The Rivington House. Image credit: edenpictures/Flickr

UPDATE: On December 6, 2016, the New York City Council voted 42-0 to approve Introduction 1182-2016 which requires the Department for Citywide Administrative Services to conduct an extensive review of a request to remove a deed restriction on a property managed by DCAS, including a public hearing, to determine whether the request removal furthers the best interests of the City.

The legislation is a response the controversial sale of the Rivington House to a luxury condo developer after DCAS removed deed restrictions that prevented such a development. “The City Council can assure that this will never happen again to any other community,” said the bill’s sponsor Manhattan Council Member Margaret Chin.

The bill will now go to the Mayor for his signature. (more…)

NYC Comptroller Scott Stringer. Image credit: Office of the New York City Comptroller

In contrast to the DOI Report, the Comptroller’s Report places personal accountability on City Officials rather than the indoctrinated procedure for deed-modifications. On August 1, 2016, New York City Comptroller Scott M. Stringer issued a Report on the removal of deed restrictions from Rivington House. The Report is the product of a five-month-long investigation conducted by the Comptroller’s Office into the City’s actions in facilitating the sale of the Rivington House—a non-profit nursing home located in Manhattan’s Lower East Side—to luxury condominium developers for a $72 million profit in February 2016.

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The Rivington House. Image credit: Flickr/edenpictures

The Department of Investigation’s Report found that the City’s deed-modification procedure lacks safeguards required to ensure the removal of restrictions on formerly City-owned property is in the City’s best interest. On July 14, 2016, the Department of Investigation issued a Report finding that the actions and inactions of City officials, specifically within the Department of Citywide Administrative Services (DCAS), the Mayor’s Office of Contract Services (MOCS), the Law Department, and Mayor’s Office, facilitated the sale of the Rivington House, a non-profit nursing home located on the Lower East Side of Manhattan, to private condominium developers. The Report was issued less than one week after Mayor Bill de Blasio proposed several reformations to procedures used in modifying deeds of formerly City-owned property. For CityLand’s previous coverage on the proposed reformations, click here.

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Mayor Bill de Blasio. Image credit: CityLand

The proposed reformations increase transparency and community involvement, and impose new safeguards to protect against systemic abuse. On July 8, 2016, Mayor Bill de Blasio proposed a series of reformations to the procedures used in removing limitations on potential uses, or deed restrictions, from formerly City-owned property. The proposed reformations would require parcels to meet stricter criteria to be deemed eligible for their deeds to be modified, and they would increase the levels of transparency and community engagement in the deed-modification process.

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