agreement or trust agreement
referenced above shall include language authorizing funds to be paid as provided in Paragraph 78
(Failure of Performance) and shall make clear that Defendants’ interest in the funds subject to this
agreement is solely a contingent interest as to amounts by which the Housing Specialist may reduce
the value of the Financial Assurance as provided in this Paragraph and amounts not used pursuant
to Paragraph 78 and remaining at termination of this Consent Decree.

78. Failure of Performance.  If the Housing Specialist determines that Defendants fail
to successfully implement an Action Plan or a portion thereof or are incapable of successfully
implementing such plan or a portion thereof, the Housing Specialist may notify Defendants of such
determination, after which Defendants shall have the remainder of the quarterly period until the
next Progress Report or 60 days, whichever is greater, or such later deadline as the Housing
Specialist sets for good cause, to correct the failure. If the Housing Specialist determines that
Defendants have not corrected that failure within that time period, the Housing Specialist may
implement some or all of the actions required by the Action Plan using contractors engaged by the
Housing Specialist. If Defendants fail to pay for such work, the Housing Specialist may direct any
third-party responsible for the Financial Assurance to make such payment or take appropriate steps
to fund such work.

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Occupant Protections

79. Notice of Work. Defendants shall provide occupants reasonable advance written
notice of work, which shall be provided no less than 10 calendar days prior to performance of non-
emergency work, unless the occupant consents to a shorter time period.  Defendants shall make
reasonable efforts to schedule the work in a way that minimizes inconvenience to the occupants.

80. Relocation at Occupants’ Option. Within 30 Days of the Effective Date, Defendants
will submit a written policy (“Relocation Policy”) to the Housing Specialist providing: (a)
occupants the option to elect to postpone or refuse work required by this Consent Decree (except
where such work is required under otherwise applicable law) and (b) occupants the right to
temporarily relocate during work when such work either (i) would substantially inconvenience the
occupant, as will be further defined in the Relocation Policy, or could not be safely performed
otherwise, or (ii) would be performed in a Unit that is subject to the Lead Safe Housing Rule, when
required by that Rule, 24 C.F.R. § 35.1345(a)(2) (“Relocation-Eligible Work”). As part of the
Relocation Policy, occupants shall have the right, for the duration of any Relocation-Eligible
Work, to be temporarily relocated, at Defendants’ cost, to a nearby dwelling unit, no more than a
mile away, or as close as reasonably available, of adequate size for that household. The relocation
unit shall be free of Substandard Conditions including but not limited to lead-based paint hazards
and without cost to the relocated tenant and/or occupant who shall, under no circumstance, be
considered to have abandoned or surrendered their tenancy rights to their apartment in which
Relocation-Eligible Work is performed.  Once such a policy is approved by the Housing Specialist,
Defendants will implement and abide by the Relocation Policy for the duration of this Consent
Decree.  The Housing Specialist may amend the Relocation Policy after consultation with
Plaintiffs and Defendants.

81. Work Refusal or Postponement.  Tenants shall have the right to elect to postpone
or refuse any work required under this Consent Decree during their tenancy (unless such work
cannot be postponed under applicable local, state, and federal law).  A tenant will be deemed “non-
responsive” if Defendants are unable to obtain the tenant’s, their designated representative’s, or
their authorized occupant’s agreement to schedule work after: (1) three or more written notices, in
the language customarily used between Defendants and the tenant, provided at least a week apart
from one another; (2) three or more calls to the tenants’ last-known phone number to schedule
work; and (3) at least one in-person attempt to contact the tenant at their Unit.  If a tenant is non-
responsive or elects to postpone or refuse work under this Consent Decree, the Defendants shall
provide notice to the Housing Specialist, who shall attempt to contact any such tenants, their
designated representative, or authorized occupant and confirm that the eligible tenants wish to
postpone or refuse that work.  If the Housing Specialist confirms that a tenant is refusing work, or
if the tenant is not responsive to the Housing Specialist, the Housing Specialist shall designate the
Unit a “Deferred Unit” until the tenant agrees to have deferred work performed or until Unit
turnover, whichever occurs sooner.  Failure to perform work in a Unit designated as a Deferred
Unit during the period of designation shall not constitute a violation of this Consent Decree (unless
such work cannot be postponed under applicable local, state, and federal law). Defendants and the
Housing Specialist shall attempt to contact a tenant and obtain consent to access a Deferred Unit
at least once during each following quarter by written notice and one in-person attempt.  If
Defendants and the Housing Specialist remain unable to obtain consent to access the unit (and

30

work can be postponed under applicable local, state, and federal law) until vacancy of the Deferred
Unit, Defendants will perform the Deferred Work upon vacancy, whether or not vacancy occurs
within the term of this Consent Decree.  For the avoidance of doubt, when a Property is transferred
pursuant to Paragraph 19, Defendants’ obligation to perform any remaining Deferred Work in that
Property is subject to the provisions of Paragraph 19 concerning that obligation.

82. Coordination of Work.  Defendants shall coordinate access for required annual
inspections and remediation of lead and indoor allergen hazards as well as other substandard
conditions, so as to minimize the number of times that occupants must provide access.  In no event
should occupants be compelled by Defendants to move from their apartments unless required by
applicable law during the performance of work to protect occupants’ health and safety.

83. Effect of Work on Rent.  Defendants agree that any work done to comply with this
Consent Decree or Lead-Based Paint Laws or to remediate Substandard Conditions within the
meaning of this Consent Decree shall not entitle Defendants, by virtue of that work, to rent
increases. For clarification, no work performed to comply with the requirements of this Consent
Decree shall provide the basis to increase the rent of any unit, whether unregulated or regulated,
including that remediation work shall not serve as a basis for Major Capital Improvement (“MCI”)
or Individual Apartment Improvement (“IAI”) increases under local and state law or for an increase
in payments to be made under any local, state or federal housing subsidy program.

84. Rent Abatement Credit.  With respect to any tenant whose Unit is found by the
Housing Specialist to have then-current non-compliance with Lead-Based Paint Laws or
Substandard Conditions (including those who have agreed to be relocated) a rent abatement credit
shall be applied to the tenant’s rental account pursuant to an abatement schedule adopted by the
Housing Specialist in consultation with Defendants (except insofar as the Unit is a Deferred Unit).
The Housing Specialist shall determine the amount of the credit based on the number and severity
of conditions and as a percentage of the market rent or legal regulated rent without regard to
whether the rent is subsidized with public income sources (e.g., Section 8 or N.Y.C. Family
Eviction Prevention Supplements). The credit shall be applied to the tenant’s portion of the rent
and shall continue on a monthly basis until such time as the Housing Specialist determines that the
Substandard Conditions have been corrected to Work Completion (as defined herein) and notifies
the tenant to resume regular payment.  A tenant shall not be entitled to a credit to the extent the
Substandard Conditions are de minimis or are corrected promptly (as determined by the Housing
Specialist) after initial notice of the condition or if the Housing Specialist determines that the tenant
is refusing to allow access to correct the non-compliance with the Lead-Based Paint Laws or
Substandard Conditions.

85. Temporary Freeze on Collectability of Rent Increases. Defendants also agree that
the total monthly collectible rent increase for Units in which a percentage rent abatement credit as
described in Paragraph 84, shall be frozen until the Unit is deemed a Completed Unit or Deferred
Unit. Nothing in the prior sentence, shall restrict or relieve the Defendants from their duty to offer
timely lease renewals which may seek to increase the legal regulated rent of rent-regulated tenants
in accordance with applicable New York City Rent Guidelines Board orders.  For sake of clarity,
the legal regulated rent for units in receipt of a rent abatement may increase during a remediation
period unless otherwise prohibited by an administrative decision, stipulation or court order,

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registered with the NYS Division of Housing and Community Renewal, but the monthly dollar
amount representing those increases may not be collected from the tenants until such time as the
Unit has been deemed Completed pursuant to Paragraph 75 and 76 herein.

X. RESTITUTION FUND

86. In consultation and under the direction of the State of New York, the Housing
Specialist will determine eligibility, determine fund allocation considering harm and risk of harm,
and disburse funds from the Restitution Fund to the tenant of record or the authorized occupant
who has lived in a Unit of any Property or Previously Transferred Property: (a) who has had Lead-
Based Paint Hazards or a Substandard Condition in their Unit or any Common Area within their
Property during the six years prior to the Effective Date; or (b) who, while under the age of
eighteen, has tested positive for elevated blood lead levels since January 1, 2015. If, after
distribution of restitution funds as provided by the prior sentence, funds are remaining in the
account held by the Housing Specialist, the Housing Specialist and the State of New York will
confer about the appropriate way to disburse remaining funds.  In no event will those funds revert
back to Defendants and Defendants shall have no input into the manner of funds disbursement.

87. Defendants shall cooperate with the Housing Specialist and provide any
information necessary to determine those eligible for payment from the Restitution Fund, including
but not limited to providing a list of tenants of record or permitted occupants known to Defendants
meeting the criteria in Paragraph 86 above within 90 calendar days after the Effective Date.

88. For the avoidance of doubt: (a) no portion of such restitution payments represent
reimbursement to any State or City or other person or entity for the costs of any investigation or
litigation, (b) the entire restitution payment is properly characterized as described in Paragraph 27
and this Section X (Restitution Fund), and (c) no portion of the restitution payment constitutes
disgorgement or is properly characterized as the payment of statutory or other fines, penalties,
punitive damages, or other punitive assessments.

XI. DEFENDANTS’ REPORTING REQUIREMENTS

89. In addition to the Progress Report required by Paragraph 67, Defendants shall
promptly report to Plaintiffs and the Housing Specialist whenever any of the following may pose
an immediate threat to a tenant or other occupant’s health or welfare: any violation of this Consent
Decree, or any other event affecting Defendants’ performance under this Decree, or the condition
of its Properties.

90.  All reports and notices required under this Consent Decree shall be electronically
submitted to the persons designated in Section XIX (Notices).

91. Each report submitted by Defendants under this Section shall be signed by Morris
Lieberman, in his individual capacity, and the Compliance Officer or an executive officer or
principal of Lilmor on behalf of all other Defendants and include the following certification:

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I certify under penalty of law that this document and all attachments were prepared under
my direction or supervision in accordance with a system designed to assure that qualified
personnel properly gather and evaluate the information submitted. Based on my inquiry of
the person or persons who manage the system, or those persons directly responsible for
gathering the information, the information submitted is, to the best of my knowledge and
belief, true, accurate, and complete.  I am aware that there are significant penalties for
submitting false information, including the possibility of fine and imprisonment for
knowing violations.

92. This certification requirement does not apply to emergency or similar notifications
where compliance would be impractical.

93. The reporting requirements of this Consent Decree do not relieve Defendants of
any reporting obligations otherwise required by law, or by any other federal, state, or local law,
regulation, permit, or other requirement.

94. Any information provided pursuant to this Consent Decree may be used by the
Plaintiffs in any proceeding to enforce the provisions of this Consent Decree and as otherwise
permitted by law.

XII. APPROVAL OF PLAN AND OTHER DELIVERABLES; PERMITS

95.  After review of any plan, report, or other item that is required to be submitted to
the Housing Specialist pursuant to this Consent Decree, the Housing Specialist shall in writing:
(a) approve the submission; (b) approve the submission upon specified conditions; (c) approve part
of the submission and disapprove the remainder; or (d) disapprove the submission.

96. If the submission is approved pursuant to Paragraph 95(a), Defendants shall take
all actions required by the plan, report, or other document, in accordance with the schedules and
requirements of the plan, report, or other document, as approved.  If the submission is conditionally
approved or approved only in part pursuant to Paragraph 95(b) or (c), Defendants shall take all
actions required by the approved plan, report, or other item that the Housing Specialist determines
are technically severable from any disapproved portions.

97. If the submission is disapproved in whole or in part pursuant to Paragraph 95(c) or
(d), Defendants shall within 30 days correct all deficiencies and resubmit the plan, report, or other
item, or disapproved portion thereof, for approval, in accordance with the preceding Paragraphs.
If the resubmission is approved in whole or in part, Defendants shall proceed in accordance with
the preceding Paragraph.

98. If a resubmitted plan, report, or other item, or portion thereof, is disapproved in
whole or in part, the Housing Specialist may again require Defendants to correct any deficiencies,
in accordance with the preceding Paragraphs, or may itself correct any deficiencies, subject to the
right of the Plaintiffs to seek stipulated penalties as provided in Section XIII (Stipulated Penalties).

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99. Obtaining Permits.  Where any compliance obligation under this Section requires
Defendants to obtain a federal, state, or local permit or approval, Defendants shall submit timely
and complete applications and take all other actions reasonably necessary to obtain all such permits
or approvals.  Defendants may seek relief under the provisions of Section XIV (Force Majeure)
for any delay in the performance of any such obligation resulting from a failure to obtain, or a
delay in obtaining, any permit or approval required to fulfill such obligation, if Defendants have
submitted timely and complete applications and have taken all other actions reasonably necessary
to obtain all such permits or approvals.

XIII. STIPULATED PENALTIES

100. Defendants shall be liable for stipulated penalties to the Plaintiffs for violations of
this Consent Decree as specified below, unless excused under Section XIV (Force Majeure).  A
violation includes failing to perform any obligation required by the terms of the Sections and
Paragraphs of this Decree enumerated below, including any action plan, work plan, or schedule
approved under this Decree, according to all applicable requirements of this Decree and within the
specified time schedules established by or approved under this Decree.

101. Late Payment of Civil Penalty.  If Defendants fail to pay the civil penalty required
to be paid under Section VII (Penalty and Restitution Payment) when due, Defendants shall pay a
stipulated penalty of $5,000 per day for each day that the payment is late to the particular Plaintiff.

102. Requirements Relating to Lead-Based Paint, Action Plans, Transfers of Interest,
Housing Specialist, and Certain Other Matters.  The following stipulated penalties shall accrue per
violation per day for each violation of the requirements set forth in clauses (b) and (c) of
Paragraphs 17 and 19, Sections VI (Transfers of Interests), VII (Penalty and Restitution Payment),
VIII (Housing Specialist), and Paragraphs 44 to 59 and 77 of Section IX (Injunctive Requirements)
of this Consent Decree or the requirements of an Action Plan pursuant to Paragraph 69 of Section
IX (Injunctive Requirements).

Penalty Per Violation Per Day Period of Noncompliance
 $500........................................................... Days 1-10
 $750.......................................................... Days 11-20
 $1,000 ............................................... Days 21 and thereafter

103. Reporting Requirements.  The following stipulated penalties shall accrue per
violation per day for each violation of the requirements set forth in Paragraph 67 of Section IX
(Injunctive Requirements) or Section XI (Defendants’ Reporting Requirements) of this Consent
Decree:

Penalty Per Violation Per Day     Period of Noncompliance
 $500........................................................... Days 1-30
 $750.......................................................... Days 31-60
 $1,000 ............................................... Days 60 and thereafter

104. Stipulated penalties under this Section shall begin to accrue on the day after
performance is due or on the day a violation occurs, whichever is applicable, and shall continue to

34

accrue until performance is satisfactorily completed or until the violation ceases.  Stipulated
penalties shall accrue simultaneously for separate violations of this Consent Decree.

105. Defendants shall pay any stipulated penalty within 30 days after receiving the
United States’ written demand.

106. The United States may in the unreviewable exercise of its discretion, reduce or
waive stipulated penalties otherwise due it under this Consent Decree.

107. Stipulated penalties shall continue to accrue during any Dispute Resolution with
respect to that violation but need not be paid until the following:

a. If the dispute is resolved by agreement or by a decision of the United States
that is not appealed to the Court, Defendants shall pay accrued penalties
determined to be owing to the United States within 30 days after the
effective date of the agreement or the receipt of the United States’ decision
or order.

b. If the dispute is appealed to the Court and the United States prevails in
whole or in part, Defendants shall pay all accrued penalties determined by
the Court to be owing within 60 days of receiving the Court’s decision or
order, except as provided in subparagraph (c), below.

c. If any Party appeals the District Court’s decision, Defendants shall pay all
accrued penalties determined to be owing within 15 days of receiving the
final appellate court decision.

108. Defendants shall pay stipulated penalties owing to the United States in the manner
set forth and with the confirmation notices required by Paragraph 24, except that the transmittal
letter shall state that the payment is for stipulated penalties and shall state for which violation or
violations the penalties are being paid.

109. Subject to the provisions of Section XVII (Effect of Settlement/Reservation of
Rights), the stipulated penalties provided for in this Consent Decree shall be in addition to any
other rights, remedies, or sanctions available to the Plaintiffs for Defendant’s violation of this
Consent Decree or applicable law.

XIV. FORCE MAJEURE

110. “Force majeure,” for purposes of this Consent Decree, is defined as any event
arising from causes beyond the control of Defendants, of any entity controlled by Defendants, or
of Defendants’ contractors, that delays or prevents the performance of any obligation under this
Consent Decree despite Defendants’ best efforts to fulfill the obligation.  The requirement that
Defendants exercise “best efforts to fulfill the obligation” includes using best efforts to anticipate
any potential force majeure event and best efforts to address the effects of any such event (a) as it
is occurring and (b) after it has occurred to prevent or minimize any resulting delay to the greatest

35

extent possible.  “Force Majeure” does not include Defendants’ financial inability to perform any
obligation under this Consent Decree.

111. If any event occurs or has occurred that may delay the performance of any
obligation under this Consent Decree, whether or not caused by a force majeure event, Defendants
shall provide notice orally or by electronic transmission to Plaintiffs and the Housing Specialist
pursuant to Section XIX (Notices), within seven business days of when Defendants first know that
the event might cause a delay.  Within seven days thereafter, Defendants shall provide in writing
to the Plaintiffs and the Housing Specialist an explanation and description of the reasons for the
delay; the anticipated duration of the delay; all actions taken or to be taken to prevent or minimize
the delay; a schedule for implementation of any measures to be taken to prevent or mitigate the
delay or the effect of the delay; Defendants’ rationale for attributing such delay to a force majeure
event if it intends to assert such a claim; and a statement as to whether, in the opinion of
Defendants, such event may cause or contribute to an endangerment to public health, welfare or
the environment.  Defendants shall include with any notice all available documentation supporting
the claim that the delay was attributable to a force majeure.  Failure to comply with the above
requirements shall preclude Defendants from asserting any claim of force majeure for that event
for the period of time of such failure to comply, and for any additional delay caused by such failure.
Defendants shall be deemed to know of any circumstance of which Defendants, any entity
controlled by Defendants, or Defendants’ contractors knew or reasonably should have known.

112. If Plaintiffs agree that the delay or anticipated delay is attributable to a force
majeure event, the time for performance of the obligations under this Consent Decree that are
affected by the force majeure event will be extended by Plaintiffs for such time as is necessary to
complete those obligations.  An extension of the time for performance of the obligations affected
by the force majeure event shall not, of itself, extend the time for performance of any other
obligation.  Plaintiffs will notify Defendants in writing of the length of the extension, if any, for
performance of the obligations affected by the force majeure event.

113. If Plaintiffs do not agree that the delay or anticipated delay has been or will be
caused by a force majeure event, Plaintiffs will notify Defendants in writing of its decision.

114. If Defendants elect to invoke the Dispute Resolution procedures set forth in
Section XV (Dispute Resolution), it shall do so no later than 20 days after receipt of Plaintiffs’
decision.  In any such proceeding, Defendants shall have the burden of demonstrating by a
preponderance of the evidence that the delay or anticipated delay has been or will be caused by a
force majeure event, that the duration of the delay or the extension sought was or will be warranted
under the circumstances, that best efforts were exercised to avoid and mitigate the effects of the
delay, and that Defendants complied with the requirements of Paragraphs 110 and 111.  If
Defendants carry this burden, the delay at issue shall be deemed not to be a violation by Defendants
of the affected obligation of this Consent Decree identified to the Plaintiffs and the Court.

XV. DISPUTE RESOLUTION

115. Unless otherwise expressly provided in this Consent Decree, the Dispute
Resolution procedures of this Section shall be the exclusive mechanism to resolve disputes raised

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by Defendants arising under or with respect to this Consent Decree.  Nothing in this Section limits
Plaintiffs’ right to seek judicial enforcement of the Consent Decree.

116. Informal Dispute Resolution.  Other than a Minor Dispute as defined in Paragraph
124, any dispute subject to Dispute Resolution under this Consent Decree shall first be the subject
of informal negotiations.  The dispute shall be considered to have arisen when Defendants send
the Plaintiffs a written Notice of Dispute.  Such Notice of Dispute shall state clearly the matter in
dispute.  The period of informal negotiations shall not exceed 20 days from the date the dispute
arises (the “Informal Negotiation Period”), unless that period is modified by written agreement.  If
the Parties cannot resolve a dispute by informal negotiations, then the position advanced by the
Plaintiffs shall be considered binding unless, within 21 days after the conclusion of the Informal
Negotiation Period, Defendants invoke formal Dispute Resolution procedures as set forth below.

117. Formal Dispute Resolution.  Defendants shall invoke formal Dispute Resolution
procedures, within the time period provided in the preceding Paragraph, by serving on the
Plaintiffs a written Statement of Position regarding the matter in dispute.  The Statement of
Position shall include, but need not be limited to, any factual data, analysis, or opinion supporting
Defendants’ position and any supporting documentation relied upon by Defendants.

118. The Plaintiffs shall serve their Statement of Position within 45 days of receipt of
Defendants’ Statement of Position.  The Plaintiffs’ Statement of Position shall include, but need
not be limited to, any factual data, analysis, or opinion supporting that position and any supporting
documentation relied upon by the Plaintiffs.  The Plaintiffs’ Statement of Position shall be binding
on Defendants, unless Defendants file a motion for judicial review of the dispute in accordance
with the following Paragraph.

119. Defendants may seek judicial review of the dispute by filing with the Court and
serving on the Plaintiffs, in accordance with Section XIX (Notices), a motion requesting judicial
resolution of the dispute.  The motion must be filed within 14 business days of receipt of the
Plaintiffs’ Statement of Position pursuant to the preceding Paragraph.  The motion shall contain a
written statement of Defendants’ position on the matter in dispute, including any supporting factual
data, analysis, opinion, or documentation, and shall set forth the relief requested and any schedule
within which the dispute must be resolved for orderly implementation of the Consent Decree.

120. The Plaintiffs shall respond to Defendants’ motion within the time period allowed
by the Local Rules of this Court.  Defendants may file a reply memorandum, to the extent permitted
by the Local Rules.

121. Standard of Review

a. Disputes Concerning Matters Accorded Record Review. Except as
otherwise provided in this Consent Decree, in any dispute concerning the
Lead-Based Paint Laws brought under Paragraph 117 pertaining to the
adequacy or appropriateness of any item requiring approval by the Housing
Specialist under this Consent Decree pursuant to Paragraphs 95 through 98
and in any other dispute concerning a decision or action of an agency of the

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United States ordinarily accorded review on the administrative record under
applicable principles of administrative law, Defendants shall have the
burden of demonstrating, based on the administrative record submitted by
the United States, if any, that the position of the United States is arbitrary
and capricious or otherwise not in accordance with the then applicable legal
standard.

b. Other Disputes. Except as otherwise provided in this Consent Decree, in
any other dispute brought under Paragraph 117, Defendants shall bear the
burden of demonstrating that their position complies with this Consent
Decree and better furthers the objectives of the Consent Decree.

122. To the extent any Party would otherwise have the right to appeal an adverse ruling
by the District Court, nothing in this Consent Decree limits that right.

123. The invocation of dispute resolution procedures under this Section shall not, by
itself, extend, postpone, or affect in any way any obligation of Defendants under this Consent
Decree, unless and until final resolution of the dispute so provides.  Stipulated penalties with
respect to the disputed matter shall continue to accrue from the first day of noncompliance, but
payment shall be stayed pending resolution of the dispute as provided in Paragraph 107.  If
Defendants do not prevail on the disputed issue, stipulated penalties shall be assessed and paid as
provided in Section XIII (Stipulated Penalties).

124. Minor Disputes. Notwithstanding the foregoing, Paragraphs 117 to 122 shall not
apply to disputes regarding Housing Specialist determinations relating to specific Units or
Common Areas, except as to those conditions that Plaintiffs contend violate the Lead-Based Paint
Laws.  Such Unit- or Common Area-specific disputes shall not be subject to formal dispute
resolution or judicial review.  For such minor disputes, the decision of the Housing Specialist after
informal discussion with Defendants shall be final.

XVI. INFORMATION COLLECTION AND RETENTION

125. Upon reasonable notice to Defendants (or as otherwise authorized by applicable
law), the Plaintiffs and their representatives, and the Housing Specialist and its agents, including
attorneys, contractors, and consultants, shall have the right of entry into any facility covered by
this Consent Decree, at all reasonable times, upon presentation of credentials, to:

a. monitor the progress of activities required under this Consent Decree;

b. verify any data or information submitted to the Plaintiffs in accordance with
the terms of this Consent Decree;

c. obtain samples and, upon request, results of any samples taken by
Defendants or their representatives, contractors, or consultants;

d. obtain documentary evidence, including photographs and similar data; and

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e. assess Defendants’ compliance with this Consent Decree.

126. Until three years after the termination of this Consent Decree, Defendants shall
retain, and shall instruct its contractors and agents to preserve, all non-identical copies of all
documents, records, or other information (including documents, records, or other information in
electronic form) in its or its contractors’ or agents’ possession or control, or that come into its or
its contractors’ or agents’ possession or control, and that relate in any manner to Defendants’
performance of its obligations under this Consent Decree.  This information-retention requirement
shall apply regardless of any contrary corporate or institutional policies or procedures and does
not shorten the Defendants’ obligation to retain documents for ten years under the NYC Childhood

Lead Poisoning Prevention Act (NYC Admin, Code § 27-2056.17).  At any time during this

information-retention period, upon request by the Plaintiffs, Defendants shall, within a reasonable
time, provide copies of any documents, records, or other information required to be maintained
under this Paragraph.

127. At the conclusion of the information-retention period provided in the preceding
Paragraph, Defendants shall notify the Plaintiffs at least 90 days prior to the destruction of any
documents, records, or other information subject to the requirements of the preceding Paragraph
and, upon request by the Plaintiffs, Defendants shall deliver copies of any such requested
documents, records, or other information to the Plaintiffs.

128. In response to a request by the Plaintiffs under Paragraphs 126 or 127, Defendants
may assert that certain documents, records, or other information is privileged under the attorney-
client privilege or any other privilege or protection recognized by federal law, including the
attorney work product doctrine.  If Defendants assert such a privilege or protection, they shall
provide the following:  (a) the title of the document, record, or information; (b) the date of the
document, record, or information; (c) the name and title of each author of the document, record,
or information; (d) the name and title of each addressee and recipient; (e) a description of the
subject of the document, record, or information; and (f) the privilege or protection asserted by
Defendants.  However, no documents, records, or other information required to be created or
generated pursuant to this Consent Decree shall be withheld on grounds of privilege.

129. Defendants may also assert that information required to be provided under this
Section is protected as TSCA-specific Confidential Business Information (“CBI”) under 15 U.S.C.
§ 2613 or as general CBI under 40 C.F.R. Part 2.  As to any information that Defendants seek to
protect as CBI, Defendants shall follow the procedures set forth in the applicable statutory or
regulatory provisions.

130. This Consent Decree in no way limits or affects any right of entry and inspection,
or any right to obtain information, held by the United States or the State of New York pursuant to
applicable federal, state or local laws, regulations, or permits, nor does it limit or affect any duty
or obligation of Defendants to maintain documents, records, or other information imposed by
applicable federal, state or local laws, regulations, or permits.

131. Nothing in this Consent Decree shall in any way limit Defendants from identifying
information submitted to the Plaintiffs or the Housing Specialist that qualifies as confidential

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business information, trade secrets, or information otherwise protected from disclosure for
purposes of the Freedom of Information Act or state law equivalents.  At least 15 days before the
United States produces any such designated information pursuant to a Freedom of Information Act
request, it shall advise Defendants.

XVII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS

132. This Consent Decree resolves only the civil claims of the United States and the
State of New York against Defendants for the violations alleged in the Complaint filed in this
action through the Date of Lodging.

