Report: These 9th Street tenants don't have to pay rent until building has C/O, judge rules

[Photo by Steven]

ICYMI: Tenants at 331 E. Ninth St. between First Avenue and Second Avenue will not have to pay rent until their landlord, Kushner Companies, secures a certificate of occupancy for the building.

Details via The Real Deal:

Residents of the building at 331 East 9th Street will also be allowed to stay in their apartments without paying any back rent, according to the decision that State Supreme Court Judge Frances Ortiz handed down ...

The nine-unit East Village property is one of several that Housing Rights Initiative and Bronx Councilmember Ritchie Torres announced Kushner was operating illegally at a press conference last March.

The property was built around 1900, meaning it was exempted from the city’s certificate of occupancy requirement, according to HRI. However, after buying the building in 2013 for $20.25 million, Kushner Companies added a floor to build luxury penthouses, a substantial alteration that meant the property would now require a certificate of occupancy, HRI said.

Ortiz agreed with this in his ruling, writing that “the addition of an entire floor on the top of the building constitutes a substantial alteration, thereby requiring petitioners to obtain a C of O for the entire building.” He added that “no rent is collectible by the petitioner [Kushner] when a building lacks a valid certificate of occupancy.”

The real estate company never received a permanent certificate of occupancy because of building code violations, according to HRI. The housing watchdog group helped the building’s tenants organize and refuse to pay rent.

Kushner Cos. COO Peter Febo said the the judge's ruling was wrong. They plan on appealing once courts reopen after the coronavirus crisis.

The Kushners started buying up East Village buildings in early 2013.

Trash talk on 7th Street

Someone has made homemade signs pointing out who is managing the buildings on Seventh Street between Avenue A and First Avenue where the trash routinely overflows on the sidewalk...



The signs are in front of buildings owned by the Kushner Companies and managed by its subsidiary Westminster, per a tipster on the block... (they note "A Kushner Production")









Per the tipster: "They refuse to hire a super on Sundays to prevent this mess every week. And the fine from sanitation is less than what they’d pay him anyway. Saving money by trashing the hood."

Last March, The Wall Street Journal reported that the Kushner Companies, formerly led by current White House adviser Jared Kushner, planned to sell five of the 30-plus buildings in their East Village portfolio.

The company was also accused of illegally operating nine apartment buildings in the East Village and Williamsburg, according to an investigation by City Council member Ritchie Torres and the watchdog group Housing Rights Initiative. A DOB spokesperson told the Associated Press that the issues stemmed from "paperwork lapses" and characterized the investigation as "pure grandstanding."

Kushner selling 5 East Village buildings; report cites illegal occupation in EV properties

[EVG compilation of Kushner-owned EV buildings from 2013]

The Wall Street Journal reports that Kushner Cos. has hired a broker to market five apartment buildings with a total of around 100 units in the East Village.

As the paper reports, the company, formally headed by current White House adviser Jared Kushner, remains under fire from New York politicians and tenant activists, and is increasingly looking at buying properties in suburban areas.

Per the Journal:

The firm has sold 10 properties for more than $1.5 billion in New York and was the buyer of one since January 2017, according to Real Capital Analytics. That is when then-Chief Executive Jared Kushner left to join the White House as President Trump’s senior adviser.

Over this same period, the firm has spent more than $1.4 billion in a series of transactions for properties primarily in suburban Maryland, Virginia, New Jersey and other states, RCA data shows.

And...

Even with the recent sales and its plan to sell another 100 apartment units in the East Village, Kushner Cos. still owns a sizable portfolio in New York City. That includes apartment buildings in Manhattan and Brooklyn, a downtown office building, a lending business and the lower floors of the former New York Times building.

It's not known at the moment which East Village properties will be sold. One estimate puts the number of Kushner-owned East Village buildings at 31. (Only Steve Croman reportedly owns more East Village buildings.)

Meanwhile, City Councilmember Ritchie Torres held a press conference yesterday to announce the results of an investigation alleging that Kushner Cos. is operating eight East Village rental buildings illegally. (The Journal article went to press before the results of this report were cited by other media outlets.)

Per The Real Deal:

Torres said that his investigation, launched in cooperation with the nonprofit Housing Rights Initiative, found the buildings had expired certificates of occupancy, meaning tenants should not be allowed to live in the properties.

The buildings, according to HRI’s Aaron Carr, have unpaid fines stemming from violations and unauthorized construction, which prevents Kushner Companies from being able to obtain a COO.

Torres and Carr called on the city to quickly ensure these buildings are safe.

A spokesperson for Kushner Cos. said the firm is "committed to the safety of our residents and the proper maintenance of our buildings. Similar to many other landlords, we inherited from prior owners Certificates of Occupancy with various issues. Kushner will continue the long and detailed process to work with our consultants and the Department of Buildings to correct every issue outstanding."

