Wednesday, March 24, 2010

New York's Ten Worst Landlords, Part 2

In a city of slumlords and broke-ass apartment buildings, these stand out.


By Elizabeth Dwoskin


published: March 24, 2010


How many bad landlords are there in New York City? Who can count that high? But we can count to 10, so we assembled this group of really bad landlords—listed in no particular order—only after months of research. We combed through records of unresolved violations, lawsuits, eviction notices, and court documents. We spent thousands of hours in deeply depressing apartments and interviewed wave after wave of equally gloomy tenants. We also talked with scores of landlords, city bureaucrats, prosecutors, defense attorneys, housing advocates, and others. In the end, these are the 10 landlords we would want to rent from the least. Last week, we gave you five. Here are the other five.

WORST-CASE SCENARIOS


Landlord: Frank Palazzolo

Westchester businessman Frank Palazzolo is believed to be sitting at the helm of a network of deteriorating apartment properties, many of them in the Bronx, but city officials can't say how many buildings. Even some tenants in buildings thought to be his aren't sure who their landlord is.

In the past, Palazzolo has insisted that he's just a dealmaker for landlords—not a landlord himself. But the Voice noted in 2004 that former housing commissioner Jerilyn Perine considered him to be one of the city's worst landlords, and The New York Times reported at the time that city officials contended Palazzolo owned 95 buildings and that buildings linked to him had 19,000 code violations. Palazzolo was quoted as telling the Timesback then: "Helping other landlords obtain financing does not make you a landlord. I do not own them. I do not manage them. I do not control them."

Two notorious Bronx buildings—2356 Lorillard Place and 2710 Bainbridge Avenue, both on the city's current worst-violations list—are owned by Palazzolo Realty II Corp. and Palazzolo Realty IV Corp., respectively, according to city records. Those two companies and several others listed in current city records as building owners and bearing the Palazzolo name share the same corporate address in Scarsdale with an entity called Palazzolo Plaza Corp. State Division of Corporations records for that company list Frank Palazzolo as the "chairman or chief executive officer."

Complicating matters is that some of the buildings appear to be midway between the owner's hands and those of the banks that hold the mortgages. For example, city property records show that the deed to 1820 Grand Concourse—which is also on the city's current worst-violations list—was issued to Palazzolo Management II Corp. and that Ridgewood Savings Bank initiated foreclosure proceedings on it in April 2009. Numerous calls and letters to Palazzolo's office by the Voice were not returned.

Quotable: "When I call 3-1-1 and they ask who my landlord is," says tenant Daniel Viruet, "I say, 'I really don't know. I have a phantom landlord.' Every time we have a complaint, we're told to call, like, 10 different numbers. It's a goddamn mess."

What it's like to live there: The 31-unit building at 2356 Lorillard Place, near the 183rd Street strip known as the Bronx's Little Italy, had, at last count, more than 700 code violations (one of the highest totals of any building in the city), of which about 130 were considered "immediately hazardous." In the worst cases, of which there are many involving landlords throughout New York, the city will make emergency repairs and then bill the landlords. At last count, the city is still owed tens of thousands of dollars for repairs just at 2356 Lorillard Place and 2710 Bainbridge (though the landlord has repaid some of the money).

At Lorillard Place, just about every bathroom in the building has serious water damage. There are apartments infested with roaches and mice, and an apartment in which paint has tested positive for lead. The city can't even get to the building's broken boiler: Earlier this month, the city gave the landlord a violation for failing to identify just who exactly has the key to the building's heating system.

Some tenants say they have long since given up trying to figure out who is responsible for their building and have stopped visiting the management offices to demand repairs. After telephoning 10 to 12 times a day, tenants say, they've also given up on 3-1-1.

All that's left is damage. Seventeen-year-old Justin Muñoz's bathroom looked as if it were just wrenched free from the Titanic's rotting hulk. Almost a year ago, a pipe burst in the wall, and scalding-hot water gushed nonstop from the showerhead. Months later, it was still nonstop, and the bathroom felt like a particularly unhealthy steam room, with black mold seeping out of the walls. As the 24/7 steam experience deepened over the summer, tiles around the toilet came loose, and then the floor caved in. On Christmas Day, the ceiling above the shower collapsed, exposing the rafters.

Justin and his mom have tried to practice good hygiene by crouching in the far side of the bathtub from the gushing showerhead and using a bucket to catch some of the scalding-hot overflow. The trick is to take a sponge bath in the tub without getting splashed.

The bathroom was still an ersatz steam room into 2010. The landlord has claimed to have fixed the problem, but the city still lists it as an unresolved violation.

In the building's lobby, an ever-growing heap of trash bags piles up by the stairwell, a perfect haven for vermin. Last year, in an apartment upstairs, tenant Daniel Viruet tossed a rat out of his kitchen window.

Life in the building is short-circuited in many ways. Evelyn Almodovar and her mentally handicapped daughter live in a three-bedroom apartment with only one working electrical socket, forcing them to jerry-rig wires and make do without lights in their bedrooms. Because the windows are cracked and don't even close properly, the family has covered them with garbage bags and sheets. It has been like this for a year.

One recent week during a rainstorm, the stairwell was flooding, as usual, from the sixth floor all the way down, and Almodovar slipped and suffered a lumbar spine fracture. Showing the bill from nearby St. Barnabas Hospital, she says, "Why should we pay rent? For this?"

Mitigating factors: City records indicate that the Palazzolo entities have recently reduced their tab with the city for emergency repairs by repaying tens of thousands of dollars. Perhaps more important, some tenant activists and lawyers say they think that Palazzolo-connected entities that controlled about 100 buildings five years ago may now control only 20 to 30. It's not known whether those buildings were sold or are being run under different company names.

Future: The tenants in 2356 Lorillard Place have already mutinied. So the building management—whoever and wherever they are—shouldn't expect next month's rent checks, either.

PUSH COMES TO SHOVE


Landlord: Jacob Bernat (Plaza Management)

Jacob Bernat, through Plaza Management, operates at least two buildings that are on the city's worst-violations list, but the worst alleged violation involving one of those buildings—273 Lee Avenue in Williamsburg—doesn't appear on any list: Tenants who aren't Orthodox Jews say they're getting the short end of the stick when it comes to maintenance and repairs, and are being pushed out in favor of new tenants who are Orthodox Jews.

Jacob Bernat is identified in government documents as the managing agent and officer of Plaza, which uses a mail drop in a building on Lee Avenue that's popular with Hasidic businessmen. (Moishe Indig, who was in last week's batch of "10 Worst Landlords," also uses the building as a mail drop.)

Bernat is already involved in the conversion of a former school building into a medical facility that caters to Hasidic Jews. In 2008, he and Plaza purchased the old and vacant Fallsburg Central School in Sullivan County to renovate it into a satellite medical complex for Refuah Health Center, which was founded to serve the markedly insular Hasidic community of New Square in Rockland County.

Religion is relevant here, but neither Bernat nor Plaza nor several lawyers listed in documents as having represented them returned repeated requests for comment by the Voice.