133. The Plaintiffs reserve all legal and equitable remedies available to enforce the
provisions of this Consent Decree, except as expressly stated in Paragraph 132.  This Consent
Decree shall not be construed to limit the rights of the United States to obtain penalties or
injunctive relief under the Lead Disclosure Rule, the Toxic Substances Control Act, the Anti-Fraud
Injunction Act, or implementing regulations, or under other federal laws, regulations, or permit
conditions, except as expressly specified in Paragraph 132.  The United States further reserves all
legal and equitable remedies to address any imminent and substantial endangerment to the public
health or welfare or the environment arising at, or posed by, the Properties, whether related to the
violations addressed in this Consent Decree or otherwise.  Nothing in this Consent Decree shall
limit any future action that an agency of the United States or local or State agency may take to
administer its programs or, except as expressly provided in Paragraph 132, limit an agency of the
United States’ authority to enforce any relevant statutory or program requirement.

134. In any subsequent administrative or judicial proceeding initiated by the Plaintiffs
for injunctive relief, civil penalties, other appropriate relief relating to the Properties or
Defendants’ violations, Defendants shall not assert, and may not maintain, any defense or claim
based upon the principles of waiver, res judicata, collateral estoppel, issue preclusion, claim
preclusion, claim-splitting, or other defenses based upon any contention that the claims raised by
the Plaintiffs in the subsequent proceeding were or should have been brought in the instant case,
except with respect to claims that have been specifically resolved pursuant to Paragraph 132.

135. This Consent Decree is not a permit, or a modification of any permit, under any
federal, state, or local laws or regulations.  Defendants are responsible for achieving and
maintaining complete compliance with all applicable federal, state, and local laws, regulations,
and permits; and Defendants’ compliance with this Consent Decree shall be no defense to any
action commenced pursuant to any such laws, regulations, or permits, except as set forth herein.
The Plaintiffs do not, by its consent to the entry of this Consent Decree, warrant or aver in any
manner that Defendants’ compliance with any aspect of this Consent Decree will result in
compliance with provisions of any Lead-Based Paint Laws or with any other provisions of federal,
state, or local laws, regulations, or permits.

136. This Consent Decree does not limit or affect the rights of the Parties against any
third parties, not party to this Consent Decree, nor does it limit the rights of third parties, not party
to this Consent Decree, against the Parties, except as otherwise provided by law.

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137. This Consent Decree shall not be construed to create rights in, or grant any cause
of action to, any third party not party to this Consent Decree.  Nothing in this Consent Decree,
including but not limited to Section III (Admissions), or any evidence underlying the Consent
Decree, shall be admissible in any proceeding other than a proceeding brought by the United States
and/or the State of New York to enforce the terms of this Consent Decree.  Nothing in this Consent
Decree shall be construed as preventing Defendants from raising any and all defenses and asserting
any and all affirmative claims in any other civil proceedings brought by the United States, the State
of New York or any third party, provided that doing so would not otherwise violate any term of
this Consent Decree.

XVIII. COSTS

138. The Parties shall bear their own costs of this action, including attorneys’ fees,
except that the Plaintiffs respectively shall be entitled to collect the costs (including attorneys’
fees) incurred in any action necessary to collect any portion of the restitution fund payment, civil
penalty, or any stipulated penalties due but not paid by Defendants.

XIX.  NOTICES

139. Unless otherwise specified in this Decree, whenever notifications, submissions, or
communications are required by this Consent Decree, they shall be made in writing and delivered
by reputable carrier, with a copy by email, addressed as follows:

As to the United States by email:

As to HUD by email:

As to HUD by mail:

As to EPA by email only:

As to the People of the State of
New York, OAG, by email:

[email protected]
[email protected]

Re: Lilmor Consent Decree

[email protected]

Bruce Haber
Office of Lead Hazard Control and Healthy Homes
Program and Regulatory Support Division
451 7th Street, SW, Room 8236
Washington, DC 20410

Re: Lilmor Consent Decree
[email protected]
[email protected]

Re: Lilmor Consent Decree
[email protected]
[email protected]

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As to the People of the State of
New York, OAG by mail:

As to Lilmor Management LLC, by
email:

Re: Lilmor Consent Decree
Jane Landry-Reyes, Brent Meltzer
Housing Protection Unit
Office of the New York State Attorney General
28 Liberty Street, New York, NY  10005

Re: Lilmor Consent Decree
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]

As to Morris Lieberman, by email: Re: Lilmor Consent Decree
[email protected]
[email protected]
[email protected]

                              [email protected]
[email protected]
[email protected]

           As to the Lilmor-Managed
           Properties LLCs, by email:                  Re: Lilmor Consent Decree

[email protected]
[email protected]
[email protected]
[email protected]
[email protected]

           As to the Housing Specialist:  Address and e-email to be provided by the
Housing Specialist after selection

140. Any Party or the Housing Specialist may, by written notice to the other Parties and
Housing Specialist, change its designated notice recipient or notice address provided above, or
whether notice should be provided by email, U.S. Mail, or both.

141. Notices submitted pursuant to this Section shall be deemed submitted upon mailing
and simultaneous emailing, unless otherwise provided in this Consent Decree or by mutual
agreement of the Parties in writing.

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XX. EFFECTIVE DATE

142. The Effective Date of this Consent Decree shall be the date upon which this
Consent Decree is entered by the Court or a motion to enter the Consent Decree is granted,
whichever occurs first, as recorded on the Court’s docket.

XXI. RETENTION OF JURISDICTION

143. The Court shall retain jurisdiction over this case until termination of this Consent
Decree, for the purpose of resolving disputes arising under this Decree or entering orders
modifying this Decree, pursuant to Sections XV (Dispute Resolution) and XXII (Modification), or
effectuating or enforcing compliance with the terms of this Decree.

XXII. MODIFICATION

144. Except as otherwise set forth herein, the terms of this Consent Decree, including
any attached appendices, may be modified only by a subsequent written agreement signed by all
the Parties.  Where the modification constitutes a material change to this Decree, it shall be
effective only upon approval by the Court.

145. Any disputes concerning modification of this Decree shall be resolved pursuant to
Section XV (Dispute Resolution), provided, however, that, instead of the burden of proof provided
by Paragraph 121, the Party seeking the modification bears the burden of demonstrating that it is
entitled to the requested modification in accordance with Federal Rule of Civil Procedure 60(b).

XXIII. CERTAIN REPRESENTATIONS AND WARRANTIES

146. Defendants each represent and warrant that the list of entities in Appendix A
includes (a) every entity that either Morris Lieberman or Lillian Lieberman exercised any control
over, since March 1, 2012, if that entity has owned, directly or indirectly, any residential rental
properties at any point during that period; and (b) every entity that has owned residential rental
properties at some point since March 1, 2012, where Lilmor managed or performed maintenance
or other work at any of those properties at any point during that period.  For the avoidance of
doubt, “exercised any control over” in this Paragraph means that Morris Lieberman and Lillian
Lieberman, individually or jointly, directly or indirectly, held a controlling ownership interest in
the entity, served as the managing agent of the entity, or controlled the managing agent of the
entity (where the managing agent was a corporate entity).

147. Defendants each represent and warrant that the list of properties in Appendix C
includes every residential rental property in which a Defendant (directly or indirectly, in whole or
in part) held any interest or exercised any control since January 1, 2024, provided that either (a)
Morris Lieberman or Lillian Lieberman (directly or indirectly) exercised any control over it, since
March 1, 2012; or  (b)  Lilmor managed or performed maintenance or other work at that property
since March 1, 2012.  For the avoidance of doubt, “Morris Lieberman or Lillian Lieberman . . .
exercised any control over” in this Paragraph means that Morris Lieberman and Lillian Lieberman,
individually or jointly, directly or indirectly, held a controlling ownership interest in a property,

43

served as the managing agent of the property’s owner, or controlled the managing agent of the
property’s owner (where the managing agent was a corporate entity).

148. Defendants each represent and warrant that the list of properties in Appendix B
includes every residential rental property in which a Defendant (directly or indirectly, in whole or
in part) has not held any interest or exercised any control since January 1, 2024, but for which
(a) Morris Lieberman or Lillian Lieberman (directly or indirectly) exercised some control over it,
since March 1, 2012; or (b) Lilmor managed or performed maintenance or other work at that
property since March 1, 2012.

149. Each of the signatories to this Consent Decree for any of the Defendants represent
and warrant, individually, that the signatory is fully authorized to enter into the terms and
conditions of this Consent Decree on behalf of the party or parties for which the signatory is
signing and legally bind that party or parties to all terms and conditions of this Consent Decree.

XXIV. PROPERTY REMOVAL AND TERMINATION

150. Defendants shall be entitled to remove a Completed Property, or a Property that
would be a Completed Property but for the presence of Deferred Units (subject to the following
sentence) from the list of “Properties” to which this Consent Decree applies (“Removal of a
Property”) after the Housing Specialist determines that (a) Defendants have maintained continuous
satisfactory compliance with this Consent Decree with respect to that Property for a period of two
years after the Substandard Conditions identified in the Substandard Condition Screen for that
Property were remediated (or the date of acquisition, for a Newly Acquired Property), and
(b) Defendants have been in satisfactory compliance with the requirements of this Consent Decree
except those specific to other Properties for a period of at least three years (together with
subparagraph (a), the “Removal Requirements”).  The preceding sentence shall not apply to a
Property that would be a Completed Property but for the presence of one or more Deferred Units
unless: (i) Defendants have provided the occupants of any Deferred Units with a notice in the form
of Appendix F advising the occupants, with at least 60 days’ notice, that obligations under this
Consent Decree to complete the Deferred Work prior to vacancy will no longer apply after
Removal if occupants do not promptly provide access (provided that any work otherwise required
by law will continue to be required); (ii) Defendants perform any Deferred Work for which
occupants of Deferred Units provide access after receiving this notice; and (iii) the Housing
Specialist has either confirmed that the tenants of any remaining Deferred Units do not wish for
the Deferred Work to be performed prior to Removal or that the tenants have not responded to the
Housing Specialist’s attempts to confirm the same. Notwithstanding the foregoing, Removal of a
Property shall not obviate any provision of this Consent Decree (including Paragraph 81 (Work
Refusal or Postponement)) that expressly obligates Defendants for a period of time extending
beyond the date of that Removal.

151. Once the Removal Requirements have been met for a Completed Property,
Defendants may serve upon the Plaintiffs a Request for Removal of a Property, together with all
necessary supporting documentation.

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152. Following receipt by the Plaintiffs of Defendants’ Request for Removal, the Parties
shall confer informally concerning the Request and any disagreement that the Parties may have as
to whether Defendants have met the Removal Requirements.  If the Plaintiffs agree that the
Removal Requirements have been met for a Completed Property, the Parties shall submit, for the
Court’s approval, a joint stipulation to effect that Removal.

153. If the Plaintiffs do not agree that the Removal Requirements have been met,
Defendants may invoke Dispute Resolution under Section XV (Dispute Resolution).  However,
Defendants shall not seek Dispute Resolution of any dispute regarding termination until 30 days
after service of its Request for Removal.

154. Defendants shall be entitled to terminate this Consent Decree once (1) the last
Property (excluding Newly Acquired Properties) has been Removed and (2) Defendants have
maintained continuous satisfactory compliance with their obligations under this Consent Decree
as to Newly Acquired Properties that have not been Removed for a period of two years or, for
Newly Acquired Properties that have been owned or managed by Defendants for less than two
years, for the amount of time owned or managed by Defendants; and provided that Defendants
will remain obligated to conduct any work (including Deferred Work) required by this Consent
Decree where the Decree expressly obligates Defendants beyond the date of that Removal.   At
that time, the Parties shall submit, for the Court’s approval, a joint stipulation effecting that
termination.

XXV. PUBLIC PARTICIPATION

155. This Consent Decree shall be lodged with the Court for a period of not less than 30
days for public notice and comment in accordance with 28 C.F.R. § 50.7.  At the time of
publication of this notice, Defendants will distribute to each lessee of a Unit in the Properties, by
regular mail and email (where an email address is known by Defendants), a summary of the terms
of this Consent Decree in the form of Appendix I.  For lessees with whom Defendants customarily
communicate in a language other than English, Defendants shall also include a certified translation
of Appendix I into that lessee’s language.  Additionally, in the event that the United States, in their
discretion, determine to schedule a public meeting(s) regarding the proposed Consent Decree,
Defendants will post in the lobbies of each of the Properties such notice of meeting as the Plaintiffs
may provide.

156. The Plaintiffs reserve the right to withdraw or withhold their consent if the
comments regarding the Consent Decree disclose facts or considerations indicating that the
Consent Decree is inappropriate, improper, or inadequate.  Defendants consent to entry of this
Consent Decree without further notice and agree not to withdraw from or oppose entry of this
Consent Decree by the Court or to challenge any provision of the Decree, unless the Plaintiffs have
notified Defendants in writing that they no longer support entry of the Decree or only support entry
of a modified Decree.

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XXVI. SIGNATORIES/SERVICE

157. Each undersigned representative of Defendants, the U.S. Attorney for the Southern
District of New York, the undersigned representative of the New York State Office of the Attorney
General certifies that they are fully authorized to enter into the terms and conditions of this Consent
Decree and to execute and legally bind to this Consent Decree the Party that they represent.

158. This Consent Decree may be signed in counterparts, and its validity shall not be
challenged on that basis.  Defendants agree to accept service of process by the methods provided
in Section XIX (Notices) with respect to all matters arising under or relating to this Consent Decree
and to waive the formal service requirements set forth in Rules 4 and 5 of the Federal Rules of
Civil Procedure and any applicable Local Rules of this Court including, but not limited to, service
of a summons.

XXVII. INTEGRATION

159. Except for the Parties’ separate agreement regarding Financial Assurance (the
“Financial Assurance Agreement”), which remains in full force and effect, this Consent Decree
and its attachments constitute the final, complete, and exclusive agreement and understanding
among the Parties with respect to the settlement embodied in the Decree and supersedes all prior
agreements and understandings, whether oral or written, concerning the settlement embodied
herein.  Other than the Financial Assurance Agreement and deliverables that are subsequently
submitted and approved pursuant to this Decree, no other document, nor any representation,
inducement, agreement, understanding, or promise, constitutes any part of this Decree or the
settlement it represents, nor shall it be used in construing the terms of this Decree.

XXVIII. 26 U.S.C. SECTION 162(f)(2)(A)(ii) IDENTIFICATION

160. For purposes of the identification requirement in Section 162(f)(2)(A)(ii) of the
Internal Revenue Code, 26 U.S.C. § 162(f)(2)(A)(ii), and 26 C.F.R. § 1.162-21(b)(2),  Paragraphs
15, 27-96, 99, 125-127, and 130 is restitution, remediation, or required to come into compliance
with law.

XXIX. FINAL JUDGMENT

161. Upon approval and entry of this Consent Decree by the Court, this Consent Decree
shall constitute a final judgment of the Court as to the Plaintiffs and Defendants.  The Court finds
that there is no just reason for delay and therefore enters this judgment as a final judgment under
Fed. R. Civ. P. 54 and 58.

XXX. APPENDICES

162. The following Appendices are attached to and part of this Consent Decree:

Appendix A: List of Lilmor-Managed Properties LLCs

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Appendix B: List of Previously Transferred Properties

Appendix C: List of Properties.

Appendix D: List of Excluded Multifamily Properties

Appendix E: List of Excluded Single Family Properties

Appendix F: Notice Titled “Last Chance to Receive Court-Ordered Repairs”

Appendix G: HPD Letter Agreement

Appendix H: Checklist for Renovations Regulated by the RRP Rule

Appendix I: Notice of Settlement and Right to Comment

Dated and entered this      day of __________, 2024

__________________________________

UNITED STATES DISTRICT JUDGE

47

FOR THE UNITED STATES OF AMERICA:

Dated: New York, New York  DAMIAN WILLIAMS
December 13, 2024  United States Attorney for the

Southern District of New York
Attorney for Plaintiff the United States of America

By:  ______________________________
ZACHARY BANNON
JACOB LILLYWHITE
Assistant United States Attorneys
86 Chambers Street, 3rd Floor
New York, New York 10007
Telephone: (212) 637-2728/2800
Facsimile: (212) 637-2717
E-mail:  [email protected]
              [email protected]

48

FOR THE U.S. ENVIRONMENTAL PROTECTION AGENCY:

Date

Date

_______________________________________
DAVID UHLMANN
Assistant Administrator

 Enforcement and Compliance Assurance
U.S. Environmental Protection Agency

_______________________________________
PAUL SIMON
Regional Counsel
U.S. Environmental Protection Agency, Region 2
290 Broadway
New York, NY 10007-1866

JEANNIE YU
Assistant Regional Counsel
U.S. Environmental Protection Agency, Region 2
290 Broadway
New York, NY 10007-1866

DAVID
UHLMANN

Digitally signed by DAVID
UHLMANN
Date: 2024.11.21 17:10:23
-05'00'

PAUL
SIMON

Digitally signed by PAUL
SIMON
Date: 2024.11.26
14:12:20 -05'00'

49

FOR THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT:

_______________________________________
Date LISA V. MULRAIN

Associate General Counsel for Finance, Procurement and
Administrative Law
U.S. Department of Housing and Urban Development
451 7th Street, SW
Washington, DC 20410

Date
LEE ANN RICHARDSON
Acting Assistant General Counsel for Administrative Law
U.S. Department of Housing and Urban Development
451 7th Street, SW
Washington, DC 20410

LEE RICHARDSON
Digitally signed by LEE
RICHARDSON
Date: 2024.11.12 11:20:47 -05'00'

LISA
MULRAIN

Digitally signed by
LISA MULRAIN
Date: 2024.11.12
14:39:34 -05'00'

Appendix A
Lilmor-Managed
Properties LLCs

Appendix B
Previously Transferred Properties

Appendix C
Properties

 192-198 Nagle Avenue, New York, NY 10034
 200-208 Nagle Avenue, New York, NY 10034
 776 Crown Street, Brooklyn, NY 11213
 200 East 19th Street, Brooklyn, NY 11226
 271 Parkside Avenue, Brooklyn, NY 1122
 1616 President Street, Brooklyn, NY 11213
 575 Herkimer Street, Brooklyn, NY 11213

354 E 21th Street Realty Corp.  354 East 21st Street, Brooklyn, NY 11226
P Bigg Realty LLC  2077 East 12th Street, Brooklyn, NY  11229
45-55 Realty LLC  45 Hawthorne Street, Brooklyn, NY 11225

55 Winthrop St LLC  55 Winthrop Street, Brooklyn, NY 11225
130 Clarkson Realty LLC  130 Clarkson Avenue, Brooklyn, NY 11226
250-251 E 29 Realty LLC  250 East 29th Street, Brooklyn, NY 11226

251 E 29 St LLC  251 East 29th Street, Brooklyn, NY 11226
1590 W 8 St LLC  1590 West 8th Street, Brooklyn, NY 11204

105 Ave P Realty LLC  105 Avenue P, Brooklyn, NY 11204
888 Realty LLC  888 Montgomery Street, Brooklyn, NY 11213

100 Linden Realty LLC  100 Linden Blvd, Brooklyn, NY 11226
131 Realty LLC  131 Lincoln Road, Brooklyn, NY 11225

C & Z Realty LLC  1629 West 10th Street, Brooklyn, NY 11223
2003 Realty LLC  2003 Avenue J, Brooklyn, NY 11210

1429 Carroll Street LLC  1429 Carroll Street, Brooklyn, NY 11213
59 Logan St LLC  59 Logan Street, Brooklyn, NY 11208

1269 E 18 Street Realty LLC  1269 East 18th Street, Brooklyn, NY 11230
334 Eastern Pkwy Realty LLC  334 Eastern Parkway, Brooklyn, NY 11225

840 Realty LLC  840 East 17th Street, Brooklyn, NY 11230

Appendix A
Lilmor-Managed
Properties LLCs

Appendix B
Previously Transferred Properties

Appendix C
Properties

1909 Realty LLC  1909 Quentin Road, Brooklyn, NY 11229
333 Realty LLC  333 Neptune Avenue, Brooklyn, NY 11235

1690 President Street LLC  1690 President Street, Brooklyn, NY 11213
645 Realty LLC  645 Ocean Parkway, Brooklyn, NY 11230
3402 Realty LLC  3402 Avenue I, Brooklyn, NY 11210
1439 Realty LLC  1439 Ocean Avenue, Brooklyn, NY 11230

103-35 120 St Realty LLC  103-35 120th Street, Richmond Hill, NY 11419
20-30 Merle Realty LLC  20-30 Merle Place, Staten Island, NY 10305

1921 Realty LLC  1921 Avenue I, Brooklyn, NY 11230
410 Westminster LLC  410 Westminster Road, Brooklyn, NY 11218
580-585 Realty LLC  585 East 16th Street, Brooklyn, NY 11226

  580 East 17th Street, Brooklyn, NY 11226
2251 Realty LLC  2251 81st Street, Brooklyn, NY 11214
209 Realty LLC  209 East 16th Street, Brooklyn, NY 11226

40-71 Realty LLC  40-71 Elbertson Street, Elmhurst, NY 11373
712 Realty LLC  712 East 27th Street, Brooklyn, NY 11210
723 Realty LLC  723 East 27th Street, Brooklyn, NY 11210
2420 Realty LLC  2420 Glenwood Road, Brooklyn, NY 11210
1684 Realty LLC  1684 West 10th Street, Brooklyn, NY 11223
1660 Realty LLC  1660 East 21st Street, Brooklyn, NY 11210

1011 Neilson Realty LLC  1011 Neilson Street, Far Rockaway, NY 11691
1012 Nameoke Realty LLC  1012 Nameoke Street, Far Rockaway, NY 11691
1633 West 10th Realty LLC  1633 West 10th Street, Brooklyn, NY 11223

Alit Realty LLC  1902 Avenue L, Brooklyn, NY 11230
1301 Avenue K Realty LLC  1301 Avenue K, Brooklyn, NY 11230
1311 Avenue K Realty LLC  1311 Avenue K, Brooklyn, NY 11230

Appendix A
Lilmor-Managed
Properties LLCs

Appendix B
Previously Transferred Properties

Appendix C
Properties

E&S Realty Management LLC  1173 52nd Street, Brooklyn, NY 11219
915 84th Street LLC  915 84th Street, Brooklyn, NY 11228
2001 Avenue P LLC  2001 Avenue P, Brooklyn, NY 11229

2065 Ocean Avenue LLC  2065 Ocean Avenue, Brooklyn, NY 11230

Appendix D – Excluded Multifamily Properties

1599 West 10th Street, Brooklyn, New York 11204

1901 Avenue P, Brooklyn, New York 11229

Appendix E – Excluded Single-Family Properties

1040 East 24th Street, Brooklyn, New York 11210

1052 East 24th Street, Brooklyn, New York 11210

Appendix F to the Consent Decree in
United States of America, et al. v. Lilmor Management LLC, et al., No. __ Civ. ____ (___) (S.D.N.Y.)

LAST CHANCE TO RECEIVE
COURT-ORDERED REPAIRS

Pursuant to a federal court order and a settlement with the United

States of America and the State of New York, the property manager
Lilmor Management LLC and the owner of your apartment building are
currently required to perform the following repair, maintenance, or
renovation work in your apartment, at no cost to you:

• [LIST DEFERRED WORK FOR THAT UNIT]

This is your last chance to have this work performed under that

court order.  Please contact [identity of housing specialist] immediately at
either [email address] or [phone number] to schedule this work.  [Housing
specialist] will work with your building owner or property manager to
schedule the work at a time that is convenient for you and your family.

If you do not contact [housing specialist] by [date no less than
sixty days from mailing of notice], you will lose your right to these
repairs under the terms of the court order.

 If you have questions, or if you want additional information, please
contact [housing specialist] or visit [housing specialist website].  This
court order was entered in the lawsuit United States of America, et al. v.
Lilmor Management LLC, et al., No. __ Civ. ____ (S.D.N.Y.)

952024

Appendix G to the Consent Decree in
United States of America, et al. v. Lilmor Management LLC, et al., No. __ Civ. __(___) (S.D.N.Y.)

[HPD letterhead]

        [Date]
Jacob Laufer, P.C.
65 Broadway, Suite 1005
New York, NY  10006

RE: United States of America, and People of the State of New York, by Letitia James, Attorney

General of the State of New York v.  Lilmor Management, LLC, and Morris Lieberman, et
al., No. __Civ.___  (    )(S.D.N.Y).

 The following constitutes a “letter agreement” between the New York City Department

of Housing Preservation and Development (“HPD”) and the Defendants intended to resolve and

bind HPD on certain claims that are being settled in United States of America and People of the

State of New York by Letitia James, Attorney General of the State of New York v.  Lilmor

Management, LLC, and Morris Lieberman, et al., No. __Civ.___ (    )(S.D.N.Y).1

The undersigned, Martha Ann Weithman, is the Assistant Commissioner of the Housing

Litigation Division, Office of Enforcement and Neighborhood Services at the New York City

Department of Housing Preservation and Development (“HPD”) and is duly authorized to

resolve and bind HPD with respect to all outstanding claims to civil penalties HPD may have

against Defendants relating to any Notice of Violation issued pursuant to the N.Y.C Housing

Maintenance Code in the buildings listed in Appendix C to this agreement.

1 The term “Defendants” is the same definition used in the Consent Decree settling United States of
America and People of the State of New York by Letitia James, Attorney General of the State of New York
v. Lilmor Management, LLC, and Morris Lieberman, et al., CV Index #        .  For the avoidance of doubt,
nothing in this agreement waives HPD’s potential civil penalties’ claims against any subsequent owner of
the Previously Transferred Properties listed at Appendix B to the Consent Decree.

24 9520

HPD agrees to accept the monetary terms of the Consent Decree entered into in this case,

by the State of New York, as full satisfaction of all claims for civil penalties for violations of the

NYC Housing Maintenance Code and/or the New York City Childhood Lead Poisoning

Prevention Act. (Administrative Code of the City of NY, tit 27, ch.2, subch. 2, art. 14, §27-

2056.1-2056.18 and the New York City Asthma Free Housing Act, Local Law 55 of 2018

(Administrative Code of the City of NY, tit. 27, ch.2, subch. 2, art. 4 §27-2017-2019) issued

against the Defendants at the buildings listed at Appendices B&C through the effective date of

the Consent Decree.  For the sake of clarity, this satisfaction does not extend to the settlement or

waiver of any fees and charges separately imposed by HPD (e.g.  for costs for past or current

work being done by HPD’s Emergency Repair Program, the Alternative Enforcement Program

or another HPD enforcement program) not representing the potential civil penalties that derive

from a particular HMC violation.  Nor does the waiver include those civil penalties which have

already been reduced to a judgment (whether paid or unpaid) and shall not affect Defendants’

obligation to satisfy such charges and judgments.

HPD further agrees not to seek civil penalties for violations that were issued and existed

prior to the effective date of the Consent Decree and that may remain open after the effective

date of the Consent Decree during the 180-day period when Defendants will be undertaking

correction of existing violations.2

HPD also agrees not to seek collection of  civil penalties which may accumulate after the

effective date of the Consent Decree for any Record Production Order (“RPO”) violation that

2 This does not limit HPD’s ability to seek injunctive relief in the form of an Order to Correct,
should hazardous or immediately hazardous conditions exist related to these existing violations,
during this period.  Under the explicit terms of the Consent Decree, Defendants remain
responsible for complying with timeframes for correction of HMC violations under local law.

existed prior to the effective date of the Consent Decree,  as long as in seeking administrative

dismissal of those existing RPO violations during the 180 day period under the Consent Decree,

Defendants’  produce required records kept in the year immediately prior to  the effective date of

the Consent Decree and thereafter have complied with the retaining of records  Under these

circumstances, no administrative fees will be imposed to obtain dismissal of these existing RPO

violations.

In seeking administrative dismissal of any new RPO violation that may be imposed by

HPD after the effective date of the Consent Decree, for conditions that specifically existed before

the Consent decree’s effective date, Defendants shall similarly produce records for the one year

prior to the effective date of the Consent Decree and subsequent consecutive records without

incurring any additional administrative fees as a condition of RPO violation dismissal.

However, for the sake of clarity, to obtain clearance of any future RPO violations that are not

related to past record keeping claims arising under the Consent Decree, Defendants will be

required to comply with all terms of Local Law 122, including resolution of civil penalties and/or

payment of administrative fees, to obtain dismissal.

 This constitutes the full agreement of HPD to fully and satisfactorily resolve the claims

raised by the State of New York in United States of America and People of the State of New York

by Letitia James, Attorney General of the State of New York v.  Lilmor Management LLC and

Morris Lieberman, et al., No. __Civ.___ (    )(S.D.N.Y).  that HPD could have pursued

themselves.

