Developers Bend Rules and Screw Buyers
We’re supposed to be focusing on other things this week, but wanted to make sure everyone saw Sunday’s article about the C of O quagmire that the buyers of new condos on Spencer Street between Willoughby and Dekalb in Bed Stuy are now in. While this is a disaster for the purchasers who are the…
We’re supposed to be focusing on other things this week, but wanted to make sure everyone saw Sunday’s article about the C of O quagmire that the buyers of new condos on Spencer Street between Willoughby and Dekalb in Bed Stuy are now in. While this is a disaster for the purchasers who are the unwitting victims, we’re glad to see that developers are getting called to task for pulling a bait-and-switch tactic that we drew attention to back in July.
In our post on the South 3rd Street development in Williamsburg, we described how developers will apply to build extra square footage on the premise that it will be used to serve a community purpose (like housing for a religious or educational institution) and then when the project is built the community group will mysteriously not need the space anymore and the developer will sell it on the open market. This has been particularly prevalent in Williamsburg and its environs but obviously it has been happening elsewhere as well.
In this particular case, the villains are a group of developers including Mendel Brach, Moshe Oknin and Moshe Roth and their accomplice is architect Henry Radusky (who has won everyone’s respect and admiration with his pillaging of the South Slope). So now the buyers, who were able to close and get mortgages when the buildings received temporary C of O’s, are stuck in the strange position of being unable to sell their units because the DOB won’t grant permanent C of O’s. Personally, we think the developers should be forced to reimburse everyone for the purchase price plus other incurred expenses and hardship. Then they should be tried criminally. What scum bags.
Do people know of other specific incidents of developers pulling this crap? Let’s out them if we can. Maybe the papers will pick it up.
Caught in the Twilight Zone [NY Times]
South 3rd Street Development [Brownstoner]
More Trouble at Radusky Site [Brownstoner]
Work Officially Stopped on 15th Street [Brownstoner]
Eric,
If you can stomach reading Iceberg’s blog you will see that at least he is consistent in his approach. Illegal activity in defiance of “overzealous government regulation” is perfectly acceptable. So if you are “denied your right” to do with your property whatever the hell you want, go ahead and break the law.
Iceberg – free market, laissez-faire capitalism is a fine and valid idea, but even free market zealots have to operate within the law. Get the zoning laws changed if you don’t like it or move to Houston, TX where they don’t have zoning laws.
Apologies for the multiple post.
Dear Iceberg, the article discusses “The five buildings, between Willoughby and DeKalb Avenues, were put up by a group of developers including Mendel Brach, Moshe Oknin and Moshe Roth, according to public documents and city and state officials.”
Later in the article, it comments that “Ms. Toomer was once upset that she was unable to close on her apartment but now she has come to the sad realization that she and the 17 other buyers in contract at 209 Spencer may be the lucky ones.
The condo owners in the other buildings are already fighting with the developer over claims of poor quality work, from scratched countertops and floors to improperly built terraces and roof decks. They paid for an engineering report on the buildings and hired a lawyer to negotiate with the developers.”
Dear Iceberg, the article discusses “The five buildings, between Willoughby and DeKalb Avenues, were put up by a group of developers including Mendel Brach, Moshe Oknin and Moshe Roth, according to public documents and city and state officials.”
Later in the article, it comments that “Ms. Toomer was once upset that she was unable to close on her apartment but now she has come to the sad realization that she and the 17 other buyers in contract at 209 Spencer may be the lucky ones.
The condo owners in the other buildings are already fighting with the developer over claims of poor quality work, from scratched countertops and floors to improperly built terraces and roof decks. They paid for an engineering report on the buildings and hired a lawyer to negotiate with the developers.”
Can we invoke Goodwin’s Law here?
http://en.wikipedia.org/wiki/Godwin%27s_law
“It is mostly due to the housing nazis regulations[…]”
Woah, even I didn’t expect a Nazi reference this quick. Good job!
Nor actually footnotes with real superscript! Impressive…actually more impressive than anything substantively written but, whatever, I’ll take it.
I guess what interests me the most about you Iceberg is that you don’t seem to place much personal value in honesty or integrity except when you attempt to apply these standards to the government.
These condo owners are also dealing with significant construction defects, according to the article.
Are there any developers in Brooklyn (or even Manhattan) who have a reputation for building quality buildings–highrise, lowrise or otherwise–or anything that stands out architecturally in a good way?
I would be very interested to know more about how they make it work in this crazy market.
How can a community attract decent developers to their neighborhood?
Great Post Eric – very funny.
The developers should be fined something that exceeds the profit they made on the buildings and the owners should be given their C of O’s. Sorry JoshK and Iceberg – the only criminals here are the developers. Asking them to abide by the letter and spirit of the law is not a lot to ask and other, law abiding, developers would jump at the chance.