Crowdfunding help for the residents displaced by Madison Reality Capital construction on 14th Street

The Cooper Square Committee helped establish a GoFundMe campaign for the tenants displaced from 642 E. 14th St. by a vacate order. 

On Nov. 28, as we first reported, the residents — most of them in rent-stabilized units — were abruptly vacated after ongoing excavation on a Madison Reality Capital-owned 24-story development next door on the SW corner of Avenue C destabilized the five-story building. 

The city gave tenants a short time on Nov. 28 to leave the premises. The Red Cross put up the residents in a Chinatown hotel through Dec. 3. During a rally on Dec. 14, several residents discussed their makeshift living situations, from the apartments of friends to shelters. 

The residents, local advocates, and elected officials have called on Madison Realty Capital to provide accommodations for the displaced residents from the firm's extensive LES portfolio. 

So far, according to the GoFundMe campaign: "Madison Realty Capital has offered up to 10 apartments, all one-bedrooms, but at rents that most of these modest income tenants cannot afford. Several households are families that need 2 bedroom apartments, which MRC says it can't accommodate." 

Here's more from the campaign:

Cooper Square Committee, local elected officials, and legal service organizations are assisting the tenants in their efforts to find affordable relocation housing as soon as possible and to get Madison Realty Capital and their landlord, Jack Lebewohl, to make repairs to their building so that they can return to their apartments at some point in 2024. 

With your help, the tenants can access housing they can afford while they temporarily relocate. We estimate it will cost about $95,000 to help the tenants cover the difference in rent at new apartments in NYC and to cover the cost of food since they can't cook in the shelter, and they have had to buy new clothes since they can't access their apartments. They will need to buy furniture for their relocation apartments as well. 

And from residents...

"This last month has been met with the most traumatic uncertainty for my neighbors and me, and while we should be celebrating the holidays or looking forward to the new year, we're instead couch hopping or living in shelters. We are exhausted and broken, and after almost 4 weeks, we're still left in the dark about what comes next." — Lindsey, Apt. 7 

 "I have four young children who miss their neighborhood, who miss their school, who miss our friends. I wish nobody would go through this, what we experienced in the last couple of weeks." — Mohamed, Apt. 13 

"We got kicked out of our home in the cold winter. We are homeless, and we are in pain. We need justice! Major Eric Adams and fellow New Yorkers, Please, Please stand with us. Josh Zegen of Madison Realty Capital and our landlord Jack Lebewohl are NOT getting away with this. " — Lin. Apt. 17 

"Please help us — we are homeless, in shelters, or staying on friends' couches. Neither our landlord nor Madison Realty Capital have yet to offer affordable long-term housing." — Susan, Apt 6 

You can find the campaign here. 

Previously on EV Grieve: 

• Residents ordered to vacate after excavation next door destabilized this 14th Street building 

• Displaced 14th Street tenants seek support after city orders them to vacate their building

Displaced 14th Street tenants seek support after city orders them to vacate their building

Photos courtesy of the Cooper Square Committee unless marked

On Thursday afternoon, displaced residents of 642 E. 14th St. came together to seek support after neighboring construction work left them without homes. 

On Nov. 28, the residents — most of them in rent-stabilized units — were abruptly vacated after ongoing excavation on a Madison Reality Capital-owned 24-story development next door on the SW corner of Avenue C destabilized the five-story building. (We were the first media outlet to report on the situation.) 

The city gave tenants a short time on Nov. 28 to leave the premises. The Red Cross put up the residents in a Chinatown hotel through Dec. 3. We've heard from tenants staying with friends... and others are now said to be in shelters. Parents with children discussed how their routines are upended as they have been shuttled from the building to hotels to shelters and have missed days of schooling.

On Thursday, with the support of elected officials and the Cooper Square Committee, several tenants spoke out, detailing how they are struggling to reestablish their lives this holiday season without much help from anyone. Residents said they have heard little to nothing from the landlord, Jeremy Lebewohl, or the building's property manager, Ranger Management.

Before the rally, Madison Realty Capital reportedly told District 2 City Councilmember Carlina Rivera that they are open to discussing housing accommodations with the displaced residents from the firm's LES portfolio, though no other specifics were offered. 

The residents 

"Over two weeks ago and without any notice, myself and fellow residents of 642 were abruptly displaced from our homes. Amid this crisis, our landlord and management company's silence has been astonishing. They have left us tenants to fend for ourselves and forced us to find other accommodations, whether it be crashing with friends or utilizing shelter services in an already inaccessible city. This deeply traumatic experience has underscored the urgent need for stronger tenant rights." — Sky Yeatts 

"I was so astounded and frightened to learn that MRC seemingly did not take proper precautions to protect the 120-year-old building where I have lived for over 30 years BEFORE they started digging the foundations for their 24-story building next door. I am approaching retirement with modest means to support myself. Because of MRC’s carelessness, I am effectively homeless and afraid for my future." — Michael Hawley