__________________________________
    Martha Ann Weithman, Assistant Commissioner

     Housing Litigation Division,
Office of Enforcement and Neighborhood Services
Department of Housing Preservation & Development

Appendix H

CHECKLIST FOR RENOVATIONS REGULATED
BY THE LEAD RENOVATION, REPAIR, AND

PAINTING (RRP) RULE

CHECKLIST FOR RENOVATIONS REGULATED BY THE RRP RULE

I  PURPOSE

To facilitate the documentation of compliance with the U.S. Environmental Protection Agency’s Lead Renovation,
Repair, and Painting (RRP) Rule 40 C.F.R. Part 745, Subpart E, or any applicable U.S. EPA-Authorized State or Tribal
program regulating lead-based paint safe work practices. Not all aspects of compliance with the Rule can be fully
captured with a checklist and additional logs, records and photos may need to be kept. In addition, any
discrepancy between the requirements in this document and the RRP Rule, the RRP Rule prevails.1

II  GENERAL PROJECT INFORMATION:

Property Address: _______________________________________________________________

_____________________________________________________________________________________
                            City                                                               State                                                Zip

Property Owner: _______________________________________________________________________

Address: _____________________________________________________________________

City:                    State:             Zip code:      Phone: (   ) ______________

Email: ________________________________

Contractor/subcontractor firm name and RRP certification number (copy of the firm certificate must
be kept in project file):

Firm Name Certification Number       Expiration date

Assigned EPA-certified Renovator name & certification number (copy of training certificate must be
available on the work site and kept in project file):

___________________________________________________________________________________________
Renovator Name Certification Number  Expiration date

Project Start Date: _________________________ Expected Completion Date: ________________________

Brief description of Renovation Project (include painted surfaces disturbed and estimated square footage of
paint to be disturbed):

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

1 Use of the checklist is intended as an adjunct to the requirements of 40 C.F.R. Part 745 and an aid to future compliance therewith. Adherence to the

provisions of the checklist shall not be a substitute for compliance with the provisions of 40 C.F.R. Part 745 nor provide a defense to the failure to do
so.

Checklist for Renovations Regulated by the RRP Rule  Page 2 of 6

________________________________________________________________________________________

 Contractor has reviewed scope of work and has secured sufficient supplies to perform all required
activities covered in this checklist.

III  LEAD TESTING INFORMATION [40 C.F.R. § 745.82(a)] Select A or B below:

______A) Testing for lead was performed to exclude components from the RRP Rule.
Check one of the following boxes and attach documentation.

 A written determination from an EPA-certified Inspector or Risk Assessor that the
components affected by the renovation are free of paint or other surface coatings that
contain lead equal to or in excess of 1.0 mg/cm2 or 0.5% by weight.2

 The assigned certified Renovator, using an EPA-recognized test kit as defined in 40 C.F.R. §§
745.83 and 745.88, and following the manufacturer’s instructions, has tested each
component affected by the renovation and determined that the components are free of
paint or other surface coatings that contain lead equal to or in excess of 1.0 mg/cm2 or
0.5% by weight.

______B) Testing was not performed.

IV  EMERGENCY RENOVATIONS [40 C.F.R. § 745.82(B)]

______A) Renovation qualifies as an Emergency Renovation.
Describe emergency situation and continue to Section VI:

_______________________________________________________________________________

_______________________________________________________________________________

______B) Renovation does not qualify as an Emergency Renovation.

V  INFORMATION DISTRIBUTION REQUIREMENTS [40 C.F.R. § 745.84]

______A) Renovations in dwelling units.

 The property owner was provided with the Renovate Right Pamphlet and (select one):

 A written acknowledgment3 of receipt was obtained and is kept in the project file.

 A Pamphlet was delivered to the owner by certified mail at least seven (7) days prior to
the start of the renovation, and the certificate of mailing is kept in the project file.

 If the unit is not owner-occupied, Distribution to occupants was ALSO made by (select
one):

 An adult occupant was provided with the Renovate Right Pamphlet and a written

2 Under local law in New York City, the definition of lead-based paint is more stringent—0.5 mg/ cm2 as determined by laboratory analysis or by an
x-ray fluorescence analyzer.  See NYC Admin. Code § 27-2056.2(7)(b).  If you would like to access sample compliance forms designed to ensure
your compliance with New York City’s lead-based paint laws, you can access them under the “Owner Recordkeeping Responsibilities” menu at
the following link: https://www.nyc.gov/site/hpd/services-and-information/lead-based-paint.page.

3 The written acknowledgement must include a statement recording the owner or occupant’s name and acknowledging receipt of the pamphlet prior
to the start of renovation, the address of the unit undergoing renovation, and the signature of the owner or occupant and the date of signature. It
must be written in the same language as the text of the contract or agreement for the renovation or, in the case of non-owner-occupied unit, the
same language as the lease or rental agreement or the pamphlet.

https://www.nyc.gov/site/hpd/services-and-information/lead-based-paint.page

Checklist for Renovations Regulated by the RRP Rule  Page 3 of 6

acknowledgment of receipt was obtained and is kept in the project file.

 A Pamphlet was delivered to the unit by certified mail at least seven (7) days prior
to the start of the renovation, and a written acknowledgment of receipt was
obtained and is kept in the project file.

 A Pamphlet was delivered to the unit by certified mail at least seven (7) days prior
to the start of the renovation, but the firm performing the renovation was
unsuccessful in obtaining a written receipt. A written certification that includes: the
address of the unit, the date and method of delivery of the pamphlet (including
certified mailing documentation), names of the person(s) delivering the pamphlet,
reason for lack of acknowledgment, and signature of a firm representative with
date of signature is kept in the project file.

 No regulated renovations in dwelling units.

______B) Renovations in common areas.

 The property owner was provided with the Renovate Right Pamphlet and (select one)

 A written acknowledgment of receipt was obtained and is kept in the project file.

 A Pamphlet was delivered to the owner by certified mail at least seven (7) days prior to
the start of the renovation, and the certificate of mailing is kept in the project file.

And one of the following:

 A written notice was distributed to each affected unit describing the general nature and
locations of the planned renovation activities including expected start and end dates,
information on how occupants can obtain the Pamphlet and a copy of the final records
required by 745.86(c) and (d) at no cost.  A copy of the written notice is kept in the file.

 Informational signs were posted at all times during the renovation describing the
project, renovation locations, and the anticipated end date. Signs are posted in areas
where they are likely to be seen by the occupants of all affected units and are
accompanied by a posted copy of the Pamphlet or information on how interested
occupants can review or obtain a copy. Information on how occupants can review or
obtain a free copy of the records required by 745.86 (c) and (d) are also included.

 No regulated renovations in common areas.

______C) Renovations are in Child-Occupied Facilities (COF).

 The property owner was provided with the Renovate Right Pamphlet and either a written
acknowledgment of receipt was obtained and is kept in the project file or a certificate of
mailing at least seven (7) days prior to the start of the renovation is kept in the project file.

 If the COF is not the owner of the building, an adult representative of the COF was provided
with the Pamphlet and (select one of the following)

 A written acknowledgment4 of receipt was obtained and is kept in the project file.

 A written certification statement that the Pamphlet was delivered to the facility
that includes the address of the COF, date and method of delivery of the Pamphlet,
names of the persons delivering the Pamphlet, reason for the lack of
acknowledgment, if any, the signature of a representative of the renovation firm,

4 The written acknowledgement must include a statement recording the owner or occupant’s name and acknowledging receipt of the pamphlet prior
to the start of renovation, the address of the unit undergoing renovation, and the signature of the owner or occupant and the date of signature. It
must be written in the same language as the text of the contract or agreement for the renovation or, in the case of non-owner-occupied unit, the
same language as the lease or rental agreement or the pamphlet.

Checklist for Renovations Regulated by the RRP Rule  Page 4 of 6

and date of said signature. A copy of the written notice is kept in the file.

 Parents and guardians of children using the COF have been provided with the Pamphlet,
information describing the renovation, and information on how to review a copy of the
records required by 745.86(c) and (d) by (select one of the following):

 Mailing or hand delivering the Pamphlet and renovation information to each parent
or guardian of a child using the COF.

 Posting signs during the renovation that describe the renovation, including locations
and anticipated completion dates, in areas where they can be seen, along with a
posted copy of the Pamphlet or how interested parties can review or obtain a copy.
Information on how occupants can review a copy at no cost of the records required by
745.86 (c) and (d) are also included.

 No COF undergoing regulated renovations.

VI  WORK PRACTICE STANDARDS [40 C.F.R. § 745.85]

______A) Occupant Protection – Signs have been posted clearly defining the work area and warning occupants
and other persons not involved in renovation activities to remain outside of the work area.
 Primary language of occupants is not English, signs posted in ______________ language.

______B) Containing the Work Area – Before beginning the renovation, the work area has been isolated so that
no dust or debris leaves the area while the renovation is ongoing.

______C) Integrity of containment is maintained throughout the renovation.

______D) Interior Renovations:

 All objects in the work area are removed or covered.

 HVAC ducts in the work area are closed and covered.

 Windows in the work area are closed.

 Doors in the work area are closed and sealed. Doors that must be used in the work area are
covered to allow passage but prevent spread of dust.

 Floors in the work area are covered with taped-down plastic sheeting or other impermeable
material 6 feet beyond the perimeter of surfaces undergoing renovation.

 All personnel, tools, and other items, including exteriors of waste containers are free of dust and
debris before leaving the work area.

______E) Exterior Renovations

 Windows in and within 20 feet of the work area are closed.

 Doors in and within 20 feet of the work area are closed and sealed.

 Ground is covered by plastic extending 10 feet from work area.

 Vertical containment is installed when property line prevents 10 feet of ground covering or when
necessary to prevent migration of dust and debris to adjacent property.

VII  RESTRICTED PRACTICES5 USED CORRECTLY [40 C.F.R. § 745.85(a)(3)]

______A) Machines designed to remove paint or other surface coatings through high-speed operations such as
sanding, grinding, power planing, needle gun, abrasive blasting, or sandblasting have shrouds or
containment systems and are equipped with a HEPA vacuum attachment to collect dust and debris at
the point of generation. These machines are operated so that no visible dust or release of air occurs
outside the shroud or containment system.

______B) A heat gun operating at temperatures below 1,100 degrees Fahrenheit is being used.

5 Restricted practices include the use of high-speed operation machines and heat guns.

Checklist for Renovations Regulated by the RRP Rule  Page 5 of 6

VIII  RENOVATION WASTE [40 C.F.R. § 745.85(a)(4)]

 Waste is contained on-site before removal from the work area, during removal from the work
area and while being transported off-site.

 A chute is used, and the chute is covered.

 Waste that is collected from renovation activities at the end of each workday is stored under
containment, in an enclosure, or behind a barrier that prevents release of and access to dust and
debris.

 Waste transported from renovation activities is contained to prevent release of dust and debris.

IX  WORK AREA CLEANING [40 C.F.R. § 745.85(a)(5)]

 All paint chips and debris are picked up and sealed in heavy-duty bags.

 Protective sheeting is misted and folded, dirty side inward, sealed, and disposed as waste.

 All objects and surfaces in interior work areas and within 2 feet of the work areas are cleaned
from higher to lower in the following manner:

 Walls: start at the ceiling and work down to the floor by either vacuuming with a HEPA
filter or wiping with a damp cloth.

 All remaining surfaces and objects in the work area were thoroughly vacuumed, including
furniture and fixtures, with a HEPA vacuum, and - except for carpet and upholstered
surfaces- wiped with a damp cloth.

 Floors were mopped using a wet-mopping system or 2-bucket mopping method.

X  POST-RENOVATION CLEANING VERIFICATION [40 C.F.R. § 745.85(b)]

 Interior Renovations:

 The assigned certified Renovator performed a visual inspection until no dust, debris or
residue is present.

 The assigned certified Renovator wiped windowsills, uncarpeted floors, and countertops
within the work area with a wet disposable cleaning cloth using the procedures outlined
in 40 C.F.R. 745.85(b).

 Exterior Renovations:

 The assigned certified Renovator performed a visual inspection until no dust, debris or
residue is present.

 Dust clearance testing [40 C.F.R. § 745.85(c)] was performed in lieu of post renovation
cleaning by an EPA-certified inspector, risk assessor, or dust sampling technician and was
done in accordance with 745.85(c). A copy of the report is attached.

XI  Actual Project Completion Date: _______________________

XII Required Records [40 C.F.R § 745.86] kept with project file for a period of three (3) years:

 Determinations that lead-based paint was not present on affected components.

 Notification records including acknowledgments of Pamphlet receipt.

 Documentation of compliance with the work practice requirements of 40 C.F.R. § 745.85.

 Documentation that the assigned certified Renovator was assigned, and the following
responsibilities were met:

 The assigned certified Renovator provided training to workers on the work practice
requirements of § 745.85. [745.90(b)(2)] See separate training records for each
worker trained.

 The assigned certified Renovator was physically present when signs were posted,

Checklist for Renovations Regulated by the RRP Rule  Page 6 of 6

work area containment was established, and while the work area cleaning was
performed.

 The assigned certified Renovator regularly directed work performed by other
workers, maintained containment integrity, and was available, either on-site or by
phone, at all times during the renovation.

 The assigned certified Renovator performed the post-renovation cleaning verification
as described in 40 C.F.R. § 745.85(b).

 The assigned certified Renovator prepared the records required by § 745.86(b)(1)(ii)
and (6).

_____ A copy of this completed checklist was provided to the owner of the building, and if

different, the adult occupant, in accordance with 40 C.F.R. § 745.86(c)(2).

Completed by:

____________________________________
Company Name

         ____________________________________        ___________________________________

Name (printed)                     Title

____________________________________
Signature

Appendix I to the Consent Decree in
United States of America, et al. v. Lilmor Management LLC, et al., No. __ Civ. ____ (___) (S.D.N.Y.)

NOTICE OF SETTLEMENT
AND RIGHT TO COMMENT

 You are receiving this notice because you have lived at [FILL IN BUILDING
ADDRESS].  The United States of America and the State of New York recently signed a
settlement agreement resolving civil claims with a property manager (Lilmor Management
LLC) and property owners concerning conditions in fifty-six buildings, including your
building.  These claims concern noncompliance with federal and local lead-based paint
safety laws and other unsafe living conditions in these apartment buildings since 2012.
Before seeking approval from a federal court, the federal government is seeking comments
on this proposed settlement.  If approved, the settlement would require the property
manager and owners, among other things, to:

• Create a $2.925 million New York State fund, to pay compensation to tenants
who faced substandard living conditions in these buildings since 2012.

• Inspect apartments in buildings currently owned by these landlords for lead-
based paint and lead-based paint hazards; eliminate all lead-based paint
hazards; and remove or otherwise abate all lead-based paint.

• Inspect apartments in buildings currently owned by these landlords for, and
eliminate, all unsafe living conditions, like widespread and recurring mold
or infestations of vermin or pests.

• Cooperate with a “Housing Specialist” firm selected by the United States and
New York to supervise compliance with the settlement’s requirements; and

• Pay a penalty of $3.25 million to the United States of America and a
$325,000 penalty to New York City.

The United States is accepting comments on the proposed consent decree, before
seeking court approval.  If you would like to provide a comment, please send it by email
to [email protected] or by mail to Assistant Attorney General, U.S. DOJ—
ENRD, P.O. Box 7611, Washington, DC, 20044–7611, no later than [DATE].  Please write
“Lilmor Settlement, DJ No. 90-5-1-1-11797” on your comment.  Any comments submitted
in writing may be filed by the United States in whole or in part on the public court docket
without notice to the commenter.

A full version of the consent decree is available at
https://www.justice.gov/enrd/consent-decrees  during the comment period.

952024

mailto:[email protected]
https://www.justice.gov/enrd/consent-decrees

	I. RECITALS
	II. JURISDICTION AND VENUE
	III. ADMISSIONS
	IV. DEFINITIONS
	V. APPLICABILITY
	VI. TRANSFERS OF INTEREST
	VII. PENALTY AND RESTITUTION PAYMENT
	VIII. HOUSING SPECIALIST
	IX. INJUNCTIVE REQUIREMENTS
	X. RESTITUTION FUND
	XI. DEFENDANTS’ REPORTING REQUIREMENTS
	XII. APPROVAL OF PLAN AND OTHER DELIVERABLES; PERMITS
	XIII. STIPULATED PENALTIES
	XIV. FORCE MAJEURE
	XV. DISPUTE RESOLUTION
	XVI. INFORMATION COLLECTION AND RETENTION
	XVII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS
	XVIII. COSTS
	XIX.  NOTICES
	XX. EFFECTIVE DATE
	XXI. RETENTION OF JURISDICTION
	XXII. MODIFICATION
	XXIII. CERTAIN REPRESENTATIONS AND WARRANTIES
	XXIV. PROPERTY REMOVAL AND TERMINATION
	XXV. PUBLIC PARTICIPATION
	XXVI. SIGNATORIES/SERVICE
	XXVII. INTEGRATION
	XXVIII. 26 U.S.C. SECTION 162(f)(2)(A)(ii) IDENTIFICATION
	XXIX. FINAL JUDGMENT
	XXX. APPENDICES
	2024.11.01 Appendix H.pdf
	Enhanced RRP Checklist.pdf
	Enhanced Checklist for Renovations Regulated by the RRP Rule
	V  INFORMATION DISTRIBUTION REQUIREMENTS [40 C.F.R. § 745.84]

	RRP Checklist_02-07-24.pdf
	Checklist for Renovations Regulated by the RRP Rule
	V  INFORMATION DISTRIBUTION REQUIREMENTS [40 C.F.R. § 745.84]

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK 

UNITED STATES OF AMERICA, and 
PEOPLE OF THE STATE OF NEW YORK, 
by LETITIA JAMES, Attorney General of the 
State of New York 

Plaintiffs, 

v. 

LILMOR MANAGEMENT LLC and MORRIS 
LIEBERMAN, et al.,  

Defendants. 

24 Civ. _______ 

CONSENT DECREE 

9520

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ii 

TABLE OF CONTENTS 

I. RECITALS ................................................................................................................................ 1
II. JURISDICTION AND VENUE ................................................................................................ 2
III. ADMISSIONS........................................................................................................................... 2
IV. DEFINITIONS .......................................................................................................................... 5
V. APPLICABILITY ................................................................................................................... 11
VI. TRANSFERS OF INTEREST ................................................................................................ 12
VII. PENALTY AND RESTITUTION PAYMENT ...................................................................... 13
VIII. HOUSING SPECIALIST ........................................................................................................ 14
IX. INJUNCTIVE REQUIREMENTS .......................................................................................... 17
X. RESTITUTION FUND ........................................................................................................... 31
XI. DEFENDANTS’ REPORTING REQUIREMENTS .............................................................. 31
XII. APPROVAL OF PLAN AND OTHER DELIVERABLES; PERMITS ................................. 32
XIII. STIPULATED PENALTIES .................................................................................................. 33
XIV. FORCE MAJEURE ................................................................................................................. 34
XV. DISPUTE RESOLUTION ...................................................................................................... 35
XVI. INFORMATION COLLECTION AND RETENTION .......................................................... 37
XVII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS ............................................... 39
XVIII. COSTS .................................................................................................................................... 40
XIX. NOTICES ................................................................................................................................ 40
XX. EFFECTIVE DATE ................................................................................................................ 42
XXI. RETENTION OF JURISDICTION ........................................................................................ 42
XXII. MODIFICATION .................................................................................................................... 42
XXIII. CERTAIN REPRESENTATIONS AND WARRANTIES ..................................................... 42
XXIV. PROPERTY REMOVAL AND TERMINATION ................................................................. 43
XXV. PUBLIC PARTICIPATION .................................................................................................... 44
XXVI. SIGNATORIES/SERVICE ..................................................................................................... 45
XXVII. INTEGRATION ...................................................................................................................... 45
XXVIII. 26 U.S.C. SECTION 162(F)(2)(A)(II) IDENTIFICATION ................................................... 45
XXIX. FINAL JUDGMENT ............................................................................................................... 45
XXX. APPENDICES ......................................................................................................................... 45

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I. RECITALS 

1. WHEREAS, plaintiffs United States of America (“United States”) and People of 
the State of New York (“State”) have filed a complaint (the “Complaint”) asserting their respective 
claims against defendants Lilmor Management, LLC (“Lilmor”), Morris Lieberman, (Morris 
Lieberman, together with Lilmor, the “Lilmor Defendants”), and the entities listed in Appendix A 
(together with the Lilmor Defendants, “Defendants”). 

2. WHEREAS, the United States on behalf of the U.S. Environmental Protection 
Agency (“EPA”) and the U.S. Department of Housing and Urban Development (“HUD”) asserts 
in the Complaint that, between 2012 and the present, Defendants have routinely violated the Lead 
Disclosure Rule, 24 C.F.R. Part 35, Subpart A, and 40 C.F.R. Part 745, Subpart F, and therefore 
Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C. § 
4852d, and Section 409 of the Toxic Substances Control Act (“TSCA” or the “Act”), 15 U.S.C. § 
2689, by, among other things, failing to provide tenants entering new and (where required) renewal 
leases with (i) known information relating to lead-based paint or lead-based paint hazards and/or 
(ii) records in the possession or control of Defendants relating to lead-based paint or lead-based 
paint hazards. 

3. WHEREAS, the United States on behalf of EPA further asserts in the Complaint 
that Defendants have violated the Renovation, Repair, and Painting Rule (“RRP Rule”) and 
therefore TSCA by, among other things: (i) between 2012 and the present, allowing 
superintendents employed by Lilmor to conduct renovations subject to the RRP Rule without 
appropriate firm or renovator certifications and without maintaining records required to be 
maintained by the RRP Rule; and (ii) between 2015 and 2020, employing and controlling the work 
of entities for large-scale renovation projects that lacked appropriate firm or renovator 
certifications and failed to maintain records required to be maintained by the RRP Rule. 

4. WHEREAS, the United States also alleges in the Complaint that Defendants have 
maintained a public nuisance relating to substandard conditions in housing owned or controlled by 
Defendants.  

5. WHEREAS, the United States further asserts that Defendants are liable for civil 
administrative penalties to EPA and HUD pursuant to 15 U.S.C. § 2615 and 42 U.S.C. § 4852d, 
on account of the violations of the Lead Disclosure Rule alleged in the Complaint, and to EPA 
pursuant to 15 U.S.C. § 2615, on account of the violations of the Renovation, Repair, and Painting 
Rule alleged in the Complaint. 

6. WHEREAS, the State alleges in the Complaint, pursuant to its N.Y. Exec. Law § 
63(12) authority, that Defendants have repeatedly and persistently violated the N.Y.C. Housing 
Maintenance Code (“HMC”) (N.Y.C. Admin. Code §§ 27¬-2001 et seq.; “Lead Poisoning 
Prevention and Control”, N.Y.C. Admin. Code §§ 27-2056.1–2056.18 [a/k/a “The New York City 
Childhood Lead Poisoning Prevention Act”, Local Law 1 of 2004]; “Control of Pests and Other 
Asthma Allergen Triggers,” §§ 27-2017–2019 [a/k/a “The New York City Asthma Free Housing 
Act”, Local Law 55 of 2018]); “Consumer Protection from Deceptive Acts and Practices,” N.Y. 
Gen. Bus. Law§ 349, and “Warranty of Habitability,” N.Y.  Real Prop. Law, § 235-b by, among 

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2 

other things, failing to timely and correctly address substandard conditions, including, but not 
limited to, lead paint and indoor allergen triggers such as mold, and vermin infestations; by failing 
to properly follow local law relating to lead paint remediation, disclosure, certification, annual 
inquiry, investigations and record keeping as well as requirements for addressing indoor allergen 
triggers. Defendants are therefore liable for civil penalties and restitution damages pursuant to the 
local and state laws and rules described herein. 

7. WHEREAS, to avoid the time, expense, and burden of litigation, the Parties wish 
to resolve all of the United States’ and the State’s claims brought in this action by willingly 
entering into this Consent Decree. 

8. WHEREAS, the Parties recognize, and the Court by entering this Consent Decree 
finds, that this Consent Decree has been negotiated in good faith by the Parties and is fair, 
reasonable, and in the public interest. 

NOW, THEREFORE, with the consent of the Parties, IT IS HEREBY ADJUDGED, 
ORDERED, AND DECREED as follows: 

II. JURISDICTION AND VENUE 

9. This Court has jurisdiction over the subject matter of this action pursuant to 28 
U.S.C. §§ 1331, 1345, 1367, 15 U.S.C. § 2616, and 42 U.S.C. § 4852d.     

10. The Court has personal jurisdiction and venue lies in this District because all 
Defendants reside in this state and Defendant Lilmor resides in this district within the meaning of 
28 U.S.C. § 1391(b)(1) and (c)(2).  For purposes of this action and Decree, or any action to enforce 
this Decree, the Parties consent to the Court’s jurisdiction and to venue in this judicial district. 

III. ADMISSIONS 

11. The Lilmor Defendants admit, acknowledge, and accept responsibility for the 
following: 

a. Defendants own, control, or manage, in whole or in part, 49 residential 
buildings containing 2,539 units in New York City, all of which were built 
prior to 1978. 

b. Government records show that, since 2012, more than 130 children have 
tested positive for elevated blood lead levels while living in an apartment 
owned or controlled by one or more of the Defendants.   

Disclosures and Lead Hazard Prevention  

c. Prior to November 2020, the Lilmor Defendants failed to provide tenants 
entering new and renewal leases with (i) known information relating to lead-
based paint or lead-based paint hazards and/or (ii) records in the possession 

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3 

or control of Defendants relating to lead-based paint or lead-based paint 
hazards, as required by the federal Lead Disclosure Rule. 

d. From at least the beginning of 2015 through at least the end of 2017, 
Defendants failed to keep evidence of the “Annual Notice for Prevention of 
Lead Based Paint Hazards – Inquiry Regarding Child” that they allege they 
provided to their tenants, as required by The New York City Childhood 
Lead Poisoning Prevention Act. 

e. In hundreds of the apartments it rented, the Lilmor Defendants knew of 
lead-based paint or previous lead-based paint hazards because of prior lead-
based paint hazard violations issued by the New York City Department of 
Housing Preservation and Development (“HPD”) or the New York City 
Department of Health and Mental Hygiene (“DOHMH”), but the Lilmor 
Defendants did not disclose this fact to tenants as required by the Lead 
Disclosure Rule and the NYC Childhood Lead Poisoning Prevention Act.  

f. Prior to the dates upon which government records show that children tested 
positive for elevated blood lead levels while residing in Defendants’ 
apartments, Defendants had received citations for lead-based paint hazard 
violations from HPD or DOHMH for at least eighteen of these apartments 
but the Lilmor Defendants did not disclose the fact that these apartments 
contained lead-based paint to the tenants when they signed their leases or 
lease renewals. 

Inspections, Inquiries, and Remediation 

g. From at least 2015 to at least 2019, the Lilmor Defendants conducted no 
annual inquiries or investigations, as required by the NYC Childhood Lead 
Poisoning Prevention Act, to determine if a child under six years old resided 
in the apartments they rented. Since 2020, the Lilmor Defendants failed to 
conduct satisfactory annual investigations to determine if a child under six 
years old resided in the apartments. 

h. The Lilmor Defendants have in the past systematically failed, in violation 
of The New York City Childhood Lead Poisoning Prevention Act, to 
conduct annual inspections of apartments, including instances where the 
Lilmor Defendants had received notice that children under 6 years of age 
resided.  

i. The Lilmor Defendants have also, in the past, systematically failed to 
conduct proper lead paint inspection and remediation when apartments were 
vacated and turned over before new tenants moved in, as required by The 
New York City Childhood Lead Poisoning Prevention Act.  Because the 
Lilmor Defendants failed to conduct proper turnover work, they failed to 
properly certify in initial leases with new tenants that turnover work was 

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4 

done in compliance with the local law, as required by The New York City 
Childhood Lead Poisoning Prevention Act. 

