Attorney General Todd Rokita and his team have filed a lawsuit against New York real estate financing company ROCO Chetrit Entities LLC for allowing the Hickory Ridge Apartments in Merrillville, Indiana to become blighted and illegally evicting elderly and vulnerable residents from their homes.
“Tenant mistreatment will not be tolerated, and my office is fighting hard to hold landlords accountable, especially greedy out-of-state operators who clearly do not respect the rent hardworking Indianans are paying,” said Attorney General Rokita. “No one should be spending money on a place to live, and should not be ignored or disrespected like the elderly and vulnerable tenants in Merrillville.”
This case is just the latest in which Attorney General Rokita has fought for tenant rights and welfare. The office recently filed a civil lawsuit against the owners of two abandoned apartment buildings in Anderson. Additionally, Attorney General Rokita's Homeowner Protection Team represented tenants at the Willowbrook Gardens Apartments in Indianapolis, obtaining a settlement for unfair treatment of the tenants.
ROCO's lawsuit alleges that companies associated with the Chetrit Group of Real Estate Lenders defaulted on approximately $500 million in loans guaranteed by Freddie Mac that financed numerous apartment complexes across the country, including about 1,500 properties in Indiana.
The New York real estate lender allegedly failed to adequately fund necessary maintenance and repairs at the Hickory Ridge Apartments from 2019 to 2023, resulting in multiple flooding incidents, sewage backflows into residential units, and unsafe and illegal fire code violations. There were also periods when the property lacked rental, business and fire alarm permits required by the City of Merrillville.
These violations have resulted in several tenants facing chaotic situations, including forced eviction in June 2023, forcing them to evacuate.
“It is a long-standing principle of Indiana law that landlords owe their tenants at least the most basic housing standards, including maintaining major systems and ensuring that rental properties are fit for human occupancy,” Attorney General Rokita said. “Our state welcomes investments from those who care enough to meet these basic obligations, but we will not tolerate those who oppress the poor and treat the lives of hard-working Indianans like a game of Monopoly.”
The lawsuit seeks a jury trial, court costs and other damages against the defendants for multiple violations of the Consumer Deceptive Sales Act and the Mortgage Practices Act.
Attorney General Rokita expressed his gratitude to the Office's Homeowner Protection Section's Chief Chase Haller, Assistant Chief Timothy Weber, Deputy Attorney General Rebecca Hammond and Investigator Molly Jeffords for their work on this case.
The mission of the Homeowner Protection Unit is to protect the rights of all individuals involved in the housing market – renters, homeowners, and prospective homebuyers – by investigating and correcting fraudulent activities related to mortgage lending and violations of relevant state and federal laws.
Indiana residents are encouraged to contact the Indiana Attorney General's Office if they suspect scams or fraudulent activity. Consumers can file a complaint by visiting indianaconsumer.com or calling 1-800-382-5516.