Homes for Rent in Albany Neglected by Landlords and Banks
Homes for rent in Albany are being neglected by landlords and banks as they lay on each other the responsibility of maintaining the rental properties.
Because of low rents, landlords cannot collect enough money to make repairs, even emergency repairs like burst pipes. Banks that foreclose on rental properties also refuse to make repairs, arguing that the properties have become nonperforming assets.
One rental building in Arbor Hill facing foreclosure is the multi-unit apartment complex at 299 Clinton, which is owned by nonprofit affordable housing entity St. Joseph’s Housing Corporation.
Due to financial difficulties, St. Joseph’s defaulted on its loan payments for its rental buildings in Arbor Hill, including 299 Clinton. Mortgage lender JP Morgan Chase Bank was forced to file foreclosure actions against St. Joseph’s Housing.
In December 2008, lawyer William Keniry was appointed by a New York Supreme Court judge as receiver for the Clinton property and other buildings owned by St. Joseph’s which are in foreclosure.
But despite the receivership, tenants of 299 Clinton and other buildings failed to get the repairs and maintenance that they needed. Keniry explained that St. Joseph’s did not have enough money to pay for repairs and that the rents collected were not enough to repair the homes for rent.
Keniry added that JP Morgan Chase also refused to provide funds for repairs, stating that the rental buildings were nonperforming assets. According to housing advocates like Roger Markovics of advocacy group United Tenants of Albany, disputes between landlords and mortgage lenders have become common during the economic downturn.
Markovics said that oftentimes landlords facing foreclosures have given up and therefore have no more interest in or money for making repairs. Similarly, bank lawyers make arguments about the lack of accountability of banks for needed repairs and maintenance work.
In December last year, St. Joseph’s Housing filed documents in court for bankruptcy protection to block JP Morgan from auctioning off the rental buildings. Martha Hobbs, head of St. Joseph’s, also blamed the receiver for not winterizing the buildings and for the worsening of the conditions of the buildings.
But according to housing advocates, St. Joseph’s Housing has a history of not being able to maintain its properties and properly screening renters. In response, St. Joseph’s argued that it cannot raise rents to a level where it can collect enough to be able to make needed repairs and maintenance on its homes for rent.
