A recent issue of the Village Voice highlights the matter of illegal hotel conversion, whereby landlords clandestinely transform apartment buildings filled with long term tenants into transient hotels for businessmen. This was an issue brought into the public consciousness by Chris Lombardi of Chelsea Now in an ongoing series about such buildings as the Execu-stay on 24th Street in Chelsea. Now that the Voice has finally jumped on the bandwagon—and it’s about time, really–maybe we can get some legislation to stop this abuse. But the Voice article (“Motel Sucks” by Maria Luisa Tucker, 12/26/07) is a good piece of journalism, and I just want to point out a couple of things that it demonstrates.

Market Rate Tenants at Risk

The first is that, in this run-away real estate boom, market rate tenants are at risk as well.  People who are paying market rate for their apartments tend to resent those of us who are “lucky” enough to have rent-stabilized apartments (actually many of us originally moved into what were at the time depressed neighborhoods, taking apartments that might otherwise have stood empty), and to sneeringly tell us that if we can’t afford to live in the city we should just move out.  Well, surprise: looks like you can’t afford it either.  Landlords and developers don’t care about your community, even if you are paying top dollar: they are more interested in cashing in now.  You are basically just a pain in the ass to them, always demanding heat, repairs, etc.  And when the market goes south they can just bring in a whole new crop of market rate tenants.  All tenants are in the same boat, and we need to set aside our differences if we are to survive the tide of destruction that’s washing over our city.

Landlords on the Dole

The second is that, there are ways to fight back—even if you’re a market rate tenant and think your fate rests with the whim of the landlord.  The tenants at One bank Street found that their landlord had taken advantage of the city’s J-51 tax-abatement program, and hence was required to extend rent-stabilization protection to all tenants! Many of the landlords of these buildings have profited from such social programs designed to prop up the housing market when it was far less profitable.  Of course now that the market is wildly profitable, landlords want to opt out of these programs as quickly as possible, trumpeting their inalienable property rights, the inviolability of the free market, blah blah blah, and acting like tenants are the ones who are taking handouts.  But hey, my freeloading landlord friends, it turns out you were the ones on welfare.  And now it’s time to pay the piper–and the piper is the public. — Ed Hamilton

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7 responses to “Illegal Hotels and Welfare for Landlords”

  1. Roger Nelson Avatar
    Roger Nelson

    I grew up in northern NJ and frequented the Chelsea Hotel in the late 60/70. I went back in 2000 at the request of a friend and saw the transition of 30 years. I just read Ed’s book, “Legends of the Chelsea Hotel” and he captured the unique character of a great landmark in NYC.

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  2. chelsea hotel stranglers Avatar
    chelsea hotel stranglers

    revolt! every long term resident should strike a blow now by filing to enforce their rent stabilization rights. call the city to see if your apartment has been rent stabilized and/or registered in the past. they will send you a paper in the mail. it’s free. and if a significant amount of renovations have not been accomplished (see: 1/40 rule) then it may not be legal for them to be charging more than the stabilized rate. if the new management company gets hit with one rent adjustment after another, they’ll realize they aint going to make any money for either marlene or chode-boy and eventually they’ll ride off to their next big idea, glennon the rat and bernstein the bum (how about shaving before you arrive at the hotel?) in tow. when the bards are reinstated, then surely everybody does the right thing. for now, they wanted to enforce their “rights” to take over, then do absolutely nothing except harass tenants? ok, fine. whereever possible, we should all enforce our right to fight back — in a completely legal sense — and get their asses the hell out of here in ’08. bottom line is if bd doesn’t produce dollars, they get their walking papers and krauss sure isn’t going to run this place in their absence.

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  3. resident Avatar
    resident

    Who are these market rate tenants with a tendency to sneer? I moved in 10 years ago (next May) and I’ve never heard anyone sneer.

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  4. Old & Crappy Avatar
    Old & Crappy

    Resident, I don’t Ed means people within the Hotel per se. He’s referring to the broader argument against rent stabilized apartments in New York.

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  5. Davao Hotels Avatar

    The truth is that everyone has their own best interests in mind. Tenants want the most affordable option for them, while landlords want the highest rent they can collect.

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  6. Miss H Avatar
    Miss H

    Davao, this just makes Stanley’s Chelsea that much more special.It wasn’t like other hotels. It was a hotel, and a refuge and incubator for artists, and an embassy for another planet, and sacred ground. And still profitable. Now it is on it’s way to becoming something not special, just another hotel and cash cow.

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  7. Lisa Solanto Avatar
    Lisa Solanto

    I live at One Bank Street. Building residents met with commissioners and legal teams from HPD and DHCR on Jan. 18th. HPD is responsible for administering the J-51 tax abatement program, DHCR for hearing resident’s complaints. HPD officials refused to intervene in our landlord’s defiance of the J-51 regulation that requires he extend rent stabilization protections, including the right to renewal leases, to residents. HPD and DHCR officials say that because the language of the J-51’s stabilization regulation is being disputed in court by Stuy Town’s new owners, they will not enforce the regulation until the courts make a final decision. The appeals process is expected to take years. DHCR officials are taking our pleas for help “under advisement”.
    The Mayor’s Office of Special Enforcement, the agency ostensibly created to address the illegal hotel problem, and our elected officials tell us that legislation is pending to address the conversion of residential apartments into illegal hotel rooms. The legislative process is also expected to take considerable time. Until then, they say there is nothing they can do to protect residents facing eviction due to illegal hotel conversions.
    The dirty little secret our city officials have successfully kept from the public is this: Mayor Bloomberg’s ex-staffer, Kathleen Cudahy, is now the illegal hotel industry’s highly paid chief lobbyist. Her access and influence plus the illegal hotel industry’s ability to afford legal dream teams to parse and dispute the language and intent of city regulations has created a windfall for property owners. Owners accept taxpayer’s abatement dollars, earmarked to rehabilitate residential buildings and “increase the city’s stock of affordable housing”, then convert these buildings into illegal hotels. City officials excuse their inaction by claiming that the law has not caught up to this “new” problem, thus leaving them without the means to protect residents.
    With the exception of Chelsea Now and The Village Voice, the media has not covered this scandal. The tax fraud and illegal hotel scam has already deprived many NYC renters of housing and defrauds every taxpayer.
    Our landlord continues eviction proceedings against residents and the conversion of apartments into hotel “suites”. The nails are being hammered into the coffin of our once vibrant community. Just a note to Ed- One Bank residents holding traditionally regulated leases and those holding disputed “market rate” leases are fighting side by side in this David v. Goliath battle.

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