Shortly before his 2nd birthday this past spring, doctors diagnosed James with rhabdomyosarcoma, a form of cancer often found in children. He has been undergoing intensive chemo and radiation therapy, and while the results are encouraging, a long course of treatment remains ahead of him. The related medical expenses have been overwhelming for his family.
James' father Damian Panitz, a longtime East Village resident who is a teacher and technician at NYU, said that while the event was a success and raised funds to help with medical expenses, the family now faces a new challenge.
Damian and his wife Kate Perry recently learned that their landlord, Steve Croman of Croman Realty/Croman 9300, is nearly doubling their rent on East First Street from $2,100 to $4,100 a month.
"We absolutely cannot afford this price bump," Damian told me. "And to move in the middle of my son's treatment could be disastrous to his health."
So, when paying the October rent in person at the Croman office on Broadway, Damian's wife Kate outlined the situation to a Croman rep, explaining that they needed one more year until James is healthier.
Per Damian:
She explained that we could not possibly sign a lease for $4,100 but pleaded that if our rent were to raise would he be so nice to consider a 10 percent raise? His attitude was snarky. He said they are running a business and not a charity and he could possibly find something cheaper for us somewhere else.
She explained again that moving out in January could be detrimental to his condition, not to mention we work nearby and the ability to check on our son during our breaks is essential. He then said "so you want me to do you a favor?" She said no, do a favor for a 2 year old boy with cancer. It's just one more year.
Damian says they were planning on moving after Croman bought the building 18 months ago. However, James' illness has complicated any move.
"We figured we would wait out the lease and go. However, since our son has been ill, it is suggested we keep him where he is until he hopefully regains his health."
The family hopes to continue to plead their case to Croman. As a backup, they'll try to quickly find another affordable apartment in the neighborhood, where Damian and Kate want to stay.
"My mother's family emigrated to St. Mark's Place in the early 1920s from Bratislava, Slovakia," Damian said. "My uncle has lived in the East Village for 45 years," he said. "And now I would like to raise my son here."
56 comments:
Mind-boggling.
a lot confused how a landlord can legally raise the rent that much? can someone pls explain...doesnt make any legal sense. i thought market rate hit once an apt was $2500? and if you make something like $250K?
Croman is the worst, I almost rented w them, but got a bad feeling on my initial dealings. Of course, my current rent isnt great, they just sent me a lease renewal for 16%. I guess thats better than double, but I was still taken aback.
If all this shit is true then rocks should be thrown at this Croman guy. Sub human.
I unfortunately rent from Croman. Never again. They're the worst.
This is scary. Are we to assume this apartment is not rent stabilized? This might be a stretch given that NYU isn't known as the most giving organization, but they own those big apartment buildings for the faculty. The apartments are huge. Is it possible they might be able to make an exception and house this NYU employee and his family in one of the apartments for at least a year? It's worth asking. I am sure the NYU community would like to help one of their own.
When people ask why I'm moving out of the city after 19 years here, I think I'll show them this post. If there's any justice in this life, Steve Croman will burn in hell for what he's done to this town and especially to these people.
@ anon 8:18.
Clearly this apt. is already deregulated and market rate.
The $2500 rent deregulation applies to new leases once the legal rent surpasses that amount. The income limit can apply to existing rent regulated apts. However, once an apt becomes market rate a landlord can charge whatever they want. It can be less than $2500 or as high as the market will bear. If in fact the apt in question is not market rate and the tenants do not make more than $250,000, then Croman would not be able to raise the rent to $4100. I suspect that is not the case.
8:18, if an apartment is market (that is, not rent-subsidized, no matter what the actual rent) the landlord may legally increase the rent as much as he/she/it chooses.
But given the above, Croman the company and this particular representative of the company can go rot in hell as the pieces of shit they are.
632 Broadway
The landlords aren't "running a business," per se: they're managing an investment portfolio. And just as different types of investments enjoy different risk/reward ratios, they also entail different sets of responsibilities.
When your investment is someone else's home, the risk/reward ratio is pretty sweet, but the responsibilities are unique and sometimes demanding. Landlords need to understand and appreciate this; and we all ought to see that more of these responsibilities are codified in law so that irresponsible landlords can't so easily wreak so much havoc on our families and neighborhoods.
