The Legal Aid Society, representing the Union of Pinnacle Tenants, filed formal objections in federal bankruptcy court opposing the proposed sale of more than 90 residential buildings owned by Broadway Realty I Co., LLC — the lead debtor entity for Pinnacle Group — citing years of severe neglect and the devastating toll on thousands of tenants.
This follows recent objections filed by the City of New York and the New York State Attorney General.
UPT represents tenants, including in Brooklyn, who live in buildings plagued by chronic disrepair, including persistent lack of heat and hot water, mold, vermin infestations, fire damage, broken elevators, and unsafe electrical and plumbing conditions. Across the portfolio, there are more than 6,300 open Housing Maintenance Code violations, nearly 2,000 of them immediately hazardous, forcing families to endure unsafe and unlivable conditions while their landlord seeks court approval to sell the properties.
The filing objects to the proposed sale to Summit Gold Inc. unless and until tenants and the court receive meaningful proof that the buyer has the financial capacity, experience, and commitment to bring the buildings into compliance and maintain safe, habitable housing, the organization said.
Tenants are seeking to block approval of the sale or, at minimum, delay it for at least 30 days to allow for full disclosure and review of the buyer’s qualifications and repair plans.
“The tenants have already paid the price of this owner’s neglect with their health, safety and dignity,” said Edward Josephson, Supervising
UPT’s objection joins filings by several other objectors, including the law firms Patterson Belknap Webb & Tyler LLP, Morrison & Foerster LLP, and Brooklyn Legal Services, that raised serious concerns about the feasibility and fairness of the proposed transaction.
The confirmation hearing on the proposed sale is currently scheduled for Thursday.
