By Gus Saltonstall
At a time when affordable housing is in short supply and the city wants to promote the development of single-room-occupancy (SRO) buildings to fill some of the deficits, there is an SRO on the Upper West Side that many tenants allege has fallen into disrepair since it was acquired by a new owner in September 2022.
Residents of the Riverside Studios building at 342 West 71st Street, some of whom have stoves in their units, have not had working gas for those stoves for the past 14 months.
And that is just one reason 26 tenants of the building have been on a rent strike since last November, fighting what they called, in a lawsuit filed this month, “the dangerous living conditions and serious loss of services within the building.”
Other alleged offenses from residents and the lawsuit include a non-secure front door, non-working security cameras, a broken intercom system, common areas littered with garbage, the loss of their super and front desk attendant, illegal short-term rentals to tourists, unreliable mail delivery, garbage piling up in front of the building, mice and roach infestations, missing fire alarms, and more.
Tran Group, LLC, a real estate developer with a checkered history, is the new owner of Riverside Studios, a seven-story building located between West End Avenue and Riverside Drive. Tran Group owns more than 30 buildings across New York City, including six on the Upper West Side. Anna Do, an employee of the company, is the landlord of Riverside Studios. Do was named on the New York City Public Advocate’s “100 Worst Landlords of 2023 Watchlist.”
Multiple residents who spoke to West Side Rag said the group has turned the building into a “slum.”
Do has strongly denied these allegations.
To understand the situation at 342 West 71st Street, it is important to understand that SROs operate differently than market-rate properties. SRO landlords have much less leeway to increase rents, and residents don’t need leases to claim that they are tenants. In many cases, an SRO resident does not sign a lease renewal to remain in the building after the initial agreed-upon time frame comes to an end.
Riverside Studios is made up of nearly 125 studio apartments, with shared bathrooms for residents on each floor. Some tenants have leases, some do not. A significant portion of the single rooms are shared by multiple people, according to tenants and the legal experts they have partnered with.
“This building is occupied by at least 80 percent older people who live on welfare or very little money,” said a tenant who, like all those WSR interviewed, declined to give their name for fear of retribution by the landlord.
Alejandro Coriat, who works as a tenant organizer for the Goddard Riverside Law Project, told West Side Rag that Tran Group’s purchase of the SRO was “peculiar,” as there is far less upside on rent margins compared to market rate buildings, and it did not align with other properties in its portfolio.
While the same rent margins are not available in Riverside Studios, Coriat says more profit is possible.
“Riverside Studios rooms are not cheap for an SRO,” Coriat said. “There are some that go for $1,000 to $1,200 legally, and there is also a lot of vacancy in the building, so there is room to add profit.”
On April 1, Coriat and Goddard Riverside Law Project helped residents of the West 71st Street building file a lawsuit against the Tran Group over what they say are unsafe conditions in the building. It is not the first time residents under Tran Group ownership have taken a stand against the company. Residents of an East Village building in the developer’s portfolio held a rally in 2023 over unsafe construction.
“Whether it is evil or incompetence, they are breaking the law,” Coriat stated. “They are keeping tenants in substandard living conditions.”
A local elected official has also joined the fight by tenants for better conditions within the building.
Assemblymember Linda Rosenthal wrote in a letter to Tran Group in September, 2023, saying she was “deeply concerned” by reports coming from tenants in the building.
“The residents of Riverside Studios deserve better, and their health and safety should not be considered collateral damage in the name of construction,” Rosenthal wrote. “Unfortunately, since Tran Group purchased the property earlier this year, many of my constituents have reported a reduction in services and a severe degradation in their quality of life.”
The developer never responded to Rosenthal’s letter.
More than 150 Open City Violations
Riverside Studios has more than 130 open violations from the New York City Department of Housing Preservation and Development (HPD), and 27 violations issued by the Department of Buildings (DOB), which include faulty electrical work and failure to maintain the building’s exterior wall.
This is above the average number of open violations for a residential building on the Upper West Side.
“I’ve found myself being in constant survival mode,” a building resident said. “This is the Upper West Side; we came here to have a standard of living, and now the standard of living has dropped.”
One of the issues most often repeated by residents was the decision to place trash bins outside the building, after the new owners took over the basement for their offices and living space, according to some tenants.
“The garbage used to be downstairs in the basement, but now they put the trash on the street in front of the building in open containers,” another resident said. “You have rats running right in front of the door, and you have to go through garbage just to enter the building.”
