Wednesday, July 31, 2013

Buildings on Creston Avenue in University Heights to get makeover from Workforce Housing Advisors

UNIVERSITY HEIGHTS - Several buildings in University Heights will receive makeovers as a result of grants from various city organizations.
Four buildings on Creston Avenue will be improved after years of tenants living in poor conditions. Workforce Housing Advisors, a for-profit developer of affordable housing, took over the properties in 2012. 
Full Story HERE
Courtesy of News12 The Bronx

Friday, July 12, 2013

4 Distressed Bronx Buildings to get $28.6M Rehab

City brokers deal to finance 18 months worth of major work at the badly-deteriorated properties that boast a total of 120 apartments in the borough’s University
Heights section.

Four distressed Bronx buildings will be undergoing long-overdue renovations, thanks to a financing deal the city brokered with the buildings’ new owner.

The buildings, located at 2239, 2241, 2323 and 2333 Creston Ave. in the University Heights section of the Bronx, were all in the city’s Alternative Enforcement Program, which targets 200 especially distressed buildings every year. Workforce Housing Advisors, a for-profit developer of affordable housing, took over the properties in 2012, after the previous owners had racked up more than 1,000 violations and defaulted on their mortgage.

The rehabilitation will cost about $28.6 million, which comes from a combination of Low-Income Housing Tax Credits, city Department of Housing Preservation and Development loans, city Housing Development Corp. bonds and Reso-A funding secured by the City Council Speaker Christine Quinn.

“The preservation of four distressed Creston Avenue homes shows what it is possible when tenants, organizers, banks, developers and the City work together to bring positive changes to their communities,” said Ms. Quinn in a press release.

JPMorgan Chase and Morgan Stanley are the Letter of Credit providers.

“This is a great resolution both on the advocacy side and the finance side,” said John Crotty, a founding member of Workforce Housing Advisors.

Rehabilitation of the four buildings, which have a total of 120 apartments, will begin this summer. The work will include installation of a new roof, new boilers, new plumbing, leveling apartment floors and installing beams. The process is expected to take about 18 months, during which time the tenants will be housed elsewhere.

“To be able to have a really responsible, preservation-minded developer, in addition to stabilizing the neighborhood, it gets these tenants out of a cycle of irresponsible ownership. It gets tenants ownership they can trust,” said a spokesman for the Department of Housing Preservation and Development.

The building’s deteriorating condition led to high vacancy – 41 of the 120 units were empty, said Sara Dabbs, a director at the Department of Housing Preservation and Development. Once the rehabilitation is complete, those apartments will be rented to families earning up to $51,000 for a family of four.

Current tenants will not see a rent increase, she said.

Monday, April 29, 2013

Hope Grows on Kelly Street

By Angely Mercardo
A year ago, nothing Jessica Morales did could keep the smell of rotting garbage out of her Kelly Street apartment.

The stench of garbage piled in the hallways of the 30-unit building at 935 Kelly Street seeped under her door.

“I lit candles and cleaned, but nothing worked. The inside always smelled like the hallways,” Morales said.

Today, she uses the candles to decorate her refurbished living room. The only odor that greets a visitor is a subtle combination of air freshener and furniture polish. New hardwood floors gleam.

Once, the building was infested with “rats that looked like cats,” Morales said. Junkies squatted and garbage was strewn all over the halls.

But in 2011, after the community development organization Banana Kelly Improvement Association and the Longwood-based advocacy organization Mothers on the Move helpedorganize the tenants at 935 and four neighboring buildings on Kelly Street, the foreclosed properties were purchased by Workforce Housing Advisers, which specializes in renovating troubled buildings. It retained  Banana Kelly as a partner in the project to provide  support services to the residents and Winn Management to provide property management services.

Residents began moving into temporary housing in January 2012. They began moving back this spring. Workforce Housing and Banana Kelly held a ribbon-cutting ceremony on March 21.

It was amazingly quick,” said Harry DeRienzo, the president of Banana Kelly about the process. “Once we had our partners in place, after that went through it took 16 months.”

“I didn’t want to come back at first, “said Morales. “I went through a lot of things here.”

Despite the nightmarish memories, Morales returned with her 13 year old daughter on March 7, and has since fallen in love with the new kitchen and how sturdy everything is.

Filbys Arzu, lives in a second floor apartment with her three children. Before Banana Kelly and Workforce took over, she said, “You could count up to 12 rats running around inside the apartment in one day.”

But for her, the vermin wasn’t the worst; living with fear was.

“There weren’t any locks on the front door. Anyone could just come in and hang out inside the building,” she said.

“The guy that owned this building belongs in jail,” said DeRienzo of the ousted owner who allowed the building to deteriorate for so long. “He lost his building, so he probably feels like he was held accountable,” he said. But he was able to take out $5 million in mortgages. “None of that money went into the building,” DeRienzo continued. He’s “probably a millionaire now.”

In 1996, the buildings at 916, 920, 924, 928 and 935 Kelly carried a mortgage of $684,000. A series of refinances followed, each increasing the owner’s indebtedness. In 2009, Ridgewood Savings Bank granted a new loan of $5 million, according to city records.

Despite the infusion of cash, the buildings continued to deteriorate. At the ribbon-cutting, Marie Graziano, a coordinator at Banana Kelly, said that she has seen other buildings that had deteriorated, but she has “never seen anything as bad as 935.” Con Edison wasn’t even able to go into the basement because of “puddles, sewage and rats,” she said.

“There were people taking insulin and the refrigerators were not working. We had to take care of those right away,” said Graziano.

Both she and Kevin Gallagher of Workforce Housing Advisors recalled a woman with a new born baby and no heat in her apartment. “She had no living room window and only a blanket to keep out the cold,” said Gallagher.

Now, the 30 apartments in 935 Kelly St. are being filled with hopeful tenants. Since moving back in, Arzu has a new found peace of mind. “They changed everything,” she said. “I feel as if I’m in another building altogether.”

At the ribbon-cutting, several residents expressed their gratitude toward Banana Kelly.

Miranda Sills, told the crowd of living with “no fridge, no stove and no power.” Now, thanks to the renovations, Sills is eager to move in and enjoy her apartment.

Morales stepped forward and addressed the crowd with a shy smile. “Compared to what I had before,” she said, “I have a mansion now.”

Monday, April 15, 2013

CPC, Citi Announce $250M Facility to Finance Affordable Housing

By Affordiable Housing Finance Staff


The Community Preservation Corp. (CPC) announced that it has secured $250 million in financing from Citi for the construction, rehabilitation, and preservation of affordable housing in New York.

The capital will help finance the creation or preservation of nearly 6,000 units of low- and moderate-income housing throughout the state, including the construction of approximately 3,000 affordable apartments in New York City. It will also be used to help in the Hurricane Sandy recovery.

The financing is one of Citi's largest one-time investments in affordable housing.

