NYC passes rule to close 'Kushner loophole' in construction
By BERNARD CONDON
NEW YORK (AP) - New York City lawmakers have voted to close the "Kushner loophole" that critics say encourages landlords to file false paperwork.
The bill approved Wednesday by the City Council will require regulators to double-check when landlords claim in construction permits that they have no rent-regulated tenants paying low rates. Mayor Bill de Blasio is expected to sign the rule into law.
It follows an Associated Press report that found Jared Kushner's family real estate company had claimed it had no rent-regulated tenants in dozens of buildings when, in fact, it had hundreds. Kushner is President Donald Trump's son-in-law and adviser.
Critics say many landlords file false paperwork to avoid scrutiny that could stop them from using construction to drive out such tenants.
The Kushner Cos. says third parties filled out the paperwork and the mistakes were quickly corrected.
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