Quotable: Juana Moreno, who has lived in the Lee Avenue building for 17 years, says, "I have nothing against Jews, but the fact that they are religious people, and they treat us badly, it's worse for them. Anyone can see that we are not bad people."

What it's like to live there: At 273 Lee Avenue, a dingy, four-story walk-up in Williamsburg, how you're living depends on whether you're a Latino or a Hasidic Jew. The building, however, was recently placed on the city's worst-properties list for non-religious reasons, including a defective chimney and a rotting ceiling that sits precariously above the building's boiler.

The city specifically points out a serious and basic problem: The building's front-door lock has been busted since last June—but the door does feature a newish mezuzah.

But it's not that the landlord is neglecting the building. Tenants say there's a regular stream of workmen. Inside, three renovated apartments (two inhabited by Jewish families and one vacant) stand in stark contrast to apartments that are infested with roaches and mold. One apartment still has exposed lead paint on three of its walls despite the city's first having noticed it in 2008.

"They are always fixing that apartment," says tenant Cindy Reyes, pointing to an apartment across the hall from the one she grew up in and still shares with her mom. "Renovating it, putting in new floors. But not for us." In Reyes's third-floor apartment, the bathroom remained full of mold until the city was forced to come in and clean it. The sink is still broken.

In August 2009, the city sued the landlord, demanding that he make repairs on 130 problems judged hazardous, as well as dozens of other fixes on other problems.

The tenants who have sat in frustration, waiting for repairs for years, are Latino—mostly Mexican—while the tenants who live in the renovated apartments are Hasidic families. The names on the rows of metal mailboxes reveal a bit of the history of the building: On half of the mailboxes, you see names like "Oyola," "Reyes," "Garcia," and "Santiago"; the other half of the mailboxes feature the names "Gross," "Sofer," and "Friedman." None of the Jewish tenants would comment or could be reached for comment.

With not even a whiff of anti-Semitism, a Latino tenant simply says, "They want to get us out so they can put in their people." The Latino tenants say they don't blame their new Jewish neighbors in the renovated apartments, who are very polite. Their beef, they say, is with the landlord.

Lee Avenue is the main drag of Hasidic Williamsburg. Besides one Assembly of God Church that caters to Latinos, the 10-block stretch of Lee Avenue around the building appears to be entirely Jewish. You want repairs? As tenant Sara Oyola—a cheery 53-year-old grandmother who has lived in the building for 28 years and acts as the de facto super for the other Latino tenants—says, "The workers came and said, 'You're not a [VIP], so what do you expect—a great job?' "

The city is also suing Plaza to make repairs at 325 Melrose Street, a small building in Bushwick that is also on the city's worst-violations list. The building has only eight apartments, but all together, they have 169 violations. Tenants of 325 Melrose Street couldn't be reached for comment because there currently are none. In January 2009, the city sued Plaza and Bernat to force them to make repairs. The next month, the city took the rare step of issuing a "vacate order," conducting an emergency evacuation of the building because it had no water supply or heat, a defective fire escape, and gaping holes in ceilings and walls. The building is still blanketed by a blue tarp.

Mitigating factors: City records indicate that Plaza has taken care of about 90 violations since November 2009 at 273 Lee Avenue.

Future: The Latino tenants say that Plaza representatives have been offering them money to move out—but that the money offered isn't enough. Cindy Reyes says her family was offered $10,000, but her mother, Julia Sanchez, says, "It's expensive to move. When we calculated it out, we wouldn't have had anything left."

Longtime tenant Oyola says: "They first offered $5,000. Then $7,000. Then $12,500. They were very insistent. But I say, 'I don't want to leave my apartment. I just want repairs.' "

Former Latino tenants couldn't be reached for comment.

SEDUCED AND ABANDONED


Landlord: Sam Suzuki

Sam Suzuki emerged as a player in decaying Bronx apartment buildings (through an entity called Hunter Properties) in part because of the collapse of New York's real estate bubble.

The company whose bubble burst was Ocelot Capital. In 2005, New York lawyer Rachel Arfa and her husband, Alexander Shpigel, founded Ocelot as a real estate venture heavily backed by Israeli investors through a Tel-Aviv company called Eldan-Tech. (Accounts in the Israeli press and elsewhere characterize Ocelot as a subsidiary of Eldan-Tech.) In 2006 and 2007, Ocelot received millions of dollars in loans to buy about two dozen rent-stabilized buildings in the Bronx. In March 2007, Real Estate Weekly dubbed Arfa, a former partner in the powerhouse law firm Fried, Frank, Harris, Shriver & Jacobson, one of the year's "Residential Rising Stars."

But the income generated from rents wasn't enough to support Ocelot's vast debt. (The city later criticized the properties as over-leveraged, and Fannie Mae later admitted that the loans didn't meet the agency's underwriting standards.) As the economy collapsed and Ocelot fell behind on its mortgage payments, building maintenance practically ground to a halt. Tenants and housing advocates describe it as a near total abandonment of buildings by a landlord.

The buildings, plagued by rat infestations and electrical fires, racked up thousands of code violations, records show. Of Ocelot's 25 properties, 10 made the city's worst-violations lists published at the end of 2007 and 2008. (No other landlord had as many properties on the list.)

As the problems piled up, Eldan-Tech reported heavy losses and backed out. Amid that acrimonious breakup with Eldan-Tech, Ocelot passed the job of managing 20 of the buildings to Sam Suzuki.

Suzuki, who grew up in Queens, began his career in real estate on the banking side, first with Dime Savings Bank and then at Citibank. In 1993, he founded (and, until recently, controlled) the Vintage Group, which claims to manage more than $300 million worth of real estate, including Chelsea condos. Suzuki is also a prime developer in Flushing. In 2005, he landed on the list of "Outstanding Asian Americans in Business." In 2007, the Lubavitchers' Chabad of Port Washington gave Suzuki its "Community Service Award"; he was the only non-Jewish honoree.

That said, the winter of 2008–2009 was another winter without heat for many of the 20 buildings under Suzuki's control. But the number of violations did go down under Suzuki, in general.

Arfa also attempted to sell the 20 buildings to Suzuki. In November 2008, the two entered into a sales contract, but the deal fell through. A few months later, 14 of the properties went into foreclosure. (Mo Vaughn, the former Met and Boston Red Sox baseball player now in the real estate/rehab business, took over those buildings.)

Records indicate that Suzuki, through a newly created entity called BXP1, did apparently acquire six of the buildings—he and Hunter attorney Alice Belmonte are listed on the deeds as the buyers. Rachel Arfa's attorney, David Katz, tells the Voice that Suzuki and Belmonte were the only representatives of BXP1 at the closing. But Belmonte says Suzuki is only managing the buildings—and she won't name BXP1's principal or investors.

Quotable: "They say a lot of things. And they do a lot of nothing," University Avenue tenant Thomas Capone says of the landlord and building managers.

