JRK Property Holdings, a Los Angeles-based apartment owner and operator, has been the target of lawsuits and government investigations in at least four states covering habitability failures, illegal eviction notices during COVID-19, improper security deposit deductions, and unlawful fees and rent increases. The matters range from a $5.1 million Connecticut settlement reached in February 2026 to a California class action awaiting final approval in August 2026.
Connecticut: Concierge Apartments Evacuation and $5.1 Million Settlement
The most serious action against JRK involves Concierge Apartments, a 544-unit complex on Cold Spring Road in Rocky Hill, owned through a subsidiary called Century Hills Property Owner LLC. Tenant complaints there date back to at least 2016 and include loss of hot water and heat, structural leaks, ceiling collapses in parking garages, and broken windows and elevators. In May 2021, the Town of Rocky Hill and the Central Connecticut Health District sued Century Hills over alleged violations of building codes, fire safety codes, public health codes, town housing standards, and public nuisance. JRK’s management has said it spent roughly $10 million on improvements after acquiring the property.1Hartford Courant. Rocky Hill Suing Apartment Complex Owner Over Conditions
Conditions reached a crisis in early 2026. Freezing weather burst pipes across the complex, cutting hot water and heat for at least 10 days. On February 5, 2026, the local fire marshal and building inspector ordered two buildings evacuated after finding a failed fire suppression system, flooding, and extensive property damage.2U.S. House of Representatives — Rep. John B. Larson. Larson Requests Federal Investigation Into JRK Property Holdings
On February 9, 2026, Connecticut Attorney General William Tong opened a formal investigation under the Connecticut Unfair Trade Practices Act, issuing a civil investigative demand for five years of tenant complaints, work orders, inspection reports, leases, relocation efforts, and documentation of $2 million in reported repairs.3Connecticut Attorney General. Attorney General Tong Announces Investigation Into Concierge Apartments
By late February 2026, the state had reached a $5.1 million relief agreement with JRK. Tenants in the three most affected buildings (A, B, and C) were entitled to $1,100 to $1,700 per unit depending on household size, three months of free rent, and a waiver of February water and utility fees, averaging about $15,104 per unit. Residents of buildings D and E received $500 per unit, one month of free rent, and the same utility waiver, averaging $3,397 per unit. All affected tenants could break their leases without penalty, and eligible tenants current on rent could renew through the end of 2026 with no rent increase. Tong said his office was negotiating a separate agreement on ongoing accountability and communication standards.4CT News Junkie. CT Reaches $5M Settlement Deal Between 544-Unit Apartment Complex and Its Tenants
On February 6, 2026, U.S. Representative John Larson asked the Department of Housing and Urban Development to investigate JRK, citing what he called “gross mistreatment of tenants” and noting the company benefits from Fannie Mae and Freddie Mac financing and that the Rocky Hill property is required under Connecticut law to accept HUD Housing Choice Vouchers. Larson gave HUD seven days to respond and said JRK had not cooperated with the state investigation. HUD has not publicly responded on the available record.2U.S. House of Representatives — Rep. John B. Larson. Larson Requests Federal Investigation Into JRK Property Holdings
Washington: COVID-19 Eviction Moratorium Settlement
In April 2020, Washington Attorney General Bob Ferguson sued JRK Residential Group in Pierce County Superior Court for violating Governor Jay Inslee’s March 18, 2020 emergency eviction moratorium. The state alleged JRK issued 14-day pay-or-vacate notices to 14 tenants at The Boulders at Puget Sound in Tacoma while the moratorium was in effect, and that another 1,441 Washington tenants received communications the state characterized as unfair, deceptive, and harassing. It was described as the first enforcement action under the governor’s emergency proclamation.5Washington State Attorney General. First Lawsuit Enforcing Governor’s Emergency Proclamation Results in Property Manager Settlement
