Entrance to Manida Street building, Photo by Wanda Hellmund
By Wanda Hellmund
It was a moment the tenants in the decaying apartment buildings on Manida Street had sought for more than two years. “Omni bought the debt,” Carmen Rodriguez, head of the residents’ group, declared at a tenant meeting on December 7.
The room–filled with Hunts Point residents who have endured rats, collapsing ceilings and months with no heat or hot water–erupted in applause
It has been a long fight for residents in Manida Street and hundreds of other residents in the decrepit Ocelot-owned buildings all over the Bronx. This is their first victory. But it was a victory with a caveat.
“This is a huge success for the tenants,” said Jill Roche from the Hunts Point Alliance for Children, who represented the Manida Street tenants. “But there is still a very long road ahead for us.”
On Dec. 2, Mayor Michael Bloomberg announced the sale of the portfolio of 14 of 26 Ocelot-owned buildings to Omni New York LLC, a low-income real-estate development company, as a boon for residents all over the city. “The sale of these buildings to an affordable housing developer with a track record as strong as Omni’s is a home run for the residents, the neighborhood, and all of New York City,” the mayor said in a statement. “That’s something all of us can cheer.”
“Omni is thrilled to have been chosen as the successful bidder for the Ocelot portfolio,” Omni’s co-owner Maurice “Mo” Vaughn said in a statement. Vaughan is a former New York Met player. “We look forward to moving ahead with the foreclosure process and substantial rehabilitation of these properties.”
“I want Omni to do right by us,” said Rodriguez, a 35-year-old mother of five, who had help lead the fight against Ocelot Capital Group that bought the four Manida Street buildings and 22 others across the Bronx in between 2006 and 2008, only to abandon them to foreclosure months later.
“We don’t want to be treated like trash no more.”
This pyrrhic victory may have a broader impact on future tenants’ cases against their landlords. “This is a success not only for these tenants,” said Roche. “This is a success for tenants all over the country.”
But the victory is muted. Omni did not buy the buildings outright from Ocelot. It bought their $23.8 million debt from Fannie Mae and Deutsche Bank. As long as the deeds are still held in the hands of companies linked to Ocelot, improvements may take some time.
What does this deal mean for tenants tomorrow? “Not a whole lot,” said Roche at the meeting. “But this is a huge step. It just might take a year or so.”
Omni officials pledged to transfer $1 million in emergency repairs to the current receivers in various buildings, though they are well aware that one million will not go far.
“I think $30 million is the right figure to put these buildings back to where they ought to be,” said Omni manager, Gene Schneur, acknowledging the enormity of the buildings’ decay.
For instance, the Bryant and Morris Avenue receiver claimed in October that he needed $325,000 alone to make capital improvements such as waterproofing, sidewalk repairs and new electrical services.
“Nothing is going to happen until we get the deeds,” said Schneur. “This could take 12 months, this could take 18 months. We hope it doesn’t.”
A spokesperson for Fannie Mae, which owns much of Ocelot’s bad debt, said Ocelot has not been cooperative. “So we had to sell the notes for now to secure the deeds,” said Jon Searles.
Meanwhile, Rodriguez is hopeful. She visited some of the buildings Omni has rehabilitated in the city – a portfolio that includes 2,937 units of affordable housing.
“You should have seen these buildings,” Rodriguez told Manida residents at the tenants meeting. “These buildings looked beautiful!”
Tenants are both excited and skeptical about the new developments. “We would have preferred a non-profit organization,” said Jonathan Levy, a lawyer for the Ocelot tenants. “But this is the second best option for us.”
Most prefer to hold out hope. “We didn’t have hot water and heat for a year,” said Tamara Taylor, a 48-year old Manida Street tenant and mother of two. “Nobody was there to help us. “I have waited this long. I can wait a few more months.”