"We are proud of our affordable housing financing achievements, and Citi is extremely pleased to support CPC on this very important initiative," said Andrew Ditton, co-head of Citi Community Capital, in a statement. "This milestone underscores our commitment to responsible finance, and we will continue to play an active role in preserving and revitalizing the communities we serve."

CPC, a nonprofit mortgage lender for multifamily affordable housing, said $100 million will be set aside for the creation or preservation of homes in New York City. For these deals, the New York City Department of Housing Preservation and Development (HPD) will provide supplemental construction and permanent financing, and the New York City Housing Development Corp. will provide 10 percent credit enhancement.

"This initiative will provide much needed capital for affordable housing in communities across New York City and state and reflects CPC's renewed focus on our core mission of creating sound rental housing for lower-income families and rebuilding communities," said Rafael E. Cestero, CPC president and CEO.

Officials said the unique collaboration draws on the strengths of the participating institutions and brings together tools that allow for low-interest rate lending to developers of affordable housing. In keeping with NYC's Greener Greater Buildings Plan, all of the properties financed under this program will be benchmarked for energy usage and retrofit for energy savings. All buildings burning No. 6 fuel oil will be converted to comply with the city's Clean Heat initiative.

New York, where the fair market rent for a two-bedroom apartment is $1,313, continues to rank among the most expensive states to live. The National Low Income Housing Coalition reported this week that a household must earn $52,513 a year to afford this rent without paying more than 30 percent of its income on housing costs. A minimum-wage worker would have to work 139 hours per week to afford the fair market rent or a household must have 3.5 minimum-wage earners working 40 hours per week year-round to make the two-bedroom rent affordable. The cost is even more in the New York City metro area.

The renovation of 539-541 E. 147th St., an over leveraged property in the Bronx, is the first transaction to close under this new facility. The project includes two occupied 10-unit buildings owned by Workforce Housing Advisors, a for-profit affordable housing development firm that specializes in preserving distressed multifamily real estate in the New York metropolitan area. Financing for this $4 million project includes a $1.59 million construction and permanent loan from CPC and Citi with HPD providing $2.4 million in city capital funds.

A portion of the $250 million in financing will support the Storm Recovery Loan Fund, a pilot program to provide up to $40 million in low-cost loans to fund the repair of multifamily buildings damaged by Hurricane Sandy. Building owners can put the funds toward resiliency measures, like installing state-of-the-art heating and electric plants that are repositioned to withstand the next storm by being located on higher floors and/or in waterproof compartments. This focus on mitigation will decrease the cost of recovery and reduce the destructive impact of future storms. The program will also promote green improvements that will conserve energy and save money over the long term. The new fund blends a subsidy from HPD with CPC financing to provide loans that are below market rate, allowing owners to make needed repairs in the aftermath of Sandy.

Officials added that the funding will help provide financing for Mayor Bloomberg's New Housing Marketplace Plan, a multi-billion dollar initiative to finance the creation and preservation of 165,000 units of affordable housing by the close of fiscal 2014.

WFHA, HPD, CPC, Speaker Quinn, UHAB and New York Community Bank Announce Beginning of Gut Rehab for Troubled South Bronx Buildings


NYC Housing Preservation and Development (HPD) Commissioner Mathew M. Wambua, Council Speaker Christine C. Quinn, Workforce Housing Advisors (WFHA) , Community Preser vation Corporation (CPC) President /CEO Rafael E. Cestero, the Urban Homesteading Assistance Board (UHAB), and New York Community Bank announced the beginning of what will be a gut renovation of two multi - family residential buildings in the South Bronx. Loc ated at 539 - 541 East 147 th Street in Bronx Community Board 1 , the previous ownership had allowed the buildings to fall into severe physical and financial distress, forcing the tenants to live in deplorable conditions. As part of a comprehensive effort, Wor kforce Housing was able to purchase the buildings from New York Community Bank through the innovative “First Look” initiative, and recently closed on a $4.7 million financing package with HPD and CPC that will allow the properties to be renovated and which will also ensure that they remain affordable to the current tenants.

Financing the rehabilitation and preservation of the Mott Haven 147 th Street buildings is part of Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP), a multibillion dollar initiative to finance 165,000 units of affordable housing for half a million New Yorkers by the close of the 2014 fiscal year. To date, the NHMP has funded the creation or p reservation of more than 144,700 units of affordable housing across the five boroughs. More than 44, 450 units have been created or preserved in the Bronx with more than 7,913 of those units in Bronx Community Board 1. For every dollar invested by the City, the Plan has leveraged $3.43 in additional funding for a total commitment of more than $21 billion.

“HPD is proud to lend $2.5 million to fund the rehabilitation of these properties, and to help ensure that the tenants will have safe, clean and affordable homes for decades to come ,” said HPD Commissioner Mathew M. Wambua. “That a new, responsible owner is in place and the rehab work is on pace to start is a testament to a model of preservation that is a proven winner. Wh en so many different stakeholders all work together to affect a change in ownership and make a substantial financial commitment to the long - term stability of these properties, the real winners are the families who will have better lives and peace of mind.”

“This deal is an example of what the City can accomplish when we work together to protect tenants’ homes,” said Speaker Christine C. Quinn . “The 'first look' agreement we reached with New York Community Bank ensures the City and good developers get first crack at purchasing loans and preserving buildings, and I thank Workforce Housing Advisors, UHAB and HPD for their hard work to save these homes.”

“539 - 541 is a collaboration between the private sector and the government to create real change,” said John A. Crotty, Partner of Workforce Housing Advisors . “These partnerships succeed because all of the parties in this deal want to tackle these types of problems in the NYC residential market . We at Workforce commend the entire team on their efforts to make thi s happen. We think the result will be transformative not only for the families of 539 and 541 but for the Mott Haven neighborhood as well.”

“Investing in overleveraged and distressed properties is at the core of CPC’s work to revitalize neighborhoods and to maintain the affordability of homes throughout New York City, and this project is an excellent example of how the collaboration of public and private partners can truly drive those goals , ” said Rafael E. Cestero, President and CEO, The Community Preser vation Corporation . “ As a result of the diligent work of t he City, the Speakers Office, HPD, Workforce Housing Advisors, UHAB and New York Community Bank, the Mott Haven 147 th Street buildings will be fully renovated and remain affordable to its residents .”

Workforce Housing Advisors purchased these two Bronx buildings from the New York Community Bank in October 2011 as part of the First Look initiative. First Look is a program developed in partnership with the City Council and Speaker Quinn, HPD, and ten ant/ housing advocacy organizations which ask local banks to provide responsible preservation - minded developers with an early opportunity to purchase distressed multi - family properties in foreclosure. New York Community Bank was one of the first lenders to sign on to the initiative.