What it's like to live there: The summer of 2009 was unusually—and unnaturally—hot in Ana Almonte's apartment at 1585 East 172nd Street. Burning-hot, foul-smelling vapors started rising from the boiler in the basement through the cracks in the walls and the floor. At times, the floor grew so hot that you couldn't stand on it in bare feet. The 29-year-old waitress, who lives in a well-kept two-bedroom apartment with her brother and three-year-old son, Ethan, complained to Hunter Properties—dozens of times, she says. The super came by, but made no repairs, she says. The family was already coping with rats stealing their food after crawling up into the apartment through two football-size holes in the walls.

One afternoon in late November, a water pipe burst while Almonte's son was playing in the apartment, and the living-room ceiling collapsed. The debris and water damage destroyed the floor, too. Black mildew began to spread over everything, covering an entire wall and creating an overpowering stench. Nearly three months later, the situation remained unchanged, despite the family's countless pleas for repairs. Finally, in late February, the super patched up the coffin-size hole in the ceiling and laid bare wooden planks over the destroyed floor.

After spending the better part of the 2008–2009 winter without heat, people in 26 apartments in the 51-unit building brought a lawsuit against Hunter Properties. The parties have been in court for nearly a year. The building has 558 housing code violations, and the top-floor apartments get doused every time it rains. In December, a judge gave Hunter two weeks to fix just two of the damaged apartments, but Hunter didn't do the repairs. So in January, the tenants went back to court, and the judge ordered the landlord to either fix the two apartments or pay damages, says tenant association president Martha Castro. In February, Hunter began the repairs. Tenants in another Hunter building, 1350 University Avenue in Morris Heights, are also in court against the company.

This past November, two of the six properties taken over by BXP1—1640 and 1636 University—popped up on the city's worst-violations list, and not because one of the stairwells reeks of cat piss. They hadn't been on the list the year before, when Ocelot still owned them, but since Suzuki came onboard as a manager, residents have filed more than 300 complaints with the city.

The conditions have led to confrontation: A few months ago, a tenant meeting was broken up, tenants say, when an employee of Suzuki's called the police. Some tenants tell the Voice that they will no longer openly protest conditions in the buildings because Suzuki's employees threatened them with eviction if they did so. "We had a meeting," says a tenant who asked not to be identified, "and the next thing you know, people are knocking on my door telling me I could be kicked out of my apartment. I have been here for 42 years—I can't have that."

In a fifth-floor apartment in 1640 University Avenue, Luis Correa, a father of six and a contractor, is especially sad because he was raised in the building, and now his apartment has mold splotches all over the walls. An entire bedroom wall is so black with mildew that the family covers it with a curtain. During a visit by the Voice, his daughter was using scissors to chase cockroaches running up the walls, and mice could be heard squeaking below the sink, an area already destroyed by water damage. The bathtub drain has been clogged for six months—after every shower, the Correas have to empty the water into the toilet.

In one of the University Avenue buildings, 38-year-old chef Thomas Capone says he replaced the flooring in his apartment by himself in March 2009 after calls to Hunter weren't returned. And when his kitchen ceiling collapsed, he adds, he paid a friend to install sheetrock over it because Hunter did nothing.

Mitigating factors: Alice Belmonte, the lawyer for Suzuki, says she was aware of the Almontes' collapsed living room and agrees that it was a horrible situation. "I'm seeing our guys at the end of the day, and they're killing themselves," she says. "There are lots of problems, and every single problem could be solved with a dollar sign."

Asked whether Hunter is conducting its repairs in a responsible and timely fashion—given that it's under a court order to make repairs, two buildings are on the city's worst-violations list, and another tenant lawsuit is pending—Belmonte insists that the company is doing so: "Is it as quickly as the tenants would like? No," she says. "But there has to be a give-and-take here."

Along with the court action, tenants in the building on East 172nd Street have withheld rent for about a year and—unlike many other rent strikes—they haven't been paying into an escrow account. "The tenants can't simply decide that they don't want to pay rent and expect the management company to fix things on a dime," says Belmonte.

Future: Tenant Luis Correa told the Voice, "We're moving to Florida." And they did.

Additional reporting by Donal Griffin

FLOODS OF COMPLAINTS


Landlord: Steven Carter (Cronus Capital and Perseus Capital Management)

At the height of the real estate boom, the private-equity firm Cronus Capital, controlled by financier Steven Carter, went on a buying spree, amassing about 30 buildings in Harlem and Washington Heights in just a few short years. Two of the buildings now sit on the city's worst-violations list. In four buildings, there are group lawsuits against Cronus's management arm, Perseus Capital Management, demanding that either the landlord and its managers make widespread repairs or a judge appoint an independent administrator. Tenants in six properties have been granted building-wide rent reductions by the state, says Diogenes Abreu, of the Northern Manhattan Improvement Corporation. At least 60 additional tenants in 15 separate buildings have enough lingering repair problems that the state has also lowered their rent.

Cronus is an affiliate of HIG Capital, a $7.5 billion European private-equity firm. Carter, the principal of Cronus, lives in the Sabrina, a luxury condo building at West 98th and Broadway, not all that far from the screwed-up buildings under his control.

Cronus boasts the conversion of a Chelsea office building into luxury condos, and also has various real estate ventures in New Jersey, Florida, and Houston. The Bronx and Washington Heights buildings fit one of Cronus's "investment strategies": "Acquire underperforming properties and develop a specific turnaround plan." Benjamin Dulchin, executive director of the Association for Neighborhood and Housing Development, translates: "When you say 'underperforming assets' in a rent-stabilized building in New York, that means the tenants themselves. The tenants themselves are the underperforming assets, because they are too poor."

As for Cronus's "turnaround plan," consider, among other properties, 79 Audubon Avenue, which Cronus acquired in April 2007. Earlier that year, before Cronus purchased it, the building had 79 code violations, including a four-foot-wide hole above the row of mailboxes in the lobby, says tenant advocate Evan Hess. Sixteen months later, the number of violations had surged to 217. Seventeen tenants declared a rent strike, placing their rent payments in an escrow account. In September 2008, a judge ordered Cronus's management arm, Perseus, to complete all repairs in 60 days. But by February 2009, the building had 224 violations—even more than when the judge first ordered the landlord to deal with them. As of March 2010, the building had more than 180 violations.

Quotable: Tenant Lida de la Rosa says of her Washington Heights building: "We've got holes, holes, holes—I'm talking about holes!"

What it's like to live there: Running water, stagnant water, leaking water, no hot water—all are plagues at various Perseus buildings. Liliam Evora, a grandmother and teaching assistant who lives at 184 Nagle Avenue in Washington Heights, has endured a constantly leaking hole in her ceiling. She says she called Perseus every single day for two years, but got no rhythm. So she petitioned the state for a rent reduction—and got it. Public Advocate Bill de Blasio recently used Evora's building—with its 168 heat and hot-water complaints this past winter—to kick off a campaign in support of a City Council bill that would increase the fines for landlords who go more than five consecutive days without providing heat for their tenants.

At 11 Vermilyea Avenue, also in Washington Heights, Milagros Puello, a 58-year-old home attendant who lives in one of the apartments that sued Perseus, couldn't get her leaky bathroom ceiling repaired. After six months, the ceiling collapsed. She paid a neighbor $200 to tape it up with plastic garbage bags, but she says that dust from the broken ceiling has brought on asthma attacks. A judge has ordered repairs in 17 apartments in the building.

