"All the landlords on the list reportedly force tenants to live in horrendous and, often, dangerous conditions. Their unscrupulous and often illegal practices impact the entire city.
“We will be targeting these landlords to help tenants fight back against the predatory practices that put their homes at risk,” said Keriann Pauls, a staff attorney with the Community Development Project at the Urban Justice Center. “Predatory equity landlords are jeopardizing tenant safety and housing stability throughout the city.”
Recently, the New York City Council has introduced legislation useful to lawyers and organizers in this struggle against predatory equity, including the Predatory Equity Watch List. With additional resources, Stabilizing NYC is working with the city council to enforce these new laws against predatory equity landlords.
"Landlords who act in bad faith in order to kick out tenants to make a profit and flip buildings should pay attention: we’re developing tools that will protect tenants and their homes, and disallow landlords from beefing up their pockets through illegal actions,” said Councilmember Ritchie Torres. “I’m proud to be working with CAPE and Stabilizing NYC on legislation to confront the problem of predatory equity that seeks to destroy affordable housing and communities."
Attorney General Eric T. Schneiderman today announced the guilty plea of Steven Croman, a major New York City landlord with more than 140 apartment buildings across Manhattan, for fraudulently refinancing loans and committing tax fraud. Under the terms of his plea, Croman would serve one year of jail time on Rikers Island and pay a $5 million tax settlement – marking a significant precedent in the effort to combat landlords who base their business model on the displacement of rent-stabilized tenants.
Rarely, if ever, has a landlord been sentenced to serve time in jail for engaging in these practices. The jail time and multi-million settlement announced today send a strong message to landlords that the Attorney General will pursue anyone who engages in these types of practices to the fullest extent of the law.
“Steven Croman is a fraudster and a criminal who engaged in a deliberate and illegal scheme to fraudulently obtain bank loans,” Attorney General Schneiderman said. “He went to outrageous lengths to boost his bottom line – including falsely listing rent-stabilized units at market rates when his efforts to displace those renters had failed. Now Mr. Croman faces a year in Rikers and a $5 million settlement – and unscrupulous landlords are on notice that we’ll pursue them to the fullest extent of the law.”
Appearing at the courthouse at 100 Centre Street Tuesday morning in a dark blue suit and blue tie, Croman read an allocution in front of state Supreme Court Justice Jill Konsiver admitting details of his scheme directing employees to file documents – including inflated rent rolls – that would allow him to secure bigger mortgages on his multifamily properties.
“I knew the documents were false,” he said.
“He’s still not giving heat and hot water, still not backing off from the rotten things he would do, like jacking up rent and not returning leases to people,” said Cynthia Chaffee, a longtime Croman residential tenant. “He’s still doing it and nothing’s changed. He’s stillusing the courts to harass his tenants.”
Croman is said to be thrilled he will get off so lightly, and so is his wife, Harriet, who is part of a wealthy clique of Upper East Side moms.
Croman faced up to 25 years in prison on charges of harassing rent-stabilized tenants so he could lease their units at market rates and inflating his rental receipts in order to fraudulently secure $45 million in bank loans.
Retail space for rent in the historic Amato Opera House. 1, 500 sq. ft plus garden and basement with 19 foot ceilings. Food OK.
Conveniently located near B, D, F, M & 6 train lines as well as M103 and M21 bus lines. Steps from some of the city's best shopping, restaurants and nightlife, neighbors include Patagonia Surf, Saxon + Parole, and Momofuku Ko.
You're a mean one, Steve Croman
You really are a heel,
You're as cuddly as a cactus, you're as charming as an eel, Steve Croman,
You're a bad banana with a greasy black peel!
You're a monster, Steve Croman,
Your heart's an empty hole,
Your brain is full of spiders, you have garlic in your soul, Steve Croman,
I wouldn't touch you with a thirty-nine-and-a-half foot pole!
You're a foul one, Steve Croman,
You have termites in your smile,
You have all the tender sweetness of a seasick crocodile, Steve Croman,
Given a choice between the two of you'd take the seasick crocodile!
You're a rotter, Steve Croman,
You're the king of sinful sots,
Your heart's a dead tomato splotched with moldy purple spots, Steve Croman,
You're a three decker sauerkraut and toadstool sandwich with arsenic sauce!
You nauseate me, Steve Croman,
With a nauseous super "naus!",
You're a crooked dirty jockey and you drive a crooked hoss, Steve Croman,
Your soul is an appalling dump heap overflowing with the most disgraceful
assortment of rubbish imaginable mangled up in tangled up knots!
You're a foul one, Steve Croman,
You're a nasty wasty skunk,
Your heart is full of unwashed socks, your soul is full of gunk, Steve Croman,
The three words that best describe you are as follows, and I quote,
"Stink, stank, stunk"!
"We are sad to see a long standing tenant close its doors, but unfortunately the business has been unable to consistently pay its rent in the last 12 months. We have made several attempts to strike a deal to settle the debt however given there has been no effort to make payment on the more than $78,000 that is owed, we were forced to part ways with our tenant."
“He would remove the washing machines. He tried to close the front door, make everybody go through the basement. He got rid of the super, then had a part-time super who did nothing.”
Sophia offers me a brief tour of her formerly stabilized apartment, telling me that she and her two roommates pay $5,200 a month. The place has been renovated—wine fridge, exposed brick—but in a cheapo, Ikea way. “We just had someone in here fixing our shower,” she says. “We have a dishwasher that’s been broken since we’ve moved in here. Our dryer is, like, total shit. You have to dry things, like, 84 times.” She pauses. “The joke is: Everything is pretty, but nothing actually works.”
Sending one landlord to jail won’t turn New York City into a communitarian paradise, of course, but the attorney general’s case against Croman suggests the state is at least eager for gentrification to proceed legally. The city has maintained rent freezes on one-year leases for stabilized apartments for the past few years. Mayor Bill de Blasio has called for the repeal of decontrol loopholes (though the state is unlikely to accede), and has overhauled the zoning code so that many new residential buildings must set aside units for low-income tenants.
But such measures will do nothing to address the seemingly inexhaustible demand from privileged undergrads and Qatari emirs for well-appointed New York apartments. There are those, too, who argue that rent control isn’t worth fighting for—that it artificially suppresses housing supply and creates opportunities for bad actors such as Croman to exploit.
“We are working diligently to try and resolve this matter on a global basis and hope to be able to do so by the next court appearance.”
Tamalyn Miller, a Croman Tenant at 521 East 5th St., said that even though Croman’s case was pushed back, she’s happy. “The court case may go on and on,” she said, but Croman’s reputation is forever tarnished. “When we were going through this in 2009, 2010, nobody would listen to us,” she added.
Tuesday, June 21st, at 9.15 am sharp, please join some of Steve Croman's tenants as they meet and greet their indicted, disgraced landlord in front of 100 Centre Street. Steve will be heading to the Criminal Court on the 13th floor immediately after.
