New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas announced on April 29 a $608,000 settlement with Bronx landlord Ignacio Castillo after the Tenant Protection Unit found illegal rent increases at 11 rent-regulated buildings in the Hunts Point, Longwood, and University Heights neighborhoods of the Bronx.
The agreement covers 36 tenants and requires Castillo and his associated holding companies to reset improperly increased rents, issue new rent stabilized leases, and provide refunds through monthly credits or payments for overcharges. The action aims to protect tenants from unlawful practices that can make housing less affordable.
“This $600,000 settlement will allow dozens of tenants to recoup thousands of dollars in rent they were unaware they overpaid, and it sends a clear message that we are working every day to methodically root out improper rent increases across the city,” said HCR Commissioner RuthAnne Visnauskas. “When so many individuals and families are struggling with rising prices and inflation, it’s more important than ever that we have their back. Thankfully, the Tenant Protection Unit under Governor Hochul is protecting our rent regulated housing stock and ensuring it remains affordable for nearly two million New Yorkers.”
The Tenant Protection Unit audit identified suspicious increases in one building owned by Castillo during a review of Individual Apartment Improvements. When asked to justify these increases under the Housing Stability and Tenant Protection Act of 2019, TPU found that rents had been raised above legal limits in 36 apartments. Castillo cooperated fully with investigators and agreed to issue new leases at legal rates as well as refund all overcharges.
The investigation was led by Associate Counsel Jonathan O. Hurt; Senior Attorney Brittany Taylor; Director of Audits/Investigations Lewis Gray; Commissioner Visnauskas; TPU Deputy Commissioner Jooyeon Lee; and Assistant Commissioner Argyro Boyle. The unit continues forensic audits throughout New York City’s regulated apartment buildings.
Previous settlements include a $3.1 million agreement with Lefrak Organization in October 2025 ending illegal water charges for nearly two thousand tenants; a $400,000 settlement against Bottem Realty in March 2025 for fraudulent registrations; and a $514,000 settlement against Steve Croman in February 2024 for tenant overcharges.