"It's like a cat-and-mouse game with them," Lida de la Rosa, a 46-year-old office assistant who works for an insurance company, says of dealing with Perseus management. "There's really no use in calling. You leave a message, but you never get through." De la Rosa lives in 507 West 170th Street, a building with 347 code violations—half of them immediately hazardous—making it one of the 200 worst in New York, according to the city's weighted scale of serious violations and violations per unit.

"Abandoned—we just feel abandoned," says Eligio Valerio, a 42-year-old taxi driver who lives in a Perseus-run building at 516 West 169th Street. "My fuse box is broken. There are so many rats, so many broken windows. They just don't fix!"

It's not just low-income and rent-stabilized tenants who are having problems. Yoni Etzion, an Israeli musician who shares a one-bedroom apartment with her boyfriend at 618 Academy Street in Washington Heights, says the company never came through on major repairs that were promised before the couple's September 1, 2009, move-in date. After numerous calls and e-mails, the couple decided to just show up at the company's Upper Manhattan office, a copy of their lease in hand, and throw a fit. "They just don't care," Etzion says flatly. A tenant in Etzion's building told El Diario that she had to sponge-bathe her children on the fire escape because the company wouldn't repair her bathtub.

Mitigating factors: Adam Foreman, Perseus's maintenance director, tells the Voice that the company is "well aware that there are plenty of violations out there." He says he has done a lot of work to clear the violations from the city books. But, he adds, "We're just a management company. The investors are the people that own the buildings." Foreman says the city is also at fault: "[Department of Housing Preservation and Development] generates so many funds for the city. They are more compelled to write violations than they are to come out and clear them."

In any case, Liliam Evora's ceiling has been fixed.

Future: The constant threat of stinking black water.

Last summer, tenants say, water collected behind the building at 11 Vermilyea Avenue, creating a stagnant pool so foul that first-floor tenants couldn't open their windows without being overwhelmed by the stench. The landlord is under a judge's order to not let the problem recur.

CHASING AFTER RATS


Landlords: Victor and Alan Fein

The Fein brothers have owned 1558 Bryant Avenue, one of the worst buildings in the city, as well as other Bronx properties, since the mid-'90s, under such company names as Cherokee Partners and Apache Properties, according to city records. Neither Fein would return repeated phone calls. At least three of the buildings are among the city's worst.

Quotable: Pointing to a jumble of electrical wires on the floor, tenant Gladys Gonzalez says, "One day, I came over, and there were about 10 rats, boxing and playing and boxing and playing like they owned the place. I was like, 'Why don't they ever get electrocuted?' It's our bad luck."

What it's like to live there: For seven years at 1558 Bryant Avenue, every time it rained, leaks forced tenant Rosalyn Hall to move her furniture from one side of her apartment to the other. Until a Sunday evening in early December. Hall had just arrived home from the laundromat and was helping her preteen sons gather their materials for school when a flood of water broke through the living-room ceiling. This time, it was from burst pipes, not rain. Other ceilings in the waterlogged apartment swelled up like bubble-wrap and threatened to explode. For three hours, water poured into the apartment, until the Fire Department shut off water to the building, she says. The catastrophe did at last prompt the landlord to start making repairs.

The entrance to 1558 Bryant is a foreboding black door with no handle. The mailboxes are either broken or badly cracked, and trash is strewn in the hallways of all five floors. At last count, the building had more than 500 code violations, making it one of New York's 200 worst properties, according to the HPD. Other Fein buildings on the worst-violations list include 1926 Walton Avenue and 2239 Creston Avenue, with 307 and 327 violations, respectively. When the gas was out for three months over the summer, tenants shared hot plates with each other because, they say, the landlord didn't provide them. But in one apartment, in which there are young children, the smell of leaking gas is so strong that it is actually dizzying.

Cheryl Washington, who was raised in the building, endured 32 separate code violations in her small apartment before she moved down the block a few months ago.

Across the street, at 1553 Bryant Avenue—a 62-unit Fein building that at last count had a staggering 990 code violations—Gladys Gonzalez lives with her granddaughter in a first-floor apartment. While watching cartoons, the granddaughter plays a game: spotting rats. The walls in the apartment are full of holes. Within 10 minutes, a visitor sees two rats scoot across the bedroom.

Residents talk of typically waiting weeks, or even months, for basic repairs, and when those fixes are finally finished, the work is shoddy and cheap. Tenants say that when they show up at the management's offices to complain, they are treated rudely.

Hall says her rent of $1,500 is partially covered by the federal Section 8 program, though she says the conditions had gotten so bad at certain points that federal Department of Housing and Urban Development officials refused to pay. During one visit to management offices, Hall says, she clashed with Nanci Fein, who is presumed to be related to the brothers. "She was acting like her apartment was all that, and I'm saying, 'Lady, your apartment is not all that,' " recalls Hall. Washington, who has also dealt with Nanci Fein, adds, "I say let her come and live here for five days. Let her see what this is like."

At one point recently, the city had spent more than $200,000 making emergency repairs to the two Bryant Avenue buildings. The landlords, records show, have repaid the city.

Mitigating factors: The seven years of perpetual leaks in Rosalyn Hall's living room ceased being a problem when the entire ceiling caved in.

Future: Tenant Hall says, "I'm just saving my money so I can get out of here."

The Feins are apparently also hoping to leave. Both buildings are part of a package of six prewar, five-story walk-up apartment buildings in the Bronx that the Feins have put on the market; they're asking $13.5 million for the bundle, according to real estate listings. If you're just beginning a career as a slumlord and are looking for your first don't-fixer-upper, they can be purchased separately.

Tuesday, March 16, 2010

New York's Ten Worst Landlords, Part 1

In a city of slumlords and broke-ass apartment buildings, these stand out.


By Elizabeth Dwoskin


published: March 16, 2010


How many bad landlords are there in New York City? Who can count that high? But we can count to 10, so we assembled this group of really bad landlords—listed in no particular order—only after months of research. We combed through records of unresolved violations, lawsuits, eviction notices, and court documents. We spent thousands of hours in deeply depressing apartments and interviewed wave after wave of equally gloomy tenants. We also talked with scores of landlords, city bureaucrats, prosecutors, defense attorneys, housing advocates, and others. In the end, these are the 10 landlords we would want to rent from the least.

'AIMING FOR A SPOT ON NEXT YEAR'S BEST-LANDLORDS LIST'

Landlord: Moishe Indig

A rabbi and developer in Williamsburg's Satmar community, Indig is a board member of the powerful social services organization UJCare, is a strong Bloomberg supporter, has built a well-known synagogue on Hooper Street, and acts as something of a Hasidic community spokesman in the mainstream press.

Since Indig took control of 684 Flushing Avenue several years ago, it has been severely neglected and improperly subdivided. (According to the building's official Certificate of Occupancy, there should be six apartments in the building when there are actually 16.) In November 2006, a court appointed an independent administrator to oversee the building. Indig regained control of the building the following year, when he took out a $1.2 million mortgage. But the building has further deteriorated.

