Tenant Troubles In Buildings Facing Foreclosure Spreading Throughout New York State

In Rockland County, New York, The Journal News reports:

• It's a situation that is becoming common at rental properties throughout the state owned by questionable landlords who do minimal maintenance then default on their loans, leaving the buildings in the hands of banks, and tenants with little recourse. "It's a looming crisis that we haven't felt the full effect of yet," said Dennis Hanratty, executive director of Mount Vernon United Tenants, a Westchester advocacy group.

• "Landlords like that are heavily leveraged, they go into foreclosure, they lose the property and the tenants are left holding the bag," Hanratty said. At least 16 properties in Rockland owned by [Spring Valley landlord Joseph] Klein and holding companies controlled by him are in various stages of foreclosure. A man answering the telephone at his office [...] said Klein was not available and promised to give him a message. Klein did not return the call. Lawyers who have represented him in the past said they are no longer in contact.

• Even before Klein ran into problems with lenders, he and his properties had come to the attention of local authorities. "He's well known among building inspectors in the county," said Gordon Wren Jr., the county's emergency services coordinator who also serves as head of a new task force on illegal and substandard housing. "Infamous, I'd say."

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• Klein has frequently been cited by the Rockland Department of Health for numerous health and safety violations at his properties throughout the county. Now that many of those properties are in foreclosure, it's even more difficult for local governments to deal with the banks that own the buildings and the receivers appointed by courts to administer them.

For more, see Tenants suffer as more landlords default.

In a related story, see The New York Times: Struggling Landlords Leaving Repairs Undone.

(1) According to The Journal News, two tenants spoke for the story. "This reminds me of when I was in the service and we had to sleep outside in a field," said Teddy Baker, 78, an Army veteran and retired state worker who has lived in the Tomkins Cove bungalow for more than 20 years. "It's freezing cold, no heat, no water." "We're living like a bunch of animals up here," said tenant Joseph "Rusty" Ridlon. "No heat, no water — we have to go to the creek to get water to make the toilet flush."