A landlord with hundreds of property violations is facing foreclosure at two Bronx buildings with nearly 500 units combined.
Fulton Towers at 530-540 E 169th St. in the Bronx
Fannie Mae alleged in court filings Tuesday that Fordham Fulton Realty Corp. and its guarantor, Rajmattie Persaud, defaulted on a $61.5M mortgage tied to Fordham Tower and Fulton Towers at 480- 490 E 188th St. and 530-540 E 169th St.
Persaud first failed to make the required monthly payments on April 1, 2020, but was granted seven separate forbearance agreements — common among many lenders that fell into a habit of extending and pretending during the pandemic. The borrower made various payments during that time, up until September 2024, according to the complaint. From then on, the lender states that no payments were made.
That’s not the only issue, according to Fannie Mae.
The landlord allegedly owes a number of liens on the properties for unpaid utilities, including about $4M to the New York City Water Board and $3M to Consolidated Edison. Approved Oil has also filed liens on all fixtures and equipment at both locations. All liens qualify default under the loan agreement with Fannie Mae, according to the complaint.
Additionally, the Environmental Control Board has filed hundreds of violations against both properties, totaling nearly $705K in fines. A list of violations filed in court paint a picture of poorly maintained buildings riddled with rodents and other pests.
In July, on behalf of Fannie Mae, the Nova Group reached out to Karan Singh, who is identified as a representative of the borrower, to schedule a property inspection. But no one responded to those requests, according to the complaint. The lender claims that not cooperating in such situations also results in default under the loan agreement.
Singh isn’t named as a defendant in Fannie Mae’s complaint. Another lawsuit, filed by the Legal Aid Society last year, states that Singh leads Fordham Fulton Realty alongside Persaud.
Singh landed 17th place on the city’s 2023 Worst Landlord Watchlist. At the time, he had two buildings with 950 violations, according to the list, released annually by New York City Public Advocate Jumaane Williams.
71-05 and 71-11 37th Ave. in Jackson Heights, where other preforeclosure documents have been filed
The Legal Aid Society’s lawsuit, filed on behalf of 62 tenants at Fulton Towers, claimed that 600 Department of Housing Preservation and Development violations were filed at the Fulton Towers, with 200 classified as “immediately hazardous.” The building also had 30 Department of Buildings and 40 Environmental Control Board violations, according to the complaint.
Additionally, the legal nonprofit said there were once over 1,200 violations at the property, many of which were removed from the HPD database without tenants noticing an increase in repairs. When repairs were made, the fixes were allegedly not long-lasting, with leaks plastered and mold painted over.
Fordham Towers residents held a rally to protest their living conditions in July 2024. During the protest, an elevator broke, trapping tenants inside, according to the Bronx Times.
Tenants told the publication that conditions worsened at the rent-stabilized building in 2009, when Fordham Fulton Realty took over. At many other regulated buildings in the city, violations have picked up more recently as a result of 2019 laws that severed sources of income for landlords.
The Fannie Mae lawsuit cites other instances in which the landlord was found to be negligent.
In 2023, the HPD obtained an $8,500 judgment against the landlord after a court found that tenants weren’t provided heat and hot water. This year, the HPD obtained three more judgments totaling roughly $16M.
The 2023 judgment was docketed as a lien, while the others were docketed as a lis pendens. Both constitute default under the loan agreement, according to court documents.
On June 23, Fannie Mae notified Persaud that he and his company were in default as a result of not making monthly mortgage and water payments. Then, on Aug. 12, the lender sent another letter, notifying the borrower of the various other defaults.
Foreclosure filings against 71-05 and 71-11 37th Ave. in Jackson Heights in 2023 make similar accusations against Persaud. In addition to missing mortgage payments, the landlord allegedly had various violations at the properties as well as owed liens due to unpaid utilities and taxes, amounting to defaults under the related loan agreement.
That complaint similarly doesn’t name Singh as a defendant, though he is listed as a managing agent in other court records. In 2017, The Real Deal reported that Singh and Persaud purchased the rental buildings for $31.5M.
Fordham Fulton Realty, its attorney in the Queens foreclosure and Fannie Mae didn’t respond to Bisnow’s requests for comment.