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New York

Domain’s Greenpoint residents withhold rent over gas, heat issues

Developer faces concession requests at 1133 Manhattan Avenue

Domain Companies CEO Matt Schwartz and 1133 Manhattan Avenue (Domain, Google Maps, Getty)
Domain Companies CEO Matt Schwartz and 1133 Manhattan Avenue (Domain, Google Maps, Getty)

Domain Companies is contending with gas and heat issues at its luxury multifamily building in Greenpoint, where some residents are withholding rent after leaks.

Eighty-seven residents of the 210-unit building at 1133 Manhattan Avenue have withheld rent in recent weeks, Gothamist reported. Dissatisfied tenants are exploring legal options for securing rent cuts and concessions from Domain after management told residents in October it was not ready to offer concessions until it understood the scope of the problems.

Some residents alleged frequent gas leaks causing long-term health problems, such as damaged lungs. Many are fearful of using the heat, which was turned on earlier this month after a dormant period.

Management has loaned some tenants hot plates to cook, but require them to be returned after meals. The cooking gas remains off, with Domain telling tenants it expects work to be done “very soon.”

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Domain is benefiting from the 421a tax program, which expired in June and cooled the multifamily development market. Under the terms of the program, Domain received a tax break for setting aside half of the units of the 2014-built building for affordable housing. The developer last year paid a measly $100,000 in property taxes.

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The Greenpoint building was the site of a crowded housing lottery when it opened. Nearly 60,000 people applied for the 105 affordable housing units available. Some of those who won the lottery are expressing trepidation about speaking out against problems at the building and withholding rent, fearful of losing their affordable homes.

Elsewhere in Brooklyn, Domain is busy with development. The firm in August closed on a $142 million construction loan for a 270-unit in Gowanus, which already secured its own 421a tax abatement. The collaboration with Vorea Group will include 25 percent of units set aside for affordable housing.

— Holden Walter-Warner

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Domain CompaniesGreenpointRental Market