Bronx Housing Roundup: the mess of foreclosures

It’s been another active week in the world of housing news, in the Bronx and nationally. The one common theme shouldn’t be too surprising: foreclosures.

Let’s start locally with a couple of stories that exemplify larger trends in Bronx multifamily housing.

Tenants Hold Prayer Vigil; Demand Change

Residents at a portfolio of foreclosed and dilapidated buildings hold candles at a prayer vigil last night. (Photo by Jeanmarie Evelly)

Tenants from ten crumbling Bronx buildings gathered in the courtyard of 2770 Kingsbridge Terrace last night for a an emotional candlelit prayer vigil, fed up with conditions in apartments that many describe as unlivable. Their homes have been in foreclosure proceedings for over a year after private equity firm Milbank Real Estate defaulted on its $35 million mortgage.

"We shouldn't have to live like this," said Sergio Cuevas, whose apartment at 2785 Sedgwick Ave. is plagued by leaks, mold and rotting floors. "I don't invite anyone over to my home."

His neighbor, Chuck Davie, says he won't let his four-year-old son use their bathroom because the mold is so severe. He showers every morning at Bally's Gym to avoid using his leaky bathtub at home.

The vigil was held just hours after a Bronx Supreme Court judge ordered LNR Property LLC, the servicer to the loan that oversees the portfolio of buildings, to pay $2.5 million within the next 30 days on repairs. Housing advocates hailed the decision as a milestone step.

"As far as I know, this is the first decision of this kind," said Jonathan Levy of Legal Services-NYC, which filed a motion on behalf of the tenants to hold LNR or Wells Fargo, the bank that serves as the trustee on the mortgage, financially responsible for fixing the buildings.

City Council Releases Report on Milbank's Woes

Council Speaker Christine Quinn at City Hall last week, announcing a new strategy to deal with distressed buildings like Milbank's (Photo by Jeanmarie Evelly)

Members of City Council and a number of housing advocacy groups unveiled a plan last Thursday to deal with the city's growing number of distressed, overleveraged properties--including 10 Bronx apartment buildings owned by Milbank Real Estate, which have been in worsening states of disrepair since the company went into foreclosure on the properties last year.

The program will elicit the help of pro-bono engineers and architects to assess the damage in properties like Milbank's so that tenants can have a detailed list of their building's problems, and better hold landlords accountable for making repairs.

"We believe it's important for residents to be armed, so they can advocate for their own solutions," said Andrew Reicher, executive director of the Urban Homestead Housing Board, which has been working with Milbank tenants for the past several months.

The first property survey, done by Baer Architect Group and the Northwest Bronx Community and Clergy Coalition, is a nightmarish list of 3,300 housing violations in the 10 Milbank's properties, which are scattered throughout the northwest Bronx. The study confirms what tenants have long been saying.

Complaints include leaking walls and ceilings, broken elevators, rotting floors and months without a working toilet in some apartments. It calculated that the cost of repairs for all the buildings could add up to over $24 million.

"It's reprehensible," said Charlene Barton, who lives in one of the properties at 1576 Taylor Avenue, and says she's been fighting a mold infestation for almost a year. "Why manage a building if you're not going to take care of it?"