My god man, my heart is so heavy I can barely type this.
Please let me know what I can do. Anything!
If it's a stabilized apartment, they have a case, but if it was just a cheap market-rate apartment, per the NYC RGB "Owners of market-rate housing are allowed to raise rents to whatever rate they feel the market can bear."
Quiet tude has it right..a lot of the new "landlords" are essentially investors who want to squeeze as much money as possible out of every building they buy.
While this takes despicable to a new level because a sick child is involved, this isn't an isolated case or even an uncommon one, and it's not just Croman.
I was surprised at all the publicity the three 7th street buildings got when leases were not renewed because unreasonable rent increases are the same thing and no one ever talks about them or puts up a fight, and they happen all the time. For new buyers who want to kick out "low-income" tenants in order to renovate the apartments and double the rent rolls and the value of the building, it's as easy as raising the rent by an insane amount that they know will force people to move. And tenants don't even have the right to complain because after all they did get an "offer". It happened to me..over 50% increase, and it's happening to a lot of people all over the neighborhood. Investors are specifically eyeing older walk-up buildings in trendy neighborhoods like LES and EV because there is a lot of potential for profit in renovations.
If your building is up for sale and you are a market rate tenant who pays under 2,500, you should probably start packing your bags.
@ anon 8:18
To clarify, when I said that $2500 a month rent deregulation applies to new leases, I meant new tenants. If you are a stabilized tenant and your rent legally surpasses $2500, the apt remains stabilized until you move out. At that time the apt would become deregulated.
I'm hopeful that Mr. Croman will let them stay on longer at just the 10% rent increase.
My apartment is technically rent-stabilized, but there's a rider in the lease where the landlord agrees to rent the apartment for a lower rate than they can legally charge under rent-stabilization - which is 50% higher than what we pay. I wonder if this is what happened here? Regardless, this story is ridiculously sad. What a disgusting person. What happened to a little compassion, even in business?
I hope the the family is working with GOLES or Tenants and Neighbors to help fight this.
I am a landlord and this is obviously a terrible situation. Cancer and life threatening diseases are extremely sensitive and without any doubt the media and public demand the landlord to be reasonable. The problem is that isolating an individual case and blaming the landlord for a renter's unfortunate situation - financial hardship, divorce, death, health, is just opening a can of worms for dozens, if not hundreds of cases for large landlords who own many buildings and units. In this case I know for a fact that Croman bought a run down, well located building from a previous owner who never once renovated units. The $2100 rent was a cheap rent on a large unit, that once fully renovated would command between $3,000-4000. It is completely in the right of the landlord to take possession of unrenovated free-market apartments if the existing tenants arent willing to pay a large increase, which is preventing the new owner from capturing the buildings upside. People must understand that investor and buyers value properties on their upside of future rent growth. This does not involve "kicking out" old ladies and stabilized tenants. These are free market tenants that pay more than $2,000 a month. Buildings arent traded like baseball cards. Buyers risk alot of money to make investments and run their companies. Me personally, would have compassion for this poor child. Croman is notorious for having no sympathy, but to his defense he owns hundreds of buildings, thousands of units, and has lost touch with the concept of isolated situations if hes legally entitled to raising rents.
This is absolutely devastating. My heart literally breaks for this family. The last thing they need is to take on a landlord right now- which is an exhausting endeavor in itself. Have they talked to the people at GOLES? Wasim Lone is an angel. They also have connections with the local press. Perhaps holding a press conference in front of the landlord's office? Have they contacted any local publications? I'm SURE the neighborhood would rally behind them! What about the news channels? The Post? This sort of human interest story is SURE to garner attention! Perhaps if the landlord were bombarded by calls from reporters, they would be more willing to negotiate!
This family needs to know they're not alone! We are here to help- myself, and I'm sure so many others!!! Just let us know how!
11:20AM, I appreciate your comment, but this sentence gave me pause:
"the problem is that isolating an individual case and blaming the landlord for a renter's unfortunate situation - financial hardship, divorce, death, health, is just opening a can of worms for dozens, if not hundreds of cases for large landlords who own many buildings and units."
