Fannie Mae has been charged with neglecting to pay for basic repairs in three New York City rental buildings after moving to foreclose on the properties in March. The buildings — two of which are on the city’s list of worst-kept properties — have been rendered dilapidated and a Bronx judge has ordered Fannie Mae to respond to charges that it has allowed the buildings to remain structurally unsafe, with several city housing violations. Attorney Marc Landis, the court-appointed receiver who filed the charges, estimated that $324,475 will be needed to make the necessary repairs at the buildings, each purchased by real estate investment firm Ocelot Capital at the height of the housing boom. Fannie Mae, which purchased the mortgage from Deutsche Bank before the buildings were abandoned by Ocelot, will appear at a hearing Nov. 23 to answer the charges.

Tenants at 14 Crotona Park buildings in the Bronx — including 1804
Weeks Avenue — are accusing Fannie Mae of turning a blind eye to
deteriorating conditions in their buildings after taking over the
properties from distressed landlords. The residents allege that Ocelot
Capital, which bought the buildings in 2007, allowed the structures to
fall into disrepair right before Ocelot’s lender, Deutsche Bank, took
over. Fannie Mae then bought the mortgages from Deutsche Bank but has
reportedly done nothing to address the approximately 8,500 building
code violations that have mounted over the past two years. The federal
mortgage backer is hoping to sell the distressed mortgages to a new
buyer, forcing them to handle the repairs, the New York Daily News
reported. Fannie Mae, for its part, maintains that it has provided
adequate funds for the repairs and that court-appointed receivers for
the structures have the option to request funds for emergencies. [more]