Controversial NYC Rent-Stabilized Apartments Deal Gets Federal Approval Amid Criticism
In a move that has been met with skepticism by tenant advocates, a federal bankruptcy judge on Friday formally approved the sale of nearly 5,200 rent-stabilized apartments in New York City to Summit Properties USA.
The deal marks a significant setback for Mayor Zohran Mamdani's efforts to delay the sale and ensure that thousands of open housing code violations are addressed. The city had urged caution amid concerns over Summit's ability to manage the properties responsibly, but Judge David Jones ultimately ruled that the company demonstrated "every good intention" to do so.
The deal is part of a larger bankruptcy process that began eight months ago. Pinnacle Group, the previous owner, filed for bankruptcy last May after failing to maintain its buildings and amassing thousands of open housing code violations.
Summit Properties USA purchased the 93-building portfolio for $451 million. While the company claims to have a "long-term vision" for investing in the properties, tenant advocates remain wary of the deal.
"We've always had slumlords," said Mildred Ross, who has lived in her Brooklyn apartment since 1978. "The building is beautiful. It just needs someone to come in and take care of it."
Critics point to Summit's own track record on housing code violations and concerns over family ties between the company and Pinnacle, which some argue may compromise its ability to manage the properties responsibly.
"We're going to keep the pressure on no matter who wins the auction because we are organized and we deserve safe and dignified homes," said Susan Rinkunas, a writer who has lived in her Brooklyn apartment for three years.
Despite these concerns, Deputy Mayor Leila Bozorg hailed the deal as a "new chapter" for tenants and pledged to continue monitoring Summit's performance. The city is owed nearly $13 million in unpaid housing violations by Pinnacle.
As part of the deal, Levy outlined a plan to resolve more than 6,500 housing code violations within approximately two months, with the remaining issues addressed over six months. However, attorneys for the city and tenant advocates expressed skepticism over the company's analysis and estimated expenses.
The deal has sparked debate over New York City's rent regulations and the role of tenants in advocating for their rights. With many residents facing substandard living conditions, some see this deal as a test of Mayor Mamdani's commitment to addressing these issues.
"This is 5,000 people whose lives hang in the balance," said Steven Banks, Mamdani's nominee for corporation counsel.
In a move that has been met with skepticism by tenant advocates, a federal bankruptcy judge on Friday formally approved the sale of nearly 5,200 rent-stabilized apartments in New York City to Summit Properties USA.
The deal marks a significant setback for Mayor Zohran Mamdani's efforts to delay the sale and ensure that thousands of open housing code violations are addressed. The city had urged caution amid concerns over Summit's ability to manage the properties responsibly, but Judge David Jones ultimately ruled that the company demonstrated "every good intention" to do so.
The deal is part of a larger bankruptcy process that began eight months ago. Pinnacle Group, the previous owner, filed for bankruptcy last May after failing to maintain its buildings and amassing thousands of open housing code violations.
Summit Properties USA purchased the 93-building portfolio for $451 million. While the company claims to have a "long-term vision" for investing in the properties, tenant advocates remain wary of the deal.
"We've always had slumlords," said Mildred Ross, who has lived in her Brooklyn apartment since 1978. "The building is beautiful. It just needs someone to come in and take care of it."
Critics point to Summit's own track record on housing code violations and concerns over family ties between the company and Pinnacle, which some argue may compromise its ability to manage the properties responsibly.
"We're going to keep the pressure on no matter who wins the auction because we are organized and we deserve safe and dignified homes," said Susan Rinkunas, a writer who has lived in her Brooklyn apartment for three years.
Despite these concerns, Deputy Mayor Leila Bozorg hailed the deal as a "new chapter" for tenants and pledged to continue monitoring Summit's performance. The city is owed nearly $13 million in unpaid housing violations by Pinnacle.
As part of the deal, Levy outlined a plan to resolve more than 6,500 housing code violations within approximately two months, with the remaining issues addressed over six months. However, attorneys for the city and tenant advocates expressed skepticism over the company's analysis and estimated expenses.
The deal has sparked debate over New York City's rent regulations and the role of tenants in advocating for their rights. With many residents facing substandard living conditions, some see this deal as a test of Mayor Mamdani's commitment to addressing these issues.
"This is 5,000 people whose lives hang in the balance," said Steven Banks, Mamdani's nominee for corporation counsel.
. I mean, shouldn't we be worried that Summit Properties USA is just gonna be another slumlord, treating people poorly? I remember back when my aunt used to live in NYC, rent-stabilized apartments were actually a thing of pride - it meant she could afford a real home, not just some cramped studio apartment. Now, it feels like the city's losing control over who gets to manage these buildings... what about all those open housing code violations? It's like, shouldn't we be focusing on fixing that stuff first before selling it off? 
I'm still holding out hope that Mayor Mamdani will find a way to make this work for tenants, but so far, it doesn't look good 
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I'm not sure about this one... it seems like a pretty big deal for Summit Properties USA to get their hands on those rent-stabilized apartments, especially considering all the controversy surrounding Pinnacle Group's handling of things. 
The city is basically giving them a free pass because they promised to fix up the properties and make everything shipshape, but I'm not convinced it'll be that easy for Summit.
It sounds like a bunch of corporate speak to me. I mean, 6,500+ housing code violations can be addressed in two months? That's either extremely optimistic or a PR stunt 
?! like, what about all the ppl who live here? They deserve better than some rich folks exploiting them for profit 
. all they did was shell out some cash for a few million bucks and suddenly they're all good? what's next? are we gonna let Summit just waltz in and raise the rents on everyone else without so much as a whimper? 
.
and i'm feeling really worried about this whole rent-stabilized apartments deal 
. like, can't we find a way to keep all these ppl safe & happy? 
the thought of summit properties usa taking over & potentially ignoring those 6,500+ housing code violations is just too much for me 
i know it's not an easy situation, but as someone who cares about community & well-being, it's hard to see ppl being pushed around by big corporations 
. maybe we can't stop summit properties usa from taking over, but can't we at least make sure they follow through on their promises? 
Anyway, I'm all for ppl makin money, but like, Summit Properties USA sounds sketchy... dont trust 'em yet 
And btw, has anyone heard of Brooklyn? I've been living here for like a year now and I still dont know where it is... 
all we need is someone who actually cares about these ppl and their homes 
btw did anyone else know sumit properties usa was even in bankruptcy 8 months ago? 
. It's actually kind of refreshing that they're committing to addressing all these issues within two months 
. And let's be real, some people have been living in those apartments for decades like Mildred Ross in Brooklyn...it's not like she's gonna get forced out or anything 
. Of course, I can see why tenant advocates would be skeptical, but I think Summit has shown all the right intentions