By KIMBERLY ACEVEDO
Attorneys for the owners of some of Long Beach's largest apartment buildings, including the Executive Towers and Crystal House, have claimed since the beginning of the year that vacancy rates in their buildings have exceeded 5 percent. If true, the city would be forced to end rent stabilization, potentially leading to skyrocketing rents.
The suit was filed when landlords alleged that the city did not respond in a timely fashion to their claims. However, the New York State Supreme Court ruled that the city -- which just this week convened the second installment of a required public hearing on the vacancy debate -- did have a timely response. Furthermore, the court ruled that the Emergency Tenant Protection Act (ETPA) "does not provide for a private cause of action for damages for landlords aggrieved by the city's actions or inactions."
William Holst, corporation counsel for the city, said, "I think the city feels vindicated in the fact that the court recognized we were taking the appropriate steps, and the court pointed out that the statute doesn't provide for damages for the landlords."
Meanwhile, City Council members continued to hear arguments from apartment-building tenants that the landlords' 5 percent vacancy claim is a fabrication. Prior to its April 15 meeting, the council listened to dozens of residents who are skeptical of the landlords and fearful of rising rents.
Anita Bleier told city officials how she has two jobs and works seven days a week to keep her oceanfront Long Beach apartment. Dr. Pamela Warner, a teacher who retired nearly 10 years ago, said that with rent increases, she can no longer afford to live on her pension alone. She has been forced out of retirement in order to pay for her apartment. Roberta Gatta is also worried. Gatta, who's in her 70s, worries about getting thrown out of her apartment as a result of rent increases.
It was the second time this year that the City Council gave residents a chance to voice their opinions and testify against the ending of rent stabilization. Nearly 200 residents came to voice their objections to a change in the law that could force many of them to leave Long Beach.
Three landlords, Samuel Walton, David Paulsen and Arnold Goldstein, have claimed since January that the vacancy rate in Long Beach exceeds 5 percent in buildings with 100 or more apartments. According to the ETPA, if that occurs, the local municipality must end rent controls.
Goldstein owns three apartment buildings: 25 Franklin Blvd., 456 Shore Road and 10 Monroe Blvd. Walton, of Samson Management, owns Executive Towers at 854 East Broadway, and Paulsen, of Paulsen Real Estate Corp., owns the Crystal House at 630 Shore Road.
During the public hearing, residents claimed landlords were "warehousing" apartments, refusing to rent them for various reasons and counting them as vacant. One resident said he tried to rent an apartment at the Executive Towers in 1996 after 21 residents were allegedly evicted. But, he testified, he was told there were no vacancies.
Tenants weren't the only residents to testify to such claims. Paul Goodman, the executive director of the Long Beach Housing Authority, told of how he directed numerous families in need of homes to the apartment buildings, since the landlords claim they have many vacancies. The Housing Authority assists low-income households by paying a portion of their rent. There are more than 500 people enrolled in the program, Goodman said, yet the chance of finding a place to live in Long Beach is below 50 percent. Though he sent a letter informing the landlords of potential clients, Goodman testified, he did not receive a response.
While most tenants complained about the potential rise in rent, Herbert Ruben, an attorney for the landlords, said such increases are necessary. Ruben said his clients' apartment buildings are "super luxury" and warrant the rent prices. Ruben's claims were followed by boos, laughter and questions. One tenant asked where she could find the doorman or the concierge in these "super luxury" apartment buildings.
Michael McKee, the associate director of the regional Tenants and Neighbors Association, said he found it "strange" that there seem to be a large number of vacancies in the same buildings over and over again. "It seems that all other landlords are able to rent their vacant apartments, but for some mysterious reason the landlords of Crystal House and Executive Towers seem unable to find tenants," he said.
The city will hold a third public hearing regarding rent stabilization on May 6 at 8 p.m. at City Hall.
