Violations Hold Up Residential Grants

by Ronald Drenger

Like many Downtowners, Celia Hartmann applied for a Lower Manhattan Development Corp. residential grant late last summer, soon after applications became available. She was told that it would take two to three months to process the application.

In December, having received no response, Hartmann called the LMDC. She says she was told her application had been approved and she would probably receive her first check in January.

January came and Hartmann, who lives at 1 Hudson St. with her husband and two teenage daughters, again checked with the LMDC. This time, she was told that her application was on hold because it was missing certain

documents and because her building had a violation, though the LMDC representative could not say what the violation was.

“It was frustrating and I was just so surprised, having been led to believe that everything was moving along smoothly,” she said.

Hartmann is one of hundreds, if not thousands, of Lower Manhattan residents whose checks are being held up because Department of Buildings or Fire Department records say that their buildings have outstanding violations. Some alleged violations turn out to be mistakes.

In interviews last month, residents affected by the policy said they were most frustrated by the lack of information—or sometimes the misinformation—coming from the LMDC and city agencies. It took follow-up calls and visits to the grant program offices, months after applying, before they learned why their checks were being held up.

Like Celia Hartmann, Peter Lynn and Lorellen Green, who live in a co-op at 258 Broadway, also applied within the program’s first weeks. When Lynn checked up on his application at 68 Reade St. in November, he discovered that a building violation was holding up his grant.

Then he tried to find out why.


He and several neighbors called the Department of Buildings, the Fire Department and the Department of Housing Preservation and Development. There were no violations. Finally, they discovered that an old, corrected Fire Code violation—yet to be cleared from city records—was the culprit, and they had to hire a plumber to verify that the problem was fixed.

“We had to go and probe,” said Lynn. “Nobody could figure out why it hadn’t been taken off the books.

“We were just sitting here, waiting, a violation existed in the LMDC’s files, and they did nothing about it,” said Suellen Epstein, of 9 Murray St.

The Fire Department violation for her building said that a clock on the fire alarm system had not been reset after the 9/11 power outage, though the problem had already been corrected. Only in December, after weeks of conversations between residents, their management company, the Fire Department and the LMDC, and a mess of contradictory information, did the LMDC finally assure the residents that the violation was out of its computer system. Late last month, Epstein was informed that her grant was approved.

To be sure, the grant program is progressing, even if more slowly than anticipated. By the end of last month, about 30,000 grant applications had been submitted to the LMDC and 16,000 had been approved, with almost all the rest being processed, said Amy Peterson, who runs the program.


Checks totalling $33 million have so far been sent to 13,000 households. (Checks are sent around the third week of each month to everyone approved through the end of the previous month, so there is a lag of three to seven weeks between approval and the time residents receives their first checks.)

But more than 100 Downtown buildings had violations that were preventing residents from receiving money. In buildings with what the LMDC calls Level 1 violations, which include Fire Department citations for hazardous conditions, no resident can get a grant until the owner proves the problem was corrected, Peterson said. In buildings with Level 2 violations, considered less serious, anyone who moved in after Nov. 1, 2002, is barred from receiving the LMDC grant until the violation is cleared.

The LMDC declined to immediately release the full list of buildings where violations were blocking grants, saying that the list changes as buildings clear up old violations or get new ones.

In some cases, residents were not even aware that their applications were on hold. Walter Usiatynski, a tenant at 144 Chambers St., who had heard nothing from the LMDC since submitting his application in early October, was surprised to hear from a Trib reporter last month that his building was among several identified by the LMDC as carrying violations.

Robert Krauss, a 16-year Tribeca resident who lives with his wife and nine-year-old daughter at 41 Murray St., was similarly surprised. When he checked with the LMDC in December, two months after submitting his application, he said, he found out he needed to provide more documents (his full 100-page lease instead of key pages, and a letter from his daughter’s school instead of just a report card). He brought the material to an LMDC office and was told it would take another month to process.

“They said nothing about a building violation,” he said with irritation after learning that the LMDC had identified his building as a violator. “That would aggravate me.”

When asked why residents were not automatically alerted about the violations, Peterson said, “We didn’t want to go through the process of sending out letters when we knew that building owners were working to get things cleared up.”

The owners of all buildings with violations serious enough to hold up grants were notified either in August or October, she said, and the LMDC was working with owners and city agencies to clear as many buildings as possible, as quickly as possible.

“The Department of Buildings and the Fire Department have set up somewhat expedited processes to provide information and deal with these problems,” she said.

But Eugene Andrews, president of Andrews Building Corp., which manages more than 50 Downtown buildings, most of them co-ops and condominiums, including several where grants have been withheld, sounded skeptical.

“The LMDC has never contacted us, that I’m aware of,” he said. “Our name is on all city records for buildings we manage.”

Instead, the management company found out about grant delays from residents, and Andrews said that when his company contacted the LMDC, the agency had trouble finding the violation numbers or details.

In the case of 275 Greenwich Street, Andrews said, “it took us at least four weeks and three meetings with representatives of the LMDC, at their office, to find out what the violation was.” He claimed the violation had been cured last August.

At 1 Hudson St., also an Andrews building, Celia Hartmann got the violation number from the LMDC last month—after first being given an incorrect number—and passed it on to the management company. The violation, issued last August, was for failure to perform a pressure test on the sprinkler system, though Bob Brander, who handles compliance issues for Andrews, said the test had been performed. He said he was trying to schedule another one, and hoped to have the violation cleared this month.

David Pian, an assistant vice president at Rockrose Properties and building manager at 99 John St., said the LMDC did tell him that there was a violation, but that “it took weeks to figure out what the violation was.” After first telling him that there were no citations, the Fire Department found that a permit for an air conditioning unit installed in 1999 had been filed incorrectly.

Late last month, while Rockrose began filing new papers, a process Pian said would take four to six weeks, the LMDC suddenly removed the hold on the building’s grants.

Some residents questioned the LMDC’s policy, saying they were being punished for things out of their control.

“Why should an incentive program be tied to the relationship my building has with Buildings Department or Fire Department?” asked Hartmann.

But Peterson said it was a matter of public safety. “We don’t want to encourage people to move into buildings that are unsafe,” she said. While the LMDC has come under criticism for calling some “minor” code infractions unsafe, Peterson said the Fire and Buildings Departments made those judgements. In addition, she said, there were many violations for which the LMDC did not hold up grants.

Despite his own experience, Peter Lynn said residents should cut the LMDC some slack.
“They’re dealing with 30,000 applications and it’s not their fault that they had faulty information,” he said. “It’s frustrating that the city’s records are in that kind of shape, but you have to kind of take that in stride.”

Information on the grant program and applications are available on the LMDC’s website, www.renewnyc.com. The agency can be visited at 68 Reade St. and 225 Park Row, or called at 866-736-3969.