Lead-Safe Work Practices 

j. The Lilmor Defendants lacked federal certification to conduct repairs and 
renovations that required lead-safe work practices pursuant to the RRP 
Rule, did not provide its maintenance staff with equipment necessary to 
perform RRP-Rule-compliant work, and did not train its maintenance staff 
on lead-safe work practices.  The Lilmor Defendants provided no 
instructions to its maintenance staff to prevent them from conducting work 
that was required to be performed in accordance with lead-safe work 
practices.  The Lilmor Defendants’ work-order database nevertheless 
reflects that work subject to the RRP Rule was conducted by the Lilmor 
Defendants’ maintenance staff.   

k. By failing to conduct repairs and renovations pursuant to the federal RRP 
Rule and other EPA requirements, the Lilmor Defendants also violated the 
requirements for lead safe work required by The New York City Childhood 
Lead Poisoning Prevention Act.  

l. Through at least 2020, the Lilmor Defendants failed to follow lead-safe 
work practices required by federal and local law in covered repair and 
renovation projects for which the Lilmor Defendants engaged an entity that 
worked solely or principally for the Lilmor Defendants. The Lilmor 
Defendants would assign work orders to this entity, an employee of the 
entity would send pictures of the work area to an employee of Lilmor, the 
employee of Lilmor would provide instructions on how to conduct the work, 
and the employee of the entity would take pictures once the work was 
completed and send them to the Lilmor employee for approval of the work.  
During this time, the entity did not employ lead-safe work practices.  
Furthermore, although Lilmor had arranged for this entity to receive EPA 
certifications required by the RRP Rule in 2010 and 2020, the entity was 
not certified to conduct work covered by the RRP Rule from 2015 to 2020. 

Indoor Allergen Hazard Prevention 

m. The Lilmor Defendants have failed to implement a comprehensive 
inspection plan for identifying and remediating indoor allergens, including 
mold and vermin hazards.  In violation of the New York City Asthma Free 
Housing Act, the Lilmor Defendants failed to: (i) annually inspect all 
apartments for indoor allergen hazards, including for pests and mold and 
keep records; (ii) properly remediate indoor allergen hazards using safe 
work practices as defined by the law; (iii) clean vacant units at turnover to 
ensure that they are free of pests and mold and using a HEPA vacuum where 
indicated; (iv) timely establish Integrated Pest Management plans, as 

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5 

required by law, in many buildings in the portfolio; (v) provide a copy of 
the NYC DOHMH Fact Sheet “What Tenants Should Know About Indoor 
Allergens (Local Law 55 of 2018)” with all tenants’ initial and renewal 
leases. 

Health and Safety Conditions  

n. In a period spanning from 2019 to the present, HPD issued violations to 
Defendants under applicable housing code provisions: 

(1) more than 966 times for lead-based paint hazards, 

(2) more than 2331 times for rodent or roach infestations, 

(3) more than 1492 times for leaks, 

(4) more than 1465 times for mold, and 

(5) more than 85 times for lack of heat. 

o. In a period spanning from 2019 to the present, 26 buildings Defendants 
own, control, or manage have been cited by HPD to be in violation of 
housing codes concerning living conditions like those above 100 times or 
more.   

p. In a period spanning from 2019 to the present, 25 buildings that Defendants 
own, control, or manage were cited by HPD to be in violation of housing 
codes concerning living conditions like those above two or more times per 

unit.   

IV. DEFINITIONS 

12. Terms used in this Consent Decree that are defined in applicable statutes or 
regulations promulgated pursuant to those statutes shall have the meanings assigned to them in the 
statutes or such regulations, unless otherwise provided in this Decree.  Where applicable local, 
state, or federal statutes or regulations contain different definitions of terms, the applicable 
standard will be the most restrictive of those definitions.  Whenever the terms set forth below are 
used in this Consent Decree, the following definitions shall apply: 

a. “Abatement” and methods of abatement including replacement, removal, 
enclosure, and encapsulation have the meanings provided in 24 C.F.R. 
§ 35.110 and 40 C.F.R. § 745.223. 

b. “Chewable, Friction, or Impact Surface” has the meaning of the definitions 
provided by NYC Admin. Code § 27-2056.2, 24 C.F.R. § 35.110, and 40 
C.F.R. § 745.63, as applicable.  

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6 

c. “Clearance Examination” means an activity conducted after performance of 
(i) Abatement activities or (ii) other paint-disturbing activities where 
clearance is required (including but not limited to, for federally subsidized 
units, the Lead Safe Housing Rule) to determine that those activities are 
complete and that no Lead-Based Paint Hazards exist, in accordance with 
Chapter 15 of the HUD Guidelines, the Lead Based Paint Activities Rule at 
40 C.F.R. § 745.227(e), the Lead Safe Housing Rule at 24 C.F.R. § 35.1340, 
and the New York City Childhood Lead Poisoning Prevention Act at N.Y.C. 
Admin. Code §§ 27-2056.1-2056.18. The appropriate clearance standards 
shall be the most restrictive of those set by: (i) N.Y.C. Admin. Code §§ 27-
2056.1-2056.18; (ii) Section 403 of TSCA and its implementing 
regulations, 40 C.F.R. Part 745, Subpart D; or (iii) the HUD Lead Safe 
Housing Rule, 24 CFR §§ 35.1320, 35.1340(d), where more than one 
provision is applicable. 

d. “Common Area” has the meaning provided by 40 C.F.R. § 745.103, 24 
C.F.R. § 35.86, and N.Y.C. Admin. Code § 27-2056.2, where applicable.   

e. “Complaint” means the complaint filed by the United States and the State 
in this action. 

f. “Completed Unit,” “Completed Common Area,” and “Completed Property” 
mean a Unit, Common Area, or Property that has achieved Work 
Completion; has been designated as a Completed Unit, Completed Common 
Area, or Completed Property pursuant to Paragraph 75 of this Decree; and 
has not had that designation removed pursuant to Paragraph 76 of this 
Decree. 

g. “Compliance Officer” means the person described in Paragraph 66 of this 
Decree below. 

h. “Consent Decree” or “Decree” means this Decree, including Appendices A 
through I. 

i. “Current Transfer Cap,” at a given point in time, is equal to the Transfer 
Cap Base multiplied by the Current Unit Count, divided by the Initial Unit 
Count, and then rounded to the nearest whole number. 

j. “Current Unit Count” means the number of residential units within 
Properties (excluding Newly Acquired Properties) that are (a) owned or 
controlled, in whole or in part, directly or indirectly, by Defendants, or (b) 
managed, directly or indirectly, by Defendants, at a given point in time.  For 
the avoidance of doubt, units within Removed Properties are not included. 

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k. “Date of Lodging” means the date this Consent Decree is filed with the 
Court in advance of the period of public comment provided by Paragraph 
155 of this Decree. 

l. “Day” means a calendar day unless expressly stated to be a business day.  
In computing any period of time under this Consent Decree, where the last 
day would fall on a Saturday, Sunday, or federal holiday, the period shall 
run until the close of business on the next business day. 

m. “Deferred Unit” means a Unit designated by the Housing Specialist as a 
Deferred Unit in accordance with Paragraph 81 of this Decree. 

n. “Deferred Work” means any work in a Deferred Unit that Defendants were 
obligated to perform under this Consent Decree at the time the Unit became 
a Deferred Unit or during the time the Unit remained a Deferred Unit. 

o. “Defendants” means Lilmor, Morris Lieberman, and the entities listed in 
Appendix A.   

p. “Deteriorated Paint” shall have the meaning set forth in 40 C.F.R. § 745.223 
and shall include any “deteriorated subsurface” as that term is defined in 
N.Y.C. Admin. Code § 27-2056.2. 

q. “Dispute Resolution” shall mean the process set forth in Section XV 
(Dispute Resolution). 

r. “DOHMH” means the N.Y.C. Department of Health and Mental Hygiene 
and any of its successor departments or agencies. 

s. “EPA” means the United States Environmental Protection Agency and any 
of its successor departments or agencies. 

t. “Effective Date” shall have the definition provided in Section XX (Effective 
Date). 

u. “Housing Specialist” means the person hired by Defendants pursuant to 
Paragraph 28 of this Decree. 

v. “HPD” means the N.Y.C. Department of Housing Preservation and 
Development and any of its successor departments or agencies. 

w. “HUD” means the United States Department of Housing and Urban 
Development and any of its successor departments or agencies. 

x. “HUD Guidelines” shall mean the edition of the “HUD Guidelines for the 
Evaluation and Control of Lead-Based Paint Hazards in Housing” in effect 
on the date the work is conducted pursuant to this Consent Decree. 

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y. “Indoor Allergen Triggers” or “Underlying Defect” shall mean those 
housing conditions which cause an indoor allergen hazard, such as a water 
leak or water infiltration from plumbing or defective masonry pointing or 
other moisture condition or causes an infestation of pests, including holes 
or entryway paths for pests requiring remediation measures to be 
implemented pursuant to the Asthma Free Housing Act, N.Y.C. Admin. 
Code §§ 27-2017 et seq. 

z. “Initial Unit Count” means 2,539 units. 

aa. “Interim Controls” shall have the meaning provided in 40 C.F.R. § 745.223.  

bb. “Lead-Based Paint Activities Rule” means the regulations at 40 C.F.R. Part 
745, Subpart L. 

cc. “Lead-Based Paint” means paint or other surface coatings that contain lead 
equal to or exceeding the stricter of any federal, New York State, or New 
York City law in force at the relevant time.  For avoidance of doubt, that 
standard is currently 0.5 milligram per square centimeter as defined under 
N.Y.C. Admin. Code § 27-2056.2(7). 

dd. “Lead-Based Paint Inspection Determination” shall mean a written 
determination of a certified Lead-Based Paint inspector or risk assessor.  

ee. “Lead-Based Paint Hazards” shall mean the standards set in 40 C.F.R. 
§ 745.65 and those set by N.Y.C .Admin. Code § 27-2056.2, as applicable. 

ff. “Lead-Based Paint Laws” means all federal, state, or local requirements 
relating to the protection of occupants and workers from Lead-Based Paint 
and Lead-Based Paint Hazards, including but not limited to the Lead 
Disclosure Rule, the Lead Safe Housing Rule, the RRP Rule, the Lead-
Based Paint Activities Rule, and the New York City Childhood Lead 
Poisoning Prevention Act, N.Y.C. Admin. Code §§ 27-2056.1-2056.18.

gg. “Lead-Based Paint Work” means Lead-Based Paint inspections, Lead-
Based Paint risk assessments, Abatement, work to implement Interim 
Controls, work to which the RRP Rule or Lead Safe Housing Rule applies, 
the implementation of Lead Safe Work Practices, or any other work 
designed to identify, prevent or eliminate Lead-Based Paint Hazards. 

hh. “Lead Disclosure Rule” means the regulations set forth at 24 C.F.R. Part 
35, Subpart A, and 40 C.F.R. Part 745, Subpart F. 

ii. “Lead Safe Housing Rule” means the regulations set forth at 24 C.F.R. Part 
35, Subparts B through R. 

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jj. “Lead Safe Work Practices” means work practices compliant with the Lead 
Safe Housing Rule, the RRP Rule, and The New York City Childhood Lead 
Poisoning Prevention Act, N.Y.C. Admin. Code §§ 27-2056.1-2056.18. 

kk. “Lead Warning Statement” means the statement described in 40 C.F.R. 
§ 745.113, and 24 C.F.R. § 35.92(b)(1). 

ll. “Lilmor” means Lilmor Management, LLC, and all predecessor and 
successor entities, and all persons or entities controlled by Lilmor 
Management, LLC. 

mm. “Lilmor Defendants” means Lilmor and Morris Lieberman. 

nn. “Lilmor-Managed Property LLCs” means the Entities listed in Appendix A.   

oo. “Newly Acquired Properties” means residential properties in which, after 
the Effective Date, one or more Defendants come to hold a controlling 
interest in or come to operate, manage, or otherwise control, in whole or in 
part, directly or indirectly. 

pp. “Paragraph” means a portion of this Decree identified by an Arabic 
numeral. 

qq. “Parties” means the parties to this Consent Decree: the United States, the 
People of the State of New York and the Defendants. 

rr. “Plaintiffs” means the United States and the People of the State of New 
York. 

ss. “Previously Transferred Properties” means the residential properties listed 
in Appendix B. 

tt. “Properties” means (i) the residential properties listed in Appendix C, and 
(ii) the Newly Acquired Properties, except as provided in Section VI 
(Transfer of Interests) and Paragraphs 150-153 of this Decree.  

uu. “Removal” or “Removed Property” refers to a Property removed, pursuant 
to Section XXIV (Property Removal and Termination), from the list of 
Properties to which this Consent Decree applies, except as to any provision 
of this Consent Decree that expressly obligates Defendants for a period of 
time extending beyond the date of that Removal. 

vv. “Renovation, Repair, and Painting Rule” or “RRP Rule” means the 
Renovation, Repair and Painting Rule, promulgated at 40 C.F.R. Part 745, 
Subpart E. 

ww. “Section” means a portion of this Decree identified by a Roman numeral. 

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xx. “Substandard Conditions” means conditions that violate applicable state or 
local housing, building or health codes (other than Lead-Based Paint Laws) 
or Indoor Allergen Trigger laws and include any nuisance conditions that 
are “dangerous to human life or detrimental to health” (N.Y.C. Admin. 
Code § 17-142).  Substandard Conditions include widespread or recurring 
mold; infestations of vermin or pests; continued failure to provide adequate 
heat, hot water, or cooking gas; recurring failure to properly handle sewage 
or garbage; failing to timely remediate leaks or holes; unsafe electric wiring; 
fire safety hazards; recurring failure to maintain properly functioning 
elevators; continued failure to maintain functioning locks on both a 
building’s and each apartment’s front door and mailboxes; continued failure 
to maintain a functioning doorbell, buzzer, or intercom system; and 
continued failure to provide adequate lighting in Common Areas.  
“Substandard Conditions” do not include a third-party utility provider’s 
failure to provide services to a Unit or Property where Defendants did not 
cause or contribute to that failure.  

yy. “Transfer Cap Base” means 800 minus the total number of units transferred 
pursuant to Paragraph 19 over the course of the Consent Decree. 

zz. “Two Excluded Multifamily Properties” means the residential properties 
identified as such in Appendix D.  Morris Lieberman, Lillian Lieberman, 
and Lilmor each represent and warrant that these properties are held in a 
trust over which Morris Lieberman, Lillian Lieberman, and Lilmor have no 
control, and that Morris Lieberman, Lillian Lieberman, and Lilmor have 
never managed or exercised control over either of these properties. 

aaa. “Two Excluded Single-Family Properties” means the residential properties 
identified as such in Appendix E.  Morris Lieberman, Lillian Lieberman, 
and Lilmor each represent and warrant that these properties are single-
family houses that Lilmor has never managed or exercised control over. 

bbb. “Unit” means a residential apartment, excluding any Common Areas. 

ccc. “United States” means the United States of America.  

ddd. “Work Unit”, “Work Common Area”, or “Work Property” means a Unit, 
Common Area, or Property for which work remains to be performed 
pursuant to Paragraph 46 (Lead-Based Paint Inspection and Risk 
Assessment), Paragraph 49 (Comprehensive Abatement of Lead-Based 
Paint), Paragraph 60 (Current Substandard Conditions), or Paragraph 61 
(Future Substandard Conditions) of this Decree. 

eee. “Work Completion,” for a given Unit, Common Area, or Property means 
the time at which Defendants have completed all work to be performed at 
the Unit, Common Area, or Property pursuant to Paragraph 46 (Lead-Based 

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11 

Paint Inspection and Risk Assessment), Paragraph 49 (Comprehensive 
Abatement of Lead-Based Paint), Paragraph 60 (Current Substandard 
Conditions), or Paragraph 61 (Future Substandard Conditions).   

V. APPLICABILITY 

13. The obligations of this Consent Decree apply to and are binding upon the 
Defendants and any successors, assigns, or other entities or persons otherwise bound by law.   

14. Defendants shall grant authority or access to one another and the Housing Specialist 
as needed to accomplish the work required by the Consent Decree.  Defendants shall not take any 
action to frustrate or obstruct the work required by the Consent Decree, including but not limited 
to, by obstructing access to any Common Areas at the Properties that safely and in accordance 
with law may be used by tenants to hold tenant meetings relating to this Consent Decree or to 
receive updates from the Housing Specialist or its agents. 

15. Defendants shall provide a copy of this Consent Decree to all officers, employees, 
and agents of Defendants whose duties might reasonably include compliance with any provision 
of this Decree, as well as to any contractor retained by a Defendant to perform work required under 
this Consent Decree.  Defendants shall condition any such contract upon performance of the work 
in conformity with the terms of this Consent Decree, whether the work is to be performed by the 
contractor or one or more subcontractors. 

16. In any action to enforce this Consent Decree, Defendants shall not raise as a defense 
the failure by any of their officers, directors, employees, agents, or contractors to take any actions 
necessary to comply with the provisions of this Consent Decree. 

17. Notwithstanding any other provisions in this Consent Decree: (a) Defendants’ 
obligations under this Consent Decree with respect to Newly Acquired Properties shall be limited 
to: (i) Paragraphs 44, 51, 53-56, 59, 61, 64, 89, 91-94, and 125-131; (ii) Paragraphs regarding the 
Housing Specialist (including Paragraphs 28-43, 52, and 89-98) as they relate to obligations in the 
Paragraphs enumerated above in (i); and (iii) Sections XIII (Stipulated Penalties), XIV (Force 
Majure), XV (Dispute Resolution), XVII (Effect of Settlement/Reservation of Rights), and XXIX 
(Final Judgment) as they relate to obligations in the provisions enumerated above in (i) and (ii);  
(b) the acquiring Defendants shall specifically request the transferor of Newly Acquired Properties 
to provide the acquiring Defendants with all documents and information for the Newly Acquired 
Properties that are required to be disclosed under 24 C.F.R. § 35.88(a)(2) and (4) and 40 C.F.R. 
§ 745.107(a)(2) and (a)(4), and shall obtain a representation from the transferor that it has done so, 
and (c) the acquiring Defendant shall inform Plaintiffs and the Housing Specialist in writing of a 
Newly Acquired Property within 30 days of the property becoming acquired and confirm that the 
requirements of (b) have been satisfied.  Newly Acquired Properties shall be treated as Completed 
Properties upon acquisition. 

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12 

VI. TRANSFERS OF INTEREST 

18. No less than 30 Days before entering into any agreement that involves the transfer 
of any interest in any of the Properties (except as to any mortgage of the Properties), Defendants 
shall provide a copy of this Consent Decree to the proposed transferee and shall simultaneously 
provide written notice of the prospective transfer, together with a copy of the proposed written 
agreement, to the Plaintiffs in accordance with Section XIX (Notices).  Any transfer of ownership 
or operation of the Properties by Defendants without complying with this Paragraph constitutes a 
violation of this Decree, except as to any mortgage of the Properties.  No transfer of ownership or 
operation of the Properties by Defendants (including by foreclosure), whether in compliance with 
the procedures of this Paragraph or otherwise, shall relieve Defendants of their obligation to ensure 
that the terms of the Decree are implemented (subject to Defendants’ being granted access in the 
case of foreclosure) unless the Plaintiffs consent, which consent may be contingent on the 
transferee’s becoming a party to, and liable as Defendant under, this Decree.   

19. Notwithstanding Paragraph 18, Defendants may invoke this Paragraph in writing 
delivered to the Plaintiffs in accordance with Section XIX (Notices) to transfer their interests in a 
Property if (a) that Property is a Completed Property under Paragraphs 75 and 76 or would be a 
Completed Property but for the presence of one or more Deferred Units, and has been maintained 
as such for a period of no less than six months; (b) Defendants have provided to the transferee (i) 
all documents and information that is required to be disclosed by the Defendants to the transferee 
pursuant to the Lead Disclosure Rule, including under 24 C.F.R. § 35.88(a)(2) and (4) and 40 
C.F.R. § 745.107(a)(2) and (a)(4), and (ii) a list of any Deferred Units at the Property with a 
statement describing the work that has been deferred; (c) the transferee agrees to provide 
Defendants notice of the initial vacancy of any Deferred Units; (d) Defendants have provided the 
occupants of any Deferred Units with a notice in the form of Appendix F advising the occupants, 
with at least 60 days’ notice, that obligations under this Consent Decree to complete the Deferred 
Work prior to vacancy will no longer apply after transfer if occupants do not provide access, and 
that Defendants will perform any Deferred Work for which occupants provide access after 
receiving this notice; (e) the Housing Specialist has confirmed that the tenants of any Deferred 
Units do not wish for the Deferred Work to be performed prior to transfer or the Housing Specialist 
determines that such tenants cannot be reached or made to respond; (f) the transfer would not 
reduce the value of any Financial Assurance, unless property or interests of equal value replace 
the value of the transferred Property; and (g) Properties containing, in aggregate, no more than the 
Current Transfer Cap are transferred pursuant to this Paragraph; provided that the Current Transfer 
Cap does not apply (1) for a Property that is not owned or controlled, in whole or in part, directly 
or indirectly, by any Defendant and for which Lilmor and Morris Lieberman have been removed 
from management by the owners; or (2) with respect to Properties not owned or controlled, in 
whole or in part, directly or indirectly, by any other Defendant, if Lilmor, Morris Lieberman, and 
Lillian Lieberman no longer remain engaged in the business of residential property management 

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13 

or ownership, excepting direct or indirect minority1 ownership interests in purely passive 
investments.  If, through transfers pursuant to this Paragraph, Defendants transfer their interests in 
a Property such that the Property is no longer owned or controlled, in whole or in part, directly or 
indirectly, by Defendants, then, upon such transfer, such Property shall no longer be considered a 
Property subject to this Consent Decree, except that Paragraph 126 shall continue to apply to such 
Property with “the termination of this Consent Decree” replaced by “the date of the last transfer 
pursuant to Section VI,” and Defendants shall remain obligated pursuant to Paragraph 81 to 
perform the Deferred Work in a Deferred Unit upon vacancy (subject to Defendants’ being granted 
access).  If Defendants are not granted access to such a transferred Deferred Unit upon vacancy, 
Defendants shall so advise the Housing Specialist (if prior to the termination of the Consent 
Decree), as well as the United States and the State, within seven days of the new owner’s refusal; 
if, after speaking with the Housing Specialist, the United States, or the State, the new owner grants 
access to the Deferred Unit, Defendants shall complete the work pursuant to Paragraph 81.  
Notwithstanding the foregoing, Defendants may satisfy their obligation to complete work in a 
transferred Deferred Unit by paying the new owner the reasonable cost of such work in return for 
an agreement by the new owner promptly to complete that work. 

20. For avoidance of doubt, nothing in this Consent Decree shall: (a) prohibit or place 
any restriction upon any current or future mortgage-holder’s right or ability to foreclose on a 
mortgaged Property in an arms-length transaction not designed to remove that Property from the  
coverage of this Consent Decree, consistent with any mortgage agreements applicable thereto; or 
(b) place any obligations or restrictions upon a current or future mortgage-holder upon foreclosure 
of the Property or upon a subsequent third-party purchaser (not affiliated with Defendants) of a 
foreclosed Property, provided that Defendants are granted required access to the Property in the 
case of foreclosure. 

VII. PENALTY AND RESTITUTION PAYMENT  

21. Within 30 Days after the Effective Date, Defendants shall pay the total sum of 
$3,250,000 as a civil penalty to the United States.  Fifty percent of this penalty shall be deemed 
paid on account of violations asserted in the Complaint on behalf of EPA and fifty percent shall 
be deemed paid on account of violations asserted in the Complaint on behalf of HUD. 

22. Within 180 Days after the Effective Date, Defendants shall pay the total sum of 
$325,000 to the State of New York, Office of the Attorney General as a civil penalty made payable 
to the N.Y.C. Department of Housing Preservation and Development.  

23. Within the timeframe provided by Paragraph 27, Defendants shall pay the total sum 
of $2,925,000 to the State of New York, Office of the Attorney General for restitution that the 

1 For purposes of this provision, Morris Lieberman and Lillian Lieberman shall qualify as having a “minority 
ownership interest” in a particular residential property only if their aggregated direct and indirect ownership 
interests—including interests held by any entities in which Morris Lieberman or Lillian Lieberman hold any direct or 
indirect interest, including as beneficiaries of a trust—amount to less than 50% of the ownership of that residential 
rental property. 

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14 

State will make available to tenants affected by Defendants’ conduct, as provided in Section X 
(Restitution Fund) below. 

24. Defendants shall pay the civil penalty described in Paragraph 21 to the United 
States at https://www.pay.gov to the U.S. Department of Justice account, in accordance with 
instructions provided to Defendants by the United States Attorney’s Office for the Southern 
District of New York.  The payment instructions shall include a Consolidated Debt Collection 
System (“CDCS”) number, which Defendants shall use to identify all payments required to be 
made in accordance with this Consent Decree.  At the time of payment, Defendants shall send 
notice to the United States by email and by regular mail in accordance with Section XIX (Notices).  
Such notice shall reference the CDCS number and DJ # 90-5-1-1-11797. 

25. Defendants shall pay $325,000 of the amount owing to the State described in 
Paragraph 22 as a civil penalty by certified bank check sent directly to the NYC Department of 
Housing Preservation and Development sent to Housing Litigation Division, 100 Gold Street, 6th 
Floor, New York, NY 10038, Attention: Tasonia Ragin, with simultaneous written notification to 
the Office of the Attorney General by email and regular mail in accordance with Section XIX 
(Notices).  Such notice shall reference the civil index number for this action. 

26. Defendants shall not deduct any penalties paid under this Decree pursuant to 
Paragraphs 21-25 or Section XIII (Stipulated Penalties) in calculating its federal, state or local 
income tax. 

27. Restitution Payment.  No later than the later of 180 Days after the Effective Date, 
Defendants shall pay $2,925,000 of the amount owing to the State described in Paragraph 23 as 
restitution by wire transfer, attorney check, or corporate or certified check or bank draft which 
shall be made payable to the “State of New York” (the “Restitution Fund”), to be distributed to 
tenants and permitted occupants of the Properties who meet the criteria for “Substandard 
Conditions Restitution” described in Section X (Restitution Fund).  At the time of payment, 
Defendants shall send notice to the State of New York by email and by regular mail in accordance 
with Section XIX (Notices).  Such notice shall reference the civil index number of this matter.  
Within 5 business days of receipt of payment, the State of New York shall release from escrow to 
Lilmor Defendants, the signed HPD letter agreement releasing them from civil penalty liability, 
an unsigned copy of which is attached to this Consent Decree at Appendix G. 

VIII. HOUSING SPECIALIST 

28. Housing Specialist.  Defendants shall engage, at their own expense pursuant to the 
budget provisions below, as an independent contractor, a Housing Specialist chosen by Plaintiffs 
prior to the signing of this Consent Decree.  The Housing Specialist, which may be an individual 
or a firm, shall have expertise and experience with Lead-Based Paint Laws and with the 
commercial operation and management of housing. 

29. Within 30 days of the second anniversary of the Effective Date, and every two years 
thereafter until the termination of this Consent Decree, Plaintiffs shall either reappoint the current 
Housing Specialist or replace the Housing Specialist; provided that in the absence of such 

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15 

reappointment or replacement by such date, the Housing Specialist shall continue in place until 
such reappointment or replacement occurs.  In addition, the Housing Specialist may be removed 
or replaced by Plaintiffs on 60 days’ notice, or for cause; the Housing Specialist may not be 
removed by Defendants, except that Defendants may request that Plaintiffs remove the Housing 
Specialist for cause.  If the Housing Specialist position becomes vacant during the term of this 
Consent Decree, Plaintiffs shall promptly select a replacement.  At least 30 days prior to choosing 
a new Housing Specialist, Plaintiffs shall provide notice to Defendants of their proposed Housing 
Specialist and permit Defendants an opportunity to provide their views to the Plaintiffs regarding 
the choice.  Should Defendants disagree with Plaintiffs’ choice, Plaintiffs shall meet with 
Defendants to discuss their concerns.   

30. In addition to the specific responsibilities set forth elsewhere in this Consent 
Decree, the Housing Specialist shall verify Defendants’ compliance with the injunctive terms of 
this Decree.   

31. The Housing Specialist will exercise its judgment and discretion independently of 
Defendants, although it will consult with Defendants to the extent appropriate or necessary under 
this Decree. For avoidance of doubt, Defendants acknowledge that the Housing Specialist is not 
an employee of Defendants; that the Housing Specialist will not have an attorney-client 
relationship with any counsel for Defendants; that Plaintiffs may communicate with such Housing 
Specialist without including or notifying counsel for Defendants; and that the Housing Specialist 
need not share information with Defendants except as required by this Consent Decree.  

32. The Housing Specialist is not an agent or agency of Plaintiffs.  

33. The Housing Specialist will confer with the Defendants, tenants residing in 
Defendants’ buildings, and tenant groups associated with Defendants’ buildings to implement a 
tenant outreach plan for the purpose of educating tenants residing in Defendants’ buildings about 
the provisions of the Consent Decree, the health and safety risks of lead paint, indoor allergens, 
and other substandard conditions, and tenant rights and responsibilities during the lead paint, 
indoor allergen, and substandard conditions abatement and remediation period.  