Quotable: Landlord Indig: "By next year, we hope you will be able to put the building back on the best-landlords list, instead of the worst! We hope that all the problems will be resolved."

Tenant Cruz Barreto, fearing that the rats currently crowded in the basement will invade his first-floor apartment: "I'm sleeping with the lights and the TV on—in case I need to get up and run."

What it's like to live there: With 132 violations (at last count) for a small four-story walk-up, 684 Flushing, in the East Williamsburg–Bushwick industrial region, is right up there on the city's worst-violations list. Forty-five of those violations are immediately hazardous, according to city records, and include a chronically broken boiler and gas pipes, as well as water leaks that result in the kinds of floods that cause ceilings to collapse.

Apartment 4D is ridden with bedbugs and mice, and the wood floors sag dangerously. A woman and her children live in a first-floor apartment that's missing a kitchen ceiling; it collapsed in a flood a few months ago.

The building has at least three abandoned apartments—their doors are boarded up with plywood and sprayed with graffiti. Two of those apartments, according to tenants, belonged to residents who fled because they couldn't stand the deathly cold. Like everyone else in the building, they kept their oven doors open and the gas on in the winter months—if there was gas, that is. "We haven't been able to cook for three months," says Leo Smith, a 55-year-old carpenter.

Michael Juliano, a musician who lives on the third floor, pleaded with the landlord last year to put a padlock on the basement door to stop crack addicts from spending nights there. Management ignored him, so Juliano put his own lock on the door. The basement still smells like piss and is littered with cracked light bulbs, torn-apart furniture, and bits of plywood. Rodents have made fist-size holes in the walls and floor. The basement has been full of rats since at least 2008, when the city started slapping the landlord with rodent violations that remain open to this day. "Everything that could go wrong in this building has gone wrong," Juliano says.

In early February, a water pipe in the wall broke, and Cruz Barreto's first-floor apartment was flooded.

Indig freely admits to the Voice that the building has been neglected. He blames "family issues," including a fatal illness in the building manager's family, and, he says, he has recently changed his managerial team.

The building has a sorry history: By July 2007, Indig had stacked up 195 violations. The city sued, and in December 2008, a housing court judge demanded that the violations be taken care of immediately and that Indig pay the city almost $100,000 for all the emergency repairs. (Neither Indig nor his lawyers showed up in court to dispute the city.) In the year following the default judgment, records show, Indig didn't do the repairs or pay the city a dime, and his bill grew by $20,000. Since the Voice talked with Indig in February, however, the landlord has paid the city about $90,000 of his tab, records show.

Mitigating factors: In early February, for the first time in three years, the building's heat came on.

Future: With the water leaks, the broken gas pipes, the sagging floors, plus the mice, bedbugs, and rats, the tenants say there's no reason to pay rent—and they've been withholding it since 2008. They are putting the money in an escrow account until the landlord takes care of the building. Meanwhile, Indig is suing most of the tenants to get them to pay. On February 16, a housing court judge again ordered Indig's company to fix the violations.

ANGER MANAGEMENT

Landlord: Humphrey Stephenson

Not exactly a real estate magnate, Stephenson claims to own only one building, 141 West 119th Street in Harlem, and he lives on the first floor of the four-story, 19th-century ex-mansion. He shares the building with his wife and daughter (who live on another floor) and an ever-revolving handful of tenants.

Stephenson makes this list not because he fails to provide heat, or because he has evicted hundreds of people. It's because some of his tenants and ex-tenants say he's a really, really angry guy who freaks them out with fits of crazy temper, maniacal rage, and unfair and unsettling behavior.

In an interview with the Voice, Stephenson angrily says, "They can't get me angry! I just take it!"

Quotable: "He cursed at me every single night and day," says one former tenant. "Sometimes you wonder if he don't sleep."

What it's like to live there: This is one of those beautiful Harlem mansions built more than a century ago and slowly going to seed. Inside, say tenants, the vibe is Dickensian. The dimly lit house is shabby, and it's decorated with posters and iconography of Stephenson's native Jamaica, including plentiful images of the late Ethiopian king Haile Selassie, who is worshipped by Rastafarians. A colorful cloth crest announces the British Jamaican Benevolent Association, which owned the building from 1949 until Stephenson took it over four decades later.

Current and former tenants tell similar stories of Stephenson's rages and alleged acts of downright cruelty. All but one requested anonymity because they say they fear retribution.

Two female tenants—one former, one current—say that as they headed off to work every day, Stephenson would trail them out the door and down the block, cursing them and calling them prostitutes, worthless sluts, and thieves.

The former female tenant, a Jamaican immigrant who says she fled the building with her two children in October, recalls that if she or her 21-year-old son came home after 7 p.m., Stephenson would lock them out. "It was like living in prison," she says. "We couldn't talk, in the hallways or on the steps. I cried all the time because of the whole thing. I even developed high blood pressure—I never had that before."

As a recent immigrant without papers, the woman was afraid to bring a lawsuit against Stephenson. She and her kids are now crashing on the living-room floor of a friend's home in Manhattan.

Neighbors, too, are familiar with Stephenson's temper, as is tenant advocate Yarrow Willman-Cole, who says she got a mouthful of nasty curse words on her voicemail recently from Stephenson.

Tenants say Stephenson routinely denies them use of the bathroom at night. The Jamaican immigrant says she had to urinate and defecate in a pail, which she would dump into the upstairs toilet in the morning before leaving the house. This situation is especially dehumanizing, tenants say, for a sick, elderly tenant who has trouble walking up the stairs on her own and struggles with the bucket. (The woman, a longtime tenant, declined to comment.) Another current tenant says that, for the better part of 2009, he had to take showers at a friend's house across the street because Stephenson locks the bathroom.

The creep show has other acts: Stephenson broke the lock on the bedroom door of a current female tenant and wouldn't replace it until a housing court judge ordered him to do so last month. A new lock is finally on the door, but the tenant is staying with relatives, afraid to come back.

One former tenant, Nakeeta Wills, was in her mid-twenties and had just moved to the city from Rochester when she made her way to Stephenson's house, which she had learned about through a family friend. She says she paid Stephenson about $130 a week while working as a receptionist. The building was dirty and in disrepair, she recalls, but she was so enthralled with living in New York City that she didn't really mind. Stephenson was kind to her when she first moved in, she says, but after a short time, he descended into seemingly uncontrollable fits of rage. He took to prowling around her door at night, and opened her door and left beer cans in her room, she says, and would also accuse her—while her fiancé was visiting the building—of soliciting sex from him.

Wills moved out for a short time, but says Stephenson convinced her to come back. The day she was to move back in, though, he changed his mind and refused her entry, she says, and her moving van was left to circle the block and sit idle for hours with her boxes inside it.

"I feel like this experience was my crazy New York story," says Wills, who finally left the mansion in 2005 for a more peaceful place in Harlem.

Mitigating factors: While amicably showing a Voice reporter around the house, Stephenson denies ever having cursed at anyone ("I don't curse out nobody"). But when he starts talking about his tenants, he starts cursing.