The DOB blasted the report from Torres and Carr, accusing the two of "pure grandstanding," as Curbed reported. A DOB spokesperson said their investigation "identified nothing more than paperwork lapses that have nothing to do with tenant safety."

The Kushners started buying up East Village buildings in early 2013.

Previously on EV Grieve:
[Updated] Report: Jared Kushner buys $130 million portfolio of East Village rental buildings

Report: Jared Kushner paid $49 million for 7 more Ben Shaoul-owned properties in the East Village

More about Jared Kushner's East Village buying spree

Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

Jared Kushner not done buying every walk-up in the East Village

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

Report: 9th Street resident battling with Kushner Cos. to clean up black mold infestation

Jared Kushner's East Village tenants wish he'd resolve issues closer to home

How many East Village properties do the Kushner Cos. actually own?

Report: Kushner Co. filed false paperwork with the city over number of rent-regulated tenants

New state legislation aims to combat predatory equity

Report: Residents of Kushner-owned 118 E. 4th St. learn building had 10X legal levels of lead

Noted

An EVG reader shared this spray-painted marker from outside a building owned by the Kushner Cos. on Avenue A.

The message reads in part: "Jared Kushner owns this building. Know your enemy."

Not sure how widespread these are. I walked by four other Kushner-owned properties and didn't spot similar messages. One estimate puts the number of Kushner-owned East Village buildings at 31. (Only Steve Croman reportedly owns more East Village buildings.)

Jared Kushner stepped away from running the family real-estate business when he entered the White House in January 2017 to work for his father-in-law.

Previously on EV Grieve:
Jared Kushner not done buying every walk-up in the East Village

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

Jared Kushner's East Village tenants wish he'd resolve issues closer to home

Report: Kushner Co. filed false paperwork with the city over number of rent-regulated tenants

New state legislation aims to combat predatory equity

Local elected officials introduced joint legislation on Sunday targeting the practice of predatory equity.

State Sen. Brad Hoylman, Assemblymember Harvey Epstein and various tenants and advocates were present at a press conference outside the office of Westminster Management, a Kushner Companies subsidiary, on 12th Street between Avenue A and Avenue B. There, they discussed the legislation, which directs the New York State Department of Finanical Services (DFS) to collect data on financial institutions that lend to property owners with the intent to displace current tenants.

Per the announcement:

Specifically, the bill requires DFS to investigate the role financial institutions play in encouraging anti-tenant practices by notorious landlords like Jared Kushner, Steve Croman and Raphael Toledano.

Similar to the subprime mortgage crisis of 2008, lax underwriting standards and a general lack of transparency have allowed speculators and real estate agents to secure outsized mortgages with very little discretion and oversight. Owners use these loans to make purchases based on unrealistic projections of rising rents, and in turn have difficulty paying the mortgages.

Building owners — anxious to recoup on their hefty investments — often resort to abusive and exploitative tactics to drive rent-regulated tenants out. These abusive practices, known as predatory equity, are best-exemplified by figures like Steve Croman and Jared Kushner.

In the fall of 2015, after the Daily News reported that the state was investigating Toledano for tenant harassment at 444 E. 13th St., he received two loans totaling $124 million from private equity firm Madison Realty Capital to buy and renovate a 16-building East Village portfolio.

Per The Real Deal in an article last July:

The leverage on the deal — which clocked in at 128 percent compared to the typical 50 to 65 percent on a New York City multifamily deal — raises questions about how culpable lenders are in perpetuating harassment. In short, are they turning a blind eye when their borrowers too-aggressively push to turn rent-stabilized apartments into luxury units?

Pressured to generate income from the buildings to pay off his loans, Toledano reportedly attempted widespread buyouts. And many of the tenants at the buildings accused him of harassment.

"No longer can we allow landlords like Kushner, Croman and Toledano to force our neighbors out of their homes in order to make a quick buck," Hoylman said in a statement. "We demand that New York State investigate the practice of predatory equity so we can take the necessary steps to protect rent regulated tenants from harassment and eviction."



Said the recently elected Epstein: "This legislation will bring us closer to stopping the practice of predatory equity before it starts the cycle of tenant harassment and displacement that has become all too familiar in our city. Bad actor landlords and scheming financiers should take note: your days of destabilizing our neighborhoods with your shady business practices are numbered."

Croman was released from jail on Friday after serving eight months of a year-long sentence for fraud.

Previously on EV Grieve:
Report: Raphael Toledano files for Chapter 11; $145 million deal for EV portfolio is off the table

Raphael Toledano tenants take to Midtown streets to speak out against their landlord and his lenders

How many East Village properties do the Kushner Cos. actually own?