“NYCB is proud to work with Workforce Housing Advisors, HPD, UHAB, and our other 1st look partners. Workforce has a fantastic record of turning distressed assets into quality affordable housing. They have been a great resource for the bank, especially when the lengthy foreclosure process in NY has negatively impacted living conditions, as was the case with these buildings. The bank believes that collaboration between Workforce, HPD, CPC, and UHAB on 539 - 541 East 147th St. will yield a successful rehabilitation of the buildings, and ensure the preservation of these units as permanent affordable housing.”

Immediately upon taking title, WFHA began a dialogue with the tenants and UHAB , one of the city’s most established tenant advocacy groups who had been working with the tenants in the se properties for some time prior to the purchase. UHAB counseled the tenants through the receivership period and continued to do so after WFHA took title. UHAB will continue in both an org anizing role and as title holder of the properties.

“ The tenants in these buildings were living in uninhabitable conditions ,” said Kerri White Co - Director of Organizing and Policy at UHAB, “ The conditions only deteriorated further during the foreclosure . Mold, leaks, collapsing ceilings and electrical fires had all plagued the families living here. These tenants along with residents from other buildings in foreclosure had long been organizing, with the assistance of their elected officials, to get NYCB t o sell these overleveraged foreclosure buildings to good developers who would make the needed repairs and preserve affordability. Without the creativity of WFH and the City, these buildings would have been lost. ”

At the time of the WFHA purchase, the bui ldings had over 300 hazardous and immediately hazardous violations issued by HPD . The physical conditions had significantly deteriorated , putting the health and safety of the tenants at risk . The buildings have substantial water penetration due to deterior ated masonry and mortar, there are large amounts of mold and mildew that must be remediated, and many of the major building - wide systems require replacement.

These conditions require considerable physical upgrade that will be addressed through the rehabilitation financing including the installation of a new roof, new windows, new plumbing, electric and heating systems as well as approximately 50% beam replacement. The rehabilitation plan will also include layout ch anges. The buildings were built in approximately 1898 with a railroad apartment configuration with only one private bedroom. In order to efficiently use the space the units have been reconfigured to create two private bedrooms. Since this is a substantial rehabilitation, WFHA has provided for the temporary relocation of the tenants during the 18 - month construction period.

The total development cost of this rehabilitation project is approximately $4.7 million. HPD is providing $2.4 million in subsidy, CPC is providing a construction and permanent loan of $1.64 million, and the remainder is being funded with equity from WFHA. Prior to the commencement of construction, HPD and the City Council worked to facilitate an Article XI tax exemption , which will help defray long - term costs and thus help to subsidize the affordability of the apartments.

539 - 541 E ast 147 Street is comprised of two adjacent properties located in the Mott Haven section of the Bronx. Each buil ding contains 10 residential units plus a superintendent’s unit in the basement. The buildings are classified as Old Law tenements and were built in 1898 with railroad layouts. The properties were acquired by WFHA in October, 2011 from New York Community B ank. NYCB had acquired the buildings in a deed in lieu of foreclosure sale immediately prior to the WFHA transaction .

These buildings are a continuation of WFHA’s business plan to repurpose distressed multifamily buildings in New York City to help creat e change where it is most needed, and WFHA’s second rehabilitation loan with CPC.

Photos of the units can be found here: http://www.wfhadvisors.com/wfh/projects/bronx/bronx_2.html

Monday, August 6, 2012

Development group announces request for proposals for healthy food business in renovated Bronx slums (NY Daily News)




Bronx


"Kelly Street Green" project would offer grants, free apartment, access to local produce


BY / NEW YORK DAILY NEWS


FRIDAY, AUGUST 3, 2012, 6:00 AM


Kelly Street Restoration is developing  five troubled apartment buildings on Kelly St.  in Longwood.

VIOREL FLORESCU FOR NEWS/STR


Kelly Street Restoration is developing five troubled apartment buildings on Kelly St. in Longwood.






Wanted in the Bronx: entrepreneur to convert notorious slum into fresh food enterprise.

The development group behind the renovation of five buildings on Kelly St. is looking for an individual or organization to open a new business there, such as a healthy takeout restaurant, it announced Thursday.

Kelly Street Restoration has released an unusual request for proposals for 2,822 square feet of revamped commercial space at 935 Kelly St., with frontage on bustling E. 163rd St. in Longwood.

The applicant the development group selects will lease the space at a substantial discount - $7 per square foot or roughly 1/4 of market rate - and benefit from up to $150,000 in grants and loans to cover startup expenses.

It will also gain access to fruits and vegetables grown at a new community garden behind the buildings and farms upstate. Lastly, the selected operator will score a rent-free apartment at 935 Kelly St, plus mentorship from successful Manhattan restaurateurs.

Kelly Street Restoration hopes to select a local go-getter with a small bank account and a big heart, said John Crotty of Workforce Housing Advisors, 1/3 of the development group.

Longwood needs a new type of business that caters to busy working people who want to eat healthy, he said. The project is called "Kelly Street Green."

"We want to take someone on a well thought-out gamble, someone who understands that this will require effort and commitment and someone who can be an agent for change," Crotty said.

That someone could be Darada David. For two years, the Bronx native ran a tiny restaurant, health food store and Internet café sandwiched between bodegas and fast food joints on Melrose Ave. near the Hub.

PeaceLove Café hosted live jazz and poetry slams, and served tasty sweet potato pie. But the cafe closed last August because David could no longer make rent.

"That type of business in the Bronx needs a lot of support," said David, who will think about applying for the Kelly St. space. "Sometimes a feel-good business makes less money, but it does a lot for the community."

Kelly Street Green is the cherry atop a $16 million residential overhaul that began in January.

Workforce Housing Advisors, Monadnock Construction and Banana Kelly Community Improvement Association, a nonprofit, are rebuilding 916, 920, 924, 928 and 935 Kelly St., some of the worst slums in the borough.

For years, tenants in the gritty walkups lived with broken windows, leaks, rats and roaches, and went without heat. The tenants are living elsewhere during the renovations but will keep their old rents when they move back.

The new business will replace a Chinese takeout restaurant, nail salon and discount store that all closed this past winter. To learn more, visit kellystgreen.com.






Read more: http://www.nydailynews.com/new-york/bronx/development-group-announces-request-proposals-healthy-food-business-renovated-bronx-slums-article-1.1127767#ixzz22m0kTe2o

Tuesday, June 12, 2012

World's Greatest Bank Finances Project for One of NYC's Leading Affordable Housing Providers


Morgan Stanley Provides Financing to Kick-Start Preservation of Distressed Residential Buildings in the Bronx. Financing Will Help Four of New York City’s Most Distressed Multi-family Residential Properties to Undergo Eventual Rehabilitation.        


Morgan Stanley (NYSE: MS) has provided multi-million dollar interim financing to Workforce Housing Advisors, Inc. (WFHA) to make possible the rehabilitation of four multi-family buildings with 120 units in the Bronx.