34. The Housing Specialist shall have full access to the Properties, Defendants’ 
principals, employees, contractors, and subcontractors, and Defendants’ files and information 
systems, as they reasonably pertain to matters addressed by this Consent Decree, for the purpose 
of performing its functions under this Consent Decree in a manner that does not unreasonably 
interfere with occupants’ quiet enjoyment of the Properties or with the operation of Defendants’ 
business subject to the parameters of this Consent Decree.  This provision does not permit access 
to information protected by attorney-client privilege or attorney work product protection without 
Defendants’ consent nor to information not relevant to the Housing Specialist’s performance of its 
functions under this Decree. 

35. The Housing Specialist shall be charged with managing and disbursing funds from 
the Restitution Fund as provided in Section X (Restitution Fund), in consultation with and under 
the direction of the State of New York, Office of the Attorney General.   

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36. Housing Specialist Budget.  Within 60 days of appointment and no later than 30 
days before the beginning of each calendar year thereafter and in consultation with the Defendants, 
the Housing Specialist shall submit to the Plaintiffs a detailed budgetary estimate of anticipated 
fees, costs, and expenses for the calendar year for the Plaintiffs’ review and approval (the 
“Budget”). Such fees, costs, and expenses shall be sufficient to allow the Housing Specialist to 
fulfill the Housing Specialist’s duties for the calendar year pursuant to this Consent Decree in a 
reasonable and efficient manner, including by engaging staff, expert consultants, or other third 
parties. Defendants may submit an opposition to said budgetary estimate within two weeks of the 
Housing Specialist’s submission to the Plaintiffs if they believe that any aspect is unreasonable.  
The Housing Specialist may respond to any opposition within one week. Plaintiffs may approve 
the budget in whole or part.  Once the Plaintiffs approve the Housing Specialist’s budgetary 
estimate (or portion thereof), such estimate or portion thereof shall be deemed an “Operative 
Budget.”   

37. The Housing Specialist’s Budget may not increase by more than 15% from the 
previous calendar year without a showing that the costs are reasonably necessary to effectuate the 
purposes of this Consent Decree. 

38. If Defendants object to an approved Operative Budget, they may invoke the Dispute 
Resolution provisions set forth in Section XV (Dispute Resolution). The Operative Budget will 
remain in effect, and payments shall be made by Defendants thereunder, until Dispute Resolution 
has concluded. 

39. The Housing Specialist may amend the Operative Budget upon a showing of 
necessity; such amendment will be subject to the process set forth in Paragraphs 36-38. 

40. The Housing Specialist shall notify the Plaintiffs and Defendants when the Housing 
Specialist has spent 75% of the Operative Budget for the current calendar year. 

41. Within 30 days of receiving an invoice from the Housing Specialist for costs 
covered by an Operative Budget, Defendants shall pay that invoice. If the Housing Specialist 
incurs fees, costs, or expenses that are not covered by an Operative Budget but that are reasonably 
necessary to perform his or her duties under this Consent Decree, the Housing Specialist must 
amend the Operative Budget with a reasonable itemization of such increased fees, costs, or 
expenses and may not submit an invoice to Defendants for those costs until the amendment has 
been approved by Plaintiffs. The amendment may not result in an increase of the annual budget by 
more than 10% from the previous calendar year without a showing that the costs are necessary to 
effectuate the purposes of this Consent Decree. 

42. Reporting by Housing Specialist.  Each year, on the anniversary of the Effective 
Date, the Housing Specialist, after undertaking due diligence, shall submit a report to the Plaintiffs 
concerning Defendants’ compliance with this Consent Decree (the “Annual Housing Specialist 
Report”). The Annual Housing Specialist Report will be made publicly available on a website 
maintained by the Housing Specialist. 

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17 

43. Consultation with Plaintiffs.  If requested by either Plaintiff, the Housing Specialist 
shall (i) provide copies of all documentation it receives from Defendants pursuant to this Consent 
Decree and (ii) consult with such Plaintiff prior to approving or disapproving any deliverable under 
this Consent Decree.  A Plaintiff’s request under this Paragraph shall be made by email or 
otherwise in writing and may address all documentation and deliverables under the Consent 
Decree; specific documentation or deliverables; or categories of documentation and deliverables.  
A Plaintiff may modify or withdraw a request previously made under this Paragraph.  For 
avoidance of doubt, nothing in this Paragraph should be construed to alter the obligations of the 
Housing Specialist set forth in other Paragraphs of this Consent Decree. 

IX. INJUNCTIVE REQUIREMENTS 

Lead-Based Paint 

44. Compliance In General.  Defendants shall fully comply with all applicable Lead-
Based Paint Laws.  

45. Supplemental Lead-Based Paint Disclosure to Tenants. Within 120 days of the 
Effective Date, Defendants shall provide by regular mail, email (where an email address is known 
by Defendants), or hand delivery signed for by a tenant, to every lessee of a Unit in the Properties, 
except for Units that would otherwise be exempt from the Lead Disclosure Rule, the following: 

a. All information required to be provided to tenants upon the signing of an 
initial lease pursuant to 40 C.F.R. §§ 745.107 and 745.113(b), and 24 C.F.R. 
§§ 35.88 and 35.92(b), including a Lead Warning Statement, which 
Defendants shall request that tenants sign, date, and return. 

b. An N.Y.C. DOHMH pamphlet “Lead Paint Hazards in the Home.” 

c. A written notice requesting that occupants report to Defendants 
Deteriorated Paint and, if applicable, failure of encapsulation or enclosure, 
including the name, address, telephone number, and email address of the 
Compliance Officer.   

46. Lead-Based Paint Inspection and Risk Assessment. Within one year of the Effective 
Date, Defendants shall conduct: (1) through EPA-certified risk assessors and inspectors approved 
by the Housing Specialist, an inspection (within the meaning of 40 C.F.R. § 745.227(b)) and 
consistent with Chapters 5 and 7 of the HUD Guidelines and N.Y.C. Admin. Code § 27-2056.4) 
of all Units and Common Areas, except as to any Unit or Common Area that was subject to such 
an inspection by a certified Lead-Based Paint inspector to identify any Lead-Based Paint in that 
Unit or Common Area on or after December 1, 2021, provided documentation of such a prior 
inspection is provided to the Housing Specialist and found to meet the requirements of this clause 
(1); and (2) through EPA-certified risk assessors approved by the Housing Specialist, where the 
inspections in subsection (1) identify the presence of Lead-Based Paint in Units or Common Areas, 
a risk assessment of the Units or Common Areas in accordance with 40 C.F.R. § 745.227(d), 
N.Y.C. Admin. Code § 27-2056.4 and consistent with Chapter 5 of the HUD Guidelines (together, 

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18 

the “Inspection and Risk Assessment”). Notwithstanding the foregoing deadline, the Inspection 
and Risk Assessment shall occur no later than: (i) 90 Days after the Effective Date for all Units in 
which Defendants have received notice that a child under six years or a pregnant occupant has 
come to reside as of the Effective Date and related Common Areas;  and (ii) the date provided in 
any NYC DOHMH Commissioner’s Order to Abate (“COTA”), if such date occurs sooner than 
one year after the Effective Date. Each Unit must be inspected and evaluated rather than a sampling 
of Units.  With each quarterly Progress Report, Defendants shall provide to (a) such Unit’s 
occupants a report containing the information specified by 24 C.F.R. § 35.125; and (b) the Housing 
Specialist a report containing the information required by 40 C.F.R. § 745.227(b)(4) (for 
inspections) and/or 40 C.F.R. § 745.227(d)(11) (for risk assessments), as applicable (a “LBP 
Inspection and Risk Assessment Report”).  

47. Lead-Based Paint Hazard Reduction. Defendants shall control (by Interim Controls 
and/or Abatement) Lead-Based Paint Hazards identified during the Lead-Based Paint Inspection 
and Risk Assessment using Interim Controls and/or Abatement within 30 days of issuance of an 
LBP Inspection and Risk Assessment Report.  If Defendants learn of Lead-Based Paint Hazards 
or of Deteriorated Paint on surfaces that are not without Lead-Based Paint by means other than a 
Lead-Based Paint Inspection and Risk Assessment (including a visual assessment for Deteriorated 
Paint as provided in Paragraph 48), they shall control (by Interim Controls and/or Abatement) such 
Lead-Based Paint Hazards or Deteriorated Paint within 30 Days of such Lead-Based Paint Hazards 
or Deteriorated Paint being made known to Defendants. If Defendants are notified by a government 
entity of a legal requirement to undertake additional risk assessment, inspections, remediation, 
Abatement, or other actions required by applicable law to be undertaken in light of Lead-Based 
Paint Hazards or violations, Defendants shall perform such additional actions as required by law.   
Defendants shall provide notice to the Housing Specialist of Interim Controls or Abatements in 
advance of conducting that work where they are required to provide notice to a local, state, or 
federal agency by law.   

48. Lead-Based Paint Operations & Maintenance Plan; Visual Assessments. Within 
180 days of the Effective Date, for all Units and Common Areas that have not yet received a Lead-
Based Paint Inspection Determination, Defendants shall implement a Lead-Based Paint Operations 
& Maintenance Plan requiring annual visual inspection of each Unit and Common Area for  
Deteriorated Paint, to be completed by June 1 of each year and requiring control of Deteriorated 
Paint that is or may be a Lead-Based Paint Hazard using Interim Controls and/or Abatement within 
30 days of the visual inspection. The Lead-Based Paint Operations & Maintenance Plan is subject 
to the approval of the Housing Specialist, in consultation with the Plaintiffs and Defendants, and 
must also comply with the New York City Childhood Lead Poisoning Prevention Act requirements 
for annual inquiry about children under six residing in the units, annual investigatory and 
inspection follow-up, as provided in N.Y.C. Admin. Code § 27-2056.4, and the requirements of 
the Lead Safe Housing Rule for any federally subsidized (including insured) units, see, e.g., 24 
C.F.R. Part 35, Subpart M (for tenant-based voucher rental assistance); id. Subpart G (for 
multifamily mortgage insurance); id. Subpart H (for project-based assistance). Defendants shall 
comply with the approved Lead-Based Paint Operations & Maintenance Plan. 

49. Comprehensive Abatement of Lead-Based Paint.  Within five years of the Effective 
Date, Defendants shall: (1) Abate by replacement or removal all Lead-Based Paint identified on 

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19 

Chewable, Friction, or Impact Surfaces within the Properties in a manner compliant with local, 
state, and federal law, including 24 C.F.R. § 35.1325 and 40 C.F.R. § 745.227(e) and the New 
York City Childhood Lead Poisoning Prevention Act, N.Y.C. Admin. Code §§ 27-2056.1-2056.18 
and obtain a Lead-Based Paint Inspection Determination that those surfaces are free of Lead-Based 
Paint, and (2) abate by replacement, removal, permanent enclosure, or permanent encapsulation—
with the choice of these four methods to be made solely in the discretion of Defendants, subject to 
the HUD Guidelines and applicable federal, state, and local law—all other Lead-Based Paint 
identified within the Properties.  Defendants shall obtain a Lead-Based Paint Inspection 
Determination identifying areas (other than Chewable, Friction, or Impact Surfaces) where Lead-
Based Paint remains but has been Abated by permanent enclosure or encapsulation. For the 
avoidance of doubt, “permanent” shall have the meaning set forth in 24 C.F.R. § 35.110.  
Notwithstanding the foregoing deadline, Defendants shall abate Units and associated Common 
Areas by the following earlier dates, where applicable: (i) the vacancy turnover of a Unit; (ii) 45 
days after notification by a government agency of a violation of Lead-Based Paint Laws; (iii) 45 
days after learning that a child under 6 years old or pregnant occupant has come to reside in a Unit; 
or (iv) where N.Y.C. DOHMH has issued a COTA, the deadline for Abatement set in the COTA.  
Defendants’ time to complete the abatement work required by this Paragraph may be extended by 
the Housing Specialist, on a Unit-by-Unit basis, if Defendants establish to the Housing Specialist’s 
satisfaction that Defendants were diligent in attempting to complete this abatement work in a 
particular Unit but, for reasons outside of Defendants’ control (not to include financial 
circumstances), Defendants need additional time to do so. 

50. Abatement Plan.  Within 15 months of the Effective Date, Defendants shall submit 
a plan (“Abatement Plan”) to the Housing Specialist and Plaintiffs setting forth a schedule for 
completing the comprehensive abatement required by Paragraph 49.  The Abatement Plan shall 
include interim deadlines for accomplishing portions of the abatement.  Once approved by the 
Housing Specialist, Defendants shall implement the Abatement Plan. Defendants may seek 
amendments to the Abatement Plan schedule, which shall be approved by the Housing Specialist 
so long as they are consistent with the deadline for Abatement set forth in Paragraph 49. 

51. Renovation and Interim Control Standards. When disturbing Lead-Based Paint 
during Renovations (as defined by 40 C.F.R. § 745.83) and Interim Controls (as defined by 24 
C.F.R. § 35.1330), or any other activity besides Abatement, Defendants shall employ Lead-Safe 
Work Practices (or, if acting through contractors or subcontractors, ensure that the contractor or 
subcontractors do so) and comply with the following requirements, in addition to following any 
other applicable legal requirements, including but not limited to N.Y.C. Admin. Code §27-
2056.11: 

a. Ensuring that only properly trained and certified firms and workers are 
assigned to perform work to which Lead-Safe Work Practices apply in 
accordance with 24 C.F.R §§ 35.1330(a)(4), 35.1350(b) and/or 40 C.F.R. 
§§ 745.85(a), 745.90, as applicable. 

b. Obtaining and maintaining certification as a certified renovation firm if any 
of the workers described in this Paragraph are Defendants’ employees, and 

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20 

the work they do is covered by 40 C.F.R. Part 745, Subpart E, in accordance 
with 40 C.F.R. §§ 745.81, 745.89. 

c. Ensuring equipment, supplies, and materials necessary to perform Lead-
Safe Work Practices in accordance with 24 C.F.R § 35.1350 and 40 C.F.R. 
§ 745.85 are readily available to trained and certified workers, as applicable. 

d. Ensuring that firms and workers assigned to perform Renovations or Interim 
Controls use the RRP Renovation Checklist attached to this Consent Decree 
as Appendix H and establish and maintain records necessary to demonstrate 
compliance. 

e. Ensuring that occupants of Properties in which Renovations or Interim 
Controls to which Lead-Safe Work Practices apply will be performed are 
informed of the work to be performed and the risks involved in accordance 
with 24 C.F.R § 35.1345(b)(2) and 40 C.F.R. §§ 745.84 and 745.85. 

f. Complying with the occupant notification and information distribution 
regulations set forth at 24 C.F.R. § 35.125 and 40 C.F.R. § 745.84, as 
applicable. 

g. Containing or causing to be contained any work area for which Lead-Safe 
Work Practices are required under applicable law by isolating the work area 
and waste generated so that no dust or debris leaves the work area in 
accordance with 24 C.F.R. § 35.1345 and 40 C.F.R. § 745.85(a), as 
applicable. 

h. Containing, collecting, and transporting waste from the renovation in 
accordance with 40 C.F.R. § 745.85(a)(4). 

i. Performing cleanup of any work area to which Lead-Safe Work Practices 
apply until no dust debris or residue remains above de minimis levels in 
accordance with 24 C.F.R. §§ 35.1340, 35.1345, 35.1350 and 40 C.F.R. 
§ 745.85(a) and (b) and conducting and passing a Clearance Examination 
in accordance with 24 C.F.R. § 35.1340 (including follow-up as required by 
that section’s subsection (e) after any clearance failures), as provided by 40 
C.F.R. § 745.85(c), before tenants are permitted into the work area, in 
accordance with Paragraph 54.   

j. Retaining records required by 24 C.F.R. § 35.175, 40 C.F.R. § 745.84, and 
N.Y.C. Admin. Code §27-2056.17. 

52. The Housing Specialist may, at its discretion, conduct inspections of the work being 
conducted under this Section of the Consent Decree in a reasonable manner to ensure that it is 
being done in compliance with the Consent Decree. If the Housing Specialist determines that work 
has not been done in compliance with the Consent Decree—either by inspection or by a review of 
the records provided by Defendants— the Housing Specialist may direct Defendants to correct the 

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21 

deficiencies in the work or the documentation and may require re-testing or additional work to 
affect a correction.  The Housing Specialist shall allow Defendants a reasonable time for such 
correction.  The Housing Specialist may require additional reporting to demonstrate the corrective 
action. 

53. Abatement Standards. In performing any Abatements, whether pursuant to this 
Consent Decree or otherwise, Defendants shall comply with the following (or, if acting through 
contractors or subcontractors, ensure that the contractors or subcontractors comply with the 
following), in addition to any other applicable legal requirements, including but not limited to 
N.Y.C. Admin. Code § 27-2056.8: 

a. Defendants shall ensure that each firm performing the abatement is certified 
as an abatement contractor in accordance with 40 C.F.R. §§ 745.220(a) and 
745.227(a)(2). 

b. Defendants, or their abatement contractors, shall ensure that a certified 
supervisor shall be onsite or otherwise available in accordance with 40 
C.F.R. § 745.227(e)(2), and that all other workers performing abatement 
are, at a minimum, certified abatement workers.  40 C.F.R. §745.227(e)(1). 

c. Defendants, or their abatement contractors, shall notify EPA of Lead-Based 
Paint Abatement activities electronically using EPA’s Central Data 
Exchange (CDX) in accordance with 40 C.F.R. § 745.227(e)(4), or by 
alternate means permitted by EPA if CDX is not operational. 

d. Defendants, or their abatement contractors, shall notify occupants of Lead-
Based Paint Abatement activities in the same manner as required for 
activities covered by the RRP Rule pursuant to 40 C.F.R. § 745.84. 

e. Defendants, or their abatement contractors, shall prepare and implement 
written occupant protection plans for all Abatement projects in accordance 
with 40 C.F.R. § 745.227(e)(5). 

f. Defendants, or their abatement contractors, shall specify methods of 
collection and laboratory analysis in accordance with 40 C.F.R. 
§ 745.227(f). 

g. Defendants, or their abatement contractors, shall ensure that a Clearance 
Examination is performed; that clearance is attained before tenants are 
permitted into the work area, in accordance with Paragraph 54; and that a 
clearance examination report is provided by a Lead-Based Paint 
inspector/risk assessor certified and licensed as applicable for the property 
location, in accordance with 40 C.F.R. § 745.227(e)(8)-(9).  The Lead-
Based Paint inspector/risk assessor must be independent of the Lead-Based 
Paint Abatement firm, supervisor, and contractors performing the 
Abatement work, in accordance with 24 C.F.R. § 35.1340(f). 

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22 

h. Defendants, or their abatement contractors, shall ensure that the certified 
supervisor on each Abatement prepares an Abatement report in accordance 
with 40 C.F.R. § 745.227(e)(10) within 15 days of the conclusion of all 
work. 

i. Defendants shall maintain records in accordance with 40 C.F.R. 
§ 745.227(i) and 24 C.F.R. § 35.175. 

54. Clearance Examinations.  As part of any Abatement, Interim Controls, or 
Renovation, Defendants shall ensure that the following requirements are complied with, by 
including the requirements in all of their contracts with certified firms and persons conducting 
Abatement, Interim Controls, or Renovation: 

a. Daily and final cleanups shall be conducted in accordance with Chapter 14 
of the HUD Guidelines and the Lead-Based Paint Activities Rule at 40 
C.F.R. § 745.277(e). 

b. Clearance Examinations shall be conducted by a certified lead risk assessor 
or inspector, who is a third party, independent of the owner, in each Unit, 
Common Area, or building upon completion of final cleanup.  If the 
Clearance Examination report and analysis of dust samples from an EPA-
accredited laboratory indicate that clearance is not achieved, Defendants 
shall repeat the cleaning procedures identified above under Paragraph 54(a), 
repeat dust clearance sampling within five (5) calendar days of the failed 
clearance examination, and repeat this procedure until clearance has been 
attained.  Containment will be maintained, and tenants will not be permitted 
into the work area until, clearance is attained. 

55. Defendants shall ensure that Clearance Examinations are not conducted by the same 
individual or same or affiliated business entity conducting the rest of the Lead-Based Paint Work 
that is being evaluated by the Clearance Examination. 

56. Child with an Elevated Blood Lead Level.  During the course of this Consent 
Decree, if Defendants learn of a child under the age of 18 residing in a Unit who has an elevated 
blood lead level as defined by New York City Health Code § 173.13(d)(2), Defendants shall 
comply with that provision and all other applicable laws and additionally shall report the 
occurrence to the Housing Specialist.  The Housing Specialist will take appropriate steps to limit 
further disclosure of the identity of children with elevated blood lead levels, except where 
necessary in the Housing Specialist’s judgment to the effective implementation of this Consent 
Decree. 

57. Occupant Education on Lead-Based Paint Hazards.  Defendants shall implement 
once at each Property occupant education on the hazards of lead-based paint and methods of 
minimizing potential exposures.  In particular, Defendants shall, at each Property: (a) set up, in the 
lobby or other common space adjacent to the Property’s main entrance, a table (the “Lead 
Education Table”) at which occupants can receive information on the hazards of lead-based paint 

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23 

and methods of minimizing potential exposures; (b) maintain the Lead Education Table—meaning 
that the Lead Education Table remains stationed in the lobby or other common space adjacent to 
the main entrance, with copies of the required educational material refreshed throughout the day—
for at least ten days; (c) for at least three days, ensure that the Lead Education Table is staffed for 
at least two hours each day (after 7 p.m. for at least two of the three days) by a qualified trainer 
(the “Trainer”) who is experienced in educating occupants on the hazards of lead-based paint and 
methods of minimizing potential exposures, who will be available to answer occupants’ questions; 
(d) post notices in locations reasonably designed to inform occupants of the Lead Education Table, 
and the dates and times the Trainer will be staffing it, at least one month before it is established 
and notify Housing Specialist of the same; (e) make available at the Lead Education Table copies 
of EPA’s Protect Your Family From Lead Paint in Your Home pamphlet English, Spanish, Arabic, 
French, Chinese, Russian, Somali, Tagalog and Vietnamese (copies in these languages may be 
found https://www.epa.gov/lead/protect-your-family-lead-your-home-english); (f) make available 
at the Lead Education Table copies of the NYC Health Department flyer “Protect Children From 
Lead Hazards” in English, Haitian-Creole, Korean, Polish, Bengali and Urdu, all available at: 
https://www.nyc.gov/site/doh/health/health-topics/lead-poisoning-prevention.page; and (g) 
certify in the next Progress Report that the Lead Education Table was implemented and these 
requirements complied with at that particular Property. The Housing Specialist, in its discretion, 
may visit one or more Lead Education Tables.

58. Prioritization of Lead-Based Paint Work.  In scheduling Lead-Based Paint 
Abatement or Interim Control activities, priority shall be given to those Units and Properties where 
Defendants have been informed that or are otherwise aware that children under the age of six or 
pregnant women presently reside.   

59. Lead-Based Paint Compliance Policies.  Within 180 days of the Effective Date, 
Defendants will submit a written policy (the “LBP Compliance Policy”) to the Housing Specialist 
designed to ensure that all of Defendants’ employees, contractors, and subcontractors performing 
responsibilities related to the Lead-Based Paint Laws comply with those laws. This policy will 
provide:  

a. For the Lead Disclosure Rule: (a) adequate training of employees, (b) adequate 
protocol to ensure that leasing agents know of and disclose Lead-Based Paint and/or 
Lead-Based Paint Hazards within Units and Common Areas, and (c) adequate 
supervision of employees, contractors, and subcontractors, including regular and 
unannounced paper audits by Defendants.   

b. For Lead Safe Work Practices: (a) adequate training of employees, (b) adequate 
controls to ensure that contractors and subcontractors perform work in accordance 
with this Consent Decree, (c) adequate supervision of employees, contractors, and 
subcontractors, to include regular, unannounced spot checks while work is being 
done, and (d) regular and unannounced audits of records.   

Once such a policy is approved by the Housing Specialist, in consultation with Plaintiffs, 
Defendants shall implement and abide by the approved policy for the duration of the Consent 

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24 

Decree.  The Housing Specialist, in consultation with Plaintiffs, may approve modifications to this 
policy proposed by Defendants in the future. 

Substandard Conditions  

60. Current Substandard Conditions.  By 180 days after the Effective Date, Defendants 
shall correct, to the satisfaction of the Housing Specialist, all Substandard Conditions in Properties 
(i) of which Defendants have received actual notice as of the Effective Date or (ii) for which a 
violation has appeared on N.Y.C. HPD’s “HPD Online” website on or before the Effective Date.  
Nothing in this Paragraph shall relieve Defendants from their obligations under applicable law to 
correct violations identified by N.Y.C. HPD or other governmental agencies pursuant to the 
timeline for correction set out in applicable law or agency order, which may require correction 
sooner than 180 days.   

61. Future Substandard Conditions.  At all times thereafter, Defendants shall take all 
reasonable steps to prevent Substandard Conditions from occurring.  “All reasonable steps” shall 
include, but are not limited to, compliance with applicable Indoor Asthma and Allergen Trigger 
laws with respect to all Properties and Units therein.  Upon receiving actual notice of any 
Substandard Condition or having a violation related to such condition appear on N.Y.C. HPD’s 
HPD Online website (a “Known Substandard Condition”), Defendants shall promptly remediate 
it. If, in the view of the Housing Specialist, a Known Substandard Condition threatens an 
occupant’s health or safety, the Housing Specialist shall issue an Action Plan directing Defendants 
to take action with respect to that Known Substandard Condition and shall have the power to 
implement some or all of the actions required by an Action Plan should Defendants fail to 
implement the Action Plan. 

62. Substandard Conditions Screen. Within one year of the Effective Date, Defendants 
shall conduct, through contractors approved by the Housing Specialist, a visual inspection for 
Substandard Conditions, including for pests and other asthma allergen triggers, in all Properties.  
Each Unit must be inspected rather than a sampling of Units.  Within 15 days of completing a 
Substandard Conditions Screen for a Unit or Common Area, a written report addressing the 
findings of the Substandard Conditions Screen (a “Substandard Conditions Inspection Report”) 
shall be provided to tenants and the Housing Specialist.    

63. For the purpose of Paragraphs 60 and 61, “actual notice” includes (but is not limited 
to) conditions that have been reported by a tenant to Defendants or their employees, or that the 
Housing Specialist has reported to Defendants, even if Defendants have not yet acted on that 
report. 

64. Substandard Condition Remediation at Turnover. Without limiting Defendants’ 
obligations to remediate Substandard Conditions at other times, upon tenant turnover, Defendants 
shall remediate all visible mold and pest infestations and any underlying defects in the Unit, 
thoroughly cleaning and vacuuming all carpeting and furniture, if provided, consistent with safe 
work practices outlined in the N.Y.C. Asthma Free Housing Act. 

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65. Indoor Allergen Supplemental Disclosure. Within 120 days of the Effective Date, 
Defendants shall provide by regular mail, email (where an email address is known by Defendants), 
or hand delivery signed for by a tenant, to every lessee in the Properties an indoor allergens 
information fact sheet from the N.Y.C. DOHMH entitled “What Tenants Should Know About 
Indoor Allergens (Local Law 55 of 2018).” This disclosure may be included in the same mailing 
and email as the supplemental lead-based paint disclosure required by Paragraph 44. 

Compliance Officer 

66. Compliance Officer.  Defendants shall employ a qualified Compliance Officer 
acceptable to the Plaintiffs for the duration of the Consent Decree.  In consultation with the 
Housing Specialist, within 90 Days of the Effective Date, Defendants shall appoint an individual 
with appropriate qualifications and experience, acceptable to the Plaintiffs, to serve as Compliance 
Officer, who will oversee Defendants’ compliance with all applicable legal requirements, 
including this Consent Decree, and will serve as the point of contact between Defendants, 
Plaintiffs, and the Housing Specialist. The Compliance Officer may be an existing officer or 
employee of Defendants, if they are otherwise appropriately qualified. In the event that 
Defendants’ Compliance Officer ceases to work in that position, Defendants shall appoint a 
replacement within 30 Days. 

