In late April, the State of New York announced a $608,000 settlement with a Bronx landlord named Ignacio Castillo. The Tenant Protection Unit, a small enforcement office inside the state's housing agency, had spent months investigating eleven buildings Castillo operates across Hunts Point, Longwood, and University Heights. The investigation found that 36 tenants — across those eleven buildings — had been paying rent at rates higher than the law allowed. The settlement orders Castillo to reset the rents to their legal regulated levels, issue corrected leases, and refund the overcharges either as monthly credits or direct payments.
The story is small in the way most enforcement stories are small. Thirty-six households. Six hundred thousand dollars. One landlord most New Yorkers will never hear of. But the Castillo settlement is part of a pattern, and the pattern is more important than any single case.
The pattern
In December 2025, the state's Attorney General joined HCR in a $672,000 settlement with Steven Kashanian and his BlueSky Management firm — 72 buildings, 1,150 units, more than 3,000 violations cited across the portfolio, and 798 still open at the time of the settlement. The owner had failed to file rent registrations on most of the portfolio, often for years, allowing the actual regulatory status of those apartments to drift out of the public record.
In October 2025, the Attorney General settled with a Bronx landlord caught illegally blacklisting tenants — using tenant-screening reports to disqualify renters who had previously been to housing court, even when they had won.
In August 2025, the same offices filed suit against Zara Realty in Queens for systematically overcharging stabilized tenants in Jamaica and Elmhurst.
In September 2024, a separate enforcement push re-regulated 263 illegally deregulated apartments and reduced rents in 43 more.
In 2022, a single sweep of 29 NYC landlords yielded a $4 million settlement over an illegal kickback scheme to deregulate hundreds of stabilized apartments.
The Castillo settlement, in this context, is the most recent visible piece of an ongoing, methodical enforcement campaign. The Tenant Protection Unit was created in 2012 and has, since then, recaptured tens of thousands of apartments improperly removed from the rent rolls. Its caseload runs the full spectrum: from individual landlords with eleven buildings to portfolio operators with dozens, from rent overcharges to harassment to falsified registrations. The cases come out a few per year. The pattern, viewed in five-year stretches, is consistent.
What this means for an actual tenant
The most cited consequence of these enforcement actions is the visible refund — the tenant who learns they have been overpaying for years and recovers some portion of it. The far larger consequence, less often discussed, is structural. Each settlement requires the landlord to fix the records: file the missing registrations, correct the legal regulated rent, issue compliant leases, and submit to ongoing monitoring.
Once those records are fixed, they are public.
For a tenant in a building owned by Castillo, BlueSky, Zara, or any of the other landlords subject to recent settlements, the legal regulated rent of their unit — the rent the law actually permits — is now correctly reflected in state housing records. Anyone in those units can request their unit's rent history, see the corrected number, and compare it to what they are currently paying. If the landlord has been ordered to issue refunds and has not, that gap is documentable.
For a tenant in a building not yet subject to a settlement, the same logic applies in reverse. The legal regulated rent of any rent-stabilized apartment is on file with the state, regardless of whether enforcement has reached that landlord yet. The fact that no settlement has been announced for a particular building does not mean the building's rents are correct. It only means no investigation has yet been opened — or none has yet concluded.
Three things worth knowing about your unit
If you are a tenant in any apartment built before 1974 with six or more units in New York City, there is a meaningful chance your unit is rent-stabilized — and a smaller but non-trivial chance that the rent you are paying is above the legal regulated rate. The state's enforcement pattern suggests that the population of rent-stabilized units paying above the legal rate is not small, and not concentrated in any one landlord's portfolio.
Three things worth knowing this month:
Whether your unit is stabilized. This is not always disclosed at lease signing. The state's Division of Housing and Community Renewal maintains rent-history records for every regulated unit. Requesting your own unit's rent history is free and takes about ten business days. The form is one page.
What the legal regulated rent of your unit actually is. The rent history you receive will show the unit's legal regulated rent for every year it has been registered. If the rent you are paying is meaningfully higher than the legal rent, that is a documentable overcharge — recoverable, with interest, going back four years.
Whether your landlord is on a watchlist. The state and city both maintain lists of landlords with significant outstanding violations, repeated harassment complaints, or open enforcement matters. A landlord with a single quiet building and a landlord on multiple watchlists present the same lease at signing. The watchlist tells you which one you are dealing with.
The longer view
The enforcement actions of the past eighteen months — Castillo, BlueSky, Croman, Zara, Castellan, and a long tail of smaller cases — share a structural feature worth noticing. None of these settlements were initiated by a single tenant complaint. Each was the product of a state-level investigation that examined a landlord's portfolio in aggregate, comparing what was registered to what was being charged, what was reported to what was occurring on the ground.
That investigative model is not available to individual tenants. What is available — what has always been available, and is increasingly accessible as the public-record infrastructure improves — is the ability to check the same data points the state checks, on the unit and building you are actually living in or considering. The legal regulated rent. The registered status. The owner's broader portfolio and its violation history.
The Castillo case settled with thirty-six households recovering money. The cases that will settle next year are already in progress, in buildings the public has not yet heard about. For a tenant who wants to know which side of those investigations they are on, the records are sitting there. The state reads them every day. So can you.
Sources: New York State Homes and Community Renewal press release on Castillo settlement (April 29, 2026); HCR-OAG joint announcement on BlueSky / Kashanian settlement (December 2025); NY OAG press release on Bronx blacklisting case (October 2025); HCR enforcement record on Zara Realty (August 2025); HCR Tenant Protection Unit annual case summaries 2024–2026.
