By DAVID CRUZ

As the city grapples to improve the housing stock with initiatives to preserve housing and provide equity, problems are at a near end for a four-story building in Bedford Park. But a burning question lingered. 

Critical repairs are under way, albeit in baby steps for 3094 Villa Ave. The tenants underwent tough trials—living with no heat or hot water during two frigid winters, nights of hearing rodents scuttle along the walls, and the endless question that never went answered: Who owns the building? It’s a mystery that arguably allowed the building to fall into disrepair.

“We’re still clueless on it,” said Antoinette Purcell, part of a group of tenants who’ve fought to regain basic amenities.

The building’s neglect forced the city’s Housing Preservation and Development agency to enroll the building into the Alternative Enforcement Program. The AEP, placing derelict properties under its care, has used thousands of dollars in taxpayer funds to cover the cost of repairs. Lack of repairs was enough for tenants to withhold rent, instead putting it in escrow, a legal practice, until repairs were made.

Several litigation suits soon followed, beginning with a foreclosure procedure involving Blue Whale Villa, a rent strike, action for repairs and a call to remove Christopher Marengo, the court-appointed receiver tasked to collect rent from tenants. With a rent strike, Marengo claimed he didn’t have enough capital to make repairs.

But that endless question continued to surface: How can tenants hold an elusive owner accountable? Purcell has made educated guesses, sifting through paperwork, yet there has been no concrete answer.

In virtually all instances, limited liability corporations (LLCs) represent building owners. The legal maneuver adds a layer of protection for building owners and hours of confusion for tenants. In every legal matter for 3094 Villa Ave., court documents privatize the actual names of property owners.

The tenants’ plight opens the question of how much legal protections LLCs receive and whether it undermines tenants’ rights. The practice is quite common–building owners form LLCs to protect personal assets. The theory helps spur business, though names of building owners are withheld, serving as a key drawback for tenants and arguably the court system. Finding the identity of an owner is difficult, with tenants often spending hours poring through layers of paperwork. In some cases the name of the owner is never found.

Principals, representing one or more members of the LLCs, are chosen, though in many instances there is no listing of names on public documents. While articles of incorporation can be purchased from the New York State Department of State, the agency that oversees LLCs, bureaucracy mars the process. A request must first be filed by mail.

“It’s especially frustrating, I think, when the corporate shells list some low-level super as the principal of the corporation,” said Sadia Rahman, the attorney representing tenants at 3094 Villa Ave.

Navigating the housing court system often involves professional help, like Rahman. But in many instances, tenants are left with no court-appointed attorney while LLCs have an attorney on hand. The identity of the owner, however, is almost never revealed.

When it comes to repairs, attorneys typically file court papers against the LLC. But the LLC can flagrantly disregard the obligations under a court ruling, inspiring a motion for contempt of court.

“In theory, for a motion of contempt of court, one of the remedies involved is throwing somebody in jail until they comply,” said Rahman. “If you don’t know who’s in charge of the LLC, it’s really hard to hold somebody accountable.”

HPD, tasked to ensure buildings are well maintained, can issue fines against the landlord. But landlords can indeed skirt fines since a fine often requires a party to arrive to court. Prison time can also be ordered against the owner, though it’s considered a final straw.

“It’s really putting them on notice about all the terrible conditions tenants are living in,” said Rahman. “You can’t throw an LLC in jail. I think that can become frustrating, especially to tenants who want to hold the invididual accountable.”

Next Edition: Determining Ownership