The four buildings, located at 2239, 2241, 2323 and 2333 Creston Avenue, have deteriorated significantly in recent years, amassing building code violations, as well as municipal liens and fines.

The buildings, which are occupied, have been placed in the New York City Department of Housing Preservation and Development’s (HPD) Alternative Enforcement Program, which annually targets the 200 most distressed multi-family residential properties in the City for intervention.  WFHA, in partnership with the NYC Partnership Housing Development Fund Company Inc., a not-for-profit housing development fund company, has taken ownership of the buildings.

The interim financing provided by Morgan Stanley allows WFHA to pay down the municipal arrears and move forward with preparations to renovate the buildings.  HPD expects to provide a low-interest loan through its Preservation Participation Loan Program, in conjunction with more conventional financing and Low Income Housing Tax Credits, to fund the rehabilitation of the properties and preserve them as affordable for current and future tenants.  In the last two years, this type of public-private financing in partnership with HPD has stabilized 1,500 units in comparably distressed and overleveraged properties, effectively preserving the housing as affordable over the long term.

“We appreciate Morgan Stanley's leadership in stepping up to partner with us on this project,” said John A. Crotty, founding partner of Workforce Housing Advisors.  “Their support will allow us to take the critical first step of a long-term process to transform four buildings in the Bronx in significant need of rehabilitation and make a substantial difference in the lives of the working families who reside there.”

Said Audrey Choi, Head of Global Sustainable Finance at Morgan Stanley: “We are committed to supporting affordable housing in our communities.  We see this as a unique opportunity to improve the living conditions of families and individuals in need of sound, affordable housing in the Bronx.”

Part of the financing provided by Morgan Stanley allows for payment to the City of three-quarters of a million dollars to clear liens due to unpaid taxes, municipal charges and emergency repair expenditures.  Without the new financing, the high holding costs would have continued to burden the properties, further delaying the shift to rehabilitation.

“It takes many steps and many partners to rescue and restore distressed affordable housing,” said HPD Commissioner Mathew M. Wambua.  “The buildings on Creston Avenue have miles to go before their tenants will be able to feel comfortable and secure.  But we are on the right path – and welcome Morgan Stanley as a new partner in our ongoing efforts to preserve the City’s existing multi-family housing stock.  The financing they have provided has kick-started the turnaround process, and that is a commitment for which we are gratified.  More importantly, by making this commitment, they agree as we do, that financing housing in our City is a very sound investment in our collective future.”

In the last two years, HPD financing has stabilized 1,500 units in distressed and overleveraged properties, including two other transactions with Workforce Housing Advisors, with 174 more distressed units slated to begin construction by the start of the summer.

About Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 43 countries.  Since 2006, Morgan Stanley has executed more than $5 billion in loans and investments to strengthen underserved communities.  For further information about Morgan Stanley, please visit www.morganstanley.com.


About the NYC Department of Housing Preservation and Development (HPD)
HPD is the nation’s largest municipal housing preservation and development agency.  Its mission is to promote quality housing and viable neighborhoods for New Yorkers through education, outreach, loan and development programs and enforcement of housing quality standards.  It is responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the construction or preservation of 165,000 units of affordable housing by 2014.  Since the plan’s inception, more than $19.4 billion has been invested or leveraged by the City to finance the creation or preservation of more than 130,606 affordable homes.  For more information, visit www.nyc.gov/hpd.


About Workforce Housing Advisors
Workforce Housing Advisors operates in the multi-family real estate market in the New York metropolitan area by repositioning distressed assets as affordable housing resources.  It works collaboratively with for-profit, not-for-profit and government partners to execute redevelopment plans for properties that had previously been subject to financial and physical distress.


Contact: Media Relations, Sandra Hernandez, 212.761.2446

Friday, June 1, 2012

The Story of Hip Hop as told by Grandmaster Caz


A first hand account about the history of the building, the history and other little tidbits.

By Nathan Rabin June 21, 2012

Even if he were still alive, Frank Sinatra would probably never give you a personal tour of the Capitol Records building unless you were an unusually foxy dame. Similarly, you can ask politely, but Berry Gordy is not going to show you around Motown, either. But thanks to the good folks over at Hush Hip Hop Tours, you can get old-school legends like Grandmaster Caz (a.k.a. Casanova Fly), solo hitmaker Kurtis Blow (“The Breaks”), and godfather of hip-hop DJ Kool Herc to show you spots around the Bronx where hip-hop was born and bred in the mid-’70s. 
In 2007, the New York State Office Of Parks, Recreation & Historic Preservation recognized 1520 Sedgwick Ave., a 102-unit apartment building, as the “birthplace of hip-hop” and the site of DJ Kool Herc’s first bona-fide hip-hop party on August 11, 1973. So when Pop Pilgrims decided to visit, it joined forces with Hush Hip Hop Tours and, more specifically, with 52-year-old tour guide and hip-hop giant Grandmaster Caz of the Cold Crush Brothers, a charismatic walking encyclopedia of early hip-hop. 
The owners of the building recently had some bad experiences with film crews shooting without permission, so as a peace offering, we brought along enough food and beverages for a 40-person barbecue for the building’s residents. We loaded the foodstuffs onto the plush Hush Hip Hop tour bus and headed to our destination with the great Grandmaster Caz in tow. “Empire State Of Mind” blared on the stereo as the perfect soundtrack and mood-setter to the afternoon’s endeavors. 
Outside the weather was grey, drizzling, and oppressively overcast, but we weren’t about to let that stop us. We unloaded our gear and food at 1520 Sedgwick and were led to the unassuming rec room that had served as the unlikely birthplace of a cultural movement that would transform pop culture in ways pioneers like Caz and DJ Kool Herc could never have imagined. 
Grandmaster Caz has every reason in the world to feel frustrated by his treatment from the music industry. Everyone from 2Pac to Will Smith to Jay-Z has paid tribute to Caz and his group in song, but the Cold Crush Brothers never released a proper album, let alone scored any hits. Caz’s former manager Big Bank Hank—a non-rapper recruited by early hip-hop mogul Sylvia Robinson to perform in her group the Sugar Hill Gang—notoriously “borrowed” Caz’s lyrics for the seminal and influential single “Rapper’s Delight” (the first true hip-hop hit), without ever crediting or compensating Caz. Hank was so incompetent in his creative thievery that he borrowed lyrics like, “I’m the C-A-S-A-N the O-V-A and the rest is F-L-Y,” that literally spelled out the nickname of the man he was ripping off. 
Yet today, Caz is anything but bitter. His decades in the business have blessed him with humility and a wonderful sense of perspective. He’s grateful for all the places hip-hop has taken him and proud of all it has accomplished. We couldn’t have asked for a more knowledgeable or authoritative guide to hip-hop’s early days. We had the honor of learning about the genre’s embryonic beginnings from a man who lived through them. 
After the interview concluded, Caz suggested we shoot some footage of a young friend of his breakdancing, and we were consequently treated to a private display of virtuoso pop-locking and b-boying from Caz’s gifted young protĂ©gĂ©. 
We then left 1520 Sedgwick and Caz gave us a condensed version of the tour he gives Hush Hip Hop patrons. The highlight of the tour came when Caz used the bus’ impressive sound system to perform “MC’s Delight,” a feisty answer-song and extended Big Bank Hank diss track he wrote on the 25th anniversary of “Rapper’s Delight.” The camera crew and I didn’t need any further convincing: At that point, we were ready to head over to Big Bank Hank’s house and deliver some justice. 
We visited Caz’s spot on the Bronx Walk Of Fame and checked out a mural devoted to fellow Bronx hip-hop icon Big Punisher looking shockingly svelte, as well as various locations where the ill-fated50 Cent vehicle Get Rich Or Die Tryin’ was filmed. Caz made sure to note the former location of Disco Fever, the legendary early hip-hop club where much of Krush Groove was filmed. Time marches on, however, and the former location of Disco Fever now houses, not a memorial or a museum, but a 99-cent store of little importance to the history of hip-hop.
In our interview, Caz compared the Bronx in the ’70s to Beirut. It was, in his estimation, a lawless realm, an urban Wild West of burnt-down buildings, ubiquitous graffiti, and rampant poverty, the perfect place for a bunch of kids with nothing but energy, talent, and the boundless enthusiasm of youth to create a whole new culture out of their parents’ old albums, some microphones, and turntables. As wide-eyed pop pilgrims, it was both edifying and educational to visit the vibrant, electric streets of the Bronx with an icon who had helped shape the evolution of hip-hop as a young man.

http://www.avclub.com/articles/new-york-1520-sedgwick-the-birthplace-of-hiphop,81610

Saturday, February 4, 2012

CHPC Report on Overmortgaged Buildings


New Report: Neighborhood Impacts of Overmortgaged Buildings



Neighborhood Impact Image 3

A brand new CHPC study reveals that over-mortgaged and foreclosed multifamily buildings increase the risk  of deterioration of nearby buildings and raise costs for private owners  and New York City in the form of additional Emergency Repair Program  (ERP) expenditures.

Commissioned and funded by  Enterprise Community Partners (Enterprise), “The Impact of Multifamily  Foreclosures and Over-Mortgaging in Neighborhoods in New York City” examines more than 1,100 multifamily buildings across Brooklyn, Bronx,  Manhattan, and Queens. It highlights the need to monitor multifamily  housing stock and coordinate public and private sector intervention so  that the stock may be improved, returned to responsible owners, and  preserved for another generation of tenants.

Additional findings from the study include:

  • For buildings within a 500 foot radius of an over-mortgaged building, the average percentage increase in ERP liens per building was 198%. However for buildings outside of the 500 foot radius, the average percentage  decrease in ERP charges was 39%.

  • Buildings within a 500 foot radius had $1,892,142 more in ERP charges in 2010 than they would have had if they were not near an over-mortgaged or foreclosed property.

  • The average per building percentage increase in Class C housing code violations, the most serious, was 13.7% between 2008 and 2010 in buildings located within 250 feet of an over-mortgaged building.  The average increase per buildings outside of a 250 feet radius was only 6.3%.

You can read, share, and print the full report below. You can download a pdf here.


Human Costs of Financial Failure

Stopping Apartments From Making Tenants Sick

By Alec Hamilton (Gotham Gazette)
Jan 2012housing

On a cold January day, the wind funnels down Creston Avenue in the Morris
Heights neighborhood of South Bronx like a river through a canyon. Buildings
seem slightly closer to the street here, and the tall towers loom over the
narrow street and sidewalk. A couple of teenage girls walk down the street,
laughing and shoving each other.


Some new construction gleams incongruently on one side of the street, but
most of the other buildings on this block are much older, with a foregone
elegance still barely visible in the stonework and tiles.

Yet inside these buildings residents complain of deteriorating living
conditions. On a survey tenant after tenant writes of mice and cockroach
infestations, peeling paint, broken toilets, inconsistent heat and hot water,
and a front door with no lock. “The hallways smell like urine” writes one.

Tenant Johannie Burdier says the building was poorly maintained, dirty, and
sometimes simply scary. She tells of a former building manager who, she says,
took money from people in exchange for access to sell drugs from inside the
building. A resident for seven years, Burdier lives in the building with her
aunt and her eleven year old daughter. She says for much of her time there they
were lucky if there was heat or hot water in the apartment.

Another resident, who works the night shift, writes that they were frequently
robbed in the unlocked building entrance. “Always, always, always, they assault
us and take our money and our things in the doorway. Why?” asks the tenant,
writing in Spanish, “Why is there no lock on the door or security camera?”

These complaints are more than an inconvenience. Constant anxiety, prolonged
exposure to molds, unchecked vermin and inadequate heat and hot water – all
these things make people sick. The vast majority of people living in failed
buildings are low-income and uninsured. When they get sick, they go to the
hospital. And the city is left holding the bill.

A new pilot program, created by housing advocates and healthcare workers,
aims to increase awareness of the public health costs resulting from distressed,
overleveraged buildings. The program sends healthcare providers and social
workers into buildings on the brink of receivership to identify and treat
housing-related illnesses. The team hopes to help tenants, compile data on the
health outcomes of living in buildings in poor condition, and eventually
determine the actual cost to the city.

Dina Levy, Director of Organizing and Policy at the Urban Homesteading
Assistance Board, or UHAB, says that what is happening in these buildings is a
public health crisis. “It’s an outrageous moral problem, but it’s also a
financial problem in whatever geographic space it’s happening in.”

She explains that when banks and owners fail to care for buildings, the costs
of that failing often shows up in the medical bills of the people who live in
those buildings, and that these tend to be low-income people without healthcare,
so that cost is ultimately absorbed by taxpayers and the city. Until now, she
says, there has been anecdotal evidence that people in certain buildings are
getting sick, but a study would provide the first quantifiable direct
connection.

“What we have observed is that people are getting sick and don’t have the
resources to get adequate medical care,“ she said. “Why are banks and landlords
allowed to harm people physically, and why should we be paying the cost of
that?”

The project has gone out to buildings four times since Labor Day, and plans
to do more outings this year. Members of the Committee of Interns and Residents
of SEIU Healthcare, collaborating with the Family Medicine Department at Bronx
Lebanon Hospital, the Pediatric Department at Jacobi Medical Center, Urban
Homestead Assistance Board (UHAB), and Workforce Housing, created the Doctors’
House Visit Program as part of a larger community outreach program, the Healthy
Bronx Initiative.

Tim Foley, Political Director of the Committee of Interns and Residents for
SEIU Healthcare, said that the committee was drawn into involvement in the
project by its members. “We were getting feedback from members who were
frustrated to only be dealing with the effects of illnesses and not the causes."