Progress Report 

67. Within 20 Days following the end of each calendar quarter ending more than 180 
Days after the Effective Date, Defendants shall provide to the Housing Specialist a quarterly report 
(the “Progress Report”), with copy to counsel for Plaintiffs, including: 

a. Proof, in the initial Progress Report, of notifications sent pursuant to Paragraph 45; 

b. A list of Units, Common Areas, and Properties for which a report of an Inspection 
and Risk Assessment or a Substandard Conditions Inspection Report was issued in 
the prior quarter, with a copy of such reports if not previously provided to the 
Housing Specialist; 

c. A list of Units, Common Areas, and Properties for which an Inspection and Risk 
Assessment has identified Lead-Based Paint Hazards, or a Substandard Conditions 
Screen has identified Substandard Conditions during the prior quarter, with the date 
on which such Lead-Based Paint Hazards and Substandard Conditions were or are 
to be eliminated. 

d. For Lead-Based Paint Hazards and Substandard Conditions identified in subsection 
(c) that have not yet been eliminated, a proposed schedule according to which each 
such condition will be eliminated. 

e. A list of Units for which the Defendants have been unable to obtain access to 
conduct activities required by this Consent Decree, including any documented 
efforts to reach those tenants, during the prior quarter; 

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26 

f. A list of Units and Common Areas in which Renovations, Interim Controls, or 
Abatements were performed in the prior quarter, with records showing compliance 
with Lead-Based Paint Laws during such activity; 

g. A list of Units, Common Areas, and Properties for which Defendants received a 
Lead-Based Paint Inspection Determination in the prior quarter, with a copy of that 
determination; 

h. The status of compliance with any Action Plans issued under Paragraph 69; 

i. A list of Units, Common Areas, and Properties that Defendants ask the Housing 
Specialist to designate as Completed Units, Completed Common Areas, or 
Completed Properties, respectively, and any Property that Defendants ask the 
Housing Specialist to determine that it would qualify as a Completed Property but 
for the presence of Deferred Units;  

j. Any housing or health code notices issued by any state or local governmental 
authority relating to Substandard Conditions in the prior quarter;  

k. Other information and records necessary to document Defendants’ compliance (and 
any non-compliance) with the Consent Decree during the prior quarter;  

l. Other information requested by the Housing Specialist to be included in Progress 
Reports to facilitate the Housing Specialist’s performance of its duties under this 
Consent Decree, including but not limited to information necessary to apply the 
rent abatement credit in Paragraph 84; and 

m. A list of any violations of the Consent Decree known to Defendants and not already 
known to the Housing Specialist that occurred during the prior quarter, the cause of 
the violation, and the remedial steps taken, or to be taken, to prevent or minimize 
such violation.   

68. The initial progress report shall contain the information described in Paragraph 67 
not only for the prior quarter but since the Effective Date. 

Housing Specialist Plans 

69. Action Plans.  No later than 30 days after receipt of a Progress Report, the Housing 
Specialist shall issue an Action Plan identifying specified actions that Defendants must take to 
eliminate Lead-Based Paint Hazards and Substandard Conditions identified in the Progress Report 
and to prevent their recurrence, including through changes to certain policies or procedures, and 
specified deadlines for taking such actions.  Such actions and deadlines may, but need not, be the 
actions and deadlines proposed by Defendants in the Progress Report. Defendants shall comply 
with Action Plans, which may be modified by the Housing Specialist upon request of the 
Defendants. 

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27 

70. Interim Deadlines.  Action Plans shall include interim deadlines for any actions that 
cannot be completed within 60 days.     

71. Considerations for Plans. In Action Plans, the Housing Specialist shall endeavor to 
(i) prioritize matters presenting the greatest health and safety risks, (ii) ensure that work performed 
meets legal and professional standards and is of a quality that will reduce the likelihood of 
recurrence, (iii) ensure that all work performed will be performed in such a way as to protect the 
health and safety of occupants of the Properties; and (iv) ensure that the Action Plans call for 
actions that are cost-effective methods to ensure the health and safety of occupants of the 
Properties. 

72. For avoidance of doubt, nothing in Action Plans shall relieve Defendants of their 
obligation to affirmatively inspect for, identify and eliminate conditions under applicable local, 
state, or federal law or pursuant to the terms of contracts with governmental entities or under this 
Consent Decree.  

73. The Housing Specialist shall seek to consult with affected tenants prior to issuing 
an Action Plan.   

74. The Housing Specialist may amend an Action Plan or issue a replacement.   

Work Completion 

75. Work Completion.  For each Unit, Common Area, or Property that Defendants have 
proposed to be a Completed Unit, Completed Common Area, or Completed Property pursuant to 
Paragraph 67(i), the Housing Specialist will promptly determine, through inspection of relevant 
documentation or, as the Housing Specialist reasonably determines in its discretion is appropriate,  
inspection of the Unit, Common Area, or Property or confirmation with the Unit’s occupants, 
whether Work Completion has occurred and shall notify Defendants in writing of its conclusions.  
For each Property that Defendants have asked the Housing Specialist to determine pursuant to 
Paragraph 67(i) would have been a Completed Property but for the presence of Deferred Units, the 
Housing Specialist will promptly determine, through inspection of relevant documentation or, as 
the Housing Specialist reasonably determines in its discretion is appropriate, inspection of the 
Property or confirmation with the Property’s occupants, whether Work Completion has occurred 
but for Deferred Units and shall notify Defendants in writing of its conclusions.  The Housing 
Specialist shall make best efforts to complete these reviews and inspections within thirty days of 
each Progress Report.  If the Housing Specialist has determined that the Work Unit, Work 
Common Area, or Work Property has achieved Work Completion, it will be deemed a “Completed 
Unit,” “Completed Common Area,” or “Completed Property,” provided, however, that 
“Completed” status will not impact the jurisdiction of local, state, or federal regulators to issue 
violations found in Units, Common Areas, or Properties. If the Housing Specialist determines that 
any Unit, Common Area or Property that Defendants included in a Progress Report pursuant to 
Paragraph 67(i) is not Completed, the Housing Specialist shall specify the work needed to be done 
for that Unit, Common Area, or Property to be designated as Completed in the Action Plan for the 
following quarter.   

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28 

76. The Housing Specialist shall, in the Action Plan for the following quarter, state the 
Units, Common Areas, or Properties the Housing Specialist has determined to be Completed since 
the last Action Plan was issued.  If the Housing Specialist thereafter identifies non-compliance 
with Lead-Based Paint Laws related to the condition of Lead Based Paint or a Substandard 
Condition in a Completed Unit, Completed Common Area, or Completed Property, or in a Property 
that the Housing Specialist had determined would be a Completed Property but for the presence 
of Deferred Units,  that Unit, Common Area, or Property will lose its designation as “Completed” 
(or its status as a property that would be a Completed Property but for the presence of Deferred 
Units) until such time as the Housing Specialist determines that non-compliance with Lead-Based 
Paint Laws or Substandard Condition has been corrected. 

Guaranty of Performance; Failure of Performance  

77. Financial Assurance. To guarantee its remediation and compliance work under this 
Consent Decree, including the cost of the testing and Abatement required by Paragraphs 46 and 
49 above, which Defendants estimate will cost at least $10,000,000, within 30 Days after the 
Effective Date, Defendants shall provide financial assurance, in the form of cash held by a 
nationally chartered financial institution in an interest-bearing account pursuant to an escrow 
agreement or trust agreement acceptable to the Plaintiffs, with a value of $2,000,000 (the 
“Financial Assurance”).  At least once a year thereafter, the Housing Specialist will estimate the 
cost of the remaining work to be performed under this Consent Decree in the following year and 
notify the Parties of that revised amount.  If that revised amount is less than the then-current value 
of the Financial Assurance, Defendants may reduce the value of the Financial Assurance to the 
cost estimate amount.  If the revised amount is greater than the then-current value of the Financial 
Assurance, Defendants must increase the value of the Financial Assurance in a form agreed to by 
the Plaintiffs by the difference within 60 Days after the notification. Should Defendants dispute 
the Housing Specialist’s new estimated cost, the dispute shall be resolved per the dispute resolution 
provisions in Section XV (Dispute Resolution) below.  The escrow agreement or trust agreement 
referenced above shall include language authorizing funds to be paid as provided in Paragraph 78 
(Failure of Performance) and shall make clear that Defendants’ interest in the funds subject to this 
agreement is solely a contingent interest as to amounts by which the Housing Specialist may reduce 
the value of the Financial Assurance as provided in this Paragraph and amounts not used pursuant 
to Paragraph 78 and remaining at termination of this Consent Decree. 

78. Failure of Performance.  If the Housing Specialist determines that Defendants fail 
to successfully implement an Action Plan or a portion thereof or are incapable of successfully 
implementing such plan or a portion thereof, the Housing Specialist may notify Defendants of such 
determination, after which Defendants shall have the remainder of the quarterly period until the 
next Progress Report or 60 days, whichever is greater, or such later deadline as the Housing 
Specialist sets for good cause, to correct the failure. If the Housing Specialist determines that 
Defendants have not corrected that failure within that time period, the Housing Specialist may 
implement some or all of the actions required by the Action Plan using contractors engaged by the 
Housing Specialist. If Defendants fail to pay for such work, the Housing Specialist may direct any 
third-party responsible for the Financial Assurance to make such payment or take appropriate steps 
to fund such work.      

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Occupant Protections 

79. Notice of Work. Defendants shall provide occupants reasonable advance written 
notice of work, which shall be provided no less than 10 calendar days prior to performance of non-
emergency work, unless the occupant consents to a shorter time period.  Defendants shall make 
reasonable efforts to schedule the work in a way that minimizes inconvenience to the occupants. 

80. Relocation at Occupants’ Option. Within 30 Days of the Effective Date, Defendants  
will submit a written policy (“Relocation Policy”) to the Housing Specialist providing: (a) 
occupants the option to elect to postpone or refuse work required by this Consent Decree (except 
where such work is required under otherwise applicable law) and (b) occupants the right to 
temporarily relocate during work when such work either (i) would substantially inconvenience the 
occupant, as will be further defined in the Relocation Policy, or could not be safely performed 
otherwise, or (ii) would be performed in a Unit that is subject to the Lead Safe Housing Rule, when 
required by that Rule, 24 C.F.R. § 35.1345(a)(2) (“Relocation-Eligible Work”). As part of the 
Relocation Policy, occupants shall have the right, for the duration of any Relocation-Eligible 
Work, to be temporarily relocated, at Defendants’ cost, to a nearby dwelling unit, no more than a 
mile away, or as close as reasonably available, of adequate size for that household. The relocation 
unit shall be free of Substandard Conditions including but not limited to lead-based paint hazards 
and without cost to the relocated tenant and/or occupant who shall, under no circumstance, be 
considered to have abandoned or surrendered their tenancy rights to their apartment in which 
Relocation-Eligible Work is performed.  Once such a policy is approved by the Housing Specialist, 
Defendants will implement and abide by the Relocation Policy for the duration of this Consent 
Decree.  The Housing Specialist may amend the Relocation Policy after consultation with 
Plaintiffs and Defendants.   

81. Work Refusal or Postponement.  Tenants shall have the right to elect to postpone 
or refuse any work required under this Consent Decree during their tenancy (unless such work 
cannot be postponed under applicable local, state, and federal law).  A tenant will be deemed “non-
responsive” if Defendants are unable to obtain the tenant’s, their designated representative’s, or 
their authorized occupant’s agreement to schedule work after: (1) three or more written notices, in 
the language customarily used between Defendants and the tenant, provided at least a week apart 
from one another; (2) three or more calls to the tenants’ last-known phone number to schedule 
work; and (3) at least one in-person attempt to contact the tenant at their Unit.  If a tenant is non-
responsive or elects to postpone or refuse work under this Consent Decree, the Defendants shall 
provide notice to the Housing Specialist, who shall attempt to contact any such tenants, their 
designated representative, or authorized occupant and confirm that the eligible tenants wish to 
postpone or refuse that work.  If the Housing Specialist confirms that a tenant is refusing work, or 
if the tenant is not responsive to the Housing Specialist, the Housing Specialist shall designate the 
Unit a “Deferred Unit” until the tenant agrees to have deferred work performed or until Unit 
turnover, whichever occurs sooner.  Failure to perform work in a Unit designated as a Deferred 
Unit during the period of designation shall not constitute a violation of this Consent Decree (unless 
such work cannot be postponed under applicable local, state, and federal law). Defendants and the 
Housing Specialist shall attempt to contact a tenant and obtain consent to access a Deferred Unit 
at least once during each following quarter by written notice and one in-person attempt.  If 
Defendants and the Housing Specialist remain unable to obtain consent to access the unit (and 

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30 

work can be postponed under applicable local, state, and federal law) until vacancy of the Deferred 
Unit, Defendants will perform the Deferred Work upon vacancy, whether or not vacancy occurs 
within the term of this Consent Decree.  For the avoidance of doubt, when a Property is transferred 
pursuant to Paragraph 19, Defendants’ obligation to perform any remaining Deferred Work in that 
Property is subject to the provisions of Paragraph 19 concerning that obligation.  

82. Coordination of Work.  Defendants shall coordinate access for required annual 
inspections and remediation of lead and indoor allergen hazards as well as other substandard 
conditions, so as to minimize the number of times that occupants must provide access.  In no event 
should occupants be compelled by Defendants to move from their apartments unless required by 
applicable law during the performance of work to protect occupants’ health and safety. 

83. Effect of Work on Rent.  Defendants agree that any work done to comply with this 
Consent Decree or Lead-Based Paint Laws or to remediate Substandard Conditions within the 
meaning of this Consent Decree shall not entitle Defendants, by virtue of that work, to rent 
increases. For clarification, no work performed to comply with the requirements of this Consent 
Decree shall provide the basis to increase the rent of any unit, whether unregulated or regulated, 
including that remediation work shall not serve as a basis for Major Capital Improvement (“MCI”) 
or Individual Apartment Improvement (“IAI”) increases under local and state law or for an increase 
in payments to be made under any local, state or federal housing subsidy program. 

84. Rent Abatement Credit.  With respect to any tenant whose Unit is found by the 
Housing Specialist to have then-current non-compliance with Lead-Based Paint Laws or 
Substandard Conditions (including those who have agreed to be relocated) a rent abatement credit 
shall be applied to the tenant’s rental account pursuant to an abatement schedule adopted by the 
Housing Specialist in consultation with Defendants (except insofar as the Unit is a Deferred Unit).  
The Housing Specialist shall determine the amount of the credit based on the number and severity 
of conditions and as a percentage of the market rent or legal regulated rent without regard to 
whether the rent is subsidized with public income sources (e.g., Section 8 or N.Y.C. Family 
Eviction Prevention Supplements). The credit shall be applied to the tenant’s portion of the rent 
and shall continue on a monthly basis until such time as the Housing Specialist determines that the 
Substandard Conditions have been corrected to Work Completion (as defined herein) and notifies 
the tenant to resume regular payment.  A tenant shall not be entitled to a credit to the extent the 
Substandard Conditions are de minimis or are corrected promptly (as determined by the Housing 
Specialist) after initial notice of the condition or if the Housing Specialist determines that the tenant 
is refusing to allow access to correct the non-compliance with the Lead-Based Paint Laws or 
Substandard Conditions. 

85. Temporary Freeze on Collectability of Rent Increases. Defendants also agree that 
the total monthly collectible rent increase for Units in which a percentage rent abatement credit as 
described in Paragraph 84, shall be frozen until the Unit is deemed a Completed Unit or Deferred 
Unit. Nothing in the prior sentence, shall restrict or relieve the Defendants from their duty to offer 
timely lease renewals which may seek to increase the legal regulated rent of rent-regulated tenants 
in accordance with applicable New York City Rent Guidelines Board orders.  For sake of clarity, 
the legal regulated rent for units in receipt of a rent abatement may increase during a remediation 
period unless otherwise prohibited by an administrative decision, stipulation or court order,  

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registered with the NYS Division of Housing and Community Renewal, but the monthly dollar 
amount representing those increases may not be collected from the tenants until such time as the 
Unit has been deemed Completed pursuant to Paragraph 75 and 76 herein.   

X. RESTITUTION FUND 

86. In consultation and under the direction of the State of New York, the Housing 
Specialist will determine eligibility, determine fund allocation considering harm and risk of harm,  
and disburse funds from the Restitution Fund to the tenant of record or the authorized occupant 
who has lived in a Unit of any Property or Previously Transferred Property: (a) who has had Lead-
Based Paint Hazards or a Substandard Condition in their Unit or any Common Area within their 
Property during the six years prior to the Effective Date; or (b) who, while under the age of 
eighteen, has tested positive for elevated blood lead levels since January 1, 2015. If, after 
distribution of restitution funds as provided by the prior sentence, funds are remaining in the 
account held by the Housing Specialist, the Housing Specialist and the State of New York will 
confer about the appropriate way to disburse remaining funds.  In no event will those funds revert 
back to Defendants and Defendants shall have no input into the manner of funds disbursement.  

87. Defendants shall cooperate with the Housing Specialist and provide any 
information necessary to determine those eligible for payment from the Restitution Fund, including 
but not limited to providing a list of tenants of record or permitted occupants known to Defendants 
meeting the criteria in Paragraph 86 above within 90 calendar days after the Effective Date. 

88. For the avoidance of doubt: (a) no portion of such restitution payments represent 
reimbursement to any State or City or other person or entity for the costs of any investigation or 
litigation, (b) the entire restitution payment is properly characterized as described in Paragraph 27 
and this Section X (Restitution Fund), and (c) no portion of the restitution payment constitutes 
disgorgement or is properly characterized as the payment of statutory or other fines, penalties, 
punitive damages, or other punitive assessments.  

XI. DEFENDANTS’ REPORTING REQUIREMENTS  

89. In addition to the Progress Report required by Paragraph 67, Defendants shall 
promptly report to Plaintiffs and the Housing Specialist whenever any of the following may pose 
an immediate threat to a tenant or other occupant’s health or welfare: any violation of this Consent 
Decree, or any other event affecting Defendants’ performance under this Decree, or the condition 
of its Properties. 

90.  All reports and notices required under this Consent Decree shall be electronically 
submitted to the persons designated in Section XIX (Notices). 

91. Each report submitted by Defendants under this Section shall be signed by Morris 
Lieberman, in his individual capacity, and the Compliance Officer or an executive officer or 
principal of Lilmor on behalf of all other Defendants and include the following certification: 

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32 

I certify under penalty of law that this document and all attachments were prepared under 
my direction or supervision in accordance with a system designed to assure that qualified 
personnel properly gather and evaluate the information submitted. Based on my inquiry of 
the person or persons who manage the system, or those persons directly responsible for 
gathering the information, the information submitted is, to the best of my knowledge and 
belief, true, accurate, and complete.  I am aware that there are significant penalties for 
submitting false information, including the possibility of fine and imprisonment for 
knowing violations. 

92. This certification requirement does not apply to emergency or similar notifications 
where compliance would be impractical. 

93. The reporting requirements of this Consent Decree do not relieve Defendants of 
any reporting obligations otherwise required by law, or by any other federal, state, or local law, 
regulation, permit, or other requirement. 

94. Any information provided pursuant to this Consent Decree may be used by the 
Plaintiffs in any proceeding to enforce the provisions of this Consent Decree and as otherwise 
permitted by law. 

XII. APPROVAL OF PLAN AND OTHER DELIVERABLES; PERMITS  

95.  After review of any plan, report, or other item that is required to be submitted to 
the Housing Specialist pursuant to this Consent Decree, the Housing Specialist shall in writing: 
(a) approve the submission; (b) approve the submission upon specified conditions; (c) approve part 
of the submission and disapprove the remainder; or (d) disapprove the submission.  

96. If the submission is approved pursuant to Paragraph 95(a), Defendants shall take 
all actions required by the plan, report, or other document, in accordance with the schedules and 
requirements of the plan, report, or other document, as approved.  If the submission is conditionally 
approved or approved only in part pursuant to Paragraph 95(b) or (c), Defendants shall take all 
actions required by the approved plan, report, or other item that the Housing Specialist determines 
are technically severable from any disapproved portions. 

97. If the submission is disapproved in whole or in part pursuant to Paragraph 95(c) or 
(d), Defendants shall within 30 days correct all deficiencies and resubmit the plan, report, or other 
item, or disapproved portion thereof, for approval, in accordance with the preceding Paragraphs.  
If the resubmission is approved in whole or in part, Defendants shall proceed in accordance with 
the preceding Paragraph. 

98. If a resubmitted plan, report, or other item, or portion thereof, is disapproved in 
whole or in part, the Housing Specialist may again require Defendants to correct any deficiencies, 
in accordance with the preceding Paragraphs, or may itself correct any deficiencies, subject to the 
right of the Plaintiffs to seek stipulated penalties as provided in Section XIII (Stipulated Penalties). 

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33 

99. Obtaining Permits.  Where any compliance obligation under this Section requires 
Defendants to obtain a federal, state, or local permit or approval, Defendants shall submit timely 
and complete applications and take all other actions reasonably necessary to obtain all such permits 
or approvals.  Defendants may seek relief under the provisions of Section XIV (Force Majeure) 
for any delay in the performance of any such obligation resulting from a failure to obtain, or a 
delay in obtaining, any permit or approval required to fulfill such obligation, if Defendants have 
submitted timely and complete applications and have taken all other actions reasonably necessary 
to obtain all such permits or approvals. 

XIII. STIPULATED PENALTIES 

100. Defendants shall be liable for stipulated penalties to the Plaintiffs for violations of 
this Consent Decree as specified below, unless excused under Section XIV (Force Majeure).  A 
violation includes failing to perform any obligation required by the terms of the Sections and 
Paragraphs of this Decree enumerated below, including any action plan, work plan, or schedule 
approved under this Decree, according to all applicable requirements of this Decree and within the 
specified time schedules established by or approved under this Decree.   

101. Late Payment of Civil Penalty.  If Defendants fail to pay the civil penalty required 
to be paid under Section VII (Penalty and Restitution Payment) when due, Defendants shall pay a 
stipulated penalty of $5,000 per day for each day that the payment is late to the particular Plaintiff.   

102. Requirements Relating to Lead-Based Paint, Action Plans, Transfers of Interest, 
Housing Specialist, and Certain Other Matters.  The following stipulated penalties shall accrue per 
violation per day for each violation of the requirements set forth in clauses (b) and (c) of 
Paragraphs 17 and 19, Sections VI (Transfers of Interests), VII (Penalty and Restitution Payment), 
VIII (Housing Specialist), and Paragraphs 44 to 59 and 77 of Section IX (Injunctive Requirements) 
of this Consent Decree or the requirements of an Action Plan pursuant to Paragraph 69 of Section 
IX (Injunctive Requirements). 

Penalty Per Violation Per Day Period of Noncompliance 
 $500........................................................... Days 1-10 
 $750.......................................................... Days 11-20 
 $1,000 ............................................... Days 21 and thereafter 

103. Reporting Requirements.  The following stipulated penalties shall accrue per 
violation per day for each violation of the requirements set forth in Paragraph 67 of Section IX 
(Injunctive Requirements) or Section XI (Defendants’ Reporting Requirements) of this Consent 
Decree: 

Penalty Per Violation Per Day     Period of Noncompliance 
 $500........................................................... Days 1-30 
 $750.......................................................... Days 31-60 
 $1,000 ............................................... Days 60 and thereafter 

104. Stipulated penalties under this Section shall begin to accrue on the day after 
performance is due or on the day a violation occurs, whichever is applicable, and shall continue to 

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34 

accrue until performance is satisfactorily completed or until the violation ceases.  Stipulated 
penalties shall accrue simultaneously for separate violations of this Consent Decree. 

105. Defendants shall pay any stipulated penalty within 30 days after receiving the 
United States’ written demand.   

106. The United States may in the unreviewable exercise of its discretion, reduce or 
waive stipulated penalties otherwise due it under this Consent Decree. 

107. Stipulated penalties shall continue to accrue during any Dispute Resolution with 
respect to that violation but need not be paid until the following:  

a. If the dispute is resolved by agreement or by a decision of the United States 
that is not appealed to the Court, Defendants shall pay accrued penalties 
determined to be owing to the United States within 30 days after the 
effective date of the agreement or the receipt of the United States’ decision 
or order. 

b. If the dispute is appealed to the Court and the United States prevails in 
whole or in part, Defendants shall pay all accrued penalties determined by 
the Court to be owing within 60 days of receiving the Court’s decision or 
order, except as provided in subparagraph (c), below. 

c. If any Party appeals the District Court’s decision, Defendants shall pay all 
accrued penalties determined to be owing within 15 days of receiving the 
final appellate court decision. 

108. Defendants shall pay stipulated penalties owing to the United States in the manner 
set forth and with the confirmation notices required by Paragraph 24, except that the transmittal 
letter shall state that the payment is for stipulated penalties and shall state for which violation or 
violations the penalties are being paid.   

109. Subject to the provisions of Section XVII (Effect of Settlement/Reservation of 
Rights), the stipulated penalties provided for in this Consent Decree shall be in addition to any 
other rights, remedies, or sanctions available to the Plaintiffs for Defendant’s violation of this 
Consent Decree or applicable law.   

XIV. FORCE MAJEURE 

110. “Force majeure,” for purposes of this Consent Decree, is defined as any event 
arising from causes beyond the control of Defendants, of any entity controlled by Defendants, or 
of Defendants’ contractors, that delays or prevents the performance of any obligation under this 
Consent Decree despite Defendants’ best efforts to fulfill the obligation.  The requirement that 
Defendants exercise “best efforts to fulfill the obligation” includes using best efforts to anticipate 
any potential force majeure event and best efforts to address the effects of any such event (a) as it 
is occurring and (b) after it has occurred to prevent or minimize any resulting delay to the greatest 

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35 

extent possible.  “Force Majeure” does not include Defendants’ financial inability to perform any 
obligation under this Consent Decree. 

111. If any event occurs or has occurred that may delay the performance of any 
obligation under this Consent Decree, whether or not caused by a force majeure event, Defendants 
shall provide notice orally or by electronic transmission to Plaintiffs and the Housing Specialist 
pursuant to Section XIX (Notices), within seven business days of when Defendants first know that 
the event might cause a delay.  Within seven days thereafter, Defendants shall provide in writing 
to the Plaintiffs and the Housing Specialist an explanation and description of the reasons for the 
delay; the anticipated duration of the delay; all actions taken or to be taken to prevent or minimize 
the delay; a schedule for implementation of any measures to be taken to prevent or mitigate the 
delay or the effect of the delay; Defendants’ rationale for attributing such delay to a force majeure 
event if it intends to assert such a claim; and a statement as to whether, in the opinion of 
Defendants, such event may cause or contribute to an endangerment to public health, welfare or 
the environment.  Defendants shall include with any notice all available documentation supporting 
the claim that the delay was attributable to a force majeure.  Failure to comply with the above 
requirements shall preclude Defendants from asserting any claim of force majeure for that event 
for the period of time of such failure to comply, and for any additional delay caused by such failure.  
Defendants shall be deemed to know of any circumstance of which Defendants, any entity 
controlled by Defendants, or Defendants’ contractors knew or reasonably should have known. 

112. If Plaintiffs agree that the delay or anticipated delay is attributable to a force 
majeure event, the time for performance of the obligations under this Consent Decree that are 
affected by the force majeure event will be extended by Plaintiffs for such time as is necessary to 
complete those obligations.  An extension of the time for performance of the obligations affected 
by the force majeure event shall not, of itself, extend the time for performance of any other 
obligation.  Plaintiffs will notify Defendants in writing of the length of the extension, if any, for 
performance of the obligations affected by the force majeure event.   

113. If Plaintiffs do not agree that the delay or anticipated delay has been or will be 
caused by a force majeure event, Plaintiffs will notify Defendants in writing of its decision.  

114. If Defendants elect to invoke the Dispute Resolution procedures set forth in 
Section XV (Dispute Resolution), it shall do so no later than 20 days after receipt of Plaintiffs’ 
decision.  In any such proceeding, Defendants shall have the burden of demonstrating by a 
preponderance of the evidence that the delay or anticipated delay has been or will be caused by a 
force majeure event, that the duration of the delay or the extension sought was or will be warranted 
under the circumstances, that best efforts were exercised to avoid and mitigate the effects of the 
delay, and that Defendants complied with the requirements of Paragraphs 110 and 111.  If 
Defendants carry this burden, the delay at issue shall be deemed not to be a violation by Defendants 
of the affected obligation of this Consent Decree identified to the Plaintiffs and the Court. 

XV. DISPUTE RESOLUTION 

115. Unless otherwise expressly provided in this Consent Decree, the Dispute 
Resolution procedures of this Section shall be the exclusive mechanism to resolve disputes raised 

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36 

by Defendants arising under or with respect to this Consent Decree.  Nothing in this Section limits 
Plaintiffs’ right to seek judicial enforcement of the Consent Decree. 