JRK settled within weeks. A consent decree filed May 26, 2020 required about $344,646 in total payments. The 14 tenants who got illegal notices had their April 2020 rent forgiven or refunded, totaling roughly $26,878. Another 257 tenants who were behind on rent and received harassing communications got $500 each; 1,184 tenants who were current but received problematic communications got $100 each. JRK paid $50,000 to the Attorney General’s office for costs and fees and agreed not to issue pay-or-vacate notices through at least July 31, 2020.6The Seattle Times. Property Manager Accused of Violating Eviction Moratorium Will Pay Tenants Nearly $300K
California: Pending Class Action Over Fees and Rent Increases
A class action captioned Felker, et al. v. JRK Residential Group, Inc., et al. (Case No. SCV-267587) is pending in Sonoma County Superior Court. It alleges JRK charged illegal late rent fees, imposed fees on tenants who failed to maintain renter’s liability insurance, charged excessive rent during wildfire emergency proclamations in Los Angeles, Sonoma, and Ventura counties between 2017 and 2019, and raised rents beyond the caps set by the California Tenant Protection Act starting in 2020.7JRK Class Action Settlement. Felker, et al. v. JRK Residential Group, Inc., et al. Settlement
A proposed settlement is awaiting final court approval. Class members identified in company records are eligible for the individual payment listed in their notice, and those sent to collections between January 2022 and June 2024 can claim an additional $50. JRK will stop charging late fees to current residents for two years and stop charging renter’s insurance compliance fees for seven years from preliminary approval. The company will also instruct debt collectors to stop pursuing debts from January 2017 through December 2021 and ask credit agencies to delete associated records. The deadline to submit claims, opt out, or object is June 20, 2026, and the final approval hearing is set for August 19, 2026.7JRK Class Action Settlement. Felker, et al. v. JRK Residential Group, Inc., et al. Settlement
Massachusetts: Security Deposit Case Dismissed After Favorable Ruling
In 2019, tenants Branda Peebles and Joshua Berger filed a putative class action in Suffolk Superior Court alleging JRK systematically violated Massachusetts security deposit law. Peebles said JRK deducted $115 from her $500 deposit for carpet cleaning, touch-up painting, and apartment cleaning. Berger alleged the company failed to return his $1,000 deposit within the 30 days required by G. L. c. 186, § 15B.8Findlaw. Peebles v. JRK Property Holdings, Inc., No. 23-10523-NMG
The dispute centered on a lease addendum called “Move Out Cleaning & Replacement Charges,” which required tenants to have their apartments professionally cleaned and carpets shampooed before vacating or face automatic charges. After the case moved to federal court, Judge Nathaniel Gorton certified two questions to the Massachusetts Supreme Judicial Court in November 2024.9Findlaw. Peebles v. JRK Property Holdings, Inc., SJC-13702
On August 1, 2025, the SJC ruled that whether specific move-out charges constitute prohibited deductions for reasonable wear and tear depends on facts like the condition of the unit at the start of the lease and how long the tenant lived there, with longer tenancies producing more deterioration that landlords should expect to absorb. On the second question the court was categorical: lease provisions requiring tenants to pay for professional cleaning or face automatic repair charges, regardless of tenancy length or actual condition, are “void and unenforceable.”9Findlaw. Peebles v. JRK Property Holdings, Inc., SJC-13702
Despite that ruling, the individual case ended for JRK. On November 25, 2025, Judge Gorton granted summary judgment and denied class certification. He held that a landlord forfeits the deposit only if it both uses a prohibited lease provision and attempts to enforce it, and found no evidence JRK had enforced the addendum against Peebles. Peebles had admitted the charges against her deposit were for damage beyond normal wear and tear, and both plaintiffs effectively abandoned their individual claims by not arguing them in summary judgment briefing. The SJC’s statutory interpretation remains binding law in Massachusetts.10Findlaw. Peebles v. JRK Property Holdings, Inc., No. 23-10523-NMG (Summary Judgment)
About the Company
JRK Property Holdings was founded in 1991 and is headquartered in Los Angeles. It describes itself as a privately owned real estate investment firm pursuing “value-added” investments in apartment complexes, and reports having owned and operated more than 80,000 units across 30 states with total asset values exceeding $15 billion in multifamily and hotel properties.11JRK Property Holdings. About Us Bobby Lee serves as the company’s top executive.12Multifamily Dive. JRK Property Holdings Value-Add Multifamily Investment Strategy