[Compilation of Kushner-owned EV buildings from 2013]

Bloomberg delves into the Manhattan properties owned by Kushner Cos., including a large number in the East Village. In an article published yesterday, Bloomberg finds that, in 60 percent of the properties, the Kushners own less than half of each; in nearly half, they own less than 20 percent.

One estimate puts the number of Kushner-owned East Village buildings at 31. (Only Steve Croman reportedly owns more East Village buildings.)

So who actually owns these properties?

[T]he vast majority of the money behind the purchases didn’t belong to [Jared] Kushner or his family. Rather, it came from an obscure Israel-based company called Gaia Investments Corp. and related entities. Gaia has almost no public profile in New York real estate. Its principals have held roles in enterprises owned by the diamond-trading Steinmetz family, with close ties to Raz Steinmetz, the nephew of billionaire Beny Steinmetz.

A 2015 deal for 16 apartment buildings had a similar structure. Again, the Kushners were publicly credited with the acquisition, and again, most of the money belonged to someone else. The investors in this case, not previously reported, were C-III Capital Partners, a Texas-based asset manager run by Andrew Farkas...

From 2012 to 2015, Kushner Cos. purchased more than 40 Manhattan apartment buildings that they still own. In at least 80 percent of them, they’re minority partners to well-heeled investors.

Bloomberg notes that it's not unusual for landlords/developers to be minority owners of their properties or projects, serving instead as the public face for behind-the-scenes investors.

However, there's some concern in this case for the company, previously run by current White House adviser Jared Kushner.

Per Bloomberg:

The finding that the company is most often a junior owner heightens concern over conflicts-of-interest a year after Kushner entered the White House. As his family has hunted for investors overseas in countries as far-flung as China and Saudi Arabia, many inside and outside of government worry about the potential for quid-pro-quos — public policy driven by private business. In the partnerships where the Kushner Cos. have minor stakes, there’s pressure to make returns for the investors who put up most of the money.

Previously on EV Grieve:
Inside a classic East Village tenement before the whole building is renovated

Jared Kushner not done buying every walk-up in the East Village

Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

Local politicos join residents of 2 Jared Kushner-owned buildings to speak out about poor living conditions, alleged harassment

Jared Kushner's residents at 118 E. 4th St. would like gas for cooking and some heat

Jared Kushner's East Village tenants wish he'd resolve issues closer to home

Report: Law firm files lawsuit against Jared Kushner for unpaid bills

Cornicello, Tendler & Baumel-Cornicello, a law firm that represented Jared Kushner’s real-estate company in dozens of eviction and housing court cases, is now suing him for unpaid bills, the Daily News reports.

Per the report:

The law team Cornicello, Tendler & Baumel-Cornicello filed a lawsuit in Manhattan Supreme Court on Dec. 7 against Kushner Cos. and 19 of its subsidiaries that own or manage properties. Cornicello seeks $102,000 for work it did between December 2014 and May 31, 2015.

In 2014 and 2015, Cornicello represented Kushner properties in at least 32 landlord-tenant cases, mostly involving apartments in the East Village, records show.

A Westminster rep told the News that they are "working to resolve the matter."

As the News notes, East Village tenants and local elected officials have accused Kushner Cos. and its property manager, Westminster, in lawsuits and in other complaints of using harassment-as-eviction tactics through the years.

In 2013, Kushner started buying up some 40-plus buildings in the East Village. According to the Cooper Square Committee, only Steve Croman owns more residential buildings in the East Village than Kushner does.

Kushner removed himself as the company’s CEO back in January to become a senior adviser to his father-in-law, President Trump.

Reader photo at 118 E. 4th St. from March 6.

Previously on EV Grieve:
Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

Local politicos join residents of 2 Jared Kushner-owned buildings to speak out about poor living conditions, alleged harassment

Jared Kushner's residents at 118 E. 4th St. would like gas for cooking and some heat

Jared Kushner's East Village tenants wish he'd resolve issues closer to home

A look at Jared Kushner's financial disclosure report

[EVG file photo]

Details of Jared Kushner's real-estate empire were made public in documents released late Friday night, according to published reports. As Bloomberg reported, Kushner, the son-in-law and senior adviser to President Donald Trump, "held personal lines of credit of as much as $90 million to 10 financial institutions as of his Jan. 22 appointment to the White House."

The New York Times reports that Kushner resigned from more than 200 positions in the partnerships and limited liability companies that make up the family real-estate business, which has acquired $7 billion worth of commercial and residential property over the last decade.

The 54-page financial disclosure report shows, however, that "Kushner will remain a beneficiary of most of those same entities," worth at least hundreds of millions of dollars.

