Buyers take advantage of distressed buildings

New York /
Aug.August 05, 2010 04:00 PM

Rafael Cestero

With mounting numbers of buildings in foreclosure and others in disrepair, city officials and housing advocates say that corrupt investors are trying to purchase these buildings, often clashing with tenants, the New York Times reported. Rafael Cestero, the commissioner of the city’s Department of Housing Preservation and Development, said he had seen a number of distressed properties sold to buyers who were not acting “in the best interests of the city, the neighborhood or tenants.” City officials, seeking ways to intervene, are often virtually powerless, since most of the deals are private. “This is probably the most difficult thing we’re doing at HPD right now,” Cestero said. While the buyers are often paying less than the previous owners, tenant advocates maintain that prices are still too high for the amount of rental income the buildings generate and the repairs they need. So the new owners, advocates say, have already revived old tactics of tenant harassment, including bringing trumped-up lawsuits against tenants in rent-regulated apartments, hoping to evict them, and then raising the rent under the state’s so-called vacancy decontrol rules. [NYT]

 

Related Articles

arrow_forward_ios
(Photo-illustration by Paul Dilakian)
Looming end of tax break triggers real estate “hunger games”
Looming end of tax break triggers real estate “hunger games”
Mayor Eric Adams with Jessica Katz of the Citizens Housing and Planning Council and Carlo Scissura (Getty, CHPCNY, Building Congress)
Adams to tap Jessica Katz for housing post, Carlo Scissura to run EDC
Adams to tap Jessica Katz for housing post, Carlo Scissura to run EDC
Mayor Eric Adams and Bill de Blasio (Getty)
3 things you missed while cheering de Blasio’s departure
3 things you missed while cheering de Blasio’s departure
Former HPD commissioner Louise Carroll (iStock/Illustration by Kevin Rebong for The Real Deal)
“A hard commissionership”: Housing czar on escaping a mob, saving projects
“A hard commissionership”: Housing czar on escaping a mob, saving projects
How long does it take to lease an affordable housing project? Too long
Red tape keeping affordable units empty for 15 months
Red tape keeping affordable units empty for 15 months
Size doesn’t matter, say New York’s co-living and micro developers
Size doesn’t matter, say New York’s co-living and micro developers
Size doesn’t matter, say New York’s co-living and micro developers
Trust-fund kids exploit NY housing subsidy program
Trust-fund kids exploit NY housing subsidy program
Trust-fund kids exploit NY housing subsidy program
At wits’ end over stalled project, “Skybox Chelsea” developer sues partner
At wits’ end over stalled project, “Skybox Chelsea” developer sues partner
At wits’ end over stalled project, “Skybox Chelsea” developer sues partner
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...