Tenants in bankrupt Manhattan apartment buildings affiliated with Emerald Equity Group LLC are demanding that housing code violations including rat infestations and bed bugs be immediately addressed as part of a chapter 11 agreement, Bloomberg News reported. Residents are seeking an order compelling the debtor, 203 W 107th Street LLC, to use available funds to address outstanding New York City Housing Court orders and make any urgent repairs to the buildings, according to court papers. Emerald purchased the apartments in December 2016 with the aim of converting them into condominiums as part of its business model of capitalizing on gentrifying neighborhoods. Instead, a cluster of its buildings filed for bankruptcy last week, blaming tougher housing regulations and a tenant rent strike for their debt troubles. Tenants, the debtor’s lawyers and the lender LoanCore, which is taking ownership of the buildings in bankruptcy, reached a tentative agreement to bring the properties into compliance with the housing code, the filing said. Kellner said the buildings have already been found in contempt of housing court orders to address violations, many of which are hazardous.
