Schumer To Private-Equity Landlord That Abandoned 19 Bronx Buildings: "You Are The Lowest Of The Low!" - Also Slams Fannie For Facillitating Bad Deals

In The Bronx, New York, the New York Daily News reports:

• The vultures are coming home to roost. Affordable housing advocates sounded the alarm during the real estate boom, as private equity firms bought up dozens of rent-controlled buildings across the Bronx. The advocates warned the investment firms would seek to maximize their returns by pushing existing tenants out and jacking up rents. After the boom went bust, an even worse effect of "predatory equity" came to light: Overleveraged landlords are simply abandoning their buildings altogether.

• Last week, Sen. Chuck Schumer, joined by Rep. Jose Serrano and Borough President Ruben Diaz Jr., came to 1804 Weeks Ave. to support its tenants, who were abandoned by their landlord, Ocelot Capital Group.

• "You are the lowest of the low. You are vultures preying on these tenants," Schumer said of Ocelot, which has abandoned 19 Bronx apartment buildings to disrepair and foreclosure. Schumer also slammed Fannie Mae, the government-backed mortgage broker, for facilitating Ocelot's original overleveraged loan and then planning to sell the foreclosed buildings in an online auction, which Schumer called an invitation to more speculators. [...] Schumer pointed out the original Ocelot mortgages did not even meet Fannie Mae's own criteria.

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• According to tenant advocates, Ocelot's 19 buildings have a total of 2,000 C violations - the most life-threatening kind - including broken locks, broken windows and ceiling holes.

For the story, see Tenants stuck in dilapidated buildings as landlords flee.

Click here to see a slideshow of conditions at one building.

In related stories, see:

• City Limits: How To Structure A Good Purchase Of Bad Debt (As a group of decrepit buildings in the Bronx moves closer to getting a new owner, housing officials, developers and activists negotiate the best way to obtain reliable management),
• Crain's New York Business: Fannie Mae urged to abandon Bronx mortgage auction (Sen. Schumer, housing advocates demand that Fannie Mae halt an online auction of mortgages on 19 foreclosed Bronx buildings).