LOCH SHELDRAKE — The owners of River Valley Estates, a manufactured home park in Sullivan County, are facing a sweeping lawsuit from New York Attorney General Letitia James, who is seeking $2.3 million in restitution and nearly $300,000 in penalties for what the state calls years of “dangerous and unsanitary” living conditions.

Filed on October 10, 2024, the lawsuit accuses River Valley Estates, LLC, and its operators George Levin and Gayla Sue Levin, of exposing more than 200 residents to deplorable conditions.

The suit alleges the park’s residents have been subjected to contaminated water, sewage overflows, unsafe roads, and a pattern of illegal fees and lease violations.

George Levin, owner of River Valley Estates, disputes the allegations laid out in the lawsuit and claims they stem from a small, organized group of disgruntled tenants. He says they “did everything possible” to mitigate these issues. 

This is the second time the state has gone to court over River Valley Estates. A previous case in 2018 also centered on infrastructure failures. Some residents say that little to no progress has been made since that initial lawsuit, and that many of the same issues persist today.

Assistant Attorney General Justin Haines, who is leading the case from the Poughkeepsie Regional Office, told residents at a recent community forum that the state believes the park’s owners violated the warranty of habitability—a basic legal requirement to provide tenants with livable conditions.

“They were told in the 2018 case to find someone who would help them find the leaks,” Haines said, “So it’s sort of unacceptable that there’s still leaks.”

He added, “We want a working water system that’s not going to break down so that we have to come back six months from now and fight about the water system.”

Assemblymember Paula Kay, who hosted the forum, acknowledged residents’ frustration with the slow pace of legal action but reassured them that help was on the way. “This is probably a frustrating process, and it’s taking a very long time, but we’re all in this together,” Kay said.

She added, “The Attorney General’s office is doing everything they can, and really, we’re all waiting very anxiously for a decision by Judge Meagan Galligan. It’s clear that these folks are living in conditions that no one should be living in, and it’s gone on too long.”

A decision in the case is expected later this summer. Residents may be asked to testify if the case goes to trial.

“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 accompanying the suit. “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.”

According to the lawsuit, the park has been under a boil water order since June 2024—marking a prolonged disruption in water service for residents. Residents say the tap water often appears gritty, oily, or foul-smelling. The suit also alleges that septic systems were left unrepaired, resulting in raw sewage flooding homes and yards. In one instance, a park employee allegedly handed a resident a stick and told them to push sewage down a drain.

The state further claims that from 2019 to 2023, residents were subjected to mid-lease rent hikes, improper garbage fees, and a surcharge for using credit or debit cards—all in violation of New York housing law.

“These are basic human rights and tenants should never be forced to go without them,” said Fallsburg Councilman Nathan Steingart, in a statement included in the Attorney General’s press release. Former Assemblymember Aileen Gunther added, “The videos, pictures, and stories shared by residents depict scenes that have no place in a civilized country, let alone in our great state.”

Kay pledged to coordinate with residents in securing legal counsel through the Legal Services of the Hudson Valley. While the Attorney General’s lawsuit addresses clear violations of state law, Kay emphasized that the issues affecting residents extend far beyond what’s outlined in the complaint. Because the state is limited in what it can pursue legally, private legal representation may be necessary to fully address the scope of harm suffered by tenants.

Much of the testimony shared at the forum mirrored the lawsuit’s allegations: brown tap water, snowed-in streets, broken lighting, and sewage backups. Some residents say retaliation is common after they speak up. One woman from Brooklyn said she faced racist remarks from the property managers after raising complaints. Others say they were hit with fines and threats of eviction.

“Rather than having two or three of your neighbors be the managers,” said Haines, “they should hire an outside property management company.”

The Attorney General is asking the court to order significant upgrades, including full repairs to water and septic systems, new lighting and drainage, and restitution for years of inadequate water service, including multiple outages and boil water orders.

Volodymyr Vysochen, a member of the park’s maintenance team, said in a recent on-site interview that many of the items mentioned in the lawsuit are already being addressed or completed. He pointed to the installation of flushing hydrants, pressure tanks, and water system upgrades, and said that septic systems are routinely pumped and repaired. Vysochen also addressed complaints about late fees and rent increases, saying these are rare and clearly posted in rental agreements. He acknowledged there may have been past communication issues but said the park is now working proactively with residents to resolve problems. “We never, ever mistreated anybody,” he said, adding that residents with complaints are able to file written forms and that maintenance crews respond regularly.

“Bottom line is this — they’re looking for a big payday,” Levin said. He also noted that he built the park in 1978 and has managed it since. “The park is beautiful,” Levin said. “It’s a few people with the worst houses in the park causing all the noise.”

Levin emphasized that a prior case brought by the state in 2018 was dropped after the company presented documentation of its efforts. “They decided they didn’t want to go forward,” he said. “I didn’t sue them for legal fees. I just walked away.”

Levin said many of the upgrades referenced in the lawsuit—including new pressure tanks, hydrant replacements, and a backup booster pump—were underway before the lawsuit was filed, and he emphasized ongoing coordination with the Sullivan County Department of Health. 

He also said the park is planning to install eight additional flushing hydrants by September and has corrected past billing errors related to late fees in compliance with updated state law. 

“We’ve always worked hand-in-hand with the health department,” Levin said, “Every time the AG’s office calls in a complaint, they come out—and they’ve never found any of it to be true.” 

After residents aired their concerns to Kay and Haines at the community forum, Haines said, “We think tenants are owed a refund of some of that rent money. Not a hundred percent, but some percentage of your rent back for having to put up with this.”

“We want this fixed permanently,” he said. “We don’t want to ever have to come back.”