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Rent Stabilized Complex Owners Try to Block Court-Ordered Sale

By Katie Honan | November 4, 2015 9:11am
 The new owner of buildings at 1726, 1673 and 1675 Woodbine, 1821 and 1896 Cornelia and 1814 Linden streets is asking a judge not to force him to sell the property.
The new owner of buildings at 1726, 1673 and 1675 Woodbine, 1821 and 1896 Cornelia and 1814 Linden streets is asking a judge not to force him to sell the property.
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DNAinfo/Katie Honan

RIDGEWOOD — The owner of a group of foreclosed affordable apartment buildings where tenants have lived for years in abhorrent conditions is trying to convince a judge not to force them to sell the property — saying they're saving it from "predatory landlords" who might take it out of rent stabilization.

Owner Hezi Torati bought the buildings at 1726, 1673 and 1675 Woodbine, 1821 and 1896 Cornelia and 1814 Linden streets in March and filed an appeal last week to stop an imminent auction, saying he has a plan to repay the sizeable debt to the city from previous owners while making necessary repairs to the buildings, according to his lawyer and a spokesman.

Torati, who became an owner of the building in the spring, presented a plan in court that would fix the buildings with an initial $1.5 million investment for major repairs, his spokesman said.

The previous owners, Ridgewood Realty LI, also signed on for the appeal and believe Torati can save the buildings without auctioning them off. 

"We begged the court to let the creditors and the tenants consider what we're trying to do here," said David Carlebach, a lawyer representing Ridgewood Realty LI, who said the largely rent-stabilized units could be in danger if owners looking to capitalize on the neighborhood's "up and coming" status take over.

"We feel that it is a matter of public interest in terms of the overall affordable housing crisis in the city," Carlebach said. "These should be a lightning rod for affordable housing in the city."

A spokeswoman for the city's Department of Housing and Preservation and Development said tenants will remain rent stabilized regardless of the owner.

Ridgewood Realty LI, which is still listed as owner of the buildings as part of bankruptcy court proceedings, filed for bankruptcy on the property in 2012 after racking up debts on the buildings, including hundreds of thousands of dollars in city violations, records show.

Tenants were forced to live under deplorable conditions, including mold and delayed repairs after the building first went into foreclosure in 2008, according to court documents.

HPD then put a lien on the buildings to help make necessary repairs to many of the 36 apartments.

As part of bankruptcy court proceedings, this summer a judge ordered the buildings be auctioned off to the highest bidder to help pay off debts. That auction is scheduled to take place on Nov. 10.

Tenant Hany Taha, 61, has lived in a building on Woodbine Street since 1985.

He said the previous management "played games" and didn't fix issues at his apartment, including treating mold in his bathroom, he said. 

But over the last month and a half, he said, he's had repairs made to his one-bedroom apartment with more on the way.

"They come in and fix everything," he said.

Hany Taha has lived in his apartment on Woodbine Street since 1985, and fears new owners will stop the momentum of repairs made throughout the apartments. (DNAinfo/Katie Honan.)

Torati and Carlebach fear tenants could still get pushed out if other owners come in.

“Tenants deserve a long-term solution that guarantees safety and security for the future," Torati said in a statement.

"Our plan will be a win-win for all parties and ensure that the problems tenants faced in the past will never happen again.”