BlueSky Management Landlord Fined $672K for Tenant Harassment

New York – In a landmark ruling, the New York Attorney General’s Office (NY AG) and the Tenant Harassment Prevention Task Force have secured a settlement of over $672,000 against Steven Kashanian and his real estate firm, BlueSky Management NY, LLC. The penalty stems from violations of NYC construction codes that resulted in hazardous living conditions for tenants across 72 buildings.

BlueSky Management owns properties in Brooklyn, Queens, Manhattan, and the Bronx, housing 1,150 units. Tenants endured illegal construction work, frequent service interruptions like gas and water cutoffs, and unsanitary conditions, prompting the legal action. The settlement requires BlueSky to pay $672,578, including civil penalties, rent refunds, and credits for days without heat or hot water during the 2022-25 heating seasons.

Attorney General Letitia James emphasized the importance of safe housing, stating, “No family should ever feel unsafe in their home” and vowed to return money to affected tenants and ensure building safety. HCR Commissioner Visnauskas reinforced this stance by noting the illegal deregulation of apartments and the need for deterrents against such actions.

Acting HPD Commissioner Tigani highlighted the Task Force’s coordinated efforts, saying “We will not stand idly by while landlords let buildings fall into disrepair”, underscoring the collaborative approach that led to this victory. DOB Commissioner Oddo echoed these sentiments, emphasizing the need for property owners to adhere to legal obligations and ensure habitable housing conditions.

This substantial penalty serves as a stern reminder to the real estate industry of the consequences faced by those who neglect tenant welfare in pursuit of profit.