This sentence does a pretty good job of justifying the amoral (which are actually immoral) actions of Croman (and their ilk). Croman has decided that the pursuit of $24K over the next 12 months is more important than a child with cancer. That is the bottom line. It is disgusting and it is unsustainable.
You cannot even rent a Studio in the city currently for 2100. People seem to forget all the money they saved while they were paying under market rent for years. If this is a fairly large apartment if renovated it would command 4000+.
People also seem to forget that these landlords have to PURCHASE these buildings in the first place and take the risk financially. It is a piece of property they own.
Another large reason landlords have to charge the rates they do in this city is because a large percentage of Manhattan apartments are regulated by rent control with tenants paying between 500-1200 for apartments that would rent for well over what the tenant is currently paying.
In order to compensate for potentially 40% of the building being rent control tenants have to ask the amounts they do on deregulated apartments. New graduates are essentially subsidizing the rent control tenants who have saved 100's of thousands over the years.
That is why rent regulation laws are ludicrous and only interfere and distort the free market. Landlords also have to pay heating and you may have noticed oil is well over 90 a barrel, maintenance, supers, property management, accounting, insurance, PROPERTY TAXES that increase.
Apartments would be considerably cheaper at this point without regulation for the majority of Manhattan renters.
anonymous 11:20am
"These are free market tenants that pay more than $2,000 a month. Buildings arent traded like baseball cards. Buyers risk alot of money to make investments and run their companies"
in fact buildings ARE traded like baseball cards and folks are facing astounding rent increases. while these actions might be legal, the life threatening consequences of residential displacement are a real issue. there are very few "affordable" apartments in the 5 boroughs as buildings are being sucked up by these "investors". food and shelter are necessities and should not be so easily traded at the expense of human lives.
@Anonymous 12:09 PM: You forgot to address the fact that Steve Croman is DOUBLING the rent on a couple who have a child with CANCER. Are you a Vulcan or what's wrong with you?
@ Anonymous October 9, 2012 12:09 PM
Talk to the hand. Hearts are breaking for the Panitz family, not for you bloodsuckers in the real estate racket.
And you can go f*ck yourself for using this post on their ongoing troubles as an excuse to get on your anti-rent regulation soapbox. A subhuman POS you are.
"Anonymous said...
You cannot even rent a Studio in the city currently for 2100. People seem to forget all the money they saved while they were paying under market rent for years. "
Go fuck yourself. So before the EV became invaded by greedy sacks of shit such as yourself (I am assuming you are either a politician or a real estate developer), we were "saving" money by paying "undermarket" rents? Drop dead. $4100 for a studio apartment anywhere in THE WORLD is completely unreasonable, no matter how much you've paved the streets with gold.
the fact that they said they would move out willingly and croman just bought the building probably indicates that its not a stabilized lease.
I'm guessing they knew the landlord before if it was a single guy and he didn't raise the rent.. Croman's style is renovating apts... making small 2br look nice with stainless steel and w/d but small apartments.. they might be raising the rent too high just to get them out so they can renovate the apt
Nice to see Steve Cromagnon or his Cromagnon Realty employee or Amanda Burden commenting at 12:09pm. Dante's 4th Circle of Hell awaits Steve and his realty company. Round 2 of the 9th Circle awaits Bloomberg, Burden, and the rest of his cronies for betraying NYC to dinero.
I love the idea that landlords wouldn't charge so much if it weren't for rent regulation laws.
@MartyW where do you draw the line in the sand? No one here argues that this case isn't sad or extremely unfortunate for the family. There are thousands of more tragic situations that landlords face on a daily basis. Its part of the business and not an easy one. But the problem here isnt the moral obligation of a landlord and someone like you to come here and judge someone else. Owning buildings has miles of red tape yet everyone's perception of "The Landlord" is the same - rich, greedy, selfish and in full control of decisions. Did you know most banks now approve rent increases now as part of the loan? Bank officers underwrite deals with a finite comb. They know which free market apts expire and have appraisers tell them what its worth. Partnership agreements with investors or private equity is twice as worse. Take these regulated mortgages and agreements in a City where taxes, water & sewer, electric and oil/gas are tripling in a 5-year span and combine with rent stabilization law and happily approve every below market paying free market tenant request? Its impossible unless you own the building outright, all cash, which is rare in the 21st century. This is the problem.
