Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
NYC hits landlord with $4M penalties for ‘horror movie’ conditions and illegal hotels
By
David Brand
Published Oct 26, 2023
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Photo courtesy of Marc Kessler
By
David Brand
Published Oct 26, 2023
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
A notorious landlord known for turning empty rent-stabilized apartments into illegal hotels and letting mushrooms sprout from the walls of tenants’ crumbling apartments is facing more than $4 million in penalties from New York City — a sum renters say still won’t be enough to actually fix their problems.
Landlord Daniel Ohebshalom, also known as Daniel Shalom, will pay close to $4.2 million in fines and settlements in three separate lawsuits brought by the city’s Office of Special Enforcement and Department of Housing Preservation and Development over the past three months, court records show.
The city accused Ohebshalom of raking in more than $300,000 in illegal hotel fees after displacing tenants in rent-stabilized apartments at his Hell's Kitchen properties, and presiding over severe housing code violations at his buildings in Washington Heights.
Ohebshalom did not immediately respond to requests for comment.
Fungus growing from walls, front doors that won’t lock and collapsing ceilings earned his managing agent the top spot on the public advocate’s annual “Worst Landlord List” last year. Buildings in his portfolio have amassed thousands of housing code violations, city records show.
Mayor Eric Adams said the fresh round of penalties send “a clear message to those who harass tenants.”
“You are breaking the law, and we will hold you accountable,” Adams said in a statement.
While the civil fines and settlements mark a small victory for tenants demanding safe conditions, they’re chump change for Ohebshalom and his associates and probably won’t lead to lasting reforms, said Marc Kessler, an artist and playwright who has lived at one of Ohebshalom’s Hell’s Kitchen properties for eight years.
Kessler said he and his roommate were forced to move from their apartment to a neighboring Ohebshalom-owned building following a fire in their building in 2015.
Years later, the apartments in that building, 412 West 46th St., still sit empty with the rent-stabilized units warehoused and previously used as short-term rentals. Ohebshalom listed the two properties for sale for $11.7 million, with real estate agents advertising how “a new investor can immediately gut-renovate [and] bring almost all the units to market-rate rents,” in 2021.
Outside of 412 West 46th Street, where the building remains boarded up following a fire in 2015.
Photo courtesy of Marc Kessler
Kessler, who still lives in the building owned by Ohebshalom, said he and the other tenants have dealt with harassment from building managers and intruders who break in through unlocked doors, in addition to the dangerous structural conditions. They have consistently documented the problems on social media.
“It’s like a horror movie. Literally Hollywood could rent it out as a horror movie,” Kessler said of his five-story walkup. “This is not a secret. Hell, we are not quiet about it.”
He said the tenants have held several rallies and gained the support of various local elected officials, but still can’t get their problems fixed.
“It’s a huge flaw in our city that people can be as vocal, well documented and honest as we are and that this can continue,” he said. “I’m showing everyone my wounds and we’re not seeing a resolution.”
Ohebshalom and his associates denied the illegal short-term rental allegations in a settlement with OSE. He did not respond to messages left with his company, Keystone Management, which lists him as president on mortgage documents. His attorney did not respond to a phone call.
Assemblymember Tony Simone said he wants the city to take stronger enforcement action, including seeking jail time for Ohebshalom and his associates based on the contempt charges.
But landlords rarely face jail time, even after accruing thousands of violations and endangering tenants.
“He is a slumlord and a criminal in my eyes,” Simone said. “We’re hoping this settlement is the start, not the end.”
HPD spokesperson William Fowler said the city is still suing for repairs and seeking contempt penalties for Ohebshalom and associates at seven other buildings.
The problems mount, despite the fines and settlements. Tenants at two of his buildings in Washington Heights haven’t had heat or hot water for over a week, according to HPD records.
The city and landlord are heading to trial in November.
“This isn’t ‘mission accomplished,’” Fowler said. “We’re going to continue working to hold him accountable until conditions are improved.”
Tagged
new york city
housing
manhattan
eric adams
David Brand
David is a reporter covering housing for Gothamist and WNYC. Got a tip? Email [email protected] or Signal 908-310-3960.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Police are looking for pickpockets who keep targeting this LES bar
At least two people are connected to four separate incidents at the Two Doors Down bar on the Lower East Side.
By
Brittany Kriegstein
Published Oct 15, 2026 at 2:57 p.m. ET
Citi Bike finishes expansion into 7 areas, including parts of North Bronx, Eastern Brooklyn
The bike-sharing service added 230 new docks over the last year.
By
Stephen Nessen
News
Citi Bike finishes expansion into 7 areas, including parts of North Bronx, Eastern Brooklyn
The bike-sharing service added 230 new docks over the last year.
By
Stephen Nessen
Why Mamdani’s name was mostly missing from debate for New York governor
By
Jimmy Vielkind
Manhattan DA charges woman with stealing $25K in immigration fraud scheme
By
Arya Sundaram
NYC lawmaker wants dedicated NYPD units to combat chaotic car meetups
By
Charles Lane
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .