by | May 17, 2013 · 3:18 pm

Friday News Round-Up

Here’s a short list of some of the stories we’ve been following today. As always, have a great weekend and we’ll see you on Monday!

  1. Last week, and today, Philadelphia students walked-out of school to protest harsh budget cuts that would totally gut the public school system, which is already suffering from austerity. Of note to New Yorkers: the plan, which initially included the closure of over 40 public schools, was prepared with the help of the Boston Consulting Group. If that name doesn’t ring a bell: its the same neoliberalizing global business entity hired – to the tune of $10 million – to study NYCHA.
  2. Legal Services is on strike. In the past year, Legal Services attorneys have represented tenants in at least 15 of the buildings we organize, and the work they do is invaluable to low income New Yorkers. Support them in their fight.
  3. We’re basically just waiting to see when Anthony Weiner will announce he’s running for mayor. In the meantime, check out this piece by Michael Mckee of the Metropolitan Council on Housing: “Why No Tenant Should Vote for Anthony Weiner.” In a city chock full of tenants that’s a bold claim — but his record in the City Council calls for it.

 

 

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by | May 15, 2013 · 4:53 pm

Amending the Fair Housing Act to Support LGBT and Single Folks

Map by National Fair Housing Alliance

Map by National Fair Housing Alliance

Last month marked the 45th anniversary of the Fair Housing Act (FHA). To celebrate, the National Fair Housing Alliance (NFHA) published a report entitled, “Modernizing the Fair Housing Act for the 21st Century.” The paper works to elucidate the current discriminatory obstacles faced by renters and homeowners, and to offer suggestions to fill in current loopholes. Since FHA’s inception, two amendments have been made to protect against sex (1974) and disability (1988) discrimination. Despite the bill’s progress and evolution, it has yet to include protections against sexual orientation, gender-identity, and marital status discrimination.

Sexual Orientation Discrimination

Between 2009 and 2011, hate crimes based on sexual orientation increased from 17.8 percent to 20.8 percent, and this type of discrimination has manifested itself in the housing sector. In a study conducted in Michigan, 27 percent of same-sex couples were treated differently based on sexual orientation, including asking their references to clarify their sexual orientation. The research also illustrates that “the largest evidence of sexual orientation discrimination was in rental tests (33 percent), followed by sales tests (25 percent) and close behind were mortgage tests (20 percent).” Today, 21 states as well as the District of Columbia have enacted laws that protect against housing discrimination based on sexual orientation. New York is not one of them.

Gender Identity Discrimination

The NFHA study reports that discrimination based on gender identity is also prominent in housing. In a different study conducted by the National Gay and Lesbian Task Force and the National Center for Transgender Equality, it is reported that of 6,450 transgender and gender non-conforming participants, 19 percent had been denied a home or an apartment, 11 percent had been evicted, and 19 percent of folks became homeless. Of the participants that tried to access homeless shelters, 1/3 were turned away and 42 percent were segregated to a facility intended for folks that identify with a different gender identity. 55 percent of participants that did access the shelter system experienced harassment; 25 percent experienced physical assault; and 22 percent experienced sexual assault.

The National Transgender Discrimination Survey also showed that transgender folks of color experience much higher levels of discrimination. The survey illustrated the following:

  • 38 percent of African-American transgender folks were refused housing; 31 percent were evicted due to discrimination; and 41 percent experienced homelessness (5 times the national rate).
  • 29 percent of Latino/a transgender folks were refused housing; 15 percent experienced eviction due to discrimination; 26 percent experienced homelessness (4 times the national average).
  • 21 percent of Asian American, South Asian, Southeast Asian, and Pacific Islander transgender folks were refused housing; 7 percent were evicted due to discrimination; 14 percent experienced homelessness (2 times the national average).

Today, 16 states as well as the District of Columbia have enacted laws that protect against discrimination based on gender identity. New York is one of them. *

Marital Status Discrimination

Non-married couples have been experiencing significant discrimination in the housing market as well. According to the Fair Housing Center in Nebraska-Iowa, investigations regarding income discrimination found that 38 percent of cases were rooted in discrimination based on marital status. The investigation found that many landlords made statements such as “’I don’t believe that people should live in sin.’”

Today, 22 states including the District of Columbia have enacted laws that protect against marital status discrimination. In this case, New York is one of them.

The information compiled by the NFHA illuminates an undeniable need to amend the Fair Housing Act. Within the past few years, LGBT and unmarried folks have gained tremendous visibility and greater rights. However, with acceptance also comes animosity. As the paradigm shifts, the male/female binary and hetero-normativity is called into question and somewhat dismantled. To protect the inevitable backlash during such transition, it is imperative that legislative protections be implemented and enforced at this time.

 

*A previous version of this blog post mistakenly stated that New York did not have laws preventing housing discrimination based on sexual orientation. However, NY Exec Law § 296(2)(a) does provide this protection. 

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by | May 14, 2013 · 4:05 pm

Three Ways to Improve the AEP Program

The Alternative Enforcement Program (AEP) is an extensive NYC project established to improve landlord compliance with the housing maintenance code. Each year, 200 buildings are enter into the program, which increases oversight from HPD and levies costly fines against landlords who allow their buildings to fall into disrepair. While the program has been effective in forcing repairs, we have also identified several ways in which it can be improved to greater serve New York City tenants.

  1. DHCR should approve an automatic rent reduction for tenants whose homes enter the alternative enforcement program.
    DHCR, the NYS Department of Housing and Community Renewal, administers rent regulations and has the power to provide tenants with legal rent reductions when negligent landlords refuse to make necessary repairs in their homes. If a building enters the Alternative Enforcement Program, it is clearly one of the most physically distressed buildings in New York City, and tenants have likely been paying rent without receiving anything in return for a very long time. In order to decrease the burden of bad housing on working families as well as increase the pressure on property owners to make repairs, DHCR should grant automatic rent reductions to any tenant who lives in a building that enters the Alternative Enforcement Program.
  2. Remove AEP buildings from the lien sale list.
    Each year, the NYC Department of Finance sells off uncollected tax, water, and emergency repair liens to raise money. This process gives a third party (usually a bank or a trust) the right to foreclose on these debts. Buildings in AEP are often included in the lien sale list: it stands to reason that landlords who are negligent about repairs may also be negligent about paying their bills, and these buildings are often candidates for emergency repairs done and billed by the city.When a building is in severe physical distress, it does not make sense to bring in a speculative actor whose only interest is in sucking more money out of the property. It does make sense, however, for the city to hang onto these liens: they are secured debt, and can be used by the tenants and the city as leverage to fight for a deal that preserves the building’s affordability. AEP buildings should be automatically removed from the city’s lien sale list in order save the city’s most vulnerable housing stock.
  3. Hold the bank accountable when a building is in foreclosure.
    As we’ve discussed on this blog before, the Alternative Enforcement Program is not nearly as effective as it could be when a building is in foreclosure. The heart of the program is that it puts financial pressure on building owners to make necessary repairs. But what if the owner is legally forbidden from intervening in building management, as is the case in most multifamily foreclosures? The AEP program has no way to hold receivers responsible for making repairs. Moreover, the fines levied while the building is in the program (unpaid during foreclosure) are not enough to deter a predatory buyer, but they are enough to throw off a non-profit landlord or a tenant group who is looking to reclaim the building in a cost effective manner.

    As foreclosure proves to be a persistent problem in New York City, we need a program that ensures tenants living in multifamily buildings receive decent housing. A foreclosure can last for up to five years, and that is FAR TOO LONG for tenants to live in AEP conditions. In the landmark Milbank case, courts have ruled that when buildings are in foreclosure, banks have a responsibility to maintain the asset: i.e., pay for repairs. In foreclosure cases, the AEP program must demand accountability from lenders as well.

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by | May 13, 2013 · 5:21 pm

Fighting for Preservation in Ridgewood, Queens

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Tenants living in 6 buildings in Ridgewood, Queens are caught in the middle of a complicated foreclosure and bankruptcy case which will determine the future of their homes. While the courts continue to drag out the 5-year-and-counting foreclosure, tenants suffer from horrible living conditions with no one to turn to.  Check out Friday’s video from Channel 11 News demonstrating the unsafe living conditions tenants face on a daily basis. 

Here are tenants allies and adversaries in the fight for affordable housing preservation:

Steven Kates, Landlord: Mr. Kates is fighting the foreclosure in bankruptcy court. However, he never could be trusted: he lied about the number of units in the 6 buildings to take out an unreasonably large mortgage! Tenants are fighting to make sure that he does not get to keep these buildings. 

Stabilis Capital: The original lender, Washington Mutual, collapsed in the 2008 financial crisis.  Chase, who took over the failed bank, sold the debt to Stabilis — a private equity company we’ve seen lend on other severely distressed properties. We hope that Stabilis will come to the table to meet with residents and advocates to work out a deal that will benefit tenants and NYC’s affordable housing stock.

CATCH: Tenants have asked CATCH, a nonprofit preservation developer to purchase their buildings, rehab them, and rent them at affordable levels. Tenants want to have a voice in the way their buildings are managed, and CATCH runs buildings they own through “mutual housing,” which ensures resident-input. However, in order for CATCH to buy the buildings, they will have to purchase the note at a discount and wind their way through bankruptcy court.

Elected Officials: Tenants have found a great deal of support from their elected officials, including Congresswoman Nydia Velazquez and City Councilwoman Diana Reyna. They hope that through political pressure, Stabilis will discount the mortgage on these six properties (which they likely bought for a discount from Chase) and sell them to CATCH. With the help of Councilwoman Diana Reyna, tenants are asking HPD to remove these buildings from the lien sale list. The liens are a crucial tool that will give the tenants some serious leverage in the bankruptcy case.

Queens Legal Services: Tenants are represented by Queens Legal Services to help make sure that immediate repair needs are met. While the bankruptcy case has made legal matters a little confusing, attorneys are strategizing to get repairs done as soon as possible.

Stay tuned on this exciting fight to preserve affordable housing in Ridegwood, Queens!

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Video

Ridgewood Tenants Fight to Preserve Affordable Housing!

Tenants living in 6 buildings in Ridgewood, Queens are caught in the middle of a complicated foreclosure and bankruptcy case which will determine the future of their homes. While the courts continue to drag out the 5-year-and-counting foreclosure, tenants suffer from horrible living conditions with no one to turn to.  Check out Friday’s video from Channel 11 News demonstrating the unsafe living conditions tenants face on a daily basis: http://landing.newsinc.com/wpix/video.html?freewheel=91044&sitesection=wpix_pix11newsvideo&VID=24814511 

To understand more about the case, we’ve broken it down for you.

The players:

Steven Kates, landlord: Fighting the foreclosure in bankrupcy court. Never could be trusted- he lied about the number of units in the 6 buildings to take out an unreasonably large mortgage!

Stabilis Capital: The original lender, WAMU, sold the debt to Stabilis- a private equity company we’ve seen lend on other severely distressed properties. We hope that Stabilis will come to the table to meet with tenants and advocates to work out a deal that will benefit tenants and NYC’s affordable housing stock.

The Elected Officials: Tenants have found a great deal of support from their elected officials! They hope that through political pressure, Stabilis will sell the buildings’ note  to a preservation developer.

Preservation Developer: Tenants have chosen a nonprofit group to purchase their buildings, rehab them, and get them into good condition!  Tenants want to have a voice in the way their buildings are run, and expect that with this development group, they will participate in managing the buildings.

Queens Legal Services: Tenants are represented by Queens Legal Services to help make sure that immediate repair needs are met. While the bankruptcy case has made legal matters a little confusing, attorneys are strategizing to get repairs done as soon as possible.

Stay tuned on this exciting fight to preserve affordable housing in Ridegwood, Queens!

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by | May 13, 2013 · 4:42 pm