The Times on Saturday examined the "perilous legal and ethical ground" that Kushner and his wife, Ivanka Trump, are on now.

Unlike Mr. Trump, who is exempt from conflict of interest laws, both Mr. Kushner and Ms. Trump — who took a formal White House position this past week — are forbidden under federal criminal and civic law to take any action that might benefit their particular financial holdings.

In 2013, the Kushner Companies started buying up some 40-plus buildings in the East Village. According to the Cooper Square Committee, only Steve Croman owns more residential buildings in the East Village than Kushner does. The properties are managed by Westminster Management, a division of Kushner Companies.

Meanwhile, Kushner will be keeping very busy. Last week, the President appointed him to lead the newly created White House Office of American Innovation. (Read the official White House memo on this here.)

Per The Washington Post:

Kushner’s ambitions for what the new office can achieve are grand. At least to start, the team plans to focus its attention on reimagining Veterans Affairs; modernizing the technology and data infrastructure of every federal department and agency; remodeling workforce-training programs; and developing “transformative projects” under the banner of Trump’s $1 trillion infrastructure plan, such as providing broadband Internet service to every American.

Already on Kushner's to-do list: brokering a peace pact between Israel and the Palestinians.

One last note... Elizabeth Spiers has a piece in The Washington Post about her time working as editor-in-chief of The New York Observer under Kushner's ownership.

I inherited an office and a desktop computer, both in fine but used condition. The computer was a recent-model Mac, but when I turned it on, it was inexplicably running Windows. I summoned our beleaguered IT guy to explain, and he informed me that it had belonged to Kushner, who liked the design of Apple products but preferred the Windows OS.

“So he was basically using a $2,500 desktop as a monitor?” I asked. The IT guy shrugged.

In retrospect, this tiny moment seems like a metaphor. Frankensteining two products you appreciate into one product you appreciate even more isn’t irrational; it’s even creative, in a way. On the other hand, why did the newspaper’s owner need a $2,500 monitor? How was it anything but a vanity object?

[Updated] East Village landlord Jared Kushner's path to the White House

As Trump clinched his nomination, his son-in-law started talks on a joint venture with a secretive Chinese company https://t.co/Bs3qrfOraQ

— The New York Times (@nytimes) January 7, 2017

This past weekend, The New York Times took a deep dive on Jared Kushner, President-elect Donald Trump's son-in-law, as he continues to play a key role in the new administration.

The Page 1 piece shows the web of potential conflicts of interest that Kushner could face in Trump's administration. The article centers on a celebratory dinner on Nov. 16 in a private dining room at the Waldorf Astoria. Kushner was close to a joint-venture agreement with Wu Xiaohui, the chairman of Anbang Insurance Group, to help redevelop the Kushner-owned 666 Fifth Ave.

As the Times noted, the byzantine ownership structure of Anbang, which has close ties to the Chinese state, "has seen its aggressive efforts to buy up hotels in the United States slowed amid concerns raised by Obama administration officials who review foreign investments for national security risk."

Per the Times:

[W]ith Mr. Kushner laying the groundwork for his own White House role, the meeting at the Waldorf shines a light on his family’s multibillion-dollar business, Kushner Companies, and on the ethical thicket he would have to navigate while advising his father-in-law on policy that could affect his bottom line.

And...

Matthew T. Sanderson, a lawyer at Caplin & Drysdale and former general counsel to Senator Rand Paul’s presidential campaign, said deals like the one with Anbang “might not be illegal under the conflict-of-interest rules, but raise a strong appearance that a foreign entity is using Mr. Kushner’s business to try to influence U.S. policy.”

The article also notes that Kushner will resign as chief executive of Kushner Companies.

Starting in 2013, Kushner has bought 40-plus buildings in the East Village. According to the Cooper Square Committee, only Steve Croman owns more residential buildings in the East Village than Kushner does.

Under Kushner's ownership, tenants have accused his management company, among other things, of aggressive tactics to remove rent-stabilized residents ... while failing to provide gas for cooking and heat.

Updated 8:14 p.m.

Kushner will be named senior adviser to the president, CNN reports.

Previously on EV Grieve:
[Updated] Report: Jared Kushner buys $130 million portfolio of East Village rental buildings

Soon, we will all be writing our rent checks to Jared Kushner

Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

Local politicos join residents of 2 Jared Kushner-owned buildings to speak out about poor living conditions, alleged harassment

Jared Kushner's residents at 118 E. 4th St. would like gas for cooking and some heat

Jared Kushner's East Village tenants wish he'd resolve issues closer to home

Jared Kushner's East Village tenants wish he'd resolve issues closer to home

[Page 1 of the Journal from Tuesday]

Since the election, Jared Kushner, President-elect Donald Trump's son-in-law, has been the subject of Page 1 stories in The Wall Street Journal and The New York Times ... as well as the cover of the latest issue of Forbes...