"I have lived in this building since 1986. My kids were raised there ... The city knew about the damage in 2019 from the construction, but they still allowed them to build the 24-story building. Because of that, me and my family have no choice but to live in a shelter, and my kids have missed too many days of school. They all miss their neighbors and friends dearly, and the company’s responsibility right now is to figure out a way for us to move back so we can come back to our neighborhood. Me and my brother [Sayed] have never been separated, and now he's at another shelter, and my kids miss him so much, and he can't even visit us because our shelter doesn't allow visitors." — Mohamed Dawod

[Above photo by Camila Soliz]

The elected officials 

 "What occurred at 642 East 14th Street is a tragedy, which has displaced many of my constituents. My team has been working hard to help those impacted find shelter. The city and the landlord should make all diligent efforts to get these folks back into their homes as quickly as possible. We must ensure that when developments are green-lighted, they do not cause damage to neighboring buildings." — Assembly Member Harvey Epstein 

"Construction next door should never lead to residents not knowing where they will sleep at night. Yet, after months of reporting concerns to the Department of Buildings, that is exactly what happened to the residents of 642 E. 14th St., whose building was issued a full vacate order due to structural damage caused by construction in the adjacent lot. Property owners, developers, and the Department of Buildings have an obligation to put residents first and ensure full protection during construction. The residents of 642 E 14th Street need answers, and they need housing. Madison Realty Capital and Ranger Management must provide impacted residents with month-to-month leases at the same rate on apartments in the neighborhood, ensure their belongings are secured and stored for free, and provide the right to return to their apartments or the long-term housing option of their choosing." — City Councilmember Carlina Rivera

The landlord 

Jeremy Lebewohl, who also owns the famed Second Avenue Deli, was not present during the rally. Lebewohl told the Post that he "warned the city that construction next door could compromise his building — and even hired an engineer to access the property who 'warned them that what they were doing was excessive.'"

He also said that reps from the Department of Buildings told him that his structure was fine. Now 642's future is potentially in doubt. 

Lebewohl's attorney, Adam Leitman Bailey, told the Post that three independent engineers hired to assess the damage each concluded the building would have to be demolished. There is nothing on file with the Department of Buildings to collaborate on that evaluation.

The developer 

Madison Square Realty is the third owner of the long-empty lot (since 2009) in the past seven-plus years. Madison Realty Capital paid Opal Holdings $31.3 million for the property in May 2020. Opal Holdings bought the parcel in June 2016 from Brooklyn's Rabsky Group for $23 million. 

A rep for Madison Square Reality told the Post that the developer had "provided structural safety solutions" for 642 E. 14th St. at the outset of the project, a building going as 14+C. The foundation work in this phase started in July.

"This issue was avoidable," the rep said in a statement, claiming the owners of 642 “have long neglected the property and have stonewalled our efforts to provide assistance to tenants by refusing to engage with us or local officials."

A Partial Stop Work Order on the site allows crews to perform dewatering operations to prevent further destabilization.

An addendum 

Following the press conference, residents described "an extremely strange thing" that took place. While the tenants and speakers were gathering for a group photo, "a mysterious woman," mostly hidden under winter clothes and a hat, made her way through the crowd to get to the padlocked entrance, where there's now a makeshift plywood wall and door.

The woman had keys to the lock and entered the building. Some of the residents peppered her with questions, which she refused to answer, and threatened to call the police on anyone who entered behind her. 

It's not known who she was — a rep from the city, or possibly the landlord or management company. 

"No one knows really what was going on there or why she chose that moment to open the building — temporarily and for a brief period of time," one resident told us.

Come out to support the tenants of 642 E. 14th St., displaced by the Madison Reality Capital development next door

Tenants and local elected officials today will be holding a rally outside 642 E. 14th St., which was abruptly vacated after ongoing excavation on a Madison Reality Capital-owned 24-story development next door on the SE corner of Avenue C destabilized the building. (We were the first media outlet to report on the situation.) 

The city gave tenants a short time on Nov. 28 to vacate the premises. The Red Cross put tenants up in a Chinatown hotel just through Dec. 3. We've heard from tenants staying with friends... and we understand others are now in shelters. (Read about the Dawod-Hemeida family here.) 

With the support of elected officials and the Cooper Square Committee, the tenants will be asking for temporary housing until they are allowed back into their homes. 

Today's rally starts at 12:30 p.m. outside 642 E. 14th St. near Avenue C.

And the photos below are from Sunday... showing the now-vacant building ... and the pit next door...

First on EV Grieve:

Residents ordered to vacate after excavation next door destabilized this 14th Street building

Residents ordered to vacate after excavation next door destabilized this 14th Street building

Photos from yesterday morning

The city has issued a Full Vacate Order for 642 E. 14th St. after ongoing excavation work on a 24-floor development next door at the NW corner of Avenue C destabilized the building, according to city records. 

From the Department of Buildings: 

Structural stability of building compromised due to construction operations taking place at 644 E. 14th Street. Heavy cracks in the exterior and interior in addition to separation noted at door frames and floor from wall...

The development, owned by Madison Reality Capital, is expected to yield 197 apartments — a percentage said to be affordable housing — plus retail space and a community facility. 