Liberal socialist stabilized tenants who read EV dont care about this. That's fine and predictable. But its completely ignorant to the facts. Landlords are often asked to do favors for free market tenants daily since rents are rising dramatically. If they dont accept, then they are monsters. Easier said than done to sit and point fingers and be the judge. @ blue glassd, try moving to Cuba if you prefer socialism. The market creates this, not the landlords. If people from all the over the world didnt come here to pursue their dreams, live in arguably the best city on earth and pay for it, then we wouldnt be having this conversation. So clearly any beef you have should be taken to the Gov't, Bloomberg and Quinn. Rent Stabilization and low-income housing is a law that has been abused by thousands of protected tenants who sub-lease for large profits at the tax payers expense, use as weekend NYC apts, and false report income to remain qualified. Of course you dont want to discuss the evils of these laws you want to further extend.
God Bless the child, and unfortunately their landlord is the most insensitive of them all. They deserve a break, or atleast an accommodated move to an apt of equivalent rent that they can afford.
reposting this because we never got an answer last time. meanwhile if there's anything at all we can do to help this family please let us know. we are ourselves currently as broke as broke can be but if there's a cell phone bill or an electric bill or something like that we can pay on their behalf to make some annoyance go away for them please let us know. we are all neighbors here and this is how neighbors behave. xo, mr. + mr. jose garcia
1 COMMENT:
Anonymous said...
we went by this afternoon at around 4 but couldn't figure out where to make a donation. if anyone knows of a name and address where we might send a check we'd appreciate learning about it. thanks.
Croman is a heartless and greedy bastard.
Aside from that, I think Lista86 has the right idea. Let's help this family broadcast its situation, and hope that pressure will win out over this evil (Cro)man.
It's horrible that the rent is being doubles but business is business. I was unemployed for 2 years I never asked my landlord for help.
"In order to compensate for potentially 40% of the building being rent control tenants have to ask the amounts they do on deregulated apartments."
The generally agreed rules of economics say that this is BS. Landlords charge higher rent to unstabilized renters because they can. The market sets the cost of these apartments, not the landlord's own cost. It's the same reason Apple has a 40% profit margin while other tech companies have smaller profit margins.
"where do you draw the line in the sand? No one here argues that this case isn't sad or extremely unfortunate for the family"
We've established in the current case that the line is drawn somewhere on the other side of a child with cancer. Are there no greys in your world? Lines can't be drawn based on reasonable, rational decision making?
"Landlords are often asked to do favors for free market tenants daily since rents are rising dramatically."
Why are rents rising dramatically? Because of higher real estate taxes? Sure, a bit. But you know what the real reason is. Banks don't make you become highly leveraged so you can buy a building or a portfolio of buildings. Limited partners don't make you form PE Funds and crank up the LTV on these assets. This situation isn't created by landlords who have owned buildings for decades and are just trying to feed themselves.
If people treating each other with a little bit of decency is "socialist", I'll go down to Urban Outfitters tonight and buy a $40 Che t-shirt.
/And I'm not even a "Liberal socialist stabilized tenant"
October 9, 2012 1:50 PM
Socialism, Cuba? Bullshit.
The reason people purchase houses in the suburbs and condos/co-ops in cities is so they are not subject to the vagaries of the real estate market/whims of landlords. Once upon a time, NYC decided that in order to keep a vibrant middle class in our mostly rental city some sort of rent regulation should be instituted. So that landlords couldn't do exactly what Cromagnon Realty is doing to the Panitz family and and other predator landlords across the city are doing to thousands of other non regulated tenants on a regular basis.
What NYC once realized was that no average American family can possibly budget for their housing needs when landlords are able to impose 100% rent increases with a lease renewal. So NYC came up with rent regulation, a way to try to stabilize families/neighborhoods and guarantee landlords a fair income.
For the past 40 years, guys like you have been hammering away at the rent protections that used to give average NY renters some sense of security because a fair income just wasn't enough for your ilk.
