"On Friday, Summit Properties USA became the winning bidder for more than 5,000 rent-regulated units owned by bankrupt Pinnacle Development Group. The sale went through despite Mamdani's push to delay the auction of units, which were plagued by unresolved maintenance issues and a flood of tenant complaints. Mamdani's setback shows how even a mayor determined to capitalize on an affordability mandate can struggle once cases move into federal court."
"New Year's Day, Mamdani stood in a Pinnacle-owned building, using it as his bully pulpit to vow to take on landlords. For too long, bad landlords have been allowed to mistreat their tenants with impunity, he said. That ends today. Mamdani also said the city counts itself among Pinnacle creditors, citing fines for violations and unpaid taxes. He sought a 30-day delay in the auction to pursue options he claimed could better safeguard tenants and stabilize troubled buildings."
Summit Properties USA won the bankruptcy auction for more than 5,000 rent-regulated units formerly owned by Pinnacle Development Group despite a mayoral effort to delay the sale. The buildings suffered unresolved maintenance problems and numerous tenant complaints, and the city asserted creditor status based on fines and unpaid taxes. U.S. Bankruptcy Judge David Jones rebuked Mayor Zohran Mamdani, requiring him to accept the auction outcome at an upcoming hearing. The case illustrates federal-court limits on local efforts to reshape rent-stabilized housing and raises stakes amid broader statewide fights over a 2019 rent stabilization law.
Read at www.housingwire.com
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