Queens apartments deteriorating after building managers were arrested, tenants say

Tenants in a Jackson Heights, Queens, apartment complex say conditions slipped from bad to worse after two building managers were indicted in November, charged in a $2.2 million COVID relief fraud case.

With ceilings crumbling and utilities failing, residents are looking to the courts to intervene.

Tenants suing corporate landlord

The city Department of Housing Preservation and Development told CBS News New York it has issued more than 500 violations at Hayes Court, billing upwards of $200,000 in penalties and fees.

Without routine maintenance, neighbors say they are relying on emergency calls to the FDNY and HPD. One of those calls was about water pouring from a collapsed ceiling on Feb. 2.

Multiple tenants say they have resorted to a rent strike, and tenants are suing corporate landlord HCEC Equities over lack of repairs and tenant harassment.

Attorney Lino Diaz of Communities Resist, who is representing the tenants in their effort to remove HCEC as landlord, said they first brought litigation back in 2023.

"We're still actually dealing with that litigation," Diaz said.  

Tom Pruzan, attorney for HCEC, told CBS News New York in an email:

"There is a new mgmt at HCEC that has been addressing all tenants' issues rapidly. Most essential services have been restored after repairs were completed. And those not restored are only waiting on access from 1 or 2 tenants for restoration to be complete. New mgmt is at premisises [sic] continuously to assure tenants repair issues are resolved exhibitiosly [sic]."

Council Member Shekar Krishnan says his office will continue to support the tenants of Hayes Court.

"We have a criminal landlord," he said. "These conditions under any circumstances, any day of the week, are absolutely unacceptable, but in this cold weather, it is cruel."

Tenants share their struggles

Longtime resident Pedro Rosado feels like he's living in an abandoned building.

"We just have to talk to each other because we have no other recourse. We don't have a permanent super," Rosado said. "We don't even have a management number that we can call."

He added, "It's sad. It's sad. Demoralizing."

Alva Campos said she had no working stove or oven for a week.

"We don't have answers," she said.

Her gas was restored after CBS News New York contacted National Grid. She said her heat remains intermittent.

"The whole winter, it's on and off all the time," she said. "We close the curtains, windows, and everything, and I just put extra sweaters on my kids."

"The hot water goes out whenever," Rosado said. "No one lets us know what's going on."

COVID relief fraud case

According to the Manhattan District Attorney's office, Marilyn Peter, 54, and Mark Anthony, 58, stole a total of $2.2 million from the United States Small Business Administration and Empire State Development by submitting fraudulent applications for COVID-19 pandemic relief programs.

Peter and Anthony allegedly posed as three different individuals, including two family members, to submit loan applications for 11 different companies.

They then allegedly used nearly $1.2 million of the stolen funds to acquire Hayes Court.

Both were charged with grand larceny and scheme to defraud. They are due in court later this month.

Legal representation for Peter and Anthony declined to comment for this story.  

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