As to the specific horror stories by tenants, Stephenson doesn't deny locking the bathroom on the tenants but says he did so because the toilets needed repairs. As far as locking the female tenant out of her room, he says he did so because the woman was living in filth and he needed to make repairs in the room. (He then shows the room, which was, in fact, very dirty and had a single wooden slab instead of a bed.) He also shows that he had a police restraining order against the woman's boyfriend, which he says he obtained after the two men fought over Stephenson's breaking the lock on the door.

Getting angrier and angrier during the interview, Stephenson admits that he is trying to get everyone out of the building: "Every day, every day, I lose money!" he said. "I got to pay my mortgage, my fees. There's too much problems in this building."

Future: Stephenson says he's planning to convert the building into a two-family apartment. But he adds that if that doesn't work out, he'll sell the decrepit mansion as soon as he possibly can.

'AN INDUSTRY LEADER'

Landlord: Neil Rubler (Vantage Properties)

Neil Rubler married into the Olnick real estate family and was a top official of the Olnick Organization, which, in a heavily criticized sweetheart deal, leased to Congressman Charlie Rangel four rent-controlled apartments in Harlem's Lenox Terrace. Another instance of Rubler's charitable behavior toward Rangel: As a board member and "corporate chair" of the major domestic-violence nonprofit Safe Horizon, Rubler had the pleasure of introducing Rangel as "honorary chair" at the charity's 13th Annual Champion Awards Luncheon in May 2008. Only two months later, coincidentally, The New York Times broke the story of Rangel's sweet deal.

The Times pointed out that Rangel was "hoarding" rent-controlled apartments—and even using one of them as an office when it was supposed to be used only as a primary residence—while "the Olnick Organization and other real estate firms have been accused of overzealous tactics as they move to evict tenants from their rent-stabilized apartments and convert the units into market-rate housing."

That, in fact, was the avowed strategy of Vantage Properties, which Rubler began in 2005, when it scooped up about 9,000 mostly rent-controlled apartments in more than 130 buildings around the city, many in Queens. At the time, Rubler called his aggressive approach "innovative," saying he intended to be to the real estate market what Wal-Mart is to the retail industry. That approach led Vantage to promise its private equity investors a 20 percent turnover rate in its buildings. (The New York City Rent Guidelines Board says the typical vacancy or turnover rate for a rent-controlled apartment building is 5.6 percent. Through turnover, landlords can hike rents up to 20 percent.)

In April 2008, 10 tenants sued Vantage, Rubler, and another company officer: Seven claimed that Vantage refused to cash their rent checks and then tried to evict them for not paying rent. Others alleged that the company tried to evict them by accusing them of not really living in their apartments. That case is still moving through court; there are now 21 plaintiffs.

During a spate of bad press in mid-2008, Vantage's publicists met with politicians from Queens, and the company also tried to smooth over its relationship with tenants. In 2009, the number of evictions dropped, says Robert McCreanor, a lawyer who represents Vantage tenants in Queens. And in a November 2, 2009, letter to tenants—with "Listening, Learning, Responding" atop the letterhead—the company announced that it was adding multilingual support services, closing the hotline (the letter did not announce a closing of the hotline, which is still in operation -- ed.), and extending office hours. "We aim to earn your loyalty," the letter said. But tenants say that even as evictions have slowed, they continue to be billed bogus fees for unwanted capital improvements.

Vantage's various strategies didn't pass muster with state officials. Attorney General Andrew Cuomo, in a blunt letter this past January 28 to Rubler, threatened to sue the company to stop it from harassing rent-regulated tenants and forcing them from their homes. "The Attorney General found evidence that Vantage engaged in unlawful business practices," Cuomo wrote.

Two weeks later, on February 11, Cuomo announced a settlement with Vantage "that will stop the company from serving tenants with baseless legal notices and will stop it from commencing frivolous Housing Court eviction proceedings."

Cuomo's office said that "the Attorney General's investigation into Vantage had revealed that the landlord was attempting to force long-term, rent-regulated tenants to move out of their homes in order to impose significant rent increases on new tenants and increase profits."

Under the agreement, Vantage is required to institute several reform steps and pay a total of $1 million—not only in damages to tenants, but also "to not-for-profit organizations that provide free legal and educational services to tenants."

"These reforms will put in place, for the first time, new rules of the road governing the landlord-tenant relationship in New York," Cuomo said. "If there are other landlords who are not living up to these standards, they should."

Cuomo's announcement was blistering: "Landlords who harass tenants harm all New York City residents by displacing longtime tenants from stable neighborhoods and exacerbating the affordable-housing shortage. In these tough economic times, the preservation of affordable housing is of the utmost importance. Today's agreement with Vantage not only preserves the rent-regulated apartments owned by them, but also sends a strong message that my office will continue to protect tenants and bring unscrupulous landlords to justice."

Quotable: Vantage lawyer Orin Snyder calls the settlement "a great result" and "a landmark collaboration between public and private sectors," adding, "By embracing historic reform, Vantage has agreed to be the industry leader."

What it's like to live there: The biggest problems haven't been rats or leaky ceilings.

Typical is the tale of Lauro Guaman, who lives with his sister on 45th Street in Woodside. Vantage didn't cash his rent checks, he says, and then sued him in 2007 to evict him—on the grounds that he didn't pay rent. (According to court documents, the suit was dropped after Guaman showed proof that he had, in fact, paid.)

In a 2008 case, a state housing official specifically warned Vantage not to bring an eviction lawsuit based on non-payment of rent unless it had actual proof that the tenant—a doorman in Queens—didn't pay. In meetings with Vantage managers, subsequent court documents showed, the doorman had already demonstrated proof that he had sent payments, but that they had been mailed back to him. Nevertheless, Vantage sued the doorman for non-payment.

When Rubler took over, dozens of other Vantage tenants, many of whom live along the 7 train line in Queens, began to complain about the same thing: rent checks not being cashed, followed by a refusal to renew leases on non-payment grounds and lawsuits alleging they didn't really live in their apartments. "My building became a ghost town," says Lauren Springer, a lawyer who lives in a rent-controlled apartment in a Vantage building in Sunnyside. "The new people that moved in were young professionals." In a group of 2,124 apartments in Queens, Vantage filed almost 1,000 cases in housing court between October 2006 and May 2008. The prior landlord—Nicholas Haros, who had been heavily criticized by tenant activists—had filed about 350 a year.

"When you try to pay your rent, they don't accept the check," says Teresa Perez, a Corona resident who is president of the Queens Vantage Tenants Council, a group of tenants from a handful of Vantage's 150-odd buildings, 80 of which are in Queens. "Then you get a letter saying that if you don't pay your rent, you'll get taken to court."