Nobody here wants to hear your shit. Please go away. Take it to Real Estate Weekly or wherever it is you vultures like to congregate.
@Ken from Ken's Kitchen - And I was a stabilized renter for almost 30 years who saved their money and then moved to the suburbs because I knew that Manhattan would not be an affordable place to stay for my retirement. The sad thing is that today's middle class doesn't have that opportunity. They're being shoved 3, 4, or 5 in an apartment, just so they can pay an affordable $1000 or $1500 a month rent EACH. What's going to happen to all of these people ? Are they all going to earn mid-6 or 7 figure incomes in order to comfortably afford a taxi ride and a steak in Manhattan ? It's unbelievable, and getting worse every day. I hope Occupy wasn't a flash in the pan, cause something has to give.
And as far as this situation is concerned, the landlord should simply grant a lease extension until the child is able to be moved to another place. That would be the humane thing to do, and you don't have to open a can of worms to do it... just do it !
1) $2100 for an apartment in that area is really cheap.
2) A 95% rent hike is beyond exhorbitant
3) Considering the extenuating circumstances, Croman should at least allow room for negotiation - be it a 6 month lease extension (so the kid can at least move in spring/summer rather than winter) or a significantly lower increase in monthlies with the understanding that the family needs to pursue other options for next year...
@Anonymous 1:50 PM: I draw the line in the sand at doubling a couples rent when their child has cancer and they're asking for help. Is that clear enough for you? And please, no more of your lectures and know-it-all bullshit about the "poor landlords" in this town, this post is about one couple asking for help, so unless you want to write about that, STFU.
I take it that you jerks sympathizing with and making excuses for the landlord are the kind of capitalists who haven't even read Adam Smith. Hey, asshole: we're talking about a child's life, which from one capitalist to another is worth more than any amount of money.
I hope that hell rains down upon Croman. And, yes, please post further information about how we can help. I can't do much, but I'll do what I can.
Do you people understand anything but money? You cannot measure the worth of this city in dollars alone. That is something your ilk cannot understand, and its why you have to be pushed out.
TAKE BACK THE CITY.
I am not hopeful about this situation after reading this article about Steve Croman that ran in the Village Voice in 2000:
http://www.villagevoice.com/2000-05-09/news/there-goes-the-neighborhood/
Please send this to CNN, ABC News, NY1, New York Times, NY Post.
Do it. Now! C'mon!
I understand that doubling the rent in this circumstances appears Draconian, however, everyone has circumstances, albeit not a child with cancer, but certainly some unfavorable circumstance in the face of which a doubling of rent would be an undue financial burden.
I think that when someone rents an apartment that they know or should know if far under market rent, they should not be surprised when their landlord attempts to raise the rent within the law to market rent.
Landlords are the real terrorists!
Contact GOLES but do not contact the Cooper Square Committee. Cooper Square Housing is now working with Bob Perl of Tower Brokerage. Just as bad as Croman, Ben Shaoul or Icon Realty.
Please stay in the neighborhood. This is your neighborhood. There's got to be an affordable apartment around.
Peace and Love
These people are only asking for a year with a 10% increase. They're not even asking for a reduction. Yet this landlord can't even give them that. Wow.
If it is such a losing proposition to own a rental building in NYC, then why are private equity firms falling over themselves, partnering with developers, to buy up buildings in the EV?
The very same argument used against us lamenting the changes in our neighborhood can be gleefully turned back:
If owning a building with rent stabilized units is so bad, why don't you just sell and buy a different one?
I feel for the plights of the landlords. It's a tough city. Your hit from every direction and everyone has their hands out to collect. It's sick is the situation. I feel for the regular hard working family with 2 professional incomes. They can hardly make ends meet. It's not about Socialism, Communism or Capitalism. It's about things that should fall within reason. Rents, Taxes, General Bills and Salaries. The City of New York needs to put provisions into place that protect not just corporate laws but laws that protect and safeguard the well being of all it's people.
Banks as well as large real-estate firms as well companies that supply our foods need to be heavily regulated. We aren't dealing with objects we are dealing with humans. It baffles me that teachers make far less than lawyers, Doctors and most of all the useless banker or Wall Street trader. Yet when you walk around this great city the street are littered with these useless bankers, landlords and lawyers.
