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Tenants face deplorable conditions in defaulted building

April 23, 2010
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BRONX, NY — Tenants of an apartment building whose owner defaulted on loan payments as a result of the housing crisis are looking for answers about who will fix the problems in their building, according to the Atlanta Journal Constitution.
A New York City housing inspector found more than 4,400 housing violations in the 548 units of the building but is having trouble placing the responsibility for the repairs on a specific person or company, the story stated.
According to the story, tenants from a total of 10 buildings with similar circumstances recently filed suit against Wells Fargo, the trustee or administrator for the commercial mortgage-backed security that includes the failed loans on the buildings, and LNR Partners Inc., the special servicer appointed to handle the properties.
Complaints from the outraged tenants include everything from mold to collapsing ceilings and vermin infestations to lead-based paint hazards, the story noted.
New York City Council Speaker Christine Quinn said: "No family should have to live in deplorable conditions because of unstable investments someone else made."
According to the article, the tenants'' lawyers are arguing that the responsibility for paying for repairs should fall on both the investors that now own the mortgage and the companies that administer their investment.
Tenants complain that many of the issues they are facing were present and never properly addressed before the building''s loan was defaulted on and Milbank Real Estate still had control over the finances, the story added.
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