A big update in the ongoing Milbank saga--the portfolio of ten apartment buildings that have fallen into disrepair since Milbank Real Estate went into foreclosure proceedings on them.
Tenants have been trying to get LNR, the servicer that oversees Milbank's $35 million mortgage, to help finance some of the 3,000 housing violations that need repairing, and Legal Services-NYC Bronx had filed a legal motion on behalf of the residents this year to try and make that happen.
Meanwhile, LNR is supposedly looking to sell the buildings to a mystery buyer in a deal that was rumored to be closing today. But according to Dina Levy of the Urban Homesteading Assistance Board, LNR came to Bronx Supreme Court and announced that they weren't ready to close on the transaction. The judge then ordered the Florida-based company to fork up $2.5 million in the next 30 days to start fixing some of the apartments' many problems.
"As far as I know, this is the first decision of this kind," said Jonathan Levy, of Legal Services-NYC.
The order, however, could be rendered moot if LNR's deal to sell the properties goes through in the next month. We'll have more details on this, and from tonight's candlelight vigil, later.
Wednesday, September 29, 2010
Judge Orders Servicer to Pay $2.5 Million to Fix Milbank Buildings
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