Or your residency in the buildings is challenged. Denhise Oliveira, a Brazilian immigrant who works for DHL, has lived with her husband in a rent-controlled apartment at 37-37 88th Street in Jackson Heights since 1992. After Vantage took over the building in October 2006, she was formally notified that her lease would not be renewed because her primary residence was in nearby Woodside. Oliveira's husband's name is Marcos, and he drives a bakery delivery truck. Apparently, Oliveira's new landlords had found another Marcos Oliveira who lived in Woodside. After providing various proofs of residence to no avail—the company insisted that she and her husband lived in Woodside—Oliveira took matters into her own hands. She showed up at the house of the other Marcos Oliveira, who also turned out to be a Brazilian. The Woodside Oliveira agreed to accompany the Jackson Heights Oliveiras to Vantage's office, where they showed their IDs. Eventually, Oliveira and her husband obtained the renewal of their lease.

In October 2008, Queens tenants, saying that their demands for a meeting with Vantage executives had been brushed off, staged what the Daily News termed "a boisterous protest . . . outside the Manhattan office of Vantage's main financial backer, Apollo Real Estate Advisors." The paper noted that "Vantage, which is backed by private financiers, has drawn the attention of housing advocates because its success appears to hinge on a high turnover of rent-stabilized apartments into market-rate units."

Apollo Managing Partner Richard Mack was quoted as calling the protest "a publicity stunt," but he also said at the time that his company hadn't been told by Vantage about the tenants' request for a meeting with Vantage officials.

Apollo execs met with the tenant leaders after the protest, the Daily News reported, and Vantage's Rubler said in a statement that he welcomed a "mutually beneficial dialogue."

Kursh Mian, a state police officer who has lived for 20 years in a building that was taken over by Vantage, explains his reasons for protesting Vantage's practices: "I'm a police officer. I make a decent salary. I don't have many luxuries, but I have a reasonable rent. I don't know what I'd do without my housing. . . . That's what makes it affordable for me to live in this city, and that's what they are taking away."

Complaints against Vantage's harassment tactics continued steadily throughout 2009, say officials in the Attorney General's Office. After Cuomo trumpeted his settlement in early February with Vantage, the A.G. Office was swamped with calls from tenants who said they had been harassed by Vantage.

Mitigating factors: Vantage spokesman Davidson Goldin tells the Voice that "Vantage's agreement with the Attorney General's Office on affordable housing represents a milestone in Vantage's continuing goal to help set new standards." He also says that any harassment was unintentional.

"To the extent that mistakes were made," he says, "Vantage looks forward to setting best practices that other companies can look to." He claims that Vantage has reduced open violations by 90 percent.

In defending Vantage, Goldin sent the Voice a copy of a letter from the city's Department of Housing Preservation and Development (HPD) that, he says, "specifically praises Vantage's record." The May 2009 letter from HPD Commissioner Rafael Cestero to City Councilman Eric Gioia notes that, in November 2008, Vantage sought permission from HPD to remove building superintendents from 14 of its smaller properties. (The normal rule is that supers must live within two miles of a building.) In lieu of live-in supers, the company created a 24-hour telephone hotline service and provided a janitorial service.

Cestero says in the letter that Vantage's "properties overall were well maintained" and that tests indicated that Vantage's hotline-complaint system was "operational as outlined in the plan."

The letter notes that HPD approved the plan in December 2008. On February 11, 2009, Vantage asked that 21 more buildings be included in the plan to use a hotline and janitorial service in lieu of on-site supers. "HPD's written response on February 12," Cestero wrote, "indicated that further evaluation was necessary and that a response from HPD would be provided within 4-6 months." He added: "HPD has since determined that further testing of the system is warranted, given concerns being raised by advocacy groups indicating that the system was not performing as outlined by Vantage. Further testing has been ongoing."

In September, the city rescinded its approval of the hotline and demanded that Vantage put supers back in the buildings.

Future: The settlement with Vantage aims "to ensure proper protections to tenants in the future," says the Attorney General's Office's lengthy statement on the matter. "Vantage is also required to implement new policies related to processing complaints, initiating legal proceedings, collecting rent, and establishing succession rights. All residents will receive a notice informing them of the policy changes. These new reforms will set a new best-practices standard in the industry."

Beyond these words, Vantage is also required to, among other things, specifically "reform its policies" and procedures before trying to evict tenants; hire an independent monitor and independent auditor (both of them subject to the A.G.'s approval); file regular reports to the A.G.; and provide translators for tenants who need them.

Vantage's Goldin isn't the only one who thinks the settlement is a milestone. Tenant activist Benjamin Dulchin was quoted as saying, "This agreement is simply groundbreaking. Not only does this agreement provide meaningful monetary relief to tenants who were harassed, but it requires the implementation of clear and sound policies and procedures that will protect the rights of tenants. The Attorney General's agreement with Vantage puts Wall Street investors and landlords that do their bidding on notice that tenant harassment is against the law and violators will be sought out and brought to justice."

LANDLORDS ARE EVICTED BEFORE THEY CAN DO IT TO TENANTS

Landlord: Aaron and Solyman Yashouafar (Milbank Real Estate)

In November 2006, the Yashouafar brothers—two Los Angeles real estate developers better known for signature luxury high-rises in Las Vegas and the redevelopment of historic commercial buildings in downtown L.A., Oklahoma City, and other Western venues—ventured into the Bronx.

They were used to far-flung adventures. Solyman, the elder, fled the Iranian Revolution in 1979 and landed in Southern California. Younger brother Aaron had come to the U.S. in 1977 and attended Beverly Hills High School; he entered the family's real estate business when he was 16.

Their high-flying portfolio is based in the Sun Belt, but the brothers, who control a family-owned company called Milbank Real Estate, got a $35 million loan from Deutsche Bank and used it and subsequent loans from other banks to buy about 20 Bronx buildings containing about 1,000 apartments. Many of the buildings, like 1576 Taylor Avenue in Parkchester, are in rough-hewn parts of the borough. And the buildings themselves already suffered from blight, safety violations, and both abandonment as well as squatters. Far from trains and even, in some cases, from bodegas, they were nevertheless billed by the Yashouafar brothers as "positioned for significant gentrification."

The brothers' pitch to investors was to call these buildings "Bronx Collections I & II" and refer to them as "multi-family assets" that had "poor prior ownership with a history of neglect."

Under Milbank, the plan was that "revitalization would occur by infusing the capital necessary to improve the condition of the buildings, as well as aggressively pursuing the collection of past-due rents—allowing for an improved tenant base and increased income from the properties." Milbank further assured investors that it "provides full-service management" that covers, among other things, "evictions, collections, and other legal general matters."

Things appeared to have fallen apart even before the company could put into place its publicized eviction strategy. The company still claims (online, at least) to own 18 properties in the Bronx, but at least 13 of its original 20 are actually in foreclosure proceedings, according to court papers. Milbank's top execs couldn't be reached for comment.

Quotable: Milbank CEO Aaron Yashouafar, recalling for another publication his romance with property: "I loved it. When the other kids were going to McDonald's and Burger King after school to have fun and drink milkshakes, I'd drive to our office and take care of business."

What it's like to live there: On a recent frigid day in the Parkchester neighborhood, a giant boiler-services truck is parked outside 1576 Taylor Avenue, pumping emergency heat into the building. It's too late to pump financial life back into the place; the bank foreclosed on the Milbank building in 2009.

