LOCH SHELDRAKE — Residents of River Valley Estates in Loch Sheldrake, formerly known as Foxcroft Village, have long endured dangerous and unsanitary living conditions. These issues, including frequent water outages, sewage overflows and illegal rent increases, have resulted 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. 

The lawsuit seeks $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,” Attorney General James said 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.”

River Valley Estates, rebranded from Foxcroft Village in 2023, faces persistent health and safety risks due to the park’s water and septic systems, according to the lawsuit. For years, residents have had to cope with boil water orders, raw sewage overflows, and contaminated water that runs brown, rust-colored, and foul-smelling. The water’s quality has deteriorated to the point that residents describe it as “putrid, sulfuric, sandy, gritty, and topped with a slick, oily film.” 

Many have resorted to purchasing bottled water at their own expense, which one resident referred to as “the hidden tax of living at River Valley Estates.”

The lawsuit alleges that the park’s management has repeatedly failed to notify residents about ongoing boil water orders, leaving them exposed to contaminated drinking water. Water pressure issues and outages have also been frequent, causing severe disruptions to basic sanitation. 

“Residents lacked water during several recent holidays, disrupting family gatherings,” the lawsuit noted.

In addition, raw sewage has been reported to back up into homes and flood yards. One resident, whose yard was often filled with sewage, was handed a stick by a park employee and told to push the waste into nearby drains. According to the lawsuit, septic system repairs have been botched by inexperienced staff, resulting in further environmental hazards for residents.

The lawsuit also details illegal rent increases and fees imposed on residents, violating several New York State laws. According to the lawsuit, the Levins charged a three percent convenience fee on rent payments made with credit cards, which is prohibited under state law. Additionally, they imposed a $39.50 garbage fee in August 2022 without providing the required 90 days’ notice.

Town of Fallsburg Supervisor Michael Bensimon voiced his concern over the plight of residents who were forced out due to these financial pressures: “I would hope that they’re able to track down a lot of the residents that were forced out of there in previous years. 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.”

The lawsuit alleges that the Levins repeatedly violated rent control laws by raising rents above the allowable three percent limit without justification. In some cases, residents saw increases of up to six percent without the park obtaining the necessary court approval. Furthermore, the Levins charged late fees in violation of state law, overcharging residents by $35 per late payment when the legal maximum is three percent of the monthly rent.

The lawsuit seeks to provide restitution not only for current residents but also for those who were displaced over the years due to escalating rents and worsening living conditions. The Attorney General’s Office is demanding that the park’s owners make immediate infrastructure repairs, including replacing the water distribution system, fixing the failing septic system, and repairing unsafe roadways.

Bensimon said he is happy that a lawsuit has finally been brought forth, adding, “The water and septic situation is definitely on top of the list because that’s health, welfare, and safety. 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 said there is a need for accountability and justice for both current and former residents who have suffered for years due to the mismanagement and exploitation by the park’s owners.

The lawsuit demands that the park’s management implement new procedures to prevent further violations, including improving lease agreements to comply with state law, establishing a complaint tracking system, and providing compensation to residents for out-of-pocket expenses related to water system failures.

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

The Democrat reached out to the owners of River Valley Estates for comment but did not hear back by presstime.

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