Mamdani Acts on Vow to Protect Renters With Move Against a Big Landlord
Mayor Zohran Mamdani said New York City would intervene in the Pinnacle Group’s bankruptcy case. Tenants have long complained about living conditions in the company’s properties.
Pinnacle’s owners argue that they have been squeezed by the rising cost of maintenance, utilities and interest-rate adjustments while being hamstrung in making those costs up from rent because of rent-stabilization laws, especially changes adopted in 2019. Pinnacle reported having “no cash on hand” when it filed for bankruptcy in May.
But court documents suggest Pinnacle has not been transparent about its finances during the bankruptcy, including by possibly prioritizing spending on administrative and legal fees over addressing problems at its properties.
“Debtors do not detail the basis or rationale for the budget, nor the necessity or benefit or reasonableness of their proposed expenditure,” wrote Judge David S. Jones, of the Southern District of New York. “Both experts observed that debtors’ reported payroll expenses are unusually high.”
