BRONX, N.Y. (PIX11) – Dozens of tenants in New York City will share a $608,000 settlement after an investigation by the Tenant Protection Unit revealed illegal rent increases.

Ruth Anne Visnauskas, the Commissioner of the New York State Homes and Community Renewal, announced on Wednesday that the TPU found Bronx landlord Ignacio Castillo had illegally increased rents at 11 rent-regulated buildings.

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These buildings are located in the Bronx neighborhoods of Hunts Point, Longwood, and University Heights.

An audit of Mr. Castillo’s building portfolio uncovered suspicious rent increases in one of the 11 rent-regulated properties he owns. When Mr. Castillo was required to justify these rent increases, the TPU identified 36 apartments where he had raised rents beyond the limits established by the Housing Stability and Tenant Protection Act.

Mr. Castillo fully cooperated with the TPU investigation. He agreed to issue new leases that reflect the correct, legally regulated rent and to refund the overcharges to the affected tenants, according to officials.

“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 TPU settlement will cover 36 tenants with Castillo’s holding companies to reset improperly increased rents. In addition, Castillo agreed to issue new rent-stabilized leases and give refunds as monthly credits or overcharge reimbursements.

PIX11 News attempted to contact Mr. Castillo’s rental agency for comment, but was unable to reach him by phone.

Matthew Euzarraga is a multimedia journalist from El Paso, Texas. He has covered local news and LGBTQIA topics in the New York City Metro area since 2021. He joined the PIX11 Digital team in 2023. You can see more of his work here.

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