New York, NY – New York State Assemblymember Linda B. Rosenthal (D/WF, Manhattan) hosted a successful forum on February 17, 2010 for the residents of buildings 200 West 93rd Street and 201 West 92nd Street, in response to notices placed in the buildings’ lobbies by the mortgage holder stating that the buildings were in foreclosure. The notices did not adequately inform residents how the proceedings would impact each individual lease and caused unnecessary panic among tenants.

“I learned about this foreclosure from panicked phone calls to my office and immediately contacted the State Division of Housing and Community Renewal,” said Assemblymember Rosenthal. “Tenants had a right to be informed, but not in this clumsily executed manner that frightened people without providing any clarity.”

Assemblymember Rosenthal distributed a letter sent to her from DHCR Commissioner Brian Lawlor reassuring building residents that their rights under rent-stabilization would be guaranteed regardless of the fact that the building was in receivership. Rosenthal then arranged a foreclosure seminar on February 17 consisting of Legal Services of New York foreclosure expert Raun Rasmussen, Housing Court Answers / City-Wide Task Force on Housing Court Executive Director Louise Seeley and DHCR representative Derek Frederick. The assembled panel answered questions covering the rights of stabilized and market rate tenants, building maintenance, security deposits, evictions and anticipated timeline for the eventual auction of the building.

Assemblymember Rosenthal said “I am grateful for the top quality housing and foreclosure information that my panel was able to offer. Tenants were given the opportunity to air their grievances, fears and assemble together to discuss their future. It is fortunate that these buildings have a thriving tenants association on hand to manage this crisis.”

The affected buildings received J-51 tax abatements and under the landmark New York Court of Appeals decision Roberts v. Tishman Speyer, this should enable market rate tenants to file for rent-stabilization status for the first time. Although many specific details remain undetermined, the Court of Appeals broadly concluded that tenants in buildings receiving city subsidies should be classified as rent-regulated, and are potentially owed money for the above rent-stabilized monthly rates that they paid during this time period.

Assemblymember Rosenthal said “Roberts is the most significant tenant victory in some time and I am pleased that market-rate constituents in these affected buildings may apply for stabilization. Rent-stabilization will afford those tenants protection against the arbitrary eviction that often accompanies the foreclosure process and will help my constituents remain in their homes. The buildings at 200 West 93rd Street and 201 West 92nd Street are just beginning a lengthy process and I will assist them every step of the way.”