By DAVID CRUZ

Further insight into the New York Comptroller’s Office approval of a multi-billion dollar real estate firm’s purchase of Bronx properties paid with city pension funds came short, despite a Freedom of Information request from the Norwood News. The documents came amid the president of the real estate firm meeting privately with community stakeholders to apologize.      

The 43-page, 2012 Request for Proposal from The Related Companies, owners of 40,000 units of affordable housing citywide, was obtained by the Norwood News on April 1, with some pages completely blacked out. The redaction was made to protect trade secrets on behalf of the 40-year real estate firm, according to the Comptroller’s Office. Related ultimately purchased a stock of 36 properties mostly throughout the northwest Bronx in 2012.

Omitted from the redacted RFP included no rate of return disclosures for its Bronx portfolio investment, how the firm would monitor the investment, and how it plans to minimize risk. Related had hired its subsidiary, Simply Better Apartment Homes, to manage the properties.

The purchase by Related resulted in nagging heating issues at some of the firm’s newly acquired buildings, mostly in the northwest Bronx. Acrimony followed, leaving one housing advocacy group to inquire how Related secured funding from the New York City Employees Retirement System, Teachers Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund and Board of Education Retirement System.

A portion of the $253 million awarded to The Related Companies would go towards investment of multi-family homes found in the north end of the Bronx as a way to raise affordable housing options to New Yorkers displaced by Superstorm Sandy. Related also intended to create a loan program for property owners shorted from insurance payouts to fix derelict buildings. In all, the company would use $90 million of city pension funds to buy the north Bronx stock from Steven Wasserman.

“I don’t understand why so much has been redacted, and why,” said Sally Dunford, executive director of West Bronx Housing, which has monitored heat issues at the Related buildings since early January. “They say it’s because it’s ‘trade secrets,’ but among the materials redacted were biographical sketches of the people running Related, and that information appears on Related’s website. So how is that a trade secret?”

Eric Sumberg, a spokesman for Comptroller Scott Stringer, said, “The New York City Pension Funds have a high standard for transparency and disclosure. We report on a quarterly basis how our investments have performed and fees that have been paid.”

A spokeswoman for Related said the firm’s efforts to resolve issues included the establishment of a hotline, $20 million in repairs for the properties, and a “meet the manager” series for tenants. The company did not respond to requests on its rates of return for investment properties.

Last week, Jeff Brodsky, President of Related Companies, visited Community Board 7 to offer his apologies, according to sources present at the meeting.

Editor’s Note: An earlier draft of this article misstated that Jeff Blau was at the private meeting at Community Board 7. The Norwood News regrets the error.