Buildings at risk

The foreclosure crisis has not spared tenants. And many will remain vulnerable to real estate speculators unless government, community groups, tenants and local leaders collaborate to preserve affordable housing.

In the East Harlem area, there is much to lose with 47 buildings that represent more than 1,000 apartment units.

Once owned by the British firm Dawnay Day, the buildings are in foreclosure proceedings. Dawnay Day overleveraged their properties and couldn’t meet mortgage payments.

During its ownership, tenants rallied against the owners’ attempts to push out low income tenants for the purpose of increasing rent. Community Voices Heard (CVH), a local advocacy organization, says 11 of the buildings have been already converted to market rate rents in a neighborhood where the median income is $30,000.

This “predatory equity”— real estate and investor groups taking control of large scale developments of low and mixed income tenants—fuels gentrification. The targets for displacement are generally the most vulnerable groups—Section 8 tenants, the elderly and undocumented immigrants.

CVH and tenant organizers want to prevent another Dawnay Day from coming into the picture. They are working on documenting the income of tenants to determine which city, state or federal resources the buildings could be eligible for. This could help draw public financing and private lenders into a nonprofit ownership of the buildings, for example.

Some tenants may be fearful of disclosing their information because of their immigration status. But we encourage them to provide information that may help them maintain their apartments affordable. They deserve support, not real estate speculators harassing them out of their homes and neighborhoods.

The foreclosure crisis has not spared tenants. And many will remain vulnerable to real estate speculators unless government, community groups, tenants and local leaders collaborate to preserve affordable housing.

In the East Harlem area, there is much to lose with 47 buildings that represent more than 1,000 apartment units.

Once owned by the British firm Dawnay Day, the buildings are in foreclosure proceedings. Dawnay Day overleveraged their properties and couldn’t meet mortgage payments.

During its ownership, tenants rallied against the owners’ attempts to push out low income tenants for the purpose of increasing rent. Community Voices Heard (CVH), a local advocacy organization, says 11 of the buildings have been already converted to market rate rents in a neighborhood where the median income is $30,000.

This “predatory equity”— real estate and investor groups taking control of large scale developments of low and mixed income tenants—fuels gentrification. The targets for displacement are generally the most vulnerable groups—Section 8 tenants, the elderly and undocumented immigrants.

CVH and tenant organizers want to prevent another Dawnay Day from coming into the picture. They are working on documenting the income of tenants to determine which city, state or federal resources the buildings could be eligible for. This could help draw public financing and private lenders into a nonprofit ownership of the buildings, for example.

Some tenants may be fearful of disclosing their information because of their immigration status. But we encourage them to provide information that may help them maintain their apartments affordable. They deserve support, not real estate speculators harassing them out of their homes and neighborhoods.

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