He may not be as notorious as Donald Trump, but Shaya Boymelgreen is nonetheless a well-known and controversial figure in the world of New York real estate. Residents of his properties in the city have been complaining and initiating litigation for nearly a decade regarding construction issues and poor workmanship.
Now he has reached a settlement with Eric Schneiderman, the state's Attorney General, to fix building code violations in six of his properties. These include two large condominiums — a 23-story building in Brooklyn and a 38-story residential structure in the Financial District.
Earlier this year, the AG's office reached a settlement with Boymelgreen's company, Africa Israel Investments, regarding several of its properties. The developer reportedly reached separate settlements with the condominium boards of two properties. Boymelgreen's company sold $360 million in units at one property located at 15 Broad Street, but never completed construction on it. The amounts of the settlements with the condo boards haven't been disclosed.
The settlement with Schneiderman's office also prevents Boymelgreen "from participating in the offer or sale of securities, including condos, for two years." If the developer fails to abide by the terms of the settlement, the AG's office has said that he and his associates will be hit with a permanent ban on selling homes in New York.
Schneiderman issued a statement saying, "Today's settlement should serve as a lesson to other developers who choose to ignore and break the rules." He added, "We will not hesitate to take tough action against unscrupulous individuals who violate the rights of purchasers and tenants," and that he is "pleased that this settlement will return restitution to those who have been harmed by these illegal practices."
Unfortunately, there are some indeed some "unscrupulous individuals" in New York City real estate. Condo boards can and should find out what their legal options are to protect their residents if they are the victims of these practices.
Source: Curbed New York, "Controversial developer Shaya Boymelgreen barred from developing condos for 2 years," Tanay Warerkar, Aug. 30, 2016