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Task Force Will Monitor MF Distress

NEW YORK CITY-Formation of the group coincides with Mo Vaughn's successful bid for the debt on a neglected 14-building South Bronx portfolio.

By Paul Bubny | Updated on December 03, 2009

NEW YORK CITY-City Council Speaker Christine Quinn said Wednesday that a task force had been formed to identify multifamily properties where imminent default puts tenants in jeopardy, and to pressure the owners to either maintain their buildings or sell them to responsible landlords. The announcement came on the heels of the successful bid by Omni New York LLC, led by former New York Met Mo Vaughn, for the debt on a 14-building South Bronx portfolio that had fallen into disrepair after its former ownership defaulted.

Known as the Predatory Equity Task Force, the group is intended “to quickly respond to foreclosures around the city, and find creative new policies to prevent problems before they escalate,” Quinn says in a release. It will be co-chaired by Erik Martin Dilan, chair of the council’s housing and buildings committee; councilmembers Inez Dickens and Annabel Palma; and Rafael Cestero, commissioner of the city’s Department of Housing Preservation and Development.

The task force has its basis in the process the Bloomberg administration used to help ensure the sale of debt on the portfolio of South Bronx properties formerly owned by the Ocelot Capital Group. Between 2006 and 2007, Ocelot purchased 781 units in 25 buildings and subsequently defaulted on its mortgage.

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