The shock fine was handed to Kushner Properties LLC which was managed by Mr Kushner, the husband of President Trump’s daughter Ivanka.
City authorities became aware of malpractice allegations following an AP investigation.
AP claimed that Mr Kushner’s company had filed: “42 false applications for construction on more than a dozen buildings.”
They explained: “When the Kushner Cos. bought three apartment buildings in a gentrifying neighbourhood of Queens in 2015, most of the tenants were protected by special rules that prevent developers from pushing them out, raising rents and turning a tidy profit.
“But that’s exactly what the company then run by Jared Kushner did, and with remarkable speed.
“Two years later, it sold all three buildings for $60 million, nearly 50 percent more than it paid.”
Tenants were faced with “banging, driving, dust and leaking water that they believed were targeted harassment to get them to leave and clear the way for higher-paying renters.”
Despite having tenants the Kushner Companies filed fake construction permits claiming the properties were empty.
Rudolph Romano, a mailman living in one of the properties, told AP: “They cleared the place out.
“I watched the whole building leave.”
He explained he received a 60 percent rent increase and “it was noisy, there were complaints, I got mice.”
Another tenant, Mary Ann Siwek who lives on social security payments, told AP: “All of a sudden there was drilling.
“You heard the drilling in the middle of the night.
“There were rats coming in from the abandoned building next door.
“The hallways were always filled with lumber and sawdust and plaster.”
Mr Kushner currently works in the White House as a senior advisor to Trump, his son-in-law.
Whilst his signature isn’t on any of the falsified documents the company was under his control when they were submitted.