March 24, 2025
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas today announced $403,000 in fines and penalties were imposed on building owners who falsified business records, overcharged tenants, and failed to file timely annual rent regulated apartment registrations with HCR. The charges were the result of a multi-year investigation undertaken by HCR’s Tenant Protection Unit.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “HCR is committed to protecting New York's rent regulated tenants and preventing building owners from illegally deregulating rent stabilized homes and exacerbating the affordability crisis. The penalties announced today demonstrate the tenacity of the Tenant Protection Unit and sends a message that the State will not allow fraud, exorbitant rent increases, and harassment to go unpunished."
In 2022, the TPU began audit investigations into Bottem Realty and its rent regulated portfolio that includes 266 apartments in seven buildings in Brooklyn and the Bronx. As part of their comprehensive investigation, the TPU issued a broad subpoena for business records, interviewed tenants and witnesses, and as a result imposed $403,000 in fines and penalties for late, missing, and or falsified registrations; tenant harassment; and willful rent overcharges by the landlord. Under the rent stabilization law, the owners of rent stabilized buildings are required to file an annual registration statement with HCR, between April 1 and July 31, for each unit covered under the law. Annual building and apartment registrations must reflect the status of the building and apartments and the lawful rent as of April 1st of the registration year.
The TPU settlement agreement with Bottem Realty covers registration violations and imposes nearly $163,000 in penalties for failure to register or registering late with the state and approximately $230,000 in penalties and treble damages for unlawful overcharges. The TPU directs Bottem Realty to reset the rents to the legal regulated rent, provide new leases, and requires the owners to make a $10,000 payment to a tenant for an illegitimate holdover eviction proceeding while the tenant was in lawful residence and paying their legal rent.
The investigation into Bottem Realty was directed by the Tenant Protection Unit, Assistant Commissioner and TPU Legal Director Argyro Boyle, Director of Investigations Lewis Gray, and Associate Counsel and Deputy Legal Director Jonathan O. Hurt, under the leadership of Commissioner RuthAnne Visnauskas and TPU Deputy Commissioner Jooyeon Lee.
In 2023, through continued forensic analysis, the TPU implemented an updated audit algorithm, with several key identifiers to target patterns of non-compliance, harassment, criminality, and unlawful deregulation.
Last year, the TPU announced a $514,000 settlement against Steve Croman for overcharging tenants and violating the rent laws.