Congresswoman Nydia Velazquez, City Councilwoman Diana Reyna and State Assemblyman Mike Miller, attorneys and advocates joined tenants from six extremely distressed buildings in Ridgewood, Queens on Monday of this week. The elected officials came together with the tenants to demand that Stabilis Capital Management, the mortgage holder on the properties, support a plan that will keep them permanently affordable. Tenants are suffering from leaks, mold, rodent infestation, falling ceilings, and a lack of basic plumbing, will also seek emergency repairs.
In an exciting move, tenants will be appearing in bankruptcy court with the help of pro bono counsel Cleary Gottlieb Steen & Hamilton, LLP and Queens Legal Services to advocate for their right to safe and decent housing.
“As a resident of 1821 Cornelia St., I am concerned about the future of these six buildings,” said Tenant Leader Denise Serrano. “I grew up in Williamsburg, and thanks to rising rents my family was forced to move. I raised my children in this building, and on behalf of myself and my neighbors, I do not want to see that displacement happen again here.”
Stabilis’s purchase of the mortgage notes on these six buildings mirrors a recent trend wherein companies, armed with private equity money, acquire debt on regulated rental properties. The properties are often severely physically distressed due to years of foreclosure, and are often located in New York City’s gentrifying neighborhoods. Tenants and advocates fear that these acquisitions closely resemble speculation in the market before 2008, when private equity firms purchased large portfolios of rent-regulated apartment buildings, leading to foreclosure and mass deterioration of the housing stock. This week, tenants, elected officials, and organizers are calling on Stabilis Capital Management to break with this pattern and support the transfer of the properties to a non-profit developer who would provide extensive physical rehabilitation while keeping the properties affordable in perpetuity.
Tenants, who have been organizing for several months, have asked CATCH – a non-profit that practices mutual housing – to try and to take over their buildings.
“These buildings must be transferred to an owner who will rehabilitate them and keep rent affordable,” said Congresswoman Nydia Velazquez. “Tenants have suffered enough already because of poor managerial decisions.”
“I’m here today to support my constituents and neighbors who have been suffering from these horrific and unimaginable living conditions for over five years,” said Assemblymember Mike Miller. “I support the transfer of these properties to a non-profit developer who would provide the necessary repairs while keeping the rents affordable.”
“Stabilis must repair these buildings or sell them to a good developer who will” said City Council Speaker Christine C. Quinn. “Whether these homes are in foreclosure or bankruptcy court, Stabilis’ obligations to provide services to tenants remains the same. I want to thank Congresswoman Velazquez, Councilmember Reyna, UHAB, Legal Services, HPD, and especially all of the tenants for their hard work to save these homes.”
“Today, after months of discussion, organizing, and legal advocacy, we are able to stand before Stabilis and tell them: ‘We have a plan.’,” said Councilmember Diana Reyna. “We have a plan that will put an end to five years of undignified living conditions, that will ensure that the future of these families remains in the buildings they call home, and that will not undermine Stabilis’s business model. We are calling on Stabilis to include the tenants in any agreement to ensure that these properties are up to code and in the hands of those who live in the buildings.”
“We can’t keep letting these vicious cycles sent buildings deeper into distress. Whether they live in a building in foreclosure, a building in bankruptcy or not, all tenants have the right to safe, decent housing,” said Public Advocate Bill de Blasio. “When properties get this bad, we need everyone to come to the table – including banks and lenders – to put them back on sustainable tracks. Tenants deserve nothing less.”
“The blight and distress of these properties is not only hazardous to the well being of the families who live there, it also threatens the stability of the surrounding neighborhood,” said HPD Commissioner Mathew M. Wambua. “We are resolved to use our resources and enforcement tools, such as those in the Alternative Enforcement Program, to keep the pressure on negligent landlords and owners to ensure that these tenants get relief and the quality of housing that they deserve. We thank our elected officials for their partnership and support in working to end the cycle of overleveraging and distress that has plagued these buildings.”
“The tenants in these six properties have suffered at the hands of predatory equity groups for long enough,” said Kerri White, Director of Organizing and Policy at the Urban Homesteading Assistance Board. “These buildings need to be transferred to a responsible developer with the capability of renovating them while keeping rents affordable for the residents. We will do anything in our power to reach this outcome, whether its demanding Stabilis work with HPD on a preservation sale, or advocating through the bankruptcy court, the tenants will keep fighting for what they deserve.”