The courts issued a subpoena last week to developer Mendel Brach, whose residents won a $10.9 million judgment for his fraud and negligence at his four-building, 72-unit development on Spencer Street in Bed-Stuy. Brach had issued plans in 2002 for the buildings to be educational housing facilities, thus taking advantage of a zoning variance to build taller condominiums, The Real Deal reports. Additionally, Brach had failed to obtain a certificate of occupancy, amend his offering plan, and comply with zoning regulations. Without a certificate of occupancy, the residents who bought units at 191, 195, 197, and 201 Spencer Street cannot legally rent, sell, or refinance their homes. “We all closed in 2004 and we’ve all been paying our mortgages on what is a valueless property,” unit owner Sara Monestime told The Real Deal. Brach, through his attorney, stated: “Recently, I consented to judgments on behalf of the attorney general and the unit owners for the buildings. I will continue to do everything in my power to help the attorney general and the unit owners bring the buildings up to the highest standards possible.” Brach has said that he cannot afford the needed repairs, however, and the Department of Buildings has charged the homeowners with the responsibility of financing them. GMAP
Brach Hit with Subpoena at Spencer Street [Real Deal]