Other residents told the Rag that there was a concerted effort by ownership to raise prices within the building.
“They (Tran Group) started issuing late fees on my rent payments, but SRO buildings don’t incur late fees if you pay the rent within the space of that month,” one longtime tenant explained. “It’s like they have a plan on how to exploit people from the beginning.”
Multiple tenants added that ownership had asked them to sign leases with increased rents, even though leases are not needed in SRO buildings, as outlined by city law.
Tran Group Denies the Allegations
Anna Do, the Tran Group employee who serves as landlord of Riverside Studios, strongly denied the majority of claims made by the tenants.
“We are making the place (the building) so that everyone would love to call it a home,” Do told the Rag, in a phone interview. “We truly hope our tenants take a more objective view of our ownership and our goals. We understand there are many things that need to be improved and can be improved, and we are committed to doing so.”
Do said Tran had invested significantly to upgrade such elements as the building’s facade, its water pump and boiler, common area rugs, vacant rooms, and bathrooms. She also denied that new ownership had removed the building’s super or allowed the front door to remain unlocked.
Additionally, Do said that “no increase in rent was implemented since we took over the building.” She said tenants were being issued new leases after theirs expired and that the management’s software system, which it uses for its other non-SRO building “automatically adds late fees to tenant accounts when payments are not [made] by the 10th of the month.” She said that they have since “eliminated all late fees in the building (Riverside Studios.)”
She added that trash in front of buildings was a “common practice” in New York City, but that they were looking at another alternative, if necessary.
Do concluded by saying Tran is working with Con Edison to restore the gas, and that many of the violations from the city agencies stemmed from the building’s previous owner.
Residents Strongly Dispute New Owner’s Claims of Improvements
“If they just came in and left things the same, it would have been fine,” a tenant told the Rag. “The building has never been the Plaza, but everything was fine. Why buy a building and immediately [let it deteriorate]? How is that beneficial for them?”
A different tenant kept their focus on the lack of a sense of safety within the building.
“We don’t feel secure,” the tenant said. “I’ll come home at say midnight and the front door will be open, which means anybody can just walk in from the street and that has happened.”
Riverside Studio tenants who are paticipating in the rent strike, along with representatives from the Goddard Riverside Law Project, are planning a press conference about conditions in the building and what they hope will change, in the near future, about their Upper West Side home.
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Complaining about a gas outage for 14 months rings hollow. Anyone in this neighborhood who has experienced a gas outage know it can easily take years to restore gas to a pre war building. Our building codes and con ed policies are hostile to gas like repair.
Also people are complaining about having to sign a lease?
Let’s face it: that building and that block have been deteriorating for some time. The place has been racking up violations forever.
I don’t know why someone would have bought the building and put more money into it but bless them for trying.
“I don’t know why someone would have bought the building and put more money into it but bless them for trying.”
Somebody made money, someone else is hoping to make money. One of the oldest stories in NYC….
https://traded.co/deals/new-york/multifamily/sale/342-west-71st-street/
The gas in my building was off for 3+ years, after a leak was detected on an upper floor, and ConEd shut it down. It took the Board a year+ from the turn off in 08/18 to find a contractor who could do the job of replacing ALL of the gas pipes in the building, including in each apartment (+- 325 apartments). The work took a couple of years, and the gas finally began getting turned on in individual apartments in early 2022 or so. ConEd had to check the connection to the stove in each apartment, and refused to schedule times with residents, even those undergoing medical treatments, etc. My gas is still off, because I cannot get ConEd to work with me to schedule a time.
I can’t believe that it is legal to keep the gas turned off for a month let alone 1+ years.
Has nothing to do with legality.
Maybe you forgot about 2015 gas explosion in East Village that leveled entire building and killed two persons.
https://en.wikipedia.org/wiki/2015_East_Village_gas_explosion
Just one year before in 2014 a building also went *KaBoom* in East Harlem killing eight persons.
https://en.wikipedia.org/wiki/2014_East_Harlem_gas_explosion
Both city and Con Edison were held to blame and one out come was many new laws and regulations regarding natural gas service both from street and inside buildings.
Once newly mandated inspections began city and Con Edison were shocked at what they found. Building after building with defective, tampered with and other not up to code gas lines.
By law when such things are found Con Edison or whatever utility is responsible for supplying natural gas *MUST* disconnect service. Legally natural gas service cannot and will not be restored until Con Edison is satisfied all required work is completed inspected.
