Thursday, 28 Nov 2024

De Blasio administration subpoenaed over real estate deal appraisals

Comptroller Scott Stringer slapped the de Blasio administration with a subpoena Friday for appraisals of a controversial $173 million real estate deal to create more affordable apartments.

The subpoena was issued a day after the city closed a deal with developers Stuart and Jay Podolsky to pay $30 million above the appraised price for 17 buildings in the Bronx and Brooklyn.

The Podolsky brothers were represented by lawyer Frank Carone, a politically connected lawyer for the Brooklyn Democratic Party, who has contributed to the mayor’s political action committee.

“I have repeatedly expressed concern regarding the $173 million price tag that, to date, has lacked any trace of transparency,” Stringer said.

“My office has made multiple requests to see the appraisals and documents that support this seemingly inflated price, and the explanations provided by the City so far have raised more questions than answers. …The time for excuses is over, and I am therefore issuing a subpoena for any and all appraisals and any other information supporting this deal.”

Stringer also said in the statement that the “difference in price between the original estimates and the final settled deal could have been used to create even more affordable housing units.”

The Podolsky brothers were indicted by the Manhattan district attorney’s office in the 1980s for dozens of felonies, including pushing tenants out of Upper West Side buildings and then filling them with hookers and drug dealers.

They pleaded guilty but avoided prison in exchange for community service by agreeing to give control of the three buildings to a homeless services nonprofit.

Earlier on WNYC radio, Mayor Bill de Blasio defended the deal, claiming the price was “determined by the Law Department” and other agencies and would help speed up the process of creating 2,000 units of affordable housing by avoiding eminent domain.

“We believed eminent domain was probably going to take another three years because of the way the court process works, … and this was going to be the price we ended up paying,” the mayor said.

“And rather than wait three years, and have these folks not have permanent affordable housing, we made the decision to move ahead.”

City Hall spokeswoman Jaclyn Rothenberg said the mayor’s office told Stringer it was “happy to provide” the appraisal documentation before the comptroller issued the subpoena.

“While Comptroller Stringer focuses on cheap political stunts, the mayor’s providing 2,000 people with improved, permanent, affordable housing with this agreement,” she said.

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