A few residents of 642 E. 14th St., said to be the property of Second Avenue Deli owner Jeremy Lebewohl, told EVG that city officials put in the directive to leave at 5 p.m. on Tuesday.

 

"Some folks wanted to stay. By the end of the night, I believe it was mandatory that everyone be out of the building," said one resident who has lived there for more than two years. "We packed what we could in about 30 minutes and cleaned up just in case." 

The American Red Cross is housing the residents at a Chinatown hotel, though just through Sunday. After that, the residents don't know where they are supposed to live. 

"We were only able to bring what we could carry. We have no idea when we will be able to access our building or our belongings again, if ever," the resident said. 

A Partial Stop Work Order on the site allows crews to perform dewatering operations to prevent further destabilization. An emergency construction fence is expected to be erected outside No. 642, a 5-story building with 18 units, per Streeteasy. (One resident said there were 16 residences.) 

Meanwhile, per city documents, DOB engineers are monitoring the site daily.

There have been concerns about what excavation work on the lot might do to the adjacent buildings on 14th Street. This corner property last housed the single-level R&S Strauss auto parts store, which closed in April 2009.

As previously reported, Madison Realty Capital paid Opal Holdings $31.3 million for the property in May 2020. Opal Holdings bought the parcel in June 2016 from Brooklyn's Rabsky Group for $23 million. 

There were approved plans here for a 15-floor mixed-use building, though there weren't any affordable units attached to this version. As revealed in the spring of 2021, several developers spent hundreds of thousands of dollars to lobby the city for NYCHA air rights to make this a larger structure with more housing.

In the spring of 2022, the NYCHA and Madison Realty Capital filed documents seeking a non-ULURP modification — known as an LSRD — to the development plan. 

One group of locals started a Facebook group in June 2022 to help notify residents of the ongoing plans at No. 644.

"While we are all for the development of that corner ... and the affordable housing element of the plans, we are not happy with the sheer size of the footprint and the excessive height that goes along with the proposal," one of the organizers told EVG at the time. "We believe it will have countless negative effects on the local community and is out of place in this neighborhood. One major, immediate concern is that they have done little outreach and have kept plans for the project very quiet, which seems to be an obvious strategy to avoid any scrutiny from the local public."

Before a presentation in May 2022 before Community Board 3's Land Use, Zoning, Public & Private Housing Committee, Tenants Taking Control, a group of 100-plus long-term tenants in 15 East Village buildings owned by Madison Realty Capital spoke out against the plans.

In a "warning letter" to CB3 members and other local elected officials, the group, which has had Madison Realty Capital as a landlord since 2017, alleged: "We believe from first-hand experience that they disregard East Village tenant and community needs for their own financial benefit."

In June 2022, Community Board 3 signed off on the plan, which was expected to generate $19.5 million for the NYCHA, to be exclusively used at the adjacent Campos Plaza II for capital repairs and other programmatic needs as determined by a community planning process involving NYCHA and the residents of Campos Plaza II.

The current plans for 644 show a 234-foot-tall building with 197 apartments known as 14+C, according to the Fischer + Makooi Architects website.  

In January 2019, the Commercial Observer reported that Jeremy Lebewohl filed a $10 million lawsuit against Opal Holdings alleging that No. 642 sustained damages by the foundation work next door at No. 644 during a previous iteration of the project.

The suit claimed that Opal tried to cut costs on the project by driving piles for the foundation too close to Lebewohl's building, which led to the damages. (It's not immediately known what happened to the suit.)

According to DOB records, complaints about work on the corner lot date back to June 2017, when someone reported, "The building is shaking when the construction workers at the site are pile driving." An April 2018 complaint noted a "cracked exterior" in the building.

And from a February 2023 complaint in public records:

What is compromising the building's integrity: There is construction planned to start next door at 644 E 14 Street, and it is suspected that this cracked the facade at 642. There is further construction planned and it is likely to cause further structural damage. The tenants are also very concerned about the damage that can't be seen: namely the structural integrity of the building. The location of the structural instability: Cracks are largely on the east side of the building. The location of the crack or gap and whether it is horizontal or vertical: There are diagonal cracks on the side of the building.

However, DOB records show that an inspector "observed no visible cracks or structural defect on exterior facade."

The resident of two years said, "We absolutely had concerns — the drywall in our buildings was significantly cracked, and walls were beginning to separate from the floor. We shared it with management but probably should've followed up more."

Another resident, who also lived in 642 for two-plus years, told us: "We would constantly feel our building shake. I know from a few other tenants that we were all very concerned. I submitted information to 311, and they came to our apartment three times from September to November. Finally, on Tuesday, they told us we had to vacate."

The residents we spoke with hadn't heard anything as of yesterday from 642's management company — aside from suggesting they contact the Department of Housing Preservation and Development for shelter services.

While the resident we talked with said they had access to resources, that wasn't likely the case for all of 642's tenants.

"It's shameful that so many families were put out for a 'luxury building' with what seems like very little empathy," the first resident said.