HPD Will Now Be "Proactive" in Repairing Milbank Buildings

Just a little followup to Greg's post below, about HPD's promise for extensive inspections and emergency repairs on the Milbank properties, a portfolio of crumbling Bronx apartments that went into foreclosure in 2009.

As Greg said, HPD Commissioner Rafael Cestero and City Council Speaker Christine Quinn said today that the city will more aggressively address Milbank's plight by making thorough inspections, issuing violations and starting repairs on the most health-threatening problems, like apartments with lead paint in them.

Cestero, who took a tour of three of the buildings this week with tenant leaders and organizers from the Northwest Bronx Community and Clergy Coalition, said the conditions are some of the worst he's ever seen.

"I have to say, in my 21 years working in the affordable housing industry in this great city, I have never been more shocked, angered and frustrated," he told reporters on a conference call this morning.

HPD normally sends out inspectors to look at an apartment when someone lodges a housing complaint with 311. But officials said today that taking this "proactive" approach with Milbank--going in to make an inspection in an apartment even if no one has complained about it yet--will make the difference in turning the buildings around.

"That should send a message to any potential buyer," Quinn said. "HPD is going to be on the owner 24/7."

Milbank Tenants Still Waiting for Repair $; HPD Plans to Take Action

Milbank's portfolio of Bronx properties have been in varying states of decline since foreclosure started in 2009.  (File photo by Jeanmarie Evelly)

It's been nearly a month since a Bronx Supreme Court Judge ordered LNR Property Corp., the servicer that oversees a now infamous, dilapidated portfolio of foreclosed Bronx buildings, to start paying for repairs on the apartments (for some background, see here, here and here.)

But while LNR's 30-day deadline for making the payment approaches this week, they haven't put any no money into repairs so far, according to advocates working on the case.

"In a lot of ways, we're waiting, which is uncomfortable," said Dina Levy of the Urban Homesteading Assistance Board (UHAB). LNR's lawyers are preparing to appeal the judge's payment order, she said. 

LNR was told they had 30 days to fork over $2.5 million toward renovations--much less than what experts say the actual repairs will cost, but still a milestone victory for the tenants and housing advocates who had been fighting for months to get something done.

Meanwhile, a proposed deal to transfer the mortgage on ten of the properties to a mystery buyer--which Crain's identified as Riverdale-based Chestnut Holdings--has yet to close.

New Housing Commissioner Named

We've just learned from Enterprise Community Partners that Rafael Cestero has been named as the new Commissioner for the City's Department of Housing Preservation & Development (HPD). Cestero currently serves as the senior vice president, regional executive of the eastern region for Enterprise Community Partners, Inc., a national nonprofit that has worked extensively with local groups building and renovating affordable housing in the Bronx over the past two decades. Enterprise was recently named Fast Company magazine's Social Enterprise of the Year and you can read about it on Amazon.

Cestero has worked for Enterprise since 1993, except for a stint from 2004 to 2007 as an assistant commissioner HPD under new HUD Secretary Shaun Donovan. Enterprise is obviously happy about the appointment:

"New York City is fortunate to have someone with Rafael’s expertise in the housing and community development field and his passion for affordable housing to lead HPD. Enterprise looks forward to continuing its partnership with the city of New York and to work along side our longtime colleague and friend."

The west Bronx will hopefully benefit as well, as Cestero has a history of working closely with a number of Bronx housing nonprofits.

The New York Observer is also confirming the appointment.

Update: Here is the official press release from HPD regarding the appointment.