As the Times and other media outlets have reported, Kushner, 35, who is married to Trump’s elder daughter, Ivanka, "is exploring the prospects of joining the administration as a formal, but unpaid, adviser." During the presidential campaign, Kushner became an integral member of Trump's inner circle.

Kushner has been running his family’s real-estate business, Kushner Companies. According to the Times, "the Kushners have acquired $7 billion worth of commercial and residential property over the last decade."

In recent years, starting in 2013, Kushner has bought 40-plus buildings in the East Village. According to the Cooper Square Committee, only Steve Croman owns more residential buildings in the East Village than Kushner does.

And as we've noted in multiple posts, there hasn't been any shortage of tenant horror stories since Kushner and his management company, Westminster City Living, became the landlord. For instance, back in March, tenants at 118 E. Fourth St. between First Avenue and Second Avenue went to Manhattan Housing Court as part of ongoing litigation against Kushner. Tenants there had been without gas for cooking since October 2015. There were other issues too, such as collapsed ceilings, overflowing trash and sporadic heat. (Kushner eventually settled with the tenants.)

Brandon Kielbasa at the Cooper Square Committee told Gothamist in March that Kushner "treats both rent-stabilized and market-rate tenants badly, and seems to feel that he can get away with not maintaining buildings because the housing market is so tight he can keep them full anyway."

In July 2014, DNAinfo reported that "Kushner is using lawsuits, disruptive construction and neglect to force rent-stabilized tenants out of two buildings [170-174 E. Second St.] he owns in the East Village, as he converts them to high-end apartments, according to court documents and residents."

Meanwhile, around that same time, the Daily News filed a story with the headline "Donald Trump's son-in-law Jared Kushner forcing residents out of East Village building so he can get higher rents: tenants."

Yesterday, DNAinfo filed a lengthy piece on a lawsuit that a resident at 331 E. Ninth St. filed against Kushner. Uta Winkler, a rent-stabilized tenant, said in court papers that her kitchen was destroyed several days before Thanksgiving in 2013 by construction workers renovating an unoccupied unit above her apartment.

And then...

Two weeks later, Winkler had to endure more mayhem when she came home to find that a construction worker carrying dirty water and debris on the floor above hers had crashed through her bedroom ceiling, landing on her bed, court document said.

The fall destroyed her bed and other furniture, but Westminster refused to reimburse her for the damage or even return her calls, court papers said.

Without a response, Winkler withheld her monthly rent, which reportedly prompted the Kushner Companies to sue her for the unpaid rent in 2015 in Manhattan Housing Court. DNAinfo reported that the company also sued tenants in two other units, include new market-rate residents, in the building for also withholding rent because of the disruptions from construction. (Those two other tenants then each filed counter-suits against Kushner.)

As a way to improve its image, Westminster introduced a new program this fall called Westminster Cares (not to be confused with this Westminster Cares), a partnership with the Educational Alliance...



The kick-off party was Nov. 17 at the 14th Street Y. Per the fliers, "This new program gives you an opportunity to serve your community while getting to know your fellow Westminster neighbors." The slogan: "Mingle. Give Back. Repeat."

The event prompted the Cooper Square Committee to release a statement asking, "Westminster Cares – About Who?!"

Said Kielbasa: "Every week we have Kushner tenants calling our office to get issues resolved. The problems they face range from not getting security deposits back, not getting lease renewals, having chronic mixups with their rent payments, and having difficulties getting repairs. If Westminster really cares, they need to get better at managing their properties."

For their part, Westminster provided DNAinfo with a statement for yesterday's article about their ongoing work in maintaining their portfolio:

"As with all our properties, we are committed to providing a high level of service for our tenants across that portfolio, which is nearly fully leased. We couldn't maintain that level of occupancy or service without investing in essential building infrastructure, so we consistently make meaningful upgrades in our walkup buildings across the city on behalf of our residents."

In a Page 1 story on Tuesday, The Wall Street Journal cited Kushner's business activities that could potentially raise conflict-of-interest issues if he is named to a staff position in the Trump administration. (Possible solutions include Kushner selling his assets and putting the money into a trust.)

As the Trump told the Times last week, "Jared’s a very smart guy. He’s a very good guy. The people that know him, he’s a quality person and I think he can be very helpful." (The Times contacted dozens of politicians, diplomats and journalists in Israel and the Palestinian territories. Very few of them were familiar with Kushner.)



Upon reading the news of the possibility of Kushner brokering peace, one resident wrote on Facebook last week: "The Middle East is gonna have to wait until he fixes my sink. Might be forever."

