NYC Rent-Stabilized Apartments Sold Amid Controversy Over Repairs
A federal bankruptcy judge has given the green light for a real estate firm, Summit Properties USA, to purchase nearly 5,000 rent-stabilized apartments in New York City. The deal has sparked outrage among tenants who had fought against the sale, claiming that the new owners would fail to address the long-standing issues with the buildings.
The sale of the apartments was part of a bankruptcy process initiated by Pinnacle Group, which had accumulated thousands of open housing code violations, including broken ceilings, mold, and vermin infestations. The company claimed it lacked the funds to repair these conditions and pay its debts.
However, Mayor Zohran Mamdani's administration stepped in, attempting to delay the deal and push for legally binding commitments from Summit to address the issues. Despite this, Judge David Jones approved the sale, stating that he was "satisfied" with a plan to resolve over 6,500 housing code violations outlined by Summit's chair, Zohar Levy.
Levy claimed that his company had shown a commitment to running the properties properly and had articulated a plan to take necessary steps. However, tenants and attorneys for the city have expressed skepticism about Summit's ability to manage the buildings and its accounting of building needs.
The sale marks a significant blow to Mayor Mamdani's efforts to improve conditions in rent-stabilized apartments, which have been plagued by neglect and disrepair. Tenants' organizations have been vocal about their concerns, with some residents documenting the crumbling conditions of their homes.
As one resident put it, "We've always had slumlords... The building is beautiful. It just needs someone to come in and take care of it." The deal has sparked fears that Summit will replicate the same practices of neglect that led to Pinnacle's downfall.
The sale also raises questions about family ties between Levy and Pinnacle's CEO, Joel Wiener, as well as Jonathan Wiener's involvement in purchasing and operating thousands of rent-stabilized apartments. While Judge Jones was convinced by Levy's testimony, he acknowledged the concerns surrounding these connections.
With the deal now final, tenants will be watching closely to see if Summit lives up to its promises. As one tenant noted, "We are going to keep the pressure on no matter who wins the auction because we are organized and we deserve safe and dignified homes."
A federal bankruptcy judge has given the green light for a real estate firm, Summit Properties USA, to purchase nearly 5,000 rent-stabilized apartments in New York City. The deal has sparked outrage among tenants who had fought against the sale, claiming that the new owners would fail to address the long-standing issues with the buildings.
The sale of the apartments was part of a bankruptcy process initiated by Pinnacle Group, which had accumulated thousands of open housing code violations, including broken ceilings, mold, and vermin infestations. The company claimed it lacked the funds to repair these conditions and pay its debts.
However, Mayor Zohran Mamdani's administration stepped in, attempting to delay the deal and push for legally binding commitments from Summit to address the issues. Despite this, Judge David Jones approved the sale, stating that he was "satisfied" with a plan to resolve over 6,500 housing code violations outlined by Summit's chair, Zohar Levy.
Levy claimed that his company had shown a commitment to running the properties properly and had articulated a plan to take necessary steps. However, tenants and attorneys for the city have expressed skepticism about Summit's ability to manage the buildings and its accounting of building needs.
The sale marks a significant blow to Mayor Mamdani's efforts to improve conditions in rent-stabilized apartments, which have been plagued by neglect and disrepair. Tenants' organizations have been vocal about their concerns, with some residents documenting the crumbling conditions of their homes.
As one resident put it, "We've always had slumlords... The building is beautiful. It just needs someone to come in and take care of it." The deal has sparked fears that Summit will replicate the same practices of neglect that led to Pinnacle's downfall.
The sale also raises questions about family ties between Levy and Pinnacle's CEO, Joel Wiener, as well as Jonathan Wiener's involvement in purchasing and operating thousands of rent-stabilized apartments. While Judge Jones was convinced by Levy's testimony, he acknowledged the concerns surrounding these connections.
