In a significant legal move, the Legal Aid Society has filed formal objections in federal bankruptcy court against the proposed sale of over 90 residential buildings owned by Broadway Realty I Co., LLC, the primary debtor entity for the Pinnacle Group. The objections were filed on behalf of the Union of Pinnacle Tenants, highlighting years of severe neglect and the detrimental impact on thousands of residents. This action follows similar objections lodged by the City of New York and the New York State Attorney General.
The tenants, represented by the Union of Pinnacle Tenants (UPT), reside in buildings primarily located in Brooklyn that suffer from chronic disrepair. Issues include a persistent lack of heat and hot water, mold infestations, vermin problems, fire damage, malfunctioning elevators, and unsafe electrical and plumbing conditions. Currently, there are more than 6,300 open Housing Maintenance Code violations across the properties, nearly 2,000 of which are categorized as immediately hazardous. This situation forces families to endure unsafe and unlivable conditions while their landlord seeks court approval to sell the properties.
Tenants Demand Accountability in Sale Process
The legal filing opposes the proposed sale to Summit Gold Inc. unless tenants and the court receive substantial evidence that the buyer possesses the financial capability, experience, and commitment necessary to bring the buildings into compliance and ensure safe, habitable housing. The UPT is calling for a delay of at least 30 days to allow for comprehensive disclosure and review of the buyer’s qualifications and repair plans.
“The tenants have already paid the price of this owner’s neglect with their health, safety, and dignity,” stated Edward Josephson, Supervising Attorney in the Civil Law Reform Unit at the Legal Aid Society. He emphasized that any bankruptcy plan should undergo thorough scrutiny to prevent a recurrence of the cycle of overleveraging, disrepair, and displacement.
Concerns Raised by Multiple Parties
The objection by UPT adds to the voices of several other parties, including law firms Patterson Belknap Webb & Tyler LLP, Morrison & Foerster LLP, and Brooklyn Legal Services. These entities have raised significant concerns regarding the feasibility and fairness of the proposed transaction.
A confirmation hearing regarding the proposed sale is scheduled for Thursday. As the legal battle unfolds, the stakes remain high for the tenants who seek accountability and improvements in their living conditions. The outcome of this case may set a precedent for how similar situations are handled in the future, underscoring the importance of tenant rights in the face of corporate challenges.