116. Informal Dispute Resolution.  Other than a Minor Dispute as defined in Paragraph 
124, any dispute subject to Dispute Resolution under this Consent Decree shall first be the subject 
of informal negotiations.  The dispute shall be considered to have arisen when Defendants send 
the Plaintiffs a written Notice of Dispute.  Such Notice of Dispute shall state clearly the matter in 
dispute.  The period of informal negotiations shall not exceed 20 days from the date the dispute 
arises (the “Informal Negotiation Period”), unless that period is modified by written agreement.  If 
the Parties cannot resolve a dispute by informal negotiations, then the position advanced by the 
Plaintiffs shall be considered binding unless, within 21 days after the conclusion of the Informal 
Negotiation Period, Defendants invoke formal Dispute Resolution procedures as set forth below. 

117. Formal Dispute Resolution.  Defendants shall invoke formal Dispute Resolution 
procedures, within the time period provided in the preceding Paragraph, by serving on the 
Plaintiffs a written Statement of Position regarding the matter in dispute.  The Statement of 
Position shall include, but need not be limited to, any factual data, analysis, or opinion supporting 
Defendants’ position and any supporting documentation relied upon by Defendants. 

118. The Plaintiffs shall serve their Statement of Position within 45 days of receipt of 
Defendants’ Statement of Position.  The Plaintiffs’ Statement of Position shall include, but need 
not be limited to, any factual data, analysis, or opinion supporting that position and any supporting 
documentation relied upon by the Plaintiffs.  The Plaintiffs’ Statement of Position shall be binding 
on Defendants, unless Defendants file a motion for judicial review of the dispute in accordance 
with the following Paragraph. 

119. Defendants may seek judicial review of the dispute by filing with the Court and 
serving on the Plaintiffs, in accordance with Section XIX (Notices), a motion requesting judicial 
resolution of the dispute.  The motion must be filed within 14 business days of receipt of the 
Plaintiffs’ Statement of Position pursuant to the preceding Paragraph.  The motion shall contain a 
written statement of Defendants’ position on the matter in dispute, including any supporting factual 
data, analysis, opinion, or documentation, and shall set forth the relief requested and any schedule 
within which the dispute must be resolved for orderly implementation of the Consent Decree. 

120. The Plaintiffs shall respond to Defendants’ motion within the time period allowed 
by the Local Rules of this Court.  Defendants may file a reply memorandum, to the extent permitted 
by the Local Rules. 

121. Standard of Review 

a. Disputes Concerning Matters Accorded Record Review. Except as 
otherwise provided in this Consent Decree, in any dispute concerning the 
Lead-Based Paint Laws brought under Paragraph 117 pertaining to the 
adequacy or appropriateness of any item requiring approval by the Housing 
Specialist under this Consent Decree pursuant to Paragraphs 95 through 98 
and in any other dispute concerning a decision or action of an agency of the 

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37 

United States ordinarily accorded review on the administrative record under 
applicable principles of administrative law, Defendants shall have the 
burden of demonstrating, based on the administrative record submitted by 
the United States, if any, that the position of the United States is arbitrary 
and capricious or otherwise not in accordance with the then applicable legal 
standard. 

b. Other Disputes. Except as otherwise provided in this Consent Decree, in 
any other dispute brought under Paragraph 117, Defendants shall bear the 
burden of demonstrating that their position complies with this Consent 
Decree and better furthers the objectives of the Consent Decree. 

122. To the extent any Party would otherwise have the right to appeal an adverse ruling 
by the District Court, nothing in this Consent Decree limits that right. 

123. The invocation of dispute resolution procedures under this Section shall not, by 
itself, extend, postpone, or affect in any way any obligation of Defendants under this Consent 
Decree, unless and until final resolution of the dispute so provides.  Stipulated penalties with 
respect to the disputed matter shall continue to accrue from the first day of noncompliance, but 
payment shall be stayed pending resolution of the dispute as provided in Paragraph 107.  If 
Defendants do not prevail on the disputed issue, stipulated penalties shall be assessed and paid as 
provided in Section XIII (Stipulated Penalties). 

124. Minor Disputes. Notwithstanding the foregoing, Paragraphs 117 to 122 shall not 
apply to disputes regarding Housing Specialist determinations relating to specific Units or 
Common Areas, except as to those conditions that Plaintiffs contend violate the Lead-Based Paint 
Laws.  Such Unit- or Common Area-specific disputes shall not be subject to formal dispute 
resolution or judicial review.  For such minor disputes, the decision of the Housing Specialist after 
informal discussion with Defendants shall be final.   

XVI. INFORMATION COLLECTION AND RETENTION 

125. Upon reasonable notice to Defendants (or as otherwise authorized by applicable 
law), the Plaintiffs and their representatives, and the Housing Specialist and its agents, including 
attorneys, contractors, and consultants, shall have the right of entry into any facility covered by 
this Consent Decree, at all reasonable times, upon presentation of credentials, to: 

a. monitor the progress of activities required under this Consent Decree; 

b. verify any data or information submitted to the Plaintiffs in accordance with 
the terms of this Consent Decree; 

c. obtain samples and, upon request, results of any samples taken by 
Defendants or their representatives, contractors, or consultants; 

d. obtain documentary evidence, including photographs and similar data; and 

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38 

e. assess Defendants’ compliance with this Consent Decree. 

126. Until three years after the termination of this Consent Decree, Defendants shall 
retain, and shall instruct its contractors and agents to preserve, all non-identical copies of all 
documents, records, or other information (including documents, records, or other information in 
electronic form) in its or its contractors’ or agents’ possession or control, or that come into its or 
its contractors’ or agents’ possession or control, and that relate in any manner to Defendants’ 
performance of its obligations under this Consent Decree.  This information-retention requirement 
shall apply regardless of any contrary corporate or institutional policies or procedures and does 
not shorten the Defendants’ obligation to retain documents for ten years under the NYC Childhood 

Lead Poisoning Prevention Act (NYC Admin, Code § 27-2056.17).  At any time during this 

information-retention period, upon request by the Plaintiffs, Defendants shall, within a reasonable 
time, provide copies of any documents, records, or other information required to be maintained 
under this Paragraph. 

127. At the conclusion of the information-retention period provided in the preceding 
Paragraph, Defendants shall notify the Plaintiffs at least 90 days prior to the destruction of any 
documents, records, or other information subject to the requirements of the preceding Paragraph 
and, upon request by the Plaintiffs, Defendants shall deliver copies of any such requested 
documents, records, or other information to the Plaintiffs.   

128. In response to a request by the Plaintiffs under Paragraphs 126 or 127, Defendants 
may assert that certain documents, records, or other information is privileged under the attorney-
client privilege or any other privilege or protection recognized by federal law, including the 
attorney work product doctrine.  If Defendants assert such a privilege or protection, they shall 
provide the following:  (a) the title of the document, record, or information; (b) the date of the 
document, record, or information; (c) the name and title of each author of the document, record, 
or information; (d) the name and title of each addressee and recipient; (e) a description of the 
subject of the document, record, or information; and (f) the privilege or protection asserted by 
Defendants.  However, no documents, records, or other information required to be created or 
generated pursuant to this Consent Decree shall be withheld on grounds of privilege. 

129. Defendants may also assert that information required to be provided under this 
Section is protected as TSCA-specific Confidential Business Information (“CBI”) under 15 U.S.C. 
§ 2613 or as general CBI under 40 C.F.R. Part 2.  As to any information that Defendants seek to 
protect as CBI, Defendants shall follow the procedures set forth in the applicable statutory or 
regulatory provisions. 

130. This Consent Decree in no way limits or affects any right of entry and inspection, 
or any right to obtain information, held by the United States or the State of New York pursuant to 
applicable federal, state or local laws, regulations, or permits, nor does it limit or affect any duty 
or obligation of Defendants to maintain documents, records, or other information imposed by 
applicable federal, state or local laws, regulations, or permits. 

131. Nothing in this Consent Decree shall in any way limit Defendants from identifying 
information submitted to the Plaintiffs or the Housing Specialist that qualifies as confidential 

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39 

business information, trade secrets, or information otherwise protected from disclosure for 
purposes of the Freedom of Information Act or state law equivalents.  At least 15 days before the 
United States produces any such designated information pursuant to a Freedom of Information Act 
request, it shall advise Defendants.  

XVII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS 

132. This Consent Decree resolves only the civil claims of the United States and the 
State of New York against Defendants for the violations alleged in the Complaint filed in this 
action through the Date of Lodging. 

133. The Plaintiffs reserve all legal and equitable remedies available to enforce the 
provisions of this Consent Decree, except as expressly stated in Paragraph 132.  This Consent 
Decree shall not be construed to limit the rights of the United States to obtain penalties or 
injunctive relief under the Lead Disclosure Rule, the Toxic Substances Control Act, the Anti-Fraud 
Injunction Act, or implementing regulations, or under other federal laws, regulations, or permit 
conditions, except as expressly specified in Paragraph 132.  The United States further reserves all 
legal and equitable remedies to address any imminent and substantial endangerment to the public 
health or welfare or the environment arising at, or posed by, the Properties, whether related to the 
violations addressed in this Consent Decree or otherwise.  Nothing in this Consent Decree shall 
limit any future action that an agency of the United States or local or State agency may take to 
administer its programs or, except as expressly provided in Paragraph 132, limit an agency of the 
United States’ authority to enforce any relevant statutory or program requirement. 

134. In any subsequent administrative or judicial proceeding initiated by the Plaintiffs 
for injunctive relief, civil penalties, other appropriate relief relating to the Properties or 
Defendants’ violations, Defendants shall not assert, and may not maintain, any defense or claim 
based upon the principles of waiver, res judicata, collateral estoppel, issue preclusion, claim 
preclusion, claim-splitting, or other defenses based upon any contention that the claims raised by 
the Plaintiffs in the subsequent proceeding were or should have been brought in the instant case, 
except with respect to claims that have been specifically resolved pursuant to Paragraph 132. 

135. This Consent Decree is not a permit, or a modification of any permit, under any 
federal, state, or local laws or regulations.  Defendants are responsible for achieving and 
maintaining complete compliance with all applicable federal, state, and local laws, regulations, 
and permits; and Defendants’ compliance with this Consent Decree shall be no defense to any 
action commenced pursuant to any such laws, regulations, or permits, except as set forth herein.  
The Plaintiffs do not, by its consent to the entry of this Consent Decree, warrant or aver in any 
manner that Defendants’ compliance with any aspect of this Consent Decree will result in 
compliance with provisions of any Lead-Based Paint Laws or with any other provisions of federal, 
state, or local laws, regulations, or permits. 

136. This Consent Decree does not limit or affect the rights of the Parties against any 
third parties, not party to this Consent Decree, nor does it limit the rights of third parties, not party 
to this Consent Decree, against the Parties, except as otherwise provided by law. 

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137. This Consent Decree shall not be construed to create rights in, or grant any cause 
of action to, any third party not party to this Consent Decree.  Nothing in this Consent Decree, 
including but not limited to Section III (Admissions), or any evidence underlying the Consent 
Decree, shall be admissible in any proceeding other than a proceeding brought by the United States 
and/or the State of New York to enforce the terms of this Consent Decree.  Nothing in this Consent 
Decree shall be construed as preventing Defendants from raising any and all defenses and asserting 
any and all affirmative claims in any other civil proceedings brought by the United States, the State 
of New York or any third party, provided that doing so would not otherwise violate any term of 
this Consent Decree. 

XVIII. COSTS 

138. The Parties shall bear their own costs of this action, including attorneys’ fees, 
except that the Plaintiffs respectively shall be entitled to collect the costs (including attorneys’ 
fees) incurred in any action necessary to collect any portion of the restitution fund payment, civil 
penalty, or any stipulated penalties due but not paid by Defendants. 

XIX.  NOTICES 

139. Unless otherwise specified in this Decree, whenever notifications, submissions, or 
communications are required by this Consent Decree, they shall be made in writing and delivered 
by reputable carrier, with a copy by email, addressed as follows: 

As to the United States by email: 

As to HUD by email: 

As to HUD by mail: 

As to EPA by email only:             

As to the People of the State of  
New York, OAG, by email: 

[email protected] 
[email protected] 

Re: Lilmor Consent Decree 

[email protected] 

Bruce Haber 
Office of Lead Hazard Control and Healthy Homes 
Program and Regulatory Support Division 
451 7th Street, SW, Room 8236 
Washington, DC 20410 

Re: Lilmor Consent Decree 
[email protected] 
[email protected] 

Re: Lilmor Consent Decree 
[email protected] 
[email protected] 

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As to the People of the State of 
New York, OAG by mail: 

As to Lilmor Management LLC, by 
email:         

Re: Lilmor Consent Decree 
Jane Landry-Reyes, Brent Meltzer 
Housing Protection Unit 
Office of the New York State Attorney General 
28 Liberty Street, New York, NY  10005 

Re: Lilmor Consent Decree 
[email protected] 
[email protected] 
[email protected] 
[email protected] 
[email protected] 
[email protected] 

As to Morris Lieberman, by email: Re: Lilmor Consent Decree 
[email protected] 
[email protected] 
[email protected] 

                              [email protected] 
[email protected]  
[email protected] 

           As to the Lilmor-Managed          
           Properties LLCs, by email:                  Re: Lilmor Consent Decree               

[email protected] 
[email protected] 
[email protected] 
[email protected] 
[email protected] 

           As to the Housing Specialist:  Address and e-email to be provided by the  
Housing Specialist after selection 

140. Any Party or the Housing Specialist may, by written notice to the other Parties and 
Housing Specialist, change its designated notice recipient or notice address provided above, or 
whether notice should be provided by email, U.S. Mail, or both. 

141. Notices submitted pursuant to this Section shall be deemed submitted upon mailing 
and simultaneous emailing, unless otherwise provided in this Consent Decree or by mutual 
agreement of the Parties in writing. 

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XX. EFFECTIVE DATE 

142. The Effective Date of this Consent Decree shall be the date upon which this 
Consent Decree is entered by the Court or a motion to enter the Consent Decree is granted, 
whichever occurs first, as recorded on the Court’s docket. 

XXI. RETENTION OF JURISDICTION 

143. The Court shall retain jurisdiction over this case until termination of this Consent 
Decree, for the purpose of resolving disputes arising under this Decree or entering orders 
modifying this Decree, pursuant to Sections XV (Dispute Resolution) and XXII (Modification), or 
effectuating or enforcing compliance with the terms of this Decree. 

XXII. MODIFICATION 

144. Except as otherwise set forth herein, the terms of this Consent Decree, including 
any attached appendices, may be modified only by a subsequent written agreement signed by all 
the Parties.  Where the modification constitutes a material change to this Decree, it shall be 
effective only upon approval by the Court.   

145. Any disputes concerning modification of this Decree shall be resolved pursuant to 
Section XV (Dispute Resolution), provided, however, that, instead of the burden of proof provided 
by Paragraph 121, the Party seeking the modification bears the burden of demonstrating that it is 
entitled to the requested modification in accordance with Federal Rule of Civil Procedure 60(b). 

XXIII. CERTAIN REPRESENTATIONS AND WARRANTIES 

146. Defendants each represent and warrant that the list of entities in Appendix A 
includes (a) every entity that either Morris Lieberman or Lillian Lieberman exercised any control 
over, since March 1, 2012, if that entity has owned, directly or indirectly, any residential rental 
properties at any point during that period; and (b) every entity that has owned residential rental 
properties at some point since March 1, 2012, where Lilmor managed or performed maintenance 
or other work at any of those properties at any point during that period.  For the avoidance of 
doubt, “exercised any control over” in this Paragraph means that Morris Lieberman and Lillian 
Lieberman, individually or jointly, directly or indirectly, held a controlling ownership interest in 
the entity, served as the managing agent of the entity, or controlled the managing agent of the 
entity (where the managing agent was a corporate entity). 

147. Defendants each represent and warrant that the list of properties in Appendix C 
includes every residential rental property in which a Defendant (directly or indirectly, in whole or 
in part) held any interest or exercised any control since January 1, 2024, provided that either (a) 
Morris Lieberman or Lillian Lieberman (directly or indirectly) exercised any control over it, since 
March 1, 2012; or  (b)  Lilmor managed or performed maintenance or other work at that property 
since March 1, 2012.  For the avoidance of doubt, “Morris Lieberman or Lillian Lieberman . . . 
exercised any control over” in this Paragraph means that Morris Lieberman and Lillian Lieberman, 
individually or jointly, directly or indirectly, held a controlling ownership interest in a property, 

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43 

served as the managing agent of the property’s owner, or controlled the managing agent of the 
property’s owner (where the managing agent was a corporate entity). 

148. Defendants each represent and warrant that the list of properties in Appendix B 
includes every residential rental property in which a Defendant (directly or indirectly, in whole or 
in part) has not held any interest or exercised any control since January 1, 2024, but for which 
(a) Morris Lieberman or Lillian Lieberman (directly or indirectly) exercised some control over it, 
since March 1, 2012; or (b) Lilmor managed or performed maintenance or other work at that 
property since March 1, 2012.  

149. Each of the signatories to this Consent Decree for any of the Defendants represent 
and warrant, individually, that the signatory is fully authorized to enter into the terms and 
conditions of this Consent Decree on behalf of the party or parties for which the signatory is 
signing and legally bind that party or parties to all terms and conditions of this Consent Decree. 

XXIV. PROPERTY REMOVAL AND TERMINATION 

150. Defendants shall be entitled to remove a Completed Property, or a Property that 
would be a Completed Property but for the presence of Deferred Units (subject to the following 
sentence) from the list of “Properties” to which this Consent Decree applies (“Removal of a 
Property”) after the Housing Specialist determines that (a) Defendants have maintained continuous 
satisfactory compliance with this Consent Decree with respect to that Property for a period of two 
years after the Substandard Conditions identified in the Substandard Condition Screen for that 
Property were remediated (or the date of acquisition, for a Newly Acquired Property), and 
(b) Defendants have been in satisfactory compliance with the requirements of this Consent Decree 
except those specific to other Properties for a period of at least three years (together with 
subparagraph (a), the “Removal Requirements”).  The preceding sentence shall not apply to a 
Property that would be a Completed Property but for the presence of one or more Deferred Units 
unless: (i) Defendants have provided the occupants of any Deferred Units with a notice in the form 
of Appendix F advising the occupants, with at least 60 days’ notice, that obligations under this 
Consent Decree to complete the Deferred Work prior to vacancy will no longer apply after 
Removal if occupants do not promptly provide access (provided that any work otherwise required 
by law will continue to be required); (ii) Defendants perform any Deferred Work for which 
occupants of Deferred Units provide access after receiving this notice; and (iii) the Housing 
Specialist has either confirmed that the tenants of any remaining Deferred Units do not wish for 
the Deferred Work to be performed prior to Removal or that the tenants have not responded to the 
Housing Specialist’s attempts to confirm the same. Notwithstanding the foregoing, Removal of a 
Property shall not obviate any provision of this Consent Decree (including Paragraph 81 (Work 
Refusal or Postponement)) that expressly obligates Defendants for a period of time extending 
beyond the date of that Removal. 

151. Once the Removal Requirements have been met for a Completed Property, 
Defendants may serve upon the Plaintiffs a Request for Removal of a Property, together with all 
necessary supporting documentation. 

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44 

152. Following receipt by the Plaintiffs of Defendants’ Request for Removal, the Parties 
shall confer informally concerning the Request and any disagreement that the Parties may have as 
to whether Defendants have met the Removal Requirements.  If the Plaintiffs agree that the 
Removal Requirements have been met for a Completed Property, the Parties shall submit, for the 
Court’s approval, a joint stipulation to effect that Removal. 

153. If the Plaintiffs do not agree that the Removal Requirements have been met, 
Defendants may invoke Dispute Resolution under Section XV (Dispute Resolution).  However, 
Defendants shall not seek Dispute Resolution of any dispute regarding termination until 30 days 
after service of its Request for Removal. 

154. Defendants shall be entitled to terminate this Consent Decree once (1) the last 
Property (excluding Newly Acquired Properties) has been Removed and (2) Defendants have 
maintained continuous satisfactory compliance with their obligations under this Consent Decree 
as to Newly Acquired Properties that have not been Removed for a period of two years or, for 
Newly Acquired Properties that have been owned or managed by Defendants for less than two 
years, for the amount of time owned or managed by Defendants; and provided that Defendants 
will remain obligated to conduct any work (including Deferred Work) required by this Consent 
Decree where the Decree expressly obligates Defendants beyond the date of that Removal.   At 
that time, the Parties shall submit, for the Court’s approval, a joint stipulation effecting that 
termination. 

XXV. PUBLIC PARTICIPATION 

155. This Consent Decree shall be lodged with the Court for a period of not less than 30 
days for public notice and comment in accordance with 28 C.F.R. § 50.7.  At the time of 
publication of this notice, Defendants will distribute to each lessee of a Unit in the Properties, by 
regular mail and email (where an email address is known by Defendants), a summary of the terms 
of this Consent Decree in the form of Appendix I.  For lessees with whom Defendants customarily 
communicate in a language other than English, Defendants shall also include a certified translation 
of Appendix I into that lessee’s language.  Additionally, in the event that the United States, in their 
discretion, determine to schedule a public meeting(s) regarding the proposed Consent Decree, 
Defendants will post in the lobbies of each of the Properties such notice of meeting as the Plaintiffs 
may provide. 

156. The Plaintiffs reserve the right to withdraw or withhold their consent if the 
comments regarding the Consent Decree disclose facts or considerations indicating that the 
Consent Decree is inappropriate, improper, or inadequate.  Defendants consent to entry of this 
Consent Decree without further notice and agree not to withdraw from or oppose entry of this 
Consent Decree by the Court or to challenge any provision of the Decree, unless the Plaintiffs have 
notified Defendants in writing that they no longer support entry of the Decree or only support entry 
of a modified Decree. 

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45 

XXVI. SIGNATORIES/SERVICE 

157. Each undersigned representative of Defendants, the U.S. Attorney for the Southern 
District of New York, the undersigned representative of the New York State Office of the Attorney 
General certifies that they are fully authorized to enter into the terms and conditions of this Consent 
Decree and to execute and legally bind to this Consent Decree the Party that they represent. 

158. This Consent Decree may be signed in counterparts, and its validity shall not be 
challenged on that basis.  Defendants agree to accept service of process by the methods provided 
in Section XIX (Notices) with respect to all matters arising under or relating to this Consent Decree 
and to waive the formal service requirements set forth in Rules 4 and 5 of the Federal Rules of 
Civil Procedure and any applicable Local Rules of this Court including, but not limited to, service 
of a summons. 

XXVII. INTEGRATION 

159. Except for the Parties’ separate agreement regarding Financial Assurance (the 
“Financial Assurance Agreement”), which remains in full force and effect, this Consent Decree 
and its attachments constitute the final, complete, and exclusive agreement and understanding 
among the Parties with respect to the settlement embodied in the Decree and supersedes all prior 
agreements and understandings, whether oral or written, concerning the settlement embodied 
herein.  Other than the Financial Assurance Agreement and deliverables that are subsequently 
submitted and approved pursuant to this Decree, no other document, nor any representation, 
inducement, agreement, understanding, or promise, constitutes any part of this Decree or the 
settlement it represents, nor shall it be used in construing the terms of this Decree. 

XXVIII. 26 U.S.C. SECTION 162(f)(2)(A)(ii) IDENTIFICATION 

160. For purposes of the identification requirement in Section 162(f)(2)(A)(ii) of the 
Internal Revenue Code, 26 U.S.C. § 162(f)(2)(A)(ii), and 26 C.F.R. § 1.162-21(b)(2),  Paragraphs 
15, 27-96, 99, 125-127, and 130 is restitution, remediation, or required to come into compliance 
with law.   

XXIX. FINAL JUDGMENT 

161. Upon approval and entry of this Consent Decree by the Court, this Consent Decree 
shall constitute a final judgment of the Court as to the Plaintiffs and Defendants.  The Court finds 
that there is no just reason for delay and therefore enters this judgment as a final judgment under 
Fed. R. Civ. P. 54 and 58. 

XXX. APPENDICES 

162. The following Appendices are attached to and part of this Consent Decree: 

Appendix A: List of Lilmor-Managed Properties LLCs 

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46 

Appendix B: List of Previously Transferred Properties 

Appendix C: List of Properties. 

Appendix D: List of Excluded Multifamily Properties 

Appendix E: List of Excluded Single Family Properties 

Appendix F: Notice Titled “Last Chance to Receive Court-Ordered Repairs” 

Appendix G: HPD Letter Agreement 

Appendix H: Checklist for Renovations Regulated by the RRP Rule 

Appendix I: Notice of Settlement and Right to Comment 

Dated and entered this      day of __________, 2024 

__________________________________ 

UNITED STATES DISTRICT JUDGE

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47 

FOR THE UNITED STATES OF AMERICA: 

Dated: New York, New York  DAMIAN WILLIAMS 
December 13, 2024  United States Attorney for the 

Southern District of New York 
Attorney for Plaintiff the United States of America 

By:  ______________________________
ZACHARY BANNON 
JACOB LILLYWHITE 
Assistant United States Attorneys 
86 Chambers Street, 3rd Floor 
New York, New York 10007 
Telephone: (212) 637-2728/2800 
Facsimile: (212) 637-2717 
E-mail:  [email protected]
              [email protected] 

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48 

FOR THE U.S. ENVIRONMENTAL PROTECTION AGENCY: 

Date 

Date 

_______________________________________ 
DAVID UHLMANN 
Assistant Administrator 

 Enforcement and Compliance Assurance 
U.S. Environmental Protection Agency 

_______________________________________ 
PAUL SIMON 
Regional Counsel 
U.S. Environmental Protection Agency, Region 2 
290 Broadway 
New York, NY 10007-1866 

JEANNIE YU 
Assistant Regional Counsel 
U.S. Environmental Protection Agency, Region 2 
290 Broadway 
New York, NY 10007-1866 

DAVID
UHLMANN

Digitally signed by DAVID 
UHLMANN
Date: 2024.11.21 17:10:23 
-05'00'

PAUL
SIMON

Digitally signed by PAUL 
SIMON
Date: 2024.11.26 
14:12:20 -05'00'

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49 

FOR THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: 

_______________________________________ 
Date LISA V. MULRAIN 

Associate General Counsel for Finance, Procurement and 
Administrative Law 
U.S. Department of Housing and Urban Development 
451 7th Street, SW 
Washington, DC 20410 

Date
LEE ANN RICHARDSON 
Acting Assistant General Counsel for Administrative Law 
U.S. Department of Housing and Urban Development 
451 7th Street, SW 
Washington, DC 20410 

LEE RICHARDSON
Digitally signed by LEE 
RICHARDSON 
Date: 2024.11.12 11:20:47 -05'00'

LISA 
MULRAIN

Digitally signed by 
LISA MULRAIN 
Date: 2024.11.12 
14:39:34 -05'00'

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Appendix A 
Lilmor-Managed 
Properties LLCs 

Appendix B 
Previously Transferred Properties 

Appendix C 
Properties 

 192-198 Nagle Avenue, New York, NY 10034  
 200-208 Nagle Avenue, New York, NY 10034  
 776 Crown Street, Brooklyn, NY 11213  
 200 East 19th Street, Brooklyn, NY 11226  
 271 Parkside Avenue, Brooklyn, NY 1122  
 1616 President Street, Brooklyn, NY 11213  
 575 Herkimer Street, Brooklyn, NY 11213  

354 E 21th Street Realty Corp.  354 East 21st Street, Brooklyn, NY 11226 
P Bigg Realty LLC  2077 East 12th Street, Brooklyn, NY  11229 
45-55 Realty LLC  45 Hawthorne Street, Brooklyn, NY 11225 

55 Winthrop St LLC  55 Winthrop Street, Brooklyn, NY 11225 
130 Clarkson Realty LLC  130 Clarkson Avenue, Brooklyn, NY 11226 
250-251 E 29 Realty LLC  250 East 29th Street, Brooklyn, NY 11226 

251 E 29 St LLC  251 East 29th Street, Brooklyn, NY 11226 
1590 W 8 St LLC  1590 West 8th Street, Brooklyn, NY 11204 

105 Ave P Realty LLC  105 Avenue P, Brooklyn, NY 11204 
888 Realty LLC  888 Montgomery Street, Brooklyn, NY 11213 

100 Linden Realty LLC  100 Linden Blvd, Brooklyn, NY 11226 
131 Realty LLC  131 Lincoln Road, Brooklyn, NY 11225 

C & Z Realty LLC  1629 West 10th Street, Brooklyn, NY 11223 
2003 Realty LLC  2003 Avenue J, Brooklyn, NY 11210 

1429 Carroll Street LLC  1429 Carroll Street, Brooklyn, NY 11213 
59 Logan St LLC  59 Logan Street, Brooklyn, NY 11208 

1269 E 18 Street Realty LLC  1269 East 18th Street, Brooklyn, NY 11230 
334 Eastern Pkwy Realty LLC  334 Eastern Parkway, Brooklyn, NY 11225 

840 Realty LLC  840 East 17th Street, Brooklyn, NY 11230 

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Appendix A 
Lilmor-Managed 
Properties LLCs 

Appendix B 
Previously Transferred Properties 

Appendix C 
Properties 

1909 Realty LLC  1909 Quentin Road, Brooklyn, NY 11229 
333 Realty LLC  333 Neptune Avenue, Brooklyn, NY 11235 

1690 President Street LLC  1690 President Street, Brooklyn, NY 11213 
645 Realty LLC  645 Ocean Parkway, Brooklyn, NY 11230 
3402 Realty LLC  3402 Avenue I, Brooklyn, NY 11210 
1439 Realty LLC  1439 Ocean Avenue, Brooklyn, NY 11230 

103-35 120 St Realty LLC  103-35 120th Street, Richmond Hill, NY 11419 
20-30 Merle Realty LLC  20-30 Merle Place, Staten Island, NY 10305 

1921 Realty LLC  1921 Avenue I, Brooklyn, NY 11230 
410 Westminster LLC  410 Westminster Road, Brooklyn, NY 11218 
580-585 Realty LLC  585 East 16th Street, Brooklyn, NY 11226 

  580 East 17th Street, Brooklyn, NY 11226 
2251 Realty LLC  2251 81st Street, Brooklyn, NY 11214 
209 Realty LLC  209 East 16th Street, Brooklyn, NY 11226 

40-71 Realty LLC  40-71 Elbertson Street, Elmhurst, NY 11373 
712 Realty LLC  712 East 27th Street, Brooklyn, NY 11210 
723 Realty LLC  723 East 27th Street, Brooklyn, NY 11210 
2420 Realty LLC  2420 Glenwood Road, Brooklyn, NY 11210 
1684 Realty LLC  1684 West 10th Street, Brooklyn, NY 11223 
1660 Realty LLC  1660 East 21st Street, Brooklyn, NY 11210 

1011 Neilson Realty LLC  1011 Neilson Street, Far Rockaway, NY 11691 
1012 Nameoke Realty LLC  1012 Nameoke Street, Far Rockaway, NY 11691 
1633 West 10th Realty LLC  1633 West 10th Street, Brooklyn, NY 11223 

Alit Realty LLC  1902 Avenue L, Brooklyn, NY 11230 
1301 Avenue K Realty LLC  1301 Avenue K, Brooklyn, NY 11230 
1311 Avenue K Realty LLC  1311 Avenue K, Brooklyn, NY 11230 

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Appendix A 
Lilmor-Managed 
Properties LLCs 

Appendix B 
Previously Transferred Properties 

Appendix C 
Properties 

E&S Realty Management LLC  1173 52nd Street, Brooklyn, NY 11219 
915 84th Street LLC  915 84th Street, Brooklyn, NY 11228 
2001 Avenue P LLC  2001 Avenue P, Brooklyn, NY 11229 

2065 Ocean Avenue LLC  2065 Ocean Avenue, Brooklyn, NY 11230 
 

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Appendix D – Excluded Multifamily Properties 

 

1599 West 10th Street, Brooklyn, New York 11204 

1901 Avenue P, Brooklyn, New York 11229 

  

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Appendix E – Excluded Single-Family Properties 
 

1040 East 24th Street, Brooklyn, New York 11210 

1052 East 24th Street, Brooklyn, New York 11210 

 

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Appendix F to the Consent Decree in  
United States of America, et al. v. Lilmor Management LLC, et al., No. __ Civ. ____ (___) (S.D.N.Y.) 