With the deal now final, tenants will be watching closely to see if Summit lives up to its promises. As one tenant noted, "We are going to keep the pressure on no matter who wins the auction because we are organized and we deserve safe and dignified homes."
they've been neglected for so long its like a never-ending saga. Summit Properties USA thinks they can just come in and fix everything overnight? please, the city's efforts to delay the sale were probably too little, too late 
5000 apartments is a huge deal, and if those tenants don't get the help they need, its gonna be a disaster 
i mean what about all the broken ceilings and mold and vermin infestations? do they just magically disappear now that new owners are at the helm? no way, it's like, come clean and fix it already!
how did everyone feel about it? like sumit's plan sounds good but what if they just do the bare minimum and leave the tenants to deal with the problems themselves? also idk how much of a difference judge jones' approval will make since we've seen companies come in before and still neglect their properties
. AND WITH THOSE FAMILY TIES BETWEEN LEVY AND PINGALL, I'M EVEN MORE CONCERNED ABOUT THE WHOLE SITUATION. WE NEED TO KEEP THE PRESSURE ON SUMMIT TO MAKE GOOD ON THEIR PROMISES AND FIX UP THOSE BUILDINGS. I MEAN, IT'S NOT LIKE THEY'RE JUST GOING TO WALK AWAY FROM ALL THESE PROBLEMS, IS IT? 
. But at the same time, I get why people are skeptical... I remember when Facebook was still a new thing (2004) and Mark Zuckerberg was some young whippersnapper trying to make it big 
. Now, he's basically a billionaire! It's like, how does this happen? 
. It just sounds like a recipe for disaster... I mean, who gets to decide the fate of thousands of homes without having to answer to anyone? It's like, hello! Accountability is key 
.
, and I hope Summit really does live up to its promises (though I've got my doubts 
). We should all be keeping an eye on this situation... it's definitely a wild ride 
.
Can't believe this is happening! Those apartments have been neglected for years and now they're just gonna get sold to some company that's probably never even lived in NYC. I mean, what even is the point of having a plan to fix all these problems if the people who are gonna be living there aren't even gonna get their money's worth? 
It's not like Summit Properties USA has any history of taking care of anything other than making bank.
can't trust Summit's CEO Zohar Levy's claims, his ties to Pinnacle are sketchy and it'll be interesting to see how he navigates the whole thing 
. Tenants are right to be worried - these buildings have been neglected for years and now they're just gonna get transferred from one slumlord to another 
. We need real action here, not just lip service from the city about "addressing issues"... what does that even mean in practice? 
.
... it's not fair that they're being sold these apartments without any guarantees that things will get fixed.
... tenants are right to be skeptical and organize their efforts to make sure they get the respect they deserve. this whole situation just feels really unfair 
. The thought of those 5,000 apartments falling apart because some greedy company doesn't want to fix them is just heartbreaking 
.
. I mean, come on, can't you trust someone when they're trying to run a business? It's like your buddy Jimmy promising to keep your mom's house clean for her birthday party if he gets paid 
. These tenants are fighting hard for their homes and I applaud them for it! We need to keep pushing for change and make sure that those in power listen to us 
. it's like they're just pawns in this game of real estate and finance 
. but what's really going on here is a lack of accountability 
. and what does this say about our system when a company can accumulate thousands of housing code violations without facing any real consequences? 
.
And now tenants have to trust that Summit Properties USA is gonna magically make all these issues disappear without any strings attached... it's not like we've seen this before 
.
. i feel for them, they're gonna be stuck with the same issues or worse if Levy doesn't follow through on his promises. 
. And now, Summit Properties is going to be the ones fixing them (or not, who knows?). The thing is, tenants are already paying a premium for these apartments because they're rent-stabilized, so it's like they're getting robbed twice 
. It's like, come on, judge! Can't you just see through the corporate speak?
. And what about the fact that Jonathan Wiener is basically running these apartments? It's like a never-ending game of musical chairs with these people.
i mean, we're already struggling to afford our own homes as it is. can't they just prioritize the people living there for once? 
also, the fact that joel wiener and jonathan wiener have family ties to pinnacle group raises some major red flags... does this mean summit will just be another version of pinnacle?