Right down the block, Milbank's building at 1535 Taylor Avenue is not in foreclosure, but it's in constant hot water—if only figuratively: The 41-unit building (formerly controlled by notorious landlord Frank Palazzollo) has 251 unresolved violations at last count. That number doesn't quite capture the ambience of the place: When it rains, the leaky roof discharges water onto the top-floor apartments. Luis Delatores and his wife, Erica LaGuerre, recently moved with their newborn son from their decrepit fifth-floor apartment down to the second floor after she fell down soggy stairs and badly bruised her back.

During their first four months in the building, their shower didn't work, so they had to take the subway to Erica's mom's apartment on Mosholu Parkway to bathe. Delatores estimates that the building has had heat this winter for about 20 days.

Tenants at 2427 Webster Avenue, near Fordham, say they endured six consecutive months last year without heat or hot water before rebelling in late November. In a protest preserved on YouTube, tenants rallied in front of the building, carrying "No Hot Water! No Heat!" signs and displaying rats they'd caught in their apartments. As the melodrama continued, Milbank's field manager, Ray Radpadvar, showed up at the protest and, while ripping down the protest signs, told State Assemblyman Nelson Castro, who had joined the protesters, "Tell the fucking tenants to pay their fucking rent." The heat and hot water weren't restored until after Fannie Mae started foreclosure proceedings on the building in January.

The day of the Voice's visit to 1535 Taylor Avenue, Radpadvar, the field manager who co-starred in the Webster Avenue protest video, is in the building to oversee the repainting of a stairwell. He says he's doing his best to take care of the countless repairs, but that funding is tight—in short, the banks and the company aren't giving him enough money to do his job. The Bronx portfolio was a stupid deal, in his opinion. When the California owners came to New York for a few days before purchasing the buildings, he says, they were shown only the best properties. "We were lied to," he says. "Some of the apartments looked vacant on paper, but they were really full of squatters!"

Listening to Radpadvar is tenant Delatores, who later says, "I can't feel sorry for that man. How can you buy a building and not know who lives there and who doesn't? He's seen what goes on."

If life weren't tough enough in Milbank's Bronx buildings, busted elevators are a theme: Tenants at 2427 Webster say they recently went through a whole year without a working elevator—elderly fifth-floor tenant Leonides Correa says she suffered asthma attacks from trudging up the stairs in the chronically underheated building.

The only elevator in Milbank's six-story building at 780 Garden Street (which has a startling total of 584 unresolved violations) was broken for at least six consecutive months last year; its tenants include the elderly and at least one disabled veteran of the Gulf War who can negotiate stairs only with great difficulty. The tenants were so desperate that they contacted "Help Me Howard" at WPIX. He couldn't get through to Milbank's executives, either. In December 2009, the bank initiated foreclosure proceedings on the building.

Mitigating factors: Of the five Milbank buildings that the banks haven't seized, two have front-door locks.

Future: Now it's up to court-appointed receivers, for the buildings that are in foreclosure proceedings, to try to pry money from the banks for repairs."It's triage, you know? I almost feel like I'm on a battlefield with the wounded coming in," says Joe Cicciu, the court-appointed receiver for 10 of the Milbank buildings that have gone into foreclosure proceedings. "Not everyone is shot up. Sometimes these are only flesh wounds. So we go to some of those apartments and try to fix things, patch things up, to give people a chance to live in decent apartments. But for people with the collapsing ceilings, we are trying to relocate them into vacant units. The problem is, most of the vacant units need a gut renovation! And we don't have the dollars for that anymore."

HALLS OF SHAME

Landlord: Bahram "Danny" Hakakian

Openly branded a "slumlord" by Public Advocate Bill de Blasio, Hakakian owns at least five buildings in Washington Heights. His 34-unit building at 206 Audubon Avenue has 338 code violations at last count, and 76 are classified as "immediately hazardous"—no fire alarms, exposed wires in apartments, no locks on front doors.

In 2006, and again in 2008, the city sued Hakakian, demanding that he make hundreds of repairs. The city has been awarded $382,730 in civil cases against him. He has repaid $159,000, records show, meaning that he still owes the city nearly a third of a million dollars. The tenants at Audubon just ended a four-year rent strike.

Hakakian's buildings have more than 5,000 total violations. One Hakakian building, 1534 St. Nicholas Avenue, is on the city's worst-violations list, which is weighted by the seriousness of the violations and the number of violations per unit. The 28-unit building has 399 violations. A nearby 14-unit building has 290 violations (That's an average of 20 violations per unit. To give a sense of scale, landlords who average only three violations per unit qualify for de Blasio's Slumlord Watch List.)

Hakakian didn't return numerous phone calls from the Voice. During last year's election campaign, de Blasio (then a City Councilmember) used Hakakian as his whipping boy. Showing up at one of Hakakian's Washington Heights buildings in early September—with other public officials and a gaggle of media in tow—in an attempt to shame Hakakian, de Blasio told reporters: "It makes a lot of sense in a case like this to lower the boom to make an example of a landlord who would do something like this."

Tenants have said that when they complain to Hakakian, he tells them that he has no money. Reacting to news reports at the time that Hakakian lives in a $5.9 million estate in Kings Point, Long Island, de Blasio lashed out like a cobra: "When I hear a story like that, it makes me sick. How could someone benefiting on that level not worry about how his tenants are living?"

Quotable: Pausing in front of a dark, dirty area beneath the first-floor stairwell at 511 West 160th Street that is a local prostitute's place of business, normally cheerful tenant Marta Diaz says, "It's been like this for so many years. Completely disgusting."

What it's like to live there: "For more than four years, we called the police every single day," says Elsa Espinal, recalling the young men who sold drugs every day from the second-floor common area. "We still can't get them to put a lock on the door."

Her husband, Ramon Espinal, is a retired NYU janitor. Since 1974, the Dominican couple has lived and raised their children at 206 Audubon Avenue, where they pay $618 for a spacious and neat two-bedroom apartment. They keep a bucket beside a radiator that has been leaking for more than a year. In the middle of the night, from time to time, when they aren't awake to catch the spillage, the leak floods their living-room floor. "I was a janitor," Espinal says. "I know what it means to keep things clean. It feels like he's just abandoned the building."

So much so that tenants have to occasionally abandon their apartments. One tenant sent her three young children to stay with their grandmother in the Dominican Republic because their bedroom was covered in mold. The kids stayed in the D.R. for three months, missing the beginning of school while they waited until the mold was removed.

Hakakian buildings visited by the Voice exhibit the tell-tale signs of a slumlord: They are covered by graffiti and have no locks on their doors. In one building, the windows in the main stairwells are broken, and the place is freezing cold. In one filthy apartment, mold blankets the walls. There was so much mold that a small plant was actually growing out of the mold on a windowsill.

Mitigating factors: None that we're aware of. And Hakakian won't return calls.

Future: De Blasio made big promises last year, telling Manhattan Times reporter Daniel P. Bader: "We want to shame these landlords into action. If they don't, we will stay after them every week and help the tenants organize."