Tenants at 38 Sixth Ave. gain "significant victory" in lawsuit vs. landlord Avanath: agreement regarding front door access, roach problem, broken intercoms.

In what a tenant representative called a "significant victory," the landlord of "100% affordable" 38 Sixth Avenue, Avanath Capital Management, has agreed to a stipulation and consent order to ameliorate conditions in the building that prompted a tenant lawsuit over a faulty front door, broken intercoms, and a roach infestation.

The agreements, posted online yesterday, came after a two-day negotiation that began on December 17, the afternoon the case, filed by the 38 Sixth Avenue Tenants' Association (TA) and represented by Take Root Justice, was scheduled for trial.

Notably, Avanath agreed to correct four roach violations cited in the lawsuit, considered Class C, or immediately hazardous, within 30 days, or be subject to fines of $150-$1,500 per day and $150-$1,200 per violation.

The city's Department of Housing Preservation and Development has found 12 more roach violations since the lawsuit was filed Sept. 10.

The 303-unit building, all below-market units (but skewed to middle-income households), has been plagued by problem, which accelerated, according to tenants, after original developer Greenland Forest City Partners sold it and the similar 535 Carlton Avenue) to Avanath, which has cycled through multiple building managers. 

See my City Limits article from July. Most recently, the building's manager--whose last day was Dec. 13--said in response to my inquiry for a pre-trial comment, "38 Sixth Ave. is wholly devoted to our residents and we work in their best interest on all fronts," noting that one big issue--hot water outages--had been resolved. 

Tenants saw this as a step forward but not a resolution. "While we celebrate this big achievement, we will remain vigilant in holding Avanath Capital accountable for fulfilling their obligations," the TA said yesterday in response to my inquiry, thanking Take Root and Council Member Crystal Hudson. 

Indeed, Avanath, which specializes in "affordable" and "workforce" housing and has raised capital from investors interested in pursuing ESG (environmental, social and governance) goals, had previously promised fixes on various issues but missed deadlines.

Intercom fixes

Avanath also agreed to correct two intercom violations cited in the lawsuit, considered Class B, or hazardous, within 60 days, or be subject to escalating fines of $25-$125 per day and $75-$600 per violation. (HPD has found seven more intercom violations since the lawsuit was filed.)

In a stipulation, Avanath also agreed to repair all tenant intercoms within 60 days and, if any tenant reports a faulty intercom after that, the landlord will repair the intercom within 30 days after it is reported.

Hot water and front door

No fines were proposed regarding hot water, outages of which have infuriated tenants, but which is apparently working again (despite occasional complaints) or the front door, which is finally said to be locked.

However, the TA has criticized the landlord for not making key fobs available to the tenants in a timely manner. According to a stipulation filed in court (see below), Avanath agreed to provide fobs promptly to tenants on request, though the landlord reserved the right to ask for proof of occupancy after 90 days.

A malfunctioning key fob will be reprogrammed or replaced within 30 minutes by a front-desk employee, "unless there are extenuating circumstances."

Any breach of the agreement could lead to further penalties, including contempt of court.

Other issues

Separately, the petitioners claimed that the building's back door doesn't lock, and Avanath agreed to inspect and repair it. That was not part of the lawsuit, so that commitment did not come with penalties or a schedule.

"We see this as an opportunity for Avanath Capital to rebuild trust with the 38 Sixth Avenue Tenant Association by prioritizing transparency, effective communication, and timely resolution of the documented issues," the TA said. "This decision demonstrates the power of organized tenant advocacy."

As I reported, the TA saw a once promising relationship with the landlord deteriorate after deadlines for fixes were unmet.

Residents also have complained about the cleanliness and functionality of the laundry machines, the staffing at the front desk, and discrepancies in their lease balances, though those were not part of the lawsuit and thus not part of the stipulation or consent order.