Pols seek to protect rent-stabilized leases during bankruptcy

Lawmakers fear deal to sell regulated unit lease in Manhattan could set precedent

New York /
Sep.September 03, 2014 12:40 PM

A deal struck between an East Village tenant and her landlord has ignited a debate over whether a rent-stabilized lease can be sold as an asset in bankruptcy proceedings.

The debate centers around the case of Mary Veronica Santiago-Monteverde. In a deal reached with her court-appointed trustee, Santiago-Monteverde agreed to sell her regulated lease to her landlord in order to pay off her debt. She was able to stay in the apartment, but lost her right to pass the lease on to her son, the New York Post reported.

Some lawmakers and housing advocates are concerned that the case could set a precedent for seizing rent-stabilized units in future bankruptcy proceedings, according to reports.

Now, State Assembly member Linda Rosenthal of Manhattan has proposed legislation that would more explicitly protect rent-stabilized housing under Chapter 7 bankruptcy, Law360 reported. On Tuesday, 17 state lawmakers asked the federal appeals court to side with Santiago-Monteverde in her legal challenge to the sale, the Post reported.

The trustee’s actions have been upheld by a bankruptcy judge and federal district judge, Law360 reported. The case goes before the New York State Court of Appeals on October 16. [NYP] and [Law360]Tom DiChristopher


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)
New NYC rent law “beginning to shut down investment”
New NYC rent law “beginning to shut down investment”
Gov. Andrew Cuomo (Getty, iStock)
New York’s rent relief site goes live — without applications
New York’s rent relief site goes live — without applications
The curious case of the vanishing attorney
The curious case of the vanishing attorney
The curious case of the vanishing attorney
Abraham Edgardo Ortega is one of nine people charged in the laundering scheme. (Getty, Department of Justice)
Former Venezuelan oil exec sentenced in $1B money laundering scheme
Former Venezuelan oil exec sentenced in $1B money laundering scheme
Ira Drukier with the Hotel Chelsea (Getty, Patrick McMullan/Getty)
Chelsea Hotel owners sue city for $100M over renovation delays
Chelsea Hotel owners sue city for $100M over renovation delays
RSA's Joseph Strasburg and Judge Lawrence Marks (Getty, Strasburg via Jeffersons Siegel)
Landlord group challenges state eviction ban
Landlord group challenges state eviction ban
arrow_forward_ios

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

Loading...