Construction firm with alleged mob ties worked on Bronx affordable housing project

CWC Contracting helped build 114-unit Creston Apartments in Mount Hope

TRD New York /
Jan.January 06, 2020 08:47 AM
Creston Apartments at 2030 Creston Avenue in the Bronx (Credit: Google Maps, iStock)

Creston Apartments at 2030 Creston Avenue in the Bronx (Credit: Google Maps, iStock)

CWC Contracting, the firm federal prosecutors allege is a front for the mob, didn’t just work on the luxury High Line condo project the XI. The company also worked on a project at the other end of the real estate spectrum: an affordable housing development in the Bronx.

CWC helped complete Creston Apartments, an 11-story, 114-unit affordable housing project in Mount Hope, according to The City. Schur Management was the developer on the project, and MacQuesten Companies was the general contractor. CWC was hired as a carpentry subcontractor.

The project was originally supposed to open in the summer of 2017 but because of construction delays didn’t actually open until last March. It was hit with 41 code violations during the construction process and has since had issues with elevator maintenance.

“I love the building, but I just feel it’s false pretenses,” resident Jessica Liriano told The City. “They’re going to make you think you’re in a nice luxury place, but once you make the commitment to rent, you’re stuck here. They disregard our voices because they’re not going to do anything about it.”

John Simonlacaj

At the XI, federal prosecutors have alleged that HFZ Capital Group managing director John Simonlacaj let the Gambino crime family take hundreds of thousands of dollars from the development through CWC Contracting.

It wasn’t clear from a December indictment whether the Creston apartments were also subject to illegal activity on part of the subcontractor. But according to federal prosecutors, there were two developers in addition to HFZ that were victim to the scheme.

CWC has worked on a number of major developments in New York. [The City— Eddie Small


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)

Nonprofit plans affordable housing development near Essex Crossing

Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
(iStock)

Yes in God’s Backyard: How building affordable housing could be a lifeline for churches

Yes in God’s Backyard: How building affordable housing could be a lifeline for churches
President Donald Trump (Getty, iStock)

Trump tweets that he “may END” Obama-era fair housing regulation

Trump tweets that he “may END” Obama-era fair housing regulation
City Council member Vanessa Gibson, Speaker Corey Johnson and City Council member Brad Lander (Getty)

Why the City Council abandoned affordable housing

Why the City Council abandoned affordable housing
Barika Williams of Association of Neighborhood and Housing Development and Adam Weinstein, CEO of Phipps Houses

Affordable housing experts talk systemic change

Affordable housing experts talk systemic change
A new report finds homes still unaffordable for majority of Americans (iStock)

TRD Insights: Homeownership unaffordable for average wage earner across 75% of US counties

TRD Insights: Homeownership unaffordable for average wage earner across 75% of US counties
Competition for affordable housing in New York City is highest among those who need affordable housing most (Getty, iStock)

Poorest face worst odds in city’s housing lotteries

Poorest face worst odds in city’s housing lotteries
arrow_forward_ios

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

Loading...