Attorney General Sues River Valley Estates in Fallsburg Over Unsafe Living Conditions

Residents of River Valley Estates in Loch Sheldrake, previously known as Foxcroft Village, have endured years of unsafe and unsanitary living conditions, including ongoing water shortages, sewage overflows, and unauthorized rent increases. These issues culminated in a lawsuit filed by New York Attorney General Letitia James on October 10, 2024, against the park’s owners, George and Gayla Sue Levin, seeking $2.3 million in restitution for current and former residents, alongside penalties.

“River Valley residents have suffered for years in dangerous and unsanitary conditions, forced to travel miles outside their homes just to get clean water,” said Attorney General James in a statement. “On top of the unacceptable state of the park, residents were cheated with illegal fees and rent hikes, paying more for homes that didn’t even have working showers or toilets. Every New Yorker deserves a safe and clean place to live, no matter where their home is.”

Rebranded from Foxcroft Village in 2023, River Valley Estates has faced persistent health and safety risks, according to the lawsuit. Residents have dealt with recurring boil water orders, raw sewage overflows, and contaminated water, which often appears brown, rust-colored, and foul-smelling. Describing the water as “putrid, sulfuric, sandy, gritty, and topped with a slick, oily film,” many residents have resorted to buying bottled water at their own expense, which one person called “the hidden tax of living at River Valley Estates.”

The suit claims that management regularly failed to inform residents about boil water orders, leaving them vulnerable to unsafe drinking water. Water pressure issues and frequent outages, even during major holidays, have made maintaining basic sanitation nearly impossible. “Residents lacked water during several recent holidays, disrupting family gatherings,” the lawsuit states.

In addition to water concerns, raw sewage has reportedly backed up into homes and flooded yards. One resident described how a park employee handed them a stick to push waste into nearby drains. Inexperienced staff, tasked with repairing the septic system, have only worsened the environmental risks facing residents.

The lawsuit further accuses the Levins of imposing illegal rent increases and fees in violation of New York State laws. They are alleged to have charged a 3% convenience fee for rent payments made via credit card, a practice prohibited by law. Moreover, a $39.50 garbage fee was imposed in August 2022 without the required 90-day notice.

“I would hope that they’re able to track down a lot of the residents that were forced out of there in previous years,” said Town of Fallsburg Supervisor Michael Bensimon. “Many of them were driven out, losing homes they had been paying into for years. They should also see some sort of relief from the settlement.”

According to the lawsuit, the Levins frequently violated rent control laws, raising rents beyond the legal 3% limit without justification. Some residents faced increases as high as 6% without the necessary court approval. Late fees were also imposed unlawfully, with residents overcharged $35 per late payment when the legal maximum is 3% of monthly rent.

The Attorney General’s lawsuit seeks not only financial compensation for current residents but also those displaced due to rising rents and deteriorating living conditions. The suit demands that the owners immediately address critical infrastructure issues, including replacing the water distribution system, repairing the faulty septic system, and making roadways safe.

“The water and septic situation is definitely on top of the list because that’s health, welfare, and safety,” added Bensimon. “People are bringing in their own bottled water because nobody there drinks the tap water, which is an added cost most residents can’t afford.”

Bensimon emphasized the need for accountability and justice, while Assemblymember Aileen Gunther reinforced the essential nature of basic infrastructure. “Safe roads, clean and accessible water, and functioning sewer infrastructure are not luxuries in 2024, they are basic necessities,” she said. “This lawsuit is a step toward securing justice for the residents who have endured these unacceptable conditions for far too long.”

Radio Catskill reached out to the Levins for comment but did not receive a response by press time.

“We need to make sure this is the beginning of real change,” Bensimon added. “The residents have waited long enough.”