The most recent visit was in November, to a building at 2239 and 2241 Creston
Avenue in the Bronx. One attending physicians and three resident physicians went
to the building, accompanied by a social worker and an administrator with Bronx
Lebanon. They visited with residents in twenty-one of the building’s fifty-four
apartments.

The team had three specific goals: to help bring relief to tenants suffering
health consequences from their building; to gather data for a Bronx-Lebanon
study of the correlation between poor housing and chronic health problem; and to
give tenants information on their rights regarding the condition of their
building.

Levy says that as of July 2011, 2239 Creston had 431 outstanding code
violations, while 2241 had 431 violations. The former owners, Victor and Alan
Fein, originally bought the Creston buildings along with several others in the
Bronx on a loan from Astoria Federal Savings Bank. Three of those projects –
including the Creston --have since gone into foreclosure.

A Village Voice article from March 2010 names the brothers as owners of three
Bronx properties listed as being among the city’s worst. The article says the
Feins have operated since the mid-'90s under various company names including
Cherokee Partners and Apache Properties. Workforce Housing Advisors, an
affordable housing development firm led by ex-city developers, is working on a
public-private financing deal to purchase and renovate the buildings.

Orlando Moronta, the building super, has lived in the building since 1998. He
says the Feins barely contacted him in the decade he owned the building. He
tells of unscrupulous former building managers who rented out apartments while
telling the owner they were vacant, in order to pocket the money, and rented to
people engaged in drug activity. Since the building went into foreclosure,
Moronta says things have actually improved slightly. He says the number of
violations is down and there have been recent mold remediation efforts and lead
paint removal.

Tenant Johannie Burdier said she tried avenues to address problems in the
building. She tells of taking her complaints directly to the Fein brothers’
office on Bronx Park East, where she says a relative of the brothers would
dismiss her complaints and call her a liar. Fein Property Management did not
respond to a request for comment, other than to say that relative was no longer
working there.

Calling 311 didn’t help either. Burdier the city would investigate and order
the brothers to make the repairs, and then when no repairs were made, would send
out workers. But she said often the repairs were never made, because the
landlord or an employee would always show up and order the city workers off of
the premises.


Unhealthy Buildings, Unhealthy Tenants


One of the main health effects that doctors point to as resulting from
hazardous living conditions is pediatric asthma. Pediatric asthma is
particularly an issue in the Bronx, where the rate of death from asthma is
nearly three times higher than the national average and hospitalization rates
are five times higher, according to a report from the Wagner School at NYU.

While most studies of asthma in the Bronx have focused on traffic, doctors on
the visits saw a direct correlation between mold and asthma. Dr. Kerone Thomas,
a second year family medicine resident at Bronx-Lebanon who was part of the
visit, says living conditions are a major factor in developing childhood
asthma.

“Based on the observations we made of mold in the apartments and residents
with asthma, there seems to be a strong correlation.” She said in many of the
apartments the visiting health workers saw evidence of mold, leaky pipes, and
rodents.

While over-leveraged buildings are not the only buildings in poor enough
condition to cause housing-related illnesses, they do present a unique situation
for the city. Banks and lenders are generally regulated by the federal
government and the state, so there is often not a lot that local governments can
do to address blighted or neglected buildings in city neighborhoods.

Cities can, through the Housing Preservation Department, enforce building
code. The Department is required to identify the worst two hundred buildings in
the city for the Alternative Enforcement Program (AEP), which attempts to hold
landlords accountable for violations. If a building is found in violation and
does not comply with the AEP order to fix the problems, HPD can send out a
contractor to make the repairs and bill the owner for the cost. If the owner
does not pay, HPD can have a lien placed on the property.

In 2010 a law introduced by City Council Speaker Chris Quinn was passed that
added asthma to one of the list of violations that made a building eligible for
the AEP. The Creston buildings were added to the AEP list in 2010.

While building code enforcement is an important step, some problems with
enforcement remain. Though HPD can put a lien on a property, UHAB tenant
organizer Dan Desloover says some of those liens are not foreclosable."



“There’s no ultimate stick to make building owners do what they should do
on these violations.” He says that with so many building violations in the city,
some problems slip through the cracks. “Even if things are pretty bad, there are
just so many things going on that things get lost.”



Identifying housing-related illnesses and applying health code violations to
the retinue of charges against a bad landlord may not make much of a difference.
Dina Levy points out that for owners unconcerned with breaking the law, the
threat of breaking further laws may not carry much weight.

“For those people you need other tools. If you’re willing to be on the wrong
side of code violations, are you going to be willing to be on the wrong side of
health violations? Probably.” She says from a public policy perspective the goal
will have to be to think creatively about enforcement measures beyond
violations.


Costs of Compliance


Mitchell Posilkin of the Rent Stabilization Association, New York’s largest
real estate industry trade association representing some 25,000 landlords and
building agents, worries that adding more regulation will only hurt good
landlords who are already struggling to maintain compliance. “There is already
an alphabet city of regulations throughout the city.” he said, listing lead
paint regulations, building codes and fire codes. “You can always increase the
penalties, but most owners do not need the threat of penalties to comply.”

He also had concerns about pinning health problems to building conditions,
citing cases where children in New York City buildings with high lead levels in
their blood were found to have acquired those levels in their country of origin,
not in their New York apartments. Posilkin said the science necessary to
identify something like a particular mold as a responsible for an individual’s
health issue is not available, and expressed concern that the issue would become
“an annuity for trial lawyers.’

“We’re quite dubious. We believe everybody should know their rights, and we
believe that landlords should maintain their buildings, but not every ailment in
society can or should be attributed to how landlords maintain their
buildings.”

Posilkin is concerned that current regulations are making building ownership
untenable for many landlords outside of Manhattan. Referencing the recent ban on
using #6 heating oil due to its increase in asthma, he said “It’s easy to say
that owners should get rid of number six oil but who is going to pay? If you’re
owning and managing affordable housing in the South Bronx, where are you going
to get that money?”


Human Costs of Financial Failure


There are some 80,000 failed housing units up for receivership in New York
City. The problem can be partly attributed to outdated policies. After the
financial collapse of the seventies and the subsequent abandonment of areas of
the city, new housing policy was set in place to spur reinvestment in
neighborhoods.

The policy was successful – lots were rehabilitated, and neighborhoods
restored. By the nineties, the policies designed to entice banks into investing
in these neighborhoods were just icing on an already-sweet cake. Developers and
investors, savvy at accessing investment credits, purchased buildings in
gentrifying marginalized neighborhoods and converted them to market rate as the
neighborhood became wealthier.

By 2005, the success of these gambles means that multi-family apartment
buildings with rent restricted units are fetching enormous sums, despite the
inability of the rent rolls to pay back the debt. Banks, intending to
immediately resell those mortgages in pieces on the secondary market as
mortgage-backed securities, didn’t worry too much about their due diligence on
the loan.

And then the market collapsed. Building owners suddenly found that even at
market rate, rent rolls could not support the mortgage debt. Property taxes and
operating costs such as water and sewer continued to increase, and soon
investors found themselves sitting on properties worth less than their mortgage.
Many stopped putting any more money into what now looked like a bad investment,
and the buildings fell into disrepair.

When an owner defaults, the bank holding the mortgage cannot force the owner
to reinvest in the building or even pay their debt. All they can do is foreclose
on the property. The properties go into receivership. The owner gets to keep the
money they made. The bank keeps the profits from the mortgage-backed securities
they sold.

In receivership these already neglected buildings deteriorate further.
Receivers may do some limited maintenance and upkeep, but do not usually
undertake major repairs.

Meanwhile the losers in this game, besides those whose pensions and
investments lost money over those securities, are the tenants. Holes in the
walls, rats, unsafe electrical wiring, bad heat, flaking paint, all the
crumblings of failure compound to create health hazards for the very people
those walls should be protecting.


A Policy Response


Questions remain about what the appropriate policy response should be. Using
health code to go after negligent owners seems likely to encounter many of the
problems that using building code does. Without harsher enforcement, those
already on the wrong side of the law seem likely to stay there.

In addition, the levels of government most affected are not the ones with the
most regulatory power. While it is cities and local governments that pay for the
health-care costs of low-income renters suffering building-related problems,
they have very little power over the banks and lending companies that are
underwriting mortgages.

Levy says while she isn’t sure what the policy answer is, she hopes that
providing more information on the cost burden of these buildings will help
summon the political will necessary to address the issue. She says the effort to
raise awareness of the relationship between failed buildings and heath is an
important first step. “Once that’s established then there are all kinds of
openings for trying to figure out what is the right policy solution to address
that.”

Meanwhile Burdier is still looking for a way to move out. Her bathroom
ceiling is leaking, and she says she’s been threatened with eviction because
checks collected by the management company were never turned over to the new
receiver. “It’s unbelievable,” she says. “I wish I could move.”

Monday, January 9, 2012

Kelly Street Press Release

HPD, Workforce Housing Advisors, Banana Kelly, Monadnock Construction Annouce New Year's Gift to Tenants in Five Severly Distressed Bronx Buildings


$3.4 Million HPD
Acquisition Loan to New Owners of Kelly Street Portfolio

Loan Adds To HPD’s 2011 Tax
Credit Allocation That Will Generate $9.28 Million in Equity for Substantial
Rehabilitation of Five Buildings Suffering from Extreme Neglect

New York CityDepartment of Housing Preservation and Development (HPD)
Commissioner Mathew M. Wambua, Workforce Housing Advisors (WFHA) principal
John Crotty, Banana Kelly Community Improvement Association President Harry
De Rienzo, and Monadnock Construction President Nicholas Lemboannounced a
plan to improve conditions at the Kelly Street portfolio of properties in the
South Bronx, keeping the five buildings’ 81units affordable to their
residents. HPD is providing a $3.4 million acquisition loan to the
development team of WFHA, Banana Kellyand Monadnock Construction through its
Participation Loan Program (PLP)to enable the developers tobegin to
substantiallyrehabilitate the buildings. This loan, made possible by the U.S.
Department of Housing and Urban Development (HUD) Neighborhood Stabilization
Program (NSP), comes in addition to a Tax Credit allocation provided by HPD
in late 2011 that will generate $9.28 million in equity towards the
rehabilitation needs of the portfolio and bank financing. The previous owner,
after refinancing these properties with an unsustainable level of debt,
allowed them to slide into such a deplorable state that all five had been placed
in HPD’s Alternative Enforcement Program (AEP), an initiative that annually
targets the worst 200 buildings in the City.

The preservation of the City’s existing affordable housing stock and the
protection of the tenants is a critical component of Mayor Michael R.
Bloomberg’s New Housing Marketplace Plan (NHMP). Launched in 2003, the NHMP
is a multibillion dollar initiative to finance 165,000 units of affordable
housing for half a million New Yorkers by the close of the 2014 fiscal year.
To date, the plan has funded the creation or preservation of more than
126,900 units of affordable housing across the five boroughs; 4,245 of those
units in Bronx Community District 2 where the Kelly Street portfolio is
located.

“Affordable housing is an irreplaceable commodity in New York City. Over
the past three decades, Kelly Street has been emblematic of the struggle of
neighborhoods to exist and endure in up and down markets,” said HPD
Commissioner Wambua. “In the 1970s, we nearly lost Kelly Street to the
ravages of the economic crisis and the massive disinvestment that caused the
abandonment and burning of thousands of units of housing. With the eventual
rebuilding of the South Bronx and buoyed by the strong economy pre-2008
economy, these properties were purchased with unsupportable debt by
speculators who let the buildings fall into extreme disrepair. It’s been a
long and winding road for these tenants who refused to be pushed from their
homes. Thanks to our partnership with Workforce, Monadnock and Banana Kelly, the
end of their living in squalor is in sight and their homes will once again be
secure, safe havens in a neighborhood that they helped to save.”

The Kelly Street portfolio consists of 916, 920, 924, 928, and 935 Kelly
Street in the Hunts Point-Longwood section of the Bronx. In December 2010 the
owner was held in default on the mortgage and the portfolio went into
foreclosure. On January 7, 2011 WFHA purchased the debt on the portfolio from
Ridgewood Savings Bank with a short-term bridge loan from the New York
Affordable Housing Preservation Fund (NYAH), a $100 million real estate
equity fund created by Citi Community Capital and L+M Development Partners to
stem the loss of affordable housing in the NY region. WFHA pursued
foreclosure proceedings against the original owner, eventually taking title
to the five buildings after a foreclosure auction held on August 1, 2011. In
March 2011Harry De Rienzo of Banana Kelly was appointed by the Bronx Housing
Court as the 7-A administrator for the properties, effectively allowing him
to address the unsafe and unsanitary conditions within the buildings, manage
the day-to-day operations, establish legal tenancies, collect rent and
perform the necessary repairs to keep the properties in stable condition
until WFHA acquired title. Monadnock has joined WFHA as a partner in the
project and will serve as the general contractor during the rehabilitation
process.

“This new process demonstrates the ability of government to work
effectively with private sector partners to achieve long term sustainable
solutions to a new and evolving problem, in the case of Kelly Street
overleveraged properties that had massively failed. We applaud everyone who
demonstrated the courage necessary to make this renewal occur,” said
Workforce Housing Advisors Partner John Crotty.“The residents of Kelly St
will be the first of many tenants throughout the city who will see their
living conditions greatly improve as a result of this innovative thinking. We
expect the revival of Kelly Street to go beyond the apartments by including
an environmentally friendly community development program for urban green
space and retailat the property. ”In addition to working with these
developers to redevelop the Kelly Street properties, HPD recently partnered
with WFHA to assist in the purchase of a former Mitchell-Lama building at
1520 Sedgwick Avenue in the South Bronx – known as “the birthplace of
Hip-Hop” – to rehab and keep it affordable to its current residents.

“I started organizing on this block in 1976. As a long-time resident and
founding member of Banana Kelly, it was very discouraging to witness the
deterioration of the block where Banana Kelly got its start and its name,” said
Banana Kelly President Harry De Rienzo. “It was even more discouraging to
discover that millions of dollars in mortgage funds had been borrowed, with
no evidence of any investment in these properties; that vulnerable
populations were rented apartments that were not only uninhabitable, but a
health hazard, and it was equally discouraging to learn from tenants that
third party rent payments continued to be collected and deposited by these
slumlords even after a court order prohibited it. But now all that will
change. This project was made possible due to a unique
private/not-for-profit/ public partnership, with all participants working
from respective strengths for one common goal – the redevelopment of these
building and the restoration of dignity to the neighborhood, the block, and
these long-suffering residents.”

The total cost of acquisition and rehabilitation for the five buildings
will be approximately $16.5 million. HPD will provide a $3.4 million
acquisition loan through its Participation Loan Program, funded by the third
round of HUD’s NSP. JP Morgan Chase is providing a $9.37 million construction
loan. A total of $9.28 million in equity raised through the sale of Low
Income Housing Tax Credits (LIHTC) will be used to pay additional
construction costs and on completion of the renovation be applied to pay down
the bank loan to a supportable level. Developer equity and a first mortgage
from JP Morgan Chase complete the funding package.

Now that HPD and Chase have closed on the construction financing, work on
935 Kelly Street, the largest building, will start once all of the tenants
have been temporarily relocated to apartments in the four other buildings.
This first phase of construction will begin in February. The second phase,
which will see the complete renovation of the four other buildings, also
requires that the tenants be temporarily relocated.

"The Kelly Street Project is an opportunity for Monadnock to help
people improve their lives and work with partners who share our values. It is
also a sound business venture that will continue the ongoing efforts to
reshape the South Bronx. Thanks to Work Force Housing Advisors, Banana Kelly,
HPD, Chase and National Equity Fund for making this project possible,” said
Nicholas Lembo, President of Monadnock Construction.

Prior to the sale of the buildings to WFHA, all five properties had at one
time been placed in HPD’s Alternative Enforcement Program (AEP), an
initiative to effectively identify and increase the pressure on the owners of
some of the City’s most distressed residential buildings to bring the
buildings up to code. This program is credited with stabilizing the
buildings, and ultimately leading to the partnership with Banana Kelly and
Workforce Housing Advisors. Absent AEP, the properties would have continued
to rapidly deteriorate and pose a health and safety risk, and possibly,
orders to vacate the tenants may have been necessary – leaving the residents
without permanent homes and threatening the stability and integrity of the
surrounding neighborhood.

The AEP allowed HPD to target these properties, do roof-to-cellar
inspections, replace major buildings systems (i.e. roofs, boilers, etc.)
andperform emergency repairs to the most hazardous conditions which the old
owner refused to address. With the transfer of ownership complete and a fully
funded repair plan in place, the City will no longer need to intervene on
emergency repairs and the current tenants can begin to look forward to
responsive management and the promise of newly renovated homes.

                                                 # # #

About the NYC Department of Housing Preservation and Development
(HPD)


HPD is the nation’s largest municipal housing preservation and development
agency. Its mission is to promote quality housing and viable neighborhoods
for New Yorkers through education, outreach, loan and development programs
and enforcement of housing quality standards. It is responsible for
implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the
construction or preservation of 165,000 units of affordable housing by 2014.
Since the plan’s inception, more than 126,900 affordable homes have been
created or preserved. For more information, visit www.nyc.gov/hpd.

Thursday, September 15, 2011

If explaining every bad deal was this easy!!

New Mexico mayor was drunk when he signed deal


ALBUQUERQUE, N.M. (AP) — Mexico border town mayor and congressional candidate Martin Resendiz was drunk when he signed nine contracts with a California company that is now suing the city for $1 million, according to a deposition in the case.

"The day I signed . I had way too much to drink. It was after 5 p.m. and I signed it (the contracts) and I didn't know what I was signing," Sunland Park, N.M., Mayor Martin Resendiz wrote in response to questions from lawyers for the architectural design firm Synthesis+. "My sister had to pick me up."

The lawsuit claims the company is owed $1 million for work performed under the nine contracts, according to a report Thursday in the Albuquerque Journal. Sunland Park contends the contracts were not valid because they weren't approved by the City Council.

Resendiz, a former El Paso, Texas, police officer and Sunland Park municipal judge. He has been mayor since March 2008 and has said he plans to seek the Democratic nomination to challenge Republican U.S. Rep. Steve Pearce.

Resendiz could not be reached Thursday morning but his office said it expected to issue a statement later in the day.

According to a transcript of Resendiz's June 2010 deposition by attorney Victor Poulos, Resendiz acknowledged signing the documents in May or June 2008 after several hours of drinking with Sythesis+ executives at Ardovino's Crossing, an Italian restaurant in Sunland Park. Among the executives present was architect Daniel Soltero.

"Again, this was after two or three hours of us drinking, not exactly the best time to do business, not exactly the best time to read over legal documents, which he (Soltero) did not portray at any time to be legal documents," Resendiz said according to a transcript of the deposition.

City Councilor Daniel Salinas, who was also deposed, said under oath he was at the restaurant meeting and was also inebriated. Officials said the mayor signed the documents on July 2008 at the Sunland Park city hall and that the mayor was sober.

Poulos said it was the first time in his 33 years of practicing law that someone had acknowledged signing a contract while drunk.

Monday, September 12, 2011

Wounded Warriors (A Civic Duty)

Being a citizen of the United States is more than a birthright, it is earned and must be continuously worked at for the country to prosper.

This is a story of those who have sacrificed so much for us and the people who demonstrate their gratitude in a very personal way.

They volunteer to provide these Brave Men and Women and their familes a bit of relief and fun in one of the best place in NYC.

An inspiring story and a good lesson as well.

Please watch the whole video

http://www.nytimes.com/interactive/2011/09/09/us/sept-11-reckoning/rockaway-vets-video.html

Monday, July 18, 2011

The Sky is wildly entertaining


    Housing is of critical importance but we all live on Earth

    This brief video brings a little of nature magic into focus.

    We think you will really enjopy it.

    The Ocean Sky

Monday, April 18, 2011

The Top Housing Managers in the United States of America

 The annual rankings of the top 50 apartment managers came out this week.

http://www.nmhc.org/Content/ServeContent.cfm?ContentItemID=6074&NavID=95

You will notice several names familar to the NYC Marketplace, specifically;

Winn,  Forrest City, Avalon Bay, Related

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.