New York Attorney General Letitia James and the Tenant Harassment Prevention Task Force have struck a notable accord with landlord Steven Kashanian and BlueSky Management NY, LLC. According to a press release from the Office of the Attorney General, the settlement exceeds $672,000 in penalties, and enforces corrective measures for properties in Brooklyn, Queens, Manhattan, and the Bronx. BlueSky owns 72 buildings, totaling 1,150 units, where tenants have reportedly endured unsafe living conditions due to illegal construction and disruption of essential services like gas and water.
The financial breakdown includes $672,578 in civil penalties. BlueSky must issue refunds to tenants who were overcharged since February 2023 and provide $100 credits for each day without heat during the past three heat seasons. The terms also require Kashanian and the company to correct outstanding construction violations and hire monitors to ensure ongoing compliance. “No family should ever feel unsafe in their home,” Attorney General James told the press, emphasizing the settlement’s focus on security and habitability for New Yorkers, as outlined by the Office of the Attorney General.
Steven Kashanian's troubles stem from an accumulation of over 3,000 violations uncovered by the Task Force, which consists of offices such as the Office of the Attorney General (OAG), and the Tenant Protection Unit (TPU) of New York State Homes and Community Renewal (HCR), amongst others. These issues range widely from unfiled rent registrations to hazardous conditions that have plagued residents. The punitive measures involve substantial fees, including $100,000 to HCR for failing to file rent registrations, serving as a staunch warning against illegal apartment deregulation.
HCR Commissioner Visnauskas reaffirmed this sentiment in remarks made public by the Attorney General's Office. "We have zero tolerance for those who target vulnerable tenants to exploit them for profit," Commissioner Visnauskas stated, spotlighting HCR's determination to thwart illegal apartment deregulation. The violations cited include lead-based hazards and lack of essential maintenance, underscoring the gravity of BlueSky's neglect. These findings are a cumulative result of tenant interviews, site inspections, and meticulous review of records amidst numerous complaints about BlueSky's management.
This settlement is the latest in a series of measures by Attorney General James aimed at safeguarding low-income tenants. Prior instances of advocacy have yielded millions in restitution and the re-regulation of hundreds of rent-stabilized units across New York City. This case was spearheaded by the Housing Protection Unit of the OAG's Division for Social Justice, which is tasked with addressing such violations to ensure tenants' rights are upheld and living conditions meet the required standards.