Previously on EV Grieve:
[Updated] Report: Jared Kushner buys $130 million portfolio of East Village rental buildings

Report: Jared Kushner paid $49 million for 7 more Ben Shaoul-owned properties in the East Village

More about Jared Kushner's East Village buying spree

Soon, we will all be writing our rent checks to Jared Kushner

Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

Local politicos join residents of 2 Jared Kushner-owned buildings to speak out about poor living conditions, alleged harassment

Jared Kushner's residents at 118 E. 4th St. would like gas for cooking and some heat

Noted

An EVG reader found this paper discarded on Avenue A — a rental list for Jared Kushner's Westminster City Living properties in the East Village...

"I'm sure this info isn't secret, but it's interesting to see it all here on one piece of paper," the reader noted.

The least-expensive rental on the sheet is $2,450 for a studio on East 11th Street... topping out at $5,999 for a four-bedroom residence on East 12th Street.

Report: Landlord Jared Kushner 'treats both rent-stabilized and market-rate tenants badly'

[Reader photo at 118 E. 4th St. from March 6]

Gothamist checks in with a long look on life in a property owned by Jared Kushner/Westminster Management. And there haven't been any shortage of tenant horror stories since Kushner started buying up properties here in 2013, as we've noted at EVG through the years. (According to the Cooper Square Committee, Kushner is the neighborhood's second-largest landlord after Steve Croman.)

As we noted earlier this month, tenants at 118 E. Fourth St. went to Manhattan Housing Court on March 3 as part of ongoing litigation against Kushner. Tenants there had been without gas for cooking since October. There are other issues too, such as collapsed ceilings, overflowing trash and sporadic heat. (Tenants got the gas restored afterwards.)

In defense of Kushner/Westminster, a spokesperson responds: "Unfortunately, like many other old buildings in New York City, repair issues arise periodically and we inherited problems when we purchased this building. We are grateful that our residents have voiced their concerns. We value their tenancy and we are committed to a mutually beneficial long term building management-tenant relationship."

Brandon Kielbasa at the Cooper Square Committee tells Gothamist that Kushner "treats both rent-stabilized and market-rate tenants badly, and seems to feel that he can get away with not maintaining buildings because the housing market is so tight he can keep them full anyway."

And one outcome of all this in Kushner-owned properties, per Gothamist:

The economic differences between the old and new residents paying three times as much have also created a culture clash. Some longtime East Villagers, nurses and artists and filmmakers loyal to the neighborhood, resent the transient, party-animal culture of affluent students and out-of-towners in their first New York apartment who will be gone when their lease expires.

“We used to have a community in this building,” laments one man. Before ... Kushner, says Kim Stetz, “we didn’t have SantaCon in our building. We didn’t have raging parties with people throwing up out their windows.”

Previously on EV Grieve:
Inside a classic East Village tenement before the whole building is renovated

Jared Kushner not done buying every walk-up in the East Village

Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

Local politicos join residents of 2 Jared Kushner-owned buildings to speak out about poor living conditions, alleged harassment

Jared Kushner's residents at 118 E. 4th St. would like gas for cooking and some heat

Sidewalk bridge arrives after reports of falling debris on 2nd and B

Crews are erecting a sidewalk bridge — for who knows how long — on the southwest corner of Avenue B and Second Street this morning.

Yesterday around noon, the FDNY responded to the scene — specially 201 E. Second St., where there were reports of bricks falling to the sidewalk from the building.


[Photo yesterday by EVG reader Jason Chatfield]

According to paperwork filed at the Department of Buildings yesterday, the FDNY is requesting a "structural stability inspection due to falling stucco."

Meanwhile, there are other open violations on file at the building… stemming from electrical work without a permit. There are also numerous complaints about a faulty boiler dating to 2012.



The building is operated by Jared Kushner's Westminster Management.

1 year later, 7-Eleven asks for more time to move noisy refrigeration units from residential windows

[File photo via the No 7-Eleven Blog]

7-Eleven representatives appeared yesterday before the Environmental Control Board to discuss the ongoing issues with the store's Avenue A refrigeration unit that has caused sleepless nights for nearby neighbors these past 12-plus months.

And the result of this? According to DNAinfo:

At the hearing, a judge granted a two-week adjournment after a 7-Eleven representative said the franchise was entering into a contract to have the equipment moved. The judge gave 7-Eleven two weeks to submit a signed contract to show that the units would be placed elsewhere, he said.

Meanwhile, the building's landlord at Avenue A and East 11th Street, the Jared Kushner-owned Westminster City Living, put the blame directly on 7-Eleven. A Westminster spokesperson told DNA in a statement that they have been trying to meet with 7-Eleven for eight months.

