MILWAUKEE – As part of what Wisconsin Attorney General Josh Kaul is calling a “landmark proposed resolution”, the state has reached a settlement deal with Milwauke landlord Youssef (Joe) Berrada and his property management company Berrada Properties.
The settlement stems from a landlord/tenant enforcement action the state filed on November 15th, 2021, and reqrequires a monetary payment of over $1,700,000, as well as significant injunctive provisions to address harm stemming from the conduct the State alleged violated the law. The agreement also includes a restitution program that requires Berrada Properties Management to make payments to tenants who paid late rent or attorney fees that were not authorized, did not get full credit for their security deposit, had property confiscated, or were subjected to a self-help eviction.
“The protections that state law provides for tenants are in place for good reasons, and those protections are especially important when folks are faced with the possibility of being evicted,” said Attorney General Kaul. “I’m proud that we’ve reached this landmark proposed resolution.”
As part of the agreement, Berrada Properties will agree to vacate and seal eviction judgments affected by late rent fees or attorney fees that the State alleged were illegally charged to tenants. In addition, the company will implement several remediation programs, including an income-based rental program for up to 300 of their tenants for a period of three to five years, an eviction diversion program, a $1,300,000 credit account to make rent assistance grants to Defendants’ qualifying tenants, and up to $400,000 in move-out assistance payments to Berrada tenants facing eviction to help the tenant move before an eviction is filed.
RELATED: Landlord Berrada defends evictions record
Berrada is the largest landlord in the City of Milwaukee. He controls more than 200 limited liability companies that combined own nearly 9,000 apartment units in Milwaukee and Racine.
Berrada Properties is not admiting liability for any claim alleged in the state’s lawsuit, or to any violation of law or wrongdoing alleged by the state.
The agreement must now receive final approval from the Wisconsin Legislature’s Joint Finance Committee.
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