Northwest Bronx

Community and
Clergy Coalition

Memo
To: HPD Commissioner Rafael Cestero

From: 3018 Heath Avenue Tenants Association, 2785 Sedgwick Ave Tenants Association, 2770
Kingsbridge Terrace, 2505 Aqueduct Avenue Tenants Association, 2500 University Ave
Tenants Association, 75 W 190 St Tenants Association, 2264 Grand Ave Tenants Association
Gabriel Pendas, Director of Housing, Northwest Bronx Community and Clergy Coalition,
Father Thomas Lynch, Our Lady of Angels Catholic Church, NWBCCC Clergy Causus
Date: 9/21/2010
Re: Milbank Portfolio

Action Needed IMMEDIATELY on distressed Bronx portfolio

We are writing to immediately request action from HPD to intervene in the likely sale of 10 distressed Bronx
properties, formerly owned by Milbank Realty. We have been informed by unsuccessful bidders that this portfolio is
about to be sold to an undisclosed buyer. Every indication is that these buildings are being purchased for the sum
of $ 35,000,000, the original cost of the mortgage. We view this as an unsustainable sum that will produce further
deterioration of these properties. These 10 buildings comprised of 548 units, have amassed an astounding 3336
violations and have a current vacancy rate of 24%.

Building Address Units Total Violations

2505 Aqueduct Ave 49 543
2500 University Ave 58 357
75 W 190 St 53 294
3018 Heath Ave 87 629
2785 Sedgwick Ave 49 174
2770 Kingsbridge Terrace 72 472
686 Rosewood St 29 254
1576 Taylor Ave 73 281
3215 Holland Ave 52 172
2264 Grand Ave 26 160

We believe that the City of New York and HPD in particular has an interest in preventing transactions like this that
further destabilize the rental housing stock We would like to meet immediately to discuss ways to prevent
speculative real estate transactions such as this, encourage sustainable refinancing and ownership and protect
tenants by securing repairs and renovations. Furthermore we want to know how HPD will ensure that litigation and
code enforcement activities are not stalled by the proposed transfer, and we want to propose a series of immediate
treatments for these properties. We also believe the City should entertain new strategies outside of it’s traditional
code enforcement tool kit – for example possibly seeking a restraining order, or suspending the prospective buyer’s
license to manage real estate, using the agency’s subpoena power, etc to prevent this and other speculative
transactions that lead to further housing deterioration and produce immediately hazardous living conditions.

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We understand that this transaction is imminent; We hope to meet with you and other representatives of HPD
within the next three days. Please contact Gabriel Pendas at Gabriel@northwestbronx.org, or (646) 533-5097 with
your response.

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