“We completely agree with local residents. The units installed and owned by 7-Eleven need to be moved, and we’re working to make sure it happens,” the spokesman said in a statement.

There wasn't any comment from 7-Eleven reps.

You can read more about this at WABC and WCBS.

Previously on EV Grieve:
3 new AC units at incoming 7-Eleven prompts Partial Stop Work Order

A WHOOSHING AC unit update: 'We are roundly being ignored by 7-Eleven and Westminster NYC'

Report: 7-Eleven's AC units have forced residents from their bedrooms on Avenue A & East 11th St.

Local pols blast 7-Eleven for blocking order to remove noisy refrigeration unit at 170 Avenue A

Local pols blast 7-Eleven for blocking order to remove noisy refrigeration unit at 170 Avenue A

[File photo via the No 7-Eleven Blog]

From the EVG inbox yesterday afternoon…

Today, a group of elected officials and community groups blasted 7-Eleven for being a bad neighbor and demanded they drop the October 7, 2014 appeal of a Department of Environmental Protection (DEP) order to cease using a noisy ground-level refrigeration unit in the East Village. The refrigeration unit at 7-Eleven’s 170 Avenue A store has been tormenting neighbors for over a year and violates the City’s noise code.

Since the refrigeration unit was installed in September 2013, residents of adjoining 502 East 11th Street have been driven from their bedrooms by the unit’s constant grinding, clicking and vibrating. Residents have secured multiple DEP noise violations against 7-Eleven, which culminated in the agency issuing a cease and desist order for the unit last month. 7-Eleven has chosen to fight the order at the City’s Environmental Control Board rather than fixing or disabling the offending unit.

Senator Hoylman (D, WFP – Manhattan) said: “This is an outrage. It’s like living in a wind tunnel. Neighbors can’t get a good night’s sleep thanks to 7-Eleven and its noisy refrigeration unit at 170 Avenue A. I demand 7-Eleven to fix or disable the refrigeration unit and drop their appeal immediately.”

Hoylman continued: “This case is a perfect example of how the incursion of franchises like 7-Eleven have hurt the quality of life in the East Village. It’s sad they can’t be trusted to be good neighbors.”

Council Member Rosie Mendez said: "Since NYC is a city that never sleeps, 7-Eleven believes that translates into the fact that it can disrupt its neighbors quality of life of 24/7. If 7-Eleven wants to operate a 24 hour business in NYC and in our community, then act like good neighbors by dropping the appeal and fixing the HVAC unit that is located only 2-3 feet from the rear windows."

Maria Rosenblum, a resident of 502 East 11th Street, said: “Having this refrigeration unit next to my apartment windows has been a living a nightmare. The constant noise and vibrations prevents our daughter from doing her homework and prevents me from doing my own work; I'm a freelance film editor and I work from home. At night we all have trouble sleeping and have had to all camp out on the floor of our living room, my husband, daughter and I. We have all been uprooted and our bedrooms are useless. 7-Eleven is destroying my home, my neighbors’ homes and our neighborhood.”

Gigi Li, Chair of Community Board 3, said: “Community Board 3 thanks Senator Hoylman for working with residents and the Community Board for almost a year to try to remedy this illegal installation that has been a nightmare for the neighbors. 7-Eleven has shown blatant disregard for their negative impact on neighbors by appealing the cease and desist order. They have moved into our community without concern of being a good neighbor and contributing to our community.”

Previously on EV Grieve:
3 new AC units at incoming 7-Eleven prompts Partial Stop Work Order

A WHOOSHING AC unit update: 'We are roundly being ignored by 7-Eleven and Westminster NYC'

Report: 7-Eleven's AC units have forced residents from their bedrooms on Avenue A & East 11th St.

Local politicos join residents of 2 Jared Kushner-owned buildings to speak out about poor living conditions, alleged harassment

[EVG file photo]

Tenant-landlord tensions continue at 170-174 E. Second St., the site of two walk-ups that developer/New York Observer publisher Jared Kushner bought last December.

In July, CB3's Land Use, Zoning, Public & Private Housing Committee heard firsthand about allegations of tenant harassment and quality-of-life issues brought on by gut renovations.

As DNAinfo reported:

Real estate scion Jared Kushner is using lawsuits, disruptive construction and neglect to force rent-stabilized tenants out of two buildings he owns in the East Village, as he converts them to high-end apartments, according to court documents and residents.

This afternoon at 1, Councilwoman Rosie Mendez, Manhattan Borough President Gale Brewer and the Cooper Square Committee will join the remaining tenants residing at 170-174 E. Second St.

Per the media alert, "Everyone will speak about the poor and unsustainable living conditions including perceived harassment by the landlord and his agents."

