By DAVID CRUZ
Following pressure from community activists and elected officials, Comptroller Scott Stringer has sent a letter to the head of a multi-billion real estate firm to resolve nagging heat issues in buildings purchased with city pension funds. Among the bigger requests is the real estate giant to come to the table.
Offering a diplomatic take on a mounting situation, Stringer drafted the letter to Jeff Blau, CEO of The Related Companies, requesting Blau send representatives to hear out residents experiencing heat issues in one of 36 buildings the firm purchased. A portion of the $253 million used to buy the Bronx properties two years ago was made available through the New York City Pension Fund, which puts a portion of the funds into real estate deals expecting a healthy rate of return.
“…[A] dialogue must be established to correct outstanding issues,” wrote Stringer, in a letter he drafted March 12.
Stringer, whose office serves as a custodian to Pension Fund investments, explained in his letter to Blau that city investments such as the Related’s Bronx portfolio “can only be marked as a success if they are both achieving their financial and broader economic goals.”
The letter demonstrates a more pronounced lead Stringer’s office has taken since heat issues in several buildings, mainly scattered throughout the northwest Bronx, began to surface. Stringer’s approach towed the line between public servant and arbiter, attempting to promote damage control before the situation worsened. His office had been working behind the scenes with several New York City Council members whose districts overlap with Related’s buildings, according to sources.
Many tenants blamed Related’s subsidiary group, Simply Better Apartment Homes, for allegedly ignoring mounting complaints. Tenants at 3013 Valentine Ave., a Related-owned building, pointed to newly installed heat sensors designed to activate a boiler if temperatures fall below a certain threshold.
The company has made attempts in fixing some of the issues, Stringer notes, which include the “responsiveness of the management company, timelessness of repairs, lack of heat and outstanding billing issues.”
He does note that should representatives come forward it could help both sides come to the table, eliminating the middle man.
“It provides [Blau], or [Blau’s] designee, with the opportunity to hear directly from residents about concerns without third-party interpreters,” wrote Stringer.
A representative from Related wrote in a statement that it shares the “the Comptroller’s belief that an open and ongoing dialogue with our tenants is of the utmost importance and we have taken a variety of steps to rectify any issues. We have established a clear protocol to ensure we respond directly and in a timely manner to tenant concerns. Simply Better has and will continue to speak to and meet with the Comptroller’s office, tenant constituencies and elected officials.”