Indiana AG sues owner, manager of Indianapolis apartment complex

The Indiana Attorney General’s Office is suing the owner and manager of Willow Brook Apartments in Indianapolis, alleging that some residents have lived in uninhabitable conditions and have been improperly billed.

Attorney General Todd Rokita’s office has filed a complaint against Willow Brook Gardens LLC—the owner of the complex—and Beztak Management Co., which manages the property. The complex, 2111. E. 52nd St. (52nd Street and North Keystone Avenue), was built in 1962 and consists of 48 one-story townhouses. The total assessed value of the property in 2023 was $523,700.

These units are mostly inhabited by residents who are elderly, disabled, and/or on a fixed income, according to the filing.

The complaint lists problems alleged by seven residents involving repairs that were never made, incorrect bills that caused financial hardship, and general difficulties in contacting and dealing with management.

One 67-year old resident said he was billed for his neighbor’s water, along with his own. Due to an outdoor faucet leak at his neighbor’s apartment, which he had reported, his bill grew to $2,743.43, an amount he couldn’t pay.

The same resident said contractors cut large holes in his walls that were ignored for more than a year and a half. These holes were first reported in September 2021 but weren’t fixed until April 2023, the complaint says.

Two other residents had unresolved issues with mold, exposed electrical outlets, and broken or missing window panes. Another lost heat, an issue that still hadn’t been resolved, according to the complaint.

The Marion County Health and Hospital Corp. ordered judgments against Willow Brook Gardens LLC on Jan. 24 and May 9. Willow Brook Gardens LLC has repeatedly failed to appear in court and most issues have persisted, the lawsuit says. A July 18 compliance hearing is scheduled.

The lawsuit also alleges that Beztak isn’t registered to do business in Indiana and is also operating without a required real estate license

Beztak, based in Farmington Hills, Michigan, manages at least five other Indianapolis-area properties: Wellington Village, 1714 Wellington Ave; The Hermitage, 2234 Hermitage Way in Speedway; Eagle Lake Landing, 2054 High Eagle Trail; Briergate Apartments, 9117 Briergate Court.; and Beech Meadow at 147 Diplomat Court, Beech Grove. Those properties have a combined 1,241 units.

In an email to IBJ, Beztak spokeswoman Danette Stenta said the company will not comment on the specifics of the pending litigation but disputes the allegations that Beztak is not licensed and unauthorized to conduct business in Indiana.

“We are further investigating the other allegations and look forward to swiftly resolving all issues with the attorney general,” Stenta wrote.

A call to the office of Willow Brook Apartments seeking comment was not returned in time for publication.

The Marion County Public Health Department has issued 13 notices of violation to the Willow Brook since July 2021. Each notice of violation can have multiple violations listed, an HHC spokesperson told IBJ.

While occupied apartments have gone unrepaired at Willow Brook, some apartments have been fully refurbished and listed on Airbnb as short-term rentals, the lawsuit says.

The lawsuit alleges that the conduct of Willow Brook Gardens LLC and Beztak violate Indiana’s Deceptive Consumer Sales Act and the Home Loan Practices Act. If the court rules in favor of the Attorney General, the defendants would pay back utility fees to residents along with fines for any violations of Indiana law. Additionally, Beztak would need to become licensed by the Indiana Secretary of State or cease business in Indiana. Willow Brook Gardens LLC would need to seek a new apartment manager.

If the defendants are noncooperative or unable to comply with the lawsuit, the Attorney General’s office will seek a court-ordered receivership of the assets, the statement said.