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December 2005
Tenants wary of buy-out

By Nina Gregory
Reporter

Residents of Highbridge House, one of the largest residential buildings in Highbridge, are bracing for more rent hikes as the landlord seeks to buy out of the state Mitchell-Lama housing program. And it is infuriating many because conditions in the building are terrible, they said.

Built in 1971, Highbridge House has about 400 apartments with each unit's rent based on the tenant's income. Under the Mitchell-Lama program, named after the two state legislators who sponsored legislation to set up the program, the state gave the developer significant incentives to build the affordable apartments. The 26-story building looms high over Ogden Avenue.

Landlords can buy out of the Mitchell-Lama program after a given time has passed and notices posted in Highbridge House indicate that its landlord has chosen to do so. Tenants could face significant rent hikes as a result.
"I think it's a disgrace," said Evelyn Curry, president of the tenants association at Highbridge House. "It's a disgrace because in the condition the building is in, they should not allow them to get any type of raise. There's too much work in here they have to complete.

"The tenants are not happy. They are not happy paying to live in almost a dump."

Residents complain that of the two elevators, at least one is always broken. In addition, they have taken their landlord, Aries Management, to court over other safety and building code violations. There is mold in some apartments from a leaky roof. The windows in the elevators are blocked. Tenants said the landlord has previously obtained rent increases by promising to provide a security guard and surveillance cameras, but none of these services has been provided.

The building has obvious repair problems, with evidence of leaks, peeling paint and broken mailboxes in its lobby. Tenants have a long list of complaints and they have sued the landlord in housing court to make repairs. The case is pending.

The tenant association has hired a lawyer to help them understand their rights and represent them as their building shifts out of the Mitchell-Lama housing program.

A rental increase notice is posted in the lobby of the building, dated Aug. 11, 2005. Currently, a two-bedroom apartment with a balcony is $700 a month. Market rate is listed at $770 a month. Proposed rental increases to pay for higher utility prices, higher real estate taxes and higher insurance would bring a two-bedroom apartment with a balcony to $897 a month, with market rate at $967 a month. These rents do not take the Mitchell-Lama transition into account. Some tenants could receive housing subsidies to help them pay the difference between the listed rent and the market rate.
Tenants said they have received rent increases like this for the past two years and worry more are to come. They wouldn't mind so much, they said, if the landlord maintained the building better and they felt safe.

Tenants in other buildings in the city have organized and fought higher rents when their landlords have bought out of the Mitchell-Lama program. Still others have banded together and bought the building from the landlord. But in some buildings, tenants have gotten priced out completely.

As of October 2005, of the 150,000 Mitchell-Lama units in New York City, 40,443 have bought out. There are 9,804 units currently pending buyout, according to the Mitchell-Lama Task Force, a tenant group created by outgoing Manhattan Borough President C. Virginia Fields. Depending on the year the building was constructed, tenants may be rolled into rent stabilization or landlords may charge "market rate" - whatever people are willing to pay.

Aries Management did not return multiple phone calls seeking comment.

 

 
   
     
 

PHOTO BY JOE LAMPORT/HORIZON
Tenants in this Ogden Avenue high-rise face rent hikes if the landlord buys out of the Mitchell-Lama housing program.

 
     
     
   
 
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