Mendel Brach Barred from Condo Business
Good riddance! The Brooklyn developer Mendel Brach (of Finger Building fame) was barred by New York State from selling condos after he was found to have illegally taken advantage a loophole which allowed him to build an outsized building, reports The New York Times. As you may recall, Brach claimed back in 2002 that he…
Good riddance! The Brooklyn developer Mendel Brach (of Finger Building fame) was barred by New York State from selling condos after he was found to have illegally taken advantage a loophole which allowed him to build an outsized building, reports The New York Times. As you may recall, Brach claimed back in 2002 that he was building faculty housing for a local yeshiva at a new development at 191, 195, 197 and 201 Spencer Street in Bed Stuy and received a zoning variance that allowed him to build nine stories instead of five. The only problem was that he turned around and sold all 72 units in the building as condos. While the state’s attorney general office, unaware of the variance, initially approved the condo sales, the city ultimately refused to grant a permanent C of O, plunging the buyers into a kind of housing purgatory in which they were unable to sell, rent or refinance their apartments. In addition to the ban (which Brach can apply to have lifted after five years), the developer was ordered to pay a financial settlement to the occupants of $10.9 million.
State Accord Bans Sales of Homes by Developer [NY Times]
Subpoena for Fraudulent Spencer St Developer [Brownstoner]
A Big F-in Mess on Spencer Street [Brownstoner]
Lock Him Up and Throw Away the Key [Brownstoner]
The Bottom Line on Developer Abuses [Brownstoner]
Photo from Property Shark
Wow~ I feel so sorry for the residents of the building; what an *ss the developer was, and the blithe disregard he had for any sense of right is just appalling.
Slap on the wrist.
Five years not developing apartments in a bear market and a fine that the plaintiffs still have to collect (and may never collect)? This is a guy who willfully abused the zoning laws, skirted building regulations and took people’s money for a product he knew was defective and illegal, and that’s the best the AG’s office can do?
Yes, DOB, the architect, the marketers and others were complicit in this travesty, but the fish rots from the head down, and this stinks. I feel sorry for the owners, who are clearly not out of the woods.
Maybe some schadenfreude for some, but no justice here.
Another crooked Hasidic Jew. Where will we put them all?
adam..that link was so worth it. my faves:
1. “Its posts like yours that make me think the whole idea of posting should not be allowed on this website.”
2. “Good thing Brach davens with a nice big tallis zekel. His tefilos are botul…”
Lets clarify a few things.
1)he was ordered to pay 10.9 million. But he hasn’t. And he won’t. He claims to have no money, his corp is bankrupt and he says that his family is on welfare & food stamps
2)the 10.9 million is in no way to compensate us for pain & suffering. Nor is it to cover our legal bills. It is pay for changes & repairs to meet all of the items on the code violation list that the DOB has created. Some of the items are valid, some are not. The DOB is not so innocent here.
3)this is not yet helpful for us Spencer Street residents. Unfortunately for us. We are in a messy situation with no real solution to date. And both the DOB & Brach are equally to blame. And many politicians aren’t willing to anger the DOB or the community Brach is a part of. It’s an election year after all.
For those of you who would like the ridiculously long & complicated factual story visit:
http://www.spencerstreetsaga.com
Such a sad story — I have dealt with several owners here who sank their life savings into these unsafe units and were looking for any way out. Of course, with no C of O, they couldn’t sell or rent them out.
And while I certainly am no expert in NYC building codes, some of the more egregious violations (fire stairwells opening directly into the units, terrifyingly unprotected spiral staircases on the corner roof decks — one slip and you’re soaring over Willoughby Ave.) were immediately visible even to me.
How dod The Developers Group, which sold these units, escape this lawsuit? I should think they should be held responsible as well.
Another reason to work with a buyer’s broker, BTW (not to re-ignite that argument).
So this is good news for the Spencer street owners, right? I hope so.
“Didn’t somebody try that same yeshiva tactic on a condo to bypass zoning laws in the South Slope?”
Yep, the LoCicero family, using Bricolage Designs (same as Spencer St.) and I’ll just betcha the same yeshiva.
And bask in its mid-block 9 story fuggliness on a 2-3 story block. But I’m told DOI is after the LoCicero boys for this site and another on 15th St. Another crew who should be lead out in cuffs.
“You should read the comments on this site. It will make your head spin.”
Ah, to only to understand yiddish…heated debate, no less.