Tenants to Banks: Stop Lending to Bad Landlords

After years of fighting landlords for better conditions, some tenants are setting their sights on a new target: the banks that lend to them.

Dozens of tenants picketed outside Signature Bank's shareholders' meeting in Manhattan on Thursday. They said the bank continues to lend money to notorious landlords despite track records of bad behavior toward tenants. 

Joselyn Gomez lives at 750 Grand Concourse in the Bronx, which made headlines this winter after an outbreak of a deadly, rat-borne disease. Her landlord Ved Parkash has been on the Public Advocate's 'Worst Landlord List' for years, and has received loans from Signature. "Somebody died in my building from the rats and he continues to buy more buildings," she said.

"It's not that they shouldn't lend," said Jaime Steinberg, another Parkash tenant. "They should find out how the building functions. This is what I want."

Tenants are calling on Signature and other banks to stop lending to landlords with records of bad behavior toward tenants, including those who are under investigation by the government and have numerous housing code violations. Activists said Signature has also made loans to Steve Croman, the target of a sweeping investigation by Attorney General Eric Schneiderman, among others. 

Tenants are also asking banks to base their appraisals on the current rents tenants are being charged, not higher rents the landlord hopes to charge. In cases where the loan has already been made, they want banks to help pressure landlords to make improvements.

A statement issued on behalf of Parkash said the landlord is continuing to invest in his buildings with repairs and improvements. "Like all aging, pre-World War II buildings in New York, their buildings require constant investment, attention and upkeep, which is why they borrowed funds ...," the statement said. 

In a statement, Signature Bank said it's proud of its record of affordable lending, including loans made to landlords who've bought properties "with the express mission" of fixing up the properties to improve tenants' lives, as well as its efforts to press the landlords "in question" to improve their buildings.

"No one and no bank is perfect," the statement says. "But our overall record should be applauded and not denigrated. We note some of the names in question and have worked toward encouraging positive outcomes for tenants to the extent legally possible."