Governor Hochul Announces $514,000 Settlement Against Manhattan Landlord Who Overcharged Tenants and Violated Rent Laws

New York State Homes and Community Renewal Investigation Found Landlord Illegally Advertised Regulated Units as Short-Term Rentals, Removing Them from the Housing Supply

Tenants to Receive Damages for Rent Overcharges as Part of the Settlement

Builds on Governor Hochul’s Commitment to Supporting New York Tenants – Including Investments to Provide Rental Assistance, Bolster Tenant Legal Services, and Expand the Tenant Protection Unit as Part of the FY 2024 Budget

Governor Kathy Hochul announced that New York State Homes and Community Renewal’s Tenant Protection Unit secured a $514,000 settlement against Manhattan landlord Steven Croman of Centennial Properties for unlawfully defrauding renters amid a statewide housing crisis. Croman engaged in a scheme to lease regulated units for a term of less than one or two years, making the apartments unavailable for New Yorkers seeking safe, stable housing. The settlement, which includes damages for overcharges to be paid back to tenants, builds on Governor Hochul’s commitment to supporting New York tenants.

“With New Yorkers facing the most dire housing shortage in six decades, any attempt to take regulated units off the market is not just unlawful – it’s contributing to our housing crisis,” Governor Hochul said. “This settlement starts the process of making these Manhattan tenants whole, and I thank the dedicated members of the Tenant Protection Unit for continuing to drive my administration’s effort to support New York renters.”

TPU launched a comprehensive investigation into Croman’s patterns and practices after receiving complaints in the summer of 2023 alleging units owned by Croman were advertised on the BlueGround rental platform, listing furnished apartments for stays of 30 days or longer that were presumed to be market rate units by prospective renters. TPU found that listed rents and fees improperly exceeded the legal regulated rent registered with HCR. The investigation also uncovered violations of lease agreements, and rent laws governing areas such as security deposits, subletting and rent registrations.

Under the terms of the settlement agreement, Croman will pay $514,000 for violating the rent laws by leasing rent regulated units for terms of less than one or two years, and for overcharging occupants of nine rent regulated units in five buildings, over the course of approximately 11 months. Croman has already refunded more than $74,000 to some prior occupants.

The settlement builds on Governor Hochul’s commitment to supporting New York tenants. As part of the FY 2025 Executive Budget, the Governor announced that the Division of Human Rights will strengthen efforts to enforce State law prohibiting a housing provider or a real estate professional from discriminating against an individual seeking housing because of their use of a Section 8 Housing Choice Voucher. Governor Hochul also proposed legislation to protect affordable housing providers by prohibiting insurance companies from refusing to cover affordable housing.

In addition, Governor Hochul secured significant investments to support tenants as part of the FY 2024 Budget, including a $391 million investment in the Emergency Rental Assistance Program; $50 million for tenant legal services and representation for eviction cases statewide; and funding to expand TPU in Upstate New York.