The news conference will be outside the buildings between Avenue A and Avenue B.

Here's more from the media alert:

The tenants have faced a lack of repairs, overzealous construction, and lack of communication about the ongoing construction in the buildings, resulting in five ceiling collapses and no functioning mailbox for nearly two weeks. In addition, building construction has resulted in a shutoff of gas, routine unannounced hot and cold water distributions, and severe dust and debris accumulation.

Jared Kushner has owned the buildings for about 8 months. Over the period of Kushner’s ownership of the buildings, there has been a 70 percent turnover rate.

Kushner paid $17.5 million for the two buildings.

Previously on EV Grieve:
Inside a classic East Village tenement before the whole building is renovated

Jared Kushner not done buying every walk-up in the East Village

Two East 2nd St. buildings sell for $17.5 million; will new owner still honor Allen Ginsburg?

Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

Reports outline how Kushner Companies is aggressively trying to empty 170-174 E. 2nd St.

[EVG file photo]

The tenant-landlord drama continues at 170-174 E. Second St., the site of two walk-ups that developer/New York Observer publisher Jared Kushner picked up during his East Village buying spree.

Last night, CB3's Land Use, Zoning, Public & Private Housing Committee heard firsthand about allegations of tenant harassment and quality-of-life issues brought on by gut renovations.

Ahead of this meeting, The Real Deal and DNAinfo filed lengthy articles outlining what is happening now in the buildings.

DNAinfo put it this way:

Real estate scion Jared Kushner is using lawsuits, disruptive construction and neglect to force rent-stabilized tenants out of two buildings he owns in the East Village, as he converts them to high-end apartments, according to court documents and residents.

After the deal for the buildings was complete, Kushner's Westminster Management began handing out 30-day eviction notices, followed by buyout offers, tenants told DNAinfo's Lisha Arino. To date, tenants in just 11 of the 43 units in the two buildings remain.

Per The Real Deal:

[T]he Kushner ownership entity has also aggressively turned to the courts. Since acquiring the buildings, they filed suits in New York’s Housing Court against tenants in seven apartments among the 43.

Some have resulted in tenants vacating, while other residents have fought back.

According to The Real Deal, the average monthly rent per apartment was around $2,000 last fall. Today, StreetEasy shows nine active rental listings, gut-renovated apartments with an average price of $3,987 per unit.

As for those renovations, NYC's Housing Preservation and Development agency has issued 34 violations, which remain active. ("Eight of them are for the most dangerous kind of violation — for instance for repairs to a stone retainer wall — which are supposed to be repaired within days, but remain on the HPD website weeks after they were issued," according to The Real Deal.)

However, in the estimation of Westminster, all is well here! Nothing to see! They released this statement to DNAinfo:

"In the six months since Westminster has managed the building, they have been in frequent contact with the building's residents, been consistently responsive to their concerns, and have quickly sought to address them."

Updated 7:55 a.m.

The Daily News files a Kushner-is-bad-landlord story today too. Quite a headline: Donald Trump's son-in-law Jared Kushner forcing residents out of East Village building so he can get higher rents: tenants

Previously on EV Grieve:
Inside a classic East Village tenement before the whole building is renovated

Jared Kushner not done buying every walk-up in the East Village

Two East 2nd St. buildings sell for $17.5 million; will new owner still honor Allen Ginsburg?

Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

Tenants claim: Kushner and Westminster want to destroy this building's beautiful garden

We've been keeping an eye on the renovations at 170-174 E. Second St., two walk-ups that Jared Kushner picked up earlier this year for his East Village collection.

There has been a lot of drama here — gut renovations, tenants taking buyouts, tenants not taking buyouts. We'll address some of this in another post.

A more pressing matter at the moment: The impending destruction of the garden behind No. 174.

"It was built by tenants, is maintained by tenants, and we love it very much," one tenant told us.

Tenants say that Westminster Management, a division of Kushner Companies, is expected to gut the garden this week. Remaining tenants say that they have taken legal action, but Westminster might be moving too fast for the group to stop them.









Said a resident:

"To destroy the garden would be of no benefit to Westminster, and to the tenants it would be a tragedy. Our garden is not just a decorative tableau, but a part of our daily lives: during the day, it is a place to do our professional work, and to make use of the carefully constructed space dedicated to meditation. In the evenings, it has long been a place for neighbors to meet one another. We reject the notion that a community garden is not a valuable resource. In fact, we believe that it is this use of our garden — as a place to foster community — which is the reason why it has been targeted."

Previously on EV Grieve:
Inside a classic East Village tenement before the whole building is renovated

Jared Kushner not done buying every walk-up in the East Village

Two East 2nd St. buildings sell for $17.5 million; will new owner still honor Allen Ginsburg?