City and state intervene in nonprofit bankruptcy
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Four troubled Brooklyn buildings have a new landlord.
After intervention from the city and the state Office of the Attorney General, that landlord is the nonprofit organization IMPACCT Brooklyn.
The city and state AG helped steer a bankruptcy process toward IMPACCT and away from two other bidders, both for-profit entities offering double the cash.
Mayor Zohran Mamdani has made transfers to “high-road landlords,” including nonprofit corporations, a key part of his housing plan. But the story at the four properties demonstrates how the city and state have worked to steer sales even before his tenure.
The recent history with the properties begins in April 2024, when tenants at one of the buildings sued their landlord. Tenants and the Legal Aid Society said the building at 201 Pulaski Street had become “dangerous to the life, health and safety of the tenants” owing to a “long history of neglect.”
The landlord was nonprofit Food First, a Housing Development Fund Corporation meant to provide housing for low-income tenants. Its director had ranked among the city’s worst landlords, according to the city’s public advocate, based on housing code violations.
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