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
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”
Some landlords say they plan to close the door to vacant apartments and wait for the laws to change (Credit: iStock)
Creative ways NYC landlords are getting around the new rent rules
Creative ways NYC landlords are getting around the new rent rules
A photo illustration of the Ram's Head Inn at 107 South Ram Island Drive in Shelter Island Heights (LoopNet, iStock)
On the dock-et: Shelter Island inn owner sues town
On the dock-et: Shelter Island inn owner sues town
From left: Brookfield’s Brian Kingston and Hospitality Investors Trust's Jonathan P. Mehlman with Hilton Garden Inn Monterey (Brookfield, Hospitality Investors, Hilton)
Brookfield hotel REIT sues insurers for denying pandemic claims
Brookfield hotel REIT sues insurers for denying pandemic claims
790 Madison Avenue, Thor Equities CEO Joe Sitt and Bert Dweck (Google Maps, Thor and Premier Equities)
Fashion house: After 2 years and 2 lawsuits, Sitt and Dweck still haven’t paid
Fashion house: After 2 years and 2 lawsuits, Sitt and Dweck still haven’t paid
Morgan Stanley's Ron Vinder and 212 West 18th Street (CORE Real Estate, Morgan Stanley, iStock)
Condo board fails to evict buyer of discounted 1MDB penthouse
Condo board fails to evict buyer of discounted 1MDB penthouse
Sovcombank board member Mikhail Vasilyevich Klyukin and renderings of 238 East 3rd Street (left) and 192 8th Avenue (right) (Sovcombank, Compass, iStock)
Sanctioned Russian’s disputed developer in attempt to “blow up” projects, suit says
Sanctioned Russian’s disputed developer in attempt to “blow up” projects, suit says
arrow_forward_ios

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

Loading...