There was a time I could walk the street of the Lower East Side and eavesdrop on various conversations that were actually interesting. I could hear conversations regarding art, science, music and culture. I would hear various people discussing social injustices' and the kind of paint they thought would bring out an emotion in a painting.
Today if I walk the streets and tune in I hear a much different tune. Vacations in Vermont, my car, my shirt, my shoes, where I bought this or that... but most of all I find it rare that someone would talk about something other than themselves.
Maybe Steven Jobs saw it. The "i" generation.
One day I spoke with a person whom identified himself as the 1%. He used an analogy where Darwin's theory was where he was in his favor for him and his colleagues alike. He, of Indian decent said with an accent and I quote him. Man came from across the sea and killed all the Native Indians. Don't you just love what those men from across the sea have provided you? We [the 1 percenters] are here because we have the big guns and the rest are just Indians.
My response was, if I could sacrifice my life for them Indians I would gladly hand it over.
Folks, its not unique to any culture. It doesn't matter where you are from. What matters is playing the game fair and just.
Let's compare the current NYC real-estate industry and the banking industry simply. They deal with the lives of humans. Both industries are there to provide SECURITY. As we see in the case of the this family they are not holding their end of the bargain.
Somethings got to be done.
Call me crazy.
I spoke with my sister who is an attorney in another state and her suggestion was to check with Legal Aid, but that the income cut-offs are pretty low. Alternatively she suggested contacting the NYC Bar Association for a free referral to a solo practitioner:
http://www.nycbar.org/get-legal-help/legal-referral-service/practice-areas/landlordtenant-law
I would recomment contacting the Urban Justice Center. But sadly enough, there is probably nothing that an attorney can do -- Cromagnon Realty is doing nothing illegal. The state legislature of NY is in the process of ending rent regulation at the behest of a very financially and politically powerful real estate industry. Market rate tenants have no rights when it comes to rent renewal.
Probably the best thing to do is follow Shawn Chittle's advice and let Cromagnon Realty face the court of public opinion. This story needs to break out of the blogs and into trad media.
all you folks that worry about the poor landlord have forgotten that aside from destabilization there are other ways landlords can be sure of a profit.
if a landlord is NOT making a profit on his building (s)he can open her/his books and show the loss and legally get an increase.
true this is not a great profit, but there does not have to be a loss.
and to charge that my sympathy with tenants makes me eligible to live in cuba, please, get a brain.
Apartments come and go. My best thoughts to James on a full and speedy recovery. And my best to his parents!
Those of you feeling for these poor East Village landlords need not feel for bad for them. My landlord, who is actually a great guy, owns a bunch of buildings in the neighborhood, and they are full of mostly rent stabilized tenants, and guess what? He's doing just great. In fact, he lives in one of the wealthiest suburbs just outside of the city, and his kids go to Ivy League schools.
Would love a way to help this family out, if anyone knows a way to donate please post.
I don't think they need monetary donations. They have jobs. They need a cheaper place to live.
Ha ha, anoymous at 12:09 is an idiot, so if there were no rent regulation laws to protect tenants, landlors would magically charge you less, because you know them they are such nice guys they only want to feel their families. compassion less idiot! May Croman and Shaoul receive in triplicate what they have given to the world
Is this sad? Yes. Is this illegal? No. Should it be? Yes. As a fortunately stabilized Croman tenant, I am not well versed in non-stabilized protocol. However, I do know that raising rent to "what the market will bear" depends on renovations and should not occur in a concurrent lease situation without updates.
I suggest the family contact the DHCR ASAP and confirm that they are not recorded as stabilized (seriously, some people don't know). Armed with a seasoned real estate broker's assessment of the apartment's market value "as-is", they might do okay in front of a compassionate judge.
No one can get $4,200 for an "as-is" apartment. If there are no laws protecting unreasonable rent hikes, maybe there should be - and an election year is the perfect time to get those wheels in motion.
this company has attacked many tenant of various type age sex he was voted nys worst landlord twice by the village voice in the late 90's and early 2000's.
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