Mayor Zohran Mamdani and a citywide network of tenants have opened a new front in a fight to block the sale of more than 5,000 rent-stabilized apartments from a bankrupt landlord to a company they say has a checkered ownership history \u2014 this time enlisting the support of New York Attorney General Letitia James.<\/p>\n
The top housing official in James\u2019 office on Monday filed documents<\/a> in court supporting the city\u2019s latest objection to the looming bankruptcy sale of 93 deteriorating apartment buildings owned by real estate firm Pinnacle. The filing comes days after the company Summit Properties USA bid $451 million for the buildings.<\/p>\n Brent Meltzer, the head of the attorney general\u2019s housing protection unit, told the court that James supports the city\u2019s efforts to delay the sale due to \u201csignificant concerns\u201d about Summit\u2019s ability to maintain its existing portfolio of rent-stabilized apartment buildings.<\/p>\n In court papers, Meltzer described how Summit\u2019s 3,000 current apartments have more than 4,000 open housing code violations, mirroring the dangerous conditions that Pinnacle tenants have long faced in their apartments. A citywide network of tenants organized after Pinnacle declared bankruptcy last year in an effort to steer the sale to a purchaser who they say would be more responsible.<\/p>\n Meltzer also highlighted Summit\u2019s business links with real estate firms Chestnut Holdings and Denali Management. A Gothamist analysis found<\/a> Chestnut executive Jonathan Wiener, brother of Pinnacle CEO Joel Wiener, signed more than 50 deeds and loan documents for buildings currently listed on Summit\u2019s website.<\/p>\n The attorney general sued Chestnut, Summit\u2019s partner, for lead paint violations<\/a> at its buildings in 2020. The firm later agreed<\/a> to pay $300,000 in penalties. Executives for Chestnut and Denali have appeared on the public advocate\u2019s list of \u201cworst landlords<\/a>\u201d based on conditions in buildings they own and manage with Summit as recently as last year.<\/p>\n Meltzer urged federal bankruptcy Judge David Jones to halt the sale, or \u201cat least require Summit to provide a much more detailed explanation about how it intends to reverse its history of purchasing buildings that accrue high levels of violations,\u201d as well as what management company it intends to hire to run the Pinnacle buildings.<\/p>\n A confirmation hearing for the pending sale is scheduled for Thursday.<\/p>\n Summit spokesperson Jordan Barowitz said Chestnut and Denali are not involved in the deal to acquire Pinnacle properties and the company will soon file new documents describing its plan to correct the thousands of outstanding violations in the buildings.<\/p>\n \u201cSummit is ready to work with the city, [the Department of Housing Preservation and Development] and the residents to improve and preserve this much needed affordable housing,\u201d Barowitz said. \u201cDelay will only slow the opportunity to make improvements that benefit the residents.\u201d<\/p>\n The company told Gothamist on Monday that the bankruptcy process reduced debt on the Pinnacle buildings by $275 million, freeing up money that Summit can use to invest in repairs and maintenance.<\/p>\n In an unsigned email, a representative for Denali said the company attempts to address all complaints from tenants as soon as they arise and is not involved with the bid for Pinnacle\u2019s properties. Chestnut did not immediately respond to requests for comment on the attorney general\u2019s accounting of their ownership practices and poor condition of their buildings.<\/p>\n