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.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Let this half a million-dollar settlement be a clear and resounding repudiation to owners who seek to game the rent regulation system – that their scheming to cheat the people of New York will cost them dearly. Whatever illegal profit a landlord believes they’ve netted and whatever units they believe they have deregulated, the Tenant Protection Unit is here to ensure that that windfall will be recaptured, potentially trebled, and carry punitive damages on top of those penalties. The Governor and HCR are committed to enforcing the laws governing rent regulation, and we will continue to protect New Yorkers and New York’s rent regulated housing stock. Since the creation of the State’s TPU, the unit’s audit, investigative, and enforcement activities have proactively recovered approximately $8 million in rent overcharges.”
