The Union of Pinnacle Tenants, a group representing residents of rent-stabilized apartments owned by the real estate firm Pinnacle Realty of New York, rallied outside the Brooklyn Federal Courthouse on Thursday, urging city officials to better protect tenants as the firm auctions off roughly 5,000 units.
After declaring bankruptcy in May, Pinnacle put up 93 buildings, some in Brooklyn, up for sale in an bankruptcy auction. Tenants say they have long battled their landlord over rolling blackouts and hazardous living conditions in their buildings, and want the city to make sure the affordable apartments in the auction sale remain that way.
The city should ensure regulatory agreements on future sales of these buildings to guarantee repairs are made, and give tenants the time to seek alternative and cooperative ownership of their homes, said tenant Vivian Kuo.
There are now 50 tenant associations in Pinnacle-owned properties that have joined the union, according to UPT.
“Pinnacle has made themselves and their investors rich, taking our rent checks each month meanwhile giving us homes riddled with leaks, collapsing ceilings, pests, and a whole host of other problems," Kuo said. "As they siphon off money to investors, they leave their tenants and lenders dry."
From 2019 to 2024, “immediately hazardous” Class C violations increased fourfold, double the average rate of other rent-stabilized buildings, according to UPT.
Affordable housing should also be decent, dignified, and safe, said City Council Member Chi Ossé.
"Pinnacle needs to be held accountable," he said. "There need to be fines for letting their buildings fall into disrepair, and city action to protect tenants."
Sate Assemblymember Phara Souffrant Forrest, who grew up in a building owned by Pinnacle, said the city needs to step in to stop the cycle of disrepair.
“I grew up thinking taking baths in brown water was normal," she said. "That having a ceiling fall in on your head was ok. That unlocked doors, power outages, and no heat during the winter was just life in Crown Heights. I’m saying it’s not right and it ends now."
Tenants have endured unacceptable living conditions while their landlord treated their homes like chips in a financial game, said state Assemblymember Marcela Mitaynes.
"Now, as thousands of rent-stabilized apartments are pushed toward a bankruptcy auction, tenants are rightly demanding a voice in what happens next," she said.
