New York Attorney General Letitia James and the Tenant Harassment Prevention Task Force have reached a settlement with Steven Kashanian and BlueSky Management NY, LLC after finding that the company violated New York City construction codes and created unsafe living conditions for tenants. BlueSky owns 72 buildings with 1,150 units, including rent-stabilized apartments in Brooklyn, Queens, Manhattan, and the Bronx.
Under the terms of the settlement announced today, Kashanian and BlueSky will pay $672,578 in civil penalties. The company must also provide refunds to tenants who were overcharged on rent after February 2023. Additionally, tenants will receive a $100 credit for each day without heat or hot water during the 2022-2023, 2023-2024, and 2024-2025 heating seasons. The agreement requires BlueSky to correct open construction violations and hire independent monitors to oversee compliance.
The Tenant Harassment Prevention Task Force includes the Office of the Attorney General (OAG), New York State Homes and Community Renewal’s Tenant Protection Unit (TPU), New York City Department of Housing Preservation and Development (HPD), Department of Buildings (DOB), and Law Department (NYCLD).
“No family should ever feel unsafe in their home,” said Attorney General James. “BlueSky consistently forced tenants to live in dangerous and unsanitary conditions, putting the safety of New Yorkers and their families at great risk. Today we are putting money back into tenants’ pockets and requiring BlueSky to make their buildings safer and cleaner for the New Yorkers who call them home.”
“We have zero tolerance for those who target vulnerable tenants to exploit them for profit and attempt to unlawfully deregulate apartments,” said HCR Commissioner Visnauskas. “Working alongside Attorney General Letitia James and New York City’s regulatory agencies, HCR’s Tenant Protection Unit has imposed additional penalties against a landlord for erroneous or missing apartment registrations. This $100,000 fine levied against BlueSky is an essential deterrent to thwart the illegal deregulation of apartments and demonstrates our commitment to protecting the rights of millions of rent regulated tenants.”
“This settlement against BlueSky, led by the mission-driven and determined agencies and government entities that make up the Tenant Harassment Prevention Task Force, demonstrates the value of coordinated enforcement and how, together, we can do more to ensure that no tenant lives in fear in their own home,” said Acting HPD Commissioner Tigani. “The Task Force acted decisively, drawing on the unique strengths of each agency to secure justice for these tenants. HPD is proud to have played a role in this case, and, more generally, is proud to stand alongside our partners in this important work every day. Let this serve as a clear message: we will not stand idly by while landlords let buildings fall into disrepair – we will take action to ensure our neighbors are protected and housing is made habitable.”
“When city agencies order a landlord to fix ongoing safety issues at their buildings, the nonnegotiable expectation is that those owners will live up to their legal obligations and make the needed repairs,” said DOB Commissioner Oddo. “This important settlement will mean that these repairs will finally happen, and the New Yorkers living at properties owned by BlueSky Management will no longer be put in harm’s way due to hazardous building conditions. We are grateful of the combined efforts of this Task Force, working alongside DOB’s Office of the Tenant Advocate and our Borough Enforcement Unit, to spotlight the important public safety issue of proper building maintenance.”
From 2018 through 2022, BlueSky acquired numerous distressed properties across New York City before beginning construction projects on them. During its management period complaints from residents increased about unsafe conditions such as unpermitted construction activities; inadequate maintenance; lack of compliance with rent regulation requirements; harassment; as well as frequent interruptions in essential services like gas or water.
Investigations by task force members involved site visits interviews with affected residents review agency records which found that many projects lacked necessary permits—leaving some residents without basic resources including heat water gas—and often failed required annual registration filings for rent-stabilized units thereby denying certain protections owed under law.
HCR’s TPU determined most properties within BlueSky’s portfolio had gone unregistered over multiple years sometimes ceasing right after purchase attempts obscured oversight responsibilities further impeding regulation status transparency regarding stabilized rentals.
As part of corrective measures outlined under today’s agreement: missing registrations must be filed audits conducted concerning all stabilized units wrongful deregulations reversed accurate leases issued overcharges refunded outstanding code violations addressed affordable housing opportunities provided where tenant harassment occurred.
For three years an independent monitor will conduct random inspections reviewing ongoing work ensuring compliance at all sites managed by BlueSky.
This settlement continues recent actions by Attorney General James aimed at protecting low-income renters—including lawsuits against other landlords found violating stabilization laws returning funds reducing rents re-regulating previously deregulated units—demonstrating sustained focus on safeguarding tenant rights across New York City.