 
LAST CHANCE TO RECEIVE  
COURT-ORDERED REPAIRS 

 
Pursuant to a federal court order and a settlement with the United 

States of America and the State of New York, the property manager 
Lilmor Management LLC and the owner of your apartment building are 
currently required to perform the following repair, maintenance, or 
renovation work in your apartment, at no cost to you: 

 
• [LIST DEFERRED WORK FOR THAT UNIT] 

 
This is your last chance to have this work performed under that 

court order.  Please contact [identity of housing specialist] immediately at 
either [email address] or [phone number] to schedule this work.  [Housing 
specialist] will work with your building owner or property manager to 
schedule the work at a time that is convenient for you and your family.   
 

If you do not contact [housing specialist] by [date no less than 
sixty days from mailing of notice], you will lose your right to these 
repairs under the terms of the court order. 
 
 If you have questions, or if you want additional information, please 
contact [housing specialist] or visit [housing specialist website].  This 
court order was entered in the lawsuit United States of America, et al. v. 
Lilmor Management LLC, et al., No. __ Civ. ____ (S.D.N.Y.)   

952024

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Appendix G to the Consent Decree in  
United States of America, et al. v. Lilmor Management LLC, et al., No. __ Civ. __(___) (S.D.N.Y.)  

 
[HPD letterhead] 

 
 
 
 
 
        [Date] 
Jacob Laufer, P.C. 
65 Broadway, Suite 1005 
New York, NY  10006 
 
RE: United States of America, and People of the State of New York, by Letitia James, Attorney 

General of the State of New York v.  Lilmor Management, LLC, and Morris Lieberman, et 
al., No. __Civ.___  (    )(S.D.N.Y).  

 
 The following constitutes a “letter agreement” between the New York City Department 

of Housing Preservation and Development (“HPD”) and the Defendants intended to resolve and 

bind HPD on certain claims that are being settled in United States of America and People of the 

State of New York by Letitia James, Attorney General of the State of New York v.  Lilmor 

Management, LLC, and Morris Lieberman, et al., No. __Civ.___ (    )(S.D.N.Y).1 

The undersigned, Martha Ann Weithman, is the Assistant Commissioner of the Housing 

Litigation Division, Office of Enforcement and Neighborhood Services at the New York City 

Department of Housing Preservation and Development (“HPD”) and is duly authorized to 

resolve and bind HPD with respect to all outstanding claims to civil penalties HPD may have 

against Defendants relating to any Notice of Violation issued pursuant to the N.Y.C Housing 

Maintenance Code in the buildings listed in Appendix C to this agreement.     

 
1 The term “Defendants” is the same definition used in the Consent Decree settling United States of 
America and People of the State of New York by Letitia James, Attorney General of the State of New York 
v. Lilmor Management, LLC, and Morris Lieberman, et al., CV Index #        .  For the avoidance of doubt, 
nothing in this agreement waives HPD’s potential civil penalties’ claims against any subsequent owner of 
the Previously Transferred Properties listed at Appendix B to the Consent Decree. 

24 9520

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HPD agrees to accept the monetary terms of the Consent Decree entered into in this case, 

by the State of New York, as full satisfaction of all claims for civil penalties for violations of the 

NYC Housing Maintenance Code and/or the New York City Childhood Lead Poisoning 

Prevention Act. (Administrative Code of the City of NY, tit 27, ch.2, subch. 2, art. 14, §27-

2056.1-2056.18 and the New York City Asthma Free Housing Act, Local Law 55 of 2018 

(Administrative Code of the City of NY, tit. 27, ch.2, subch. 2, art. 4 §27-2017-2019) issued 

against the Defendants at the buildings listed at Appendices B&C through the effective date of 

the Consent Decree.  For the sake of clarity, this satisfaction does not extend to the settlement or 

waiver of any fees and charges separately imposed by HPD (e.g.  for costs for past or current 

work being done by HPD’s Emergency Repair Program, the Alternative Enforcement Program 

or another HPD enforcement program) not representing the potential civil penalties that derive 

from a particular HMC violation.  Nor does the waiver include those civil penalties which have 

already been reduced to a judgment (whether paid or unpaid) and shall not affect Defendants’ 

obligation to satisfy such charges and judgments.  

HPD further agrees not to seek civil penalties for violations that were issued and existed 

prior to the effective date of the Consent Decree and that may remain open after the effective 

date of the Consent Decree during the 180-day period when Defendants will be undertaking 

correction of existing violations.2  

HPD also agrees not to seek collection of  civil penalties which may accumulate after the 

effective date of the Consent Decree for any Record Production Order (“RPO”) violation that 

 
2 This does not limit HPD’s ability to seek injunctive relief in the form of an Order to Correct, 
should hazardous or immediately hazardous conditions exist related to these existing violations, 
during this period.  Under the explicit terms of the Consent Decree, Defendants remain 
responsible for complying with timeframes for correction of HMC violations under local law. 

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existed prior to the effective date of the Consent Decree,  as long as in seeking administrative 

dismissal of those existing RPO violations during the 180 day period under the Consent Decree, 

Defendants’  produce required records kept in the year immediately prior to  the effective date of 

the Consent Decree and thereafter have complied with the retaining of records  Under these 

circumstances, no administrative fees will be imposed to obtain dismissal of these existing RPO 

violations.    

In seeking administrative dismissal of any new RPO violation that may be imposed by 

HPD after the effective date of the Consent Decree, for conditions that specifically existed before 

the Consent decree’s effective date, Defendants shall similarly produce records for the one year 

prior to the effective date of the Consent Decree and subsequent consecutive records without 

incurring any additional administrative fees as a condition of RPO violation dismissal.    

However, for the sake of clarity, to obtain clearance of any future RPO violations that are not 

related to past record keeping claims arising under the Consent Decree, Defendants will be 

required to comply with all terms of Local Law 122, including resolution of civil penalties and/or 

payment of administrative fees, to obtain dismissal.  

 This constitutes the full agreement of HPD to fully and satisfactorily resolve the claims 

raised by the State of New York in United States of America and People of the State of New York 

by Letitia James, Attorney General of the State of New York v.  Lilmor Management LLC and 

Morris Lieberman, et al., No. __Civ.___ (    )(S.D.N.Y).  that HPD could have pursued 

themselves.     

__________________________________ 
    Martha Ann Weithman, Assistant Commissioner  

     Housing Litigation Division, 
Office of Enforcement and Neighborhood Services 
Department of Housing Preservation & Development 

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Appendix H 
 
 
 

CHECKLIST FOR RENOVATIONS REGULATED 
BY THE LEAD RENOVATION, REPAIR, AND 

PAINTING (RRP) RULE   

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CHECKLIST FOR RENOVATIONS REGULATED BY THE RRP RULE  
 
I  PURPOSE  
 
To facilitate the documentation of compliance with the U.S. Environmental Protection Agency’s Lead Renovation, 
Repair, and Painting (RRP) Rule 40 C.F.R. Part 745, Subpart E, or any applicable U.S. EPA-Authorized State or Tribal 
program regulating lead-based paint safe work practices. Not all aspects of compliance with the Rule can be fully 
captured with a checklist and additional logs, records and photos may need to be kept. In addition, any 
discrepancy between the requirements in this document and the RRP Rule, the RRP Rule prevails.1 

II  GENERAL PROJECT INFORMATION: 

 
Property Address: _______________________________________________________________ 
 
_____________________________________________________________________________________ 
                            City                                                               State                                                Zip 
 
Property Owner: _______________________________________________________________________ 
 
Address: _____________________________________________________________________ 
 
City:                    State:             Zip code:      Phone: (   ) ______________  
 
Email: ________________________________  
 
Contractor/subcontractor firm name and RRP certification number (copy of the firm certificate must 
be kept in project file): 

 

 

Firm Name Certification Number       Expiration date 
 
Assigned EPA-certified Renovator name & certification number (copy of training certificate must be 
available on the work site and kept in project file): 
 
___________________________________________________________________________________________ 
Renovator Name Certification Number  Expiration date 
 
Project Start Date: _________________________ Expected Completion Date: ________________________ 

Brief description of Renovation Project (include painted surfaces disturbed and estimated square footage of 
paint to be disturbed): 

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________

 
1 Use of the checklist is intended as an adjunct to the requirements of 40 C.F.R. Part 745 and an aid to future compliance therewith. Adherence to the 

provisions of the checklist shall not be a substitute for compliance with the provisions of 40 C.F.R. Part 745 nor provide a defense to the failure to do 
so. 

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Checklist for Renovations Regulated by the RRP Rule  Page 2 of 6 
 
________________________________________________________________________________________ 

 Contractor has reviewed scope of work and has secured sufficient supplies to perform all required 
activities covered in this checklist. 

III  LEAD TESTING INFORMATION [40 C.F.R. § 745.82(a)] Select A or B below: 

______A) Testing for lead was performed to exclude components from the RRP Rule.  
Check one of the following boxes and attach documentation.  

 A written determination from an EPA-certified Inspector or Risk Assessor that the 
components affected by the renovation are free of paint or other surface coatings that 
contain lead equal to or in excess of 1.0 mg/cm2 or 0.5% by weight.2  

 The assigned certified Renovator, using an EPA-recognized test kit as defined in 40 C.F.R. §§ 
745.83 and 745.88, and following the manufacturer’s instructions, has tested each 
component affected by the renovation and determined that the components are free of 
paint or other surface coatings that contain lead equal to or in excess of 1.0 mg/cm2 or 
0.5% by weight.  

______B) Testing was not performed.  
  

IV  EMERGENCY RENOVATIONS [40 C.F.R. § 745.82(B)] 

______A) Renovation qualifies as an Emergency Renovation. 
Describe emergency situation and continue to Section VI: 

_______________________________________________________________________________

_______________________________________________________________________________ 

______B) Renovation does not qualify as an Emergency Renovation. 

V  INFORMATION DISTRIBUTION REQUIREMENTS [40 C.F.R. § 745.84] 

______A) Renovations in dwelling units.  

 The property owner was provided with the Renovate Right Pamphlet and (select one):  

 A written acknowledgment3 of receipt was obtained and is kept in the project file.  

 A Pamphlet was delivered to the owner by certified mail at least seven (7) days prior to 
the start of the renovation, and the certificate of mailing is kept in the project file. 

 If the unit is not owner-occupied, Distribution to occupants was ALSO made by (select 
one): 

 An adult occupant was provided with the Renovate Right Pamphlet and a written 

 
2 Under local law in New York City, the definition of lead-based paint is more stringent—0.5 mg/ cm2 as determined by laboratory analysis or by an 
x-ray fluorescence analyzer.  See NYC Admin. Code § 27-2056.2(7)(b).  If you would like to access sample compliance forms designed to ensure 
your compliance with New York City’s lead-based paint laws, you can access them under the “Owner Recordkeeping Responsibilities” menu at 
the following link: https://www.nyc.gov/site/hpd/services-and-information/lead-based-paint.page. 

  
3 The written acknowledgement must include a statement recording the owner or occupant’s name and acknowledging receipt of the pamphlet prior 
to the start of renovation, the address of the unit undergoing renovation, and the signature of the owner or occupant and the date of signature. It 
must be written in the same language as the text of the contract or agreement for the renovation or, in the case of non-owner-occupied unit, the 
same language as the lease or rental agreement or the pamphlet. 

 

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https://www.nyc.gov/site/hpd/services-and-information/lead-based-paint.page


Checklist for Renovations Regulated by the RRP Rule  Page 3 of 6 
 

acknowledgment of receipt was obtained and is kept in the project file. 

 A Pamphlet was delivered to the unit by certified mail at least seven (7) days prior 
to the start of the renovation, and a written acknowledgment of receipt was 
obtained and is kept in the project file. 

 A Pamphlet was delivered to the unit by certified mail at least seven (7) days prior 
to the start of the renovation, but the firm performing the renovation was 
unsuccessful in obtaining a written receipt. A written certification that includes: the 
address of the unit, the date and method of delivery of the pamphlet (including 
certified mailing documentation), names of the person(s) delivering the pamphlet, 
reason for lack of acknowledgment, and signature of a firm representative with 
date of signature is kept in the project file.  

 No regulated renovations in dwelling units. 

______B) Renovations in common areas. 

 The property owner was provided with the Renovate Right Pamphlet and (select one) 

 A written acknowledgment of receipt was obtained and is kept in the project file.  

 A Pamphlet was delivered to the owner by certified mail at least seven (7) days prior to 
the start of the renovation, and the certificate of mailing is kept in the project file. 

And one of the following: 

 A written notice was distributed to each affected unit describing the general nature and 
locations of the planned renovation activities including expected start and end dates, 
information on how occupants can obtain the Pamphlet and a copy of the final records 
required by 745.86(c) and (d) at no cost.  A copy of the written notice is kept in the file. 

 Informational signs were posted at all times during the renovation describing the 
project, renovation locations, and the anticipated end date. Signs are posted in areas 
where they are likely to be seen by the occupants of all affected units and are 
accompanied by a posted copy of the Pamphlet or information on how interested 
occupants can review or obtain a copy. Information on how occupants can review or 
obtain a free copy of the records required by 745.86 (c) and (d) are also included.  

 No regulated renovations in common areas. 

______C) Renovations are in Child-Occupied Facilities (COF).  

 The property owner was provided with the Renovate Right Pamphlet and either a written 
acknowledgment of receipt was obtained and is kept in the project file or a certificate of 
mailing at least seven (7) days prior to the start of the renovation is kept in the project file. 

 If the COF is not the owner of the building, an adult representative of the COF was provided 
with the Pamphlet and (select one of the following)  

 A written acknowledgment4 of receipt was obtained and is kept in the project file.  

 A written certification statement that the Pamphlet was delivered to the facility 
that includes the address of the COF, date and method of delivery of the Pamphlet, 
names of the persons delivering the Pamphlet, reason for the lack of 
acknowledgment, if any, the signature of a representative of the renovation firm, 

 
4 The written acknowledgement must include a statement recording the owner or occupant’s name and acknowledging receipt of the pamphlet prior 
to the start of renovation, the address of the unit undergoing renovation, and the signature of the owner or occupant and the date of signature. It 
must be written in the same language as the text of the contract or agreement for the renovation or, in the case of non-owner-occupied unit, the 
same language as the lease or rental agreement or the pamphlet. 

 

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Checklist for Renovations Regulated by the RRP Rule  Page 4 of 6 
 

and date of said signature. A copy of the written notice is kept in the file. 

 Parents and guardians of children using the COF have been provided with the Pamphlet, 
information describing the renovation, and information on how to review a copy of the 
records required by 745.86(c) and (d) by (select one of the following): 

 Mailing or hand delivering the Pamphlet and renovation information to each parent 
or guardian of a child using the COF. 

 Posting signs during the renovation that describe the renovation, including locations 
and anticipated completion dates, in areas where they can be seen, along with a 
posted copy of the Pamphlet or how interested parties can review or obtain a copy. 
Information on how occupants can review a copy at no cost of the records required by 
745.86 (c) and (d) are also included.  

 No COF undergoing regulated renovations. 

VI  WORK PRACTICE STANDARDS [40 C.F.R. § 745.85] 

______A) Occupant Protection – Signs have been posted clearly defining the work area and warning occupants 
and other persons not involved in renovation activities to remain outside of the work area.  
 Primary language of occupants is not English, signs posted in ______________ language. 

______B) Containing the Work Area – Before beginning the renovation, the work area has been isolated so that 
no dust or debris leaves the area while the renovation is ongoing. 

______C) Integrity of containment is maintained throughout the renovation.   

______D) Interior Renovations: 

 All objects in the work area are removed or covered. 

 HVAC ducts in the work area are closed and covered.  

 Windows in the work area are closed. 

 Doors in the work area are closed and sealed. Doors that must be used in the work area are 
covered to allow passage but prevent spread of dust. 

 Floors in the work area are covered with taped-down plastic sheeting or other impermeable 
material 6 feet beyond the perimeter of surfaces undergoing renovation. 

 All personnel, tools, and other items, including exteriors of waste containers are free of dust and 
debris before leaving the work area. 

______E) Exterior Renovations 

 Windows in and within 20 feet of the work area are closed. 

 Doors in and within 20 feet of the work area are closed and sealed.  

 Ground is covered by plastic extending 10 feet from work area.  

 Vertical containment is installed when property line prevents 10 feet of ground covering or when 
necessary to prevent migration of dust and debris to adjacent property.  

VII  RESTRICTED PRACTICES5 USED CORRECTLY [40 C.F.R. § 745.85(a)(3)] 

______A) Machines designed to remove paint or other surface coatings through high-speed operations such as 
sanding, grinding, power planing, needle gun, abrasive blasting, or sandblasting have shrouds or 
containment systems and are equipped with a HEPA vacuum attachment to collect dust and debris at 
the point of generation. These machines are operated so that no visible dust or release of air occurs 
outside the shroud or containment system. 

______B) A heat gun operating at temperatures below 1,100 degrees Fahrenheit is being used. 

 
5 Restricted practices include the use of high-speed operation machines and heat guns. 

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Checklist for Renovations Regulated by the RRP Rule  Page 5 of 6 
 

VIII  RENOVATION WASTE [40 C.F.R. § 745.85(a)(4)] 

 Waste is contained on-site before removal from the work area, during removal from the work 
area and while being transported off-site.  

 A chute is used, and the chute is covered. 

 Waste that is collected from renovation activities at the end of each workday is stored under 
containment, in an enclosure, or behind a barrier that prevents release of and access to dust and 
debris. 

 Waste transported from renovation activities is contained to prevent release of dust and debris. 

IX  WORK AREA CLEANING [40 C.F.R. § 745.85(a)(5)] 

 All paint chips and debris are picked up and sealed in heavy-duty bags. 

 Protective sheeting is misted and folded, dirty side inward, sealed, and disposed as waste. 

 All objects and surfaces in interior work areas and within 2 feet of the work areas are cleaned 
from higher to lower in the following manner: 

 Walls: start at the ceiling and work down to the floor by either vacuuming with a HEPA 
filter or wiping with a damp cloth. 

 All remaining surfaces and objects in the work area were thoroughly vacuumed, including 
furniture and fixtures, with a HEPA vacuum, and - except for carpet and upholstered 
surfaces- wiped with a damp cloth. 

 Floors were mopped using a wet-mopping system or 2-bucket mopping method. 

X  POST-RENOVATION CLEANING VERIFICATION [40 C.F.R. § 745.85(b)] 

 Interior Renovations: 

 The assigned certified Renovator performed a visual inspection until no dust, debris or 
residue is present. 

 The assigned certified Renovator wiped windowsills, uncarpeted floors, and countertops 
within the work area with a wet disposable cleaning cloth using the procedures outlined 
in 40 C.F.R. 745.85(b). 

 Exterior Renovations: 

 The assigned certified Renovator performed a visual inspection until no dust, debris or 
residue is present. 

 Dust clearance testing [40 C.F.R. § 745.85(c)] was performed in lieu of post renovation 
cleaning by an EPA-certified inspector, risk assessor, or dust sampling technician and was 
done in accordance with 745.85(c). A copy of the report is attached.  

XI  Actual Project Completion Date: _______________________ 

XII Required Records [40 C.F.R § 745.86] kept with project file for a period of three (3) years: 

 Determinations that lead-based paint was not present on affected components.  

 Notification records including acknowledgments of Pamphlet receipt. 

 Documentation of compliance with the work practice requirements of 40 C.F.R. § 745.85. 

 Documentation that the assigned certified Renovator was assigned, and the following 
responsibilities were met: 

 The assigned certified Renovator provided training to workers on the work practice 
requirements of § 745.85. [745.90(b)(2)] See separate training records for each 
worker trained. 

 The assigned certified Renovator was physically present when signs were posted, 

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Checklist for Renovations Regulated by the RRP Rule  Page 6 of 6 
 

work area containment was established, and while the work area cleaning was 
performed. 

 The assigned certified Renovator regularly directed work performed by other 
workers, maintained containment integrity, and was available, either on-site or by 
phone, at all times during the renovation. 

 The assigned certified Renovator performed the post-renovation cleaning verification 
as described in 40 C.F.R. § 745.85(b). 

 The assigned certified Renovator prepared the records required by § 745.86(b)(1)(ii) 
and (6). 

 
_____ A copy of this completed checklist was provided to the owner of the building, and if 

different, the adult occupant, in accordance with 40 C.F.R. § 745.86(c)(2).  
 

Completed by:  

____________________________________ 
Company Name 

 
         ____________________________________        ___________________________________ 

Name (printed)                     Title 
 
____________________________________ 
Signature 

Case 1:24-cv-09520     Document 3-1     Filed 12/13/24     Page 85 of 86



Appendix I to the Consent Decree in  
United States of America, et al. v. Lilmor Management LLC, et al., No. __ Civ. ____ (___) (S.D.N.Y.) 

NOTICE OF SETTLEMENT  
AND RIGHT TO COMMENT 

 
 You are receiving this notice because you have lived at [FILL IN BUILDING 
ADDRESS].  The United States of America and the State of New York recently signed a 
settlement agreement resolving civil claims with a property manager (Lilmor Management 
LLC) and property owners concerning conditions in fifty-six buildings, including your 
building.  These claims concern noncompliance with federal and local lead-based paint 
safety laws and other unsafe living conditions in these apartment buildings since 2012.  
Before seeking approval from a federal court, the federal government is seeking comments 
on this proposed settlement.  If approved, the settlement would require the property 
manager and owners, among other things, to: 
 

• Create a $2.925 million New York State fund, to pay compensation to tenants 
who faced substandard living conditions in these buildings since 2012. 

• Inspect apartments in buildings currently owned by these landlords for lead-
based paint and lead-based paint hazards; eliminate all lead-based paint 
hazards; and remove or otherwise abate all lead-based paint. 

• Inspect apartments in buildings currently owned by these landlords for, and 
eliminate, all unsafe living conditions, like widespread and recurring mold 
or infestations of vermin or pests.   

• Cooperate with a “Housing Specialist” firm selected by the United States and 
New York to supervise compliance with the settlement’s requirements; and 

• Pay a penalty of $3.25 million to the United States of America and a 
$325,000 penalty to New York City. 

The United States is accepting comments on the proposed consent decree, before 
seeking court approval.  If you would like to provide a comment, please send it by email 
to [email protected] or by mail to Assistant Attorney General, U.S. DOJ—
ENRD, P.O. Box 7611, Washington, DC, 20044–7611, no later than [DATE].  Please write 
“Lilmor Settlement, DJ No. 90-5-1-1-11797” on your comment.  Any comments submitted 
in writing may be filed by the United States in whole or in part on the public court docket 
without notice to the commenter.   

A full version of the consent decree is available at 
https://www.justice.gov/enrd/consent-decrees  during the comment period. 

952024

Case 1:24-cv-09520     Document 3-1     Filed 12/13/24     Page 86 of 86

mailto:[email protected]
https://www.justice.gov/enrd/consent-decrees

	I. RECITALS
	II. JURISDICTION AND VENUE
	III. ADMISSIONS
	IV. DEFINITIONS
	V. APPLICABILITY
	VI. TRANSFERS OF INTEREST
	VII. PENALTY AND RESTITUTION PAYMENT
	VIII. HOUSING SPECIALIST
	IX. INJUNCTIVE REQUIREMENTS
	X. RESTITUTION FUND
	XI. DEFENDANTS’ REPORTING REQUIREMENTS
	XII. APPROVAL OF PLAN AND OTHER DELIVERABLES; PERMITS
	XIII. STIPULATED PENALTIES
	XIV. FORCE MAJEURE
	XV. DISPUTE RESOLUTION
	XVI. INFORMATION COLLECTION AND RETENTION
	XVII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS
	XVIII. COSTS
	XIX.  NOTICES
	XX. EFFECTIVE DATE
	XXI. RETENTION OF JURISDICTION
	XXII. MODIFICATION
	XXIII. CERTAIN REPRESENTATIONS AND WARRANTIES
	XXIV. PROPERTY REMOVAL AND TERMINATION
	XXV. PUBLIC PARTICIPATION
	XXVI. SIGNATORIES/SERVICE
	XXVII. INTEGRATION
	XXVIII. 26 U.S.C. SECTION 162(f)(2)(A)(ii) IDENTIFICATION
	XXIX. FINAL JUDGMENT
	XXX. APPENDICES
	2024.11.01 Appendix H.pdf
	Enhanced RRP Checklist.pdf
	Enhanced Checklist for Renovations Regulated by the RRP Rule
	V  INFORMATION DISTRIBUTION REQUIREMENTS [40 C.F.R. § 745.84]

	RRP Checklist_02-07-24.pdf
	Checklist for Renovations Regulated by the RRP Rule
	V  INFORMATION DISTRIBUTION REQUIREMENTS [40 C.F.R. § 745.84]