When the apartment was discovered the police considered it a legitimate public safety threat, but in the following days Michael Townsend's statements around his intentions transformed the narrative. People were fascinated with the secret apartment, and Townsend spared no detail to quench their curiosity. He faced serious criminal trespassing charges, but I think his apologetic transparency, and the artsy culture of Providence, were influential in the lenient consequences he ultimately received.
Townsend is still an active artist in Providence[1], with his secret apartment now Providence folklore. He is still banned from entering the mall to this day.
99% Invisible did a great episode on it[2].
[1] https://tapeart.com/ [2] https://99percentinvisible.org/episode/the-accidental-room/