A group of tenants in Kingsbridge celebrated a recent victory against their landlord, who hiked their rent in 2018 for reasons the state oversight agency eventually deemed fraudulent.
At a March 4 rally, tenants and advocates came together to recognize the recent decision by the state Division of Housing and Community Renewal, which stipulated that their property owner, Steve Finkelstein, must reimburse residents for the extra amount paid over the years.
He previously filed to increase the rent under a system known as MCI (Major Captial Improvements), in which landlords renovate units and are allowed to raise the rent. But advocates argue that Finkelstein has a pattern of using MCIs as a cover, performing shoddy and, perhaps, unnecessary work as a way to make more money.
Residents and advocates celebrated the long-fought win.
“Landlords have exploited the MCI system for too long, using it as a loophole to extract more money from tenants while failing to make real improvements to their buildings,” said Sandra Lobo, executive director of the Northwest Bronx Community & Clergy Coalition (NWBCCC), which assisted the tenants in their efforts to overturn the rent increase.
However, