CROWN HEIGHTS TENANTS RALLY AGAINST ATTEMPT TO FLIP ILEGALLY PURCHASED BROOKLYN HOMES

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FOR IMMEDIATE RELEASE Jan. 15, 2014

Contact:

Ismene Speliotis, 718-246-8080 ex 203
Kerri White, 212-479-3371

CROWN HEIGHTS TENANTS RALLY AGAINST ATTEMPT TO FLIP ILLEGALLY PURCHASED BROOKLYN HOMES

BROOKLYN (Jan. 15, 2014) – Residents of two decrepit rent-regulated buildings in Crown Heights and their supporters rallied today to demand that the new owners – who illegally bought the foreclosed-upon homes — stop trying to make a quick buck on the backs of the tenants.

“For the past three years, tenants in all four of these buildings have fought for their homes while suffering unconscionable living conditions,” said Kerri White, Director of Organizing and Policy at the Urban Homesteading Assistance Board, which is helping the tenants, along with New York Communities for Change.

“There is a preservation deal ready to move forward, it has been funded by the city and is supported by the tenant associations. (Broker Sanford) Solny and his investor friends must drop their opposition to the foreclosure immediately. This is a fight they cannot win: their protracted and frankly ridiculous interventions only force tenants to suffer for longer.”

The deteriorating buildings, which have been in foreclosure since 2009, have racked up 319 code violations on just 12 units.   There are holes in walls, water damage and other violations.

The way we are living here, they are treating us like animals,” said Pinkrose James, Tenant Association representative. “If Bernard Neiderman’s friends think they can get our buildings back from the tenants, they are wrong. We are here to demand that the foreclosure move forward so the Mutual Housing Association of New York (MHANY) can begin work on our homes, and to tell let anyone interested in buying these buildings to back off.” 

In March 2012, the Mutual Housing Association of New York (MHANY) purchased the mortgages on the buildings with the intentions of becoming owners once the properties wound their way through the foreclosure process. MHANY bought the mortgages with the support of the tenant associations, housing advocates, and city officials. The 25 year-old non-profit organization has plans that include a complete renovation in the buildings, funded by the Department of Housing Preservation in Development.

However, in the fall of 2012, slumlord Bernard Neiderman illegally sold the deeds to 230 and 232 Schenectady Avenue to a group of investors based in Borough Park. It is illegal to sell buildings that are in foreclosure. These investors, working through broker Sanford Solny, hope they can flip the buildings, buying out MHANY’s interest and making money off the top. This speculative behavior has slowed an already glacial foreclosure process, forcing tenants to wait longer for the repairs they desperately need. The buildings are both in the City’s Alternative Enforcement Program. The tenants rallied outside Solny’s office in Borough Park to demand that these investors drop their baseless and speculative opposition for the foreclosure, and allow the preservation deal to move forward.

“Unfortunately, many neighborhoods that low- and moderate-income New Yorkers have called home for generations have increasingly been affected by the speculative real estate market.  As buildings are sold at speculative prices amongst uncaring and unscrupulous investors — prices that cannot be maintained with the legal residents and legal rents — the greatest victims are the tenants themselves,” said Ismene Speliotis, Executive Director of the Mutual Housing Association of New York.

“MHANY ‘s plan to purchase the note, oversee the completion of the foreclosure, rehabilitate the buildings, and provide decent and affordable housing to the residents is still intact.  We are working with all parties to complete the foreclosure and take care of the residents and the buildings, preserving another affordable housing asset for the Bedford Stuyvesant and Crown Heights community.”

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