By NY law all work on natural gas installation and systems must be done by a licensed plumber. This goes for installing a gas heated clothes dryer to anything else. Good luck finding a plumber willing to fast track sort of work a large multi-family building requires.
There are leases and leases. I once rented from a sponsor landlord that owned 14 rental units in a coop building. He sold the units with sponsorship rights to a new owner who tried to trick existing tenants at renewal time by using a sublease form that would have required everyone to leave after two years. I’ve never met a renter who wouldn’t be happy to sign a lease that was aboveboard and fair.
Why would the new owner need to trick tenants who aren’t entitled to a renewal lease for a non-rent stabilized apartment?
It’s not about tricking. Only the Sponsor can rent the apartments indefinitely. Once the apartment is sold, it falls under the rules of the co-op, which often allow owners to rent their apartments for no more than 2 years. The new owner of the co-op gets a lease from the co-op upon purchasing the property. Therefore, anyone renting from that owner would have a sublease. It wasn’t a trick, but just the way things work. It would be different if it were a condominium.
Except that the new owner bought the units with sponsorship rights that probably includes an exemption from the 2-yr sublease rule.
The game here is to get the tenants to leave! I don’t think Tran is providing services or upgrading anything. If they can empty the building, they can then renovate and charge market rate rent.
Hoping the lawsuit, press coverage and Linda Rosenthal can rectify the situation for the tenants.
That’s a good point, but it sounds like there are more issues than just the gas being turned off.
Many issues on HPD website listing violation for this property are common enough to older multi-family housing.
Vermin, mold/mildew (from leaking water pipes), peeling or otherwise damaged plaster, areas requiring major paint work, plumbing, etc..
These sort of things are bound to happen when you have a building near 100 years old that has seen very little money put into it over many decades.
Other issues such as self closing doors not operational can and often does speak to interference by residents.
I believe Schwab House was without gas for 17 months. It’s a long process getting it turned back on once ConEd has shut it off.. Hate ConEd all you want but most of the rules around this are to protect residents from having the building go up in flames when thebgas is turned back on.
Why was the gas turned off to begin with?
The building is an absolute mess and there is garbage everywhere outside.
Why would it take so long for the City to come down hard on this derelict landlord. Rosenthal didn’t get a response from a letter written in Sept. What’s the update, what is she doing about it. I guess someone has to die or get seriously hurt before anything will be done. Remember the building in the Bronx a few months ago that just imploded due to neglect.
Please don’t throw out accusations against Assemblymember Rosenthal randomly because you think things should be moving faster. She has a history of advocating for seniors and others dealing with housing issues. How many other local politicians do you see actually getting out there to help tenants like this? Most seem to keep a distance and only get involved when the issue is high profile or legislative.
Thank you for this article. I would be very interesting in reading more stories to understand what is gong on with various lower rate rentals on the UWS. At first I wrote lower income but not sure there is an income restriction to live in a SRO is there? What kinds of incentives does the owner get from the city to offer this type of housing? We keep hearing about a return to SROs as a way to address the housing shortage so I’d like to understand pros and cons. There must be a reason why a private landlord makes this kind of investment. Allowing ti to then deteriorate doesn’t make much sense. Thanks.
The City needs a mechanism to force bad landlords like this to upgrade a building, make repairs, comply with the law, or be separated from their real estate holdings. End of story.
A. Absent several unique situations no government can “separate” a property from its owner. Fine, tax and other remedies yes, but anything else goes up against takings clause of USC.
B. City cannot force a property owner to make upgrades outside of unique situations. To comply with local law regarding climate city is forcing buildings to upgrade their HVAC systems or face heavy fines. That still is not “taking” anything from anyone.
Do they give awards for being named one of the 100 worst landlords? Perhaps a pet rodent? I guess name and shame is not enough.
The building is the worst, I’ve never seen so many garbage bins in front of building – sorry, but that’s not Normal!! And it’s over flowing garbage, dead rats, entrance is unsafe, dirty, awning is disgusting, needs to be gutted, current landlord is doing nothing. .
It’s not only what the landlords have done – or have not done. It’s also the quality of life they have created: stressful, depressing, dangerous, disrespectful, chaotic, toxic, disruptive, deceitful, inhumane, and illegal. With false promises and smiles. Previous landlords were not this way. They were professional, communicative, and respectful.
If the gas is shut off for more than a week, they should have to put in electric stoves or provide hot plates, etc. This is outrageous. And it’s not like there’s anyplace to eat within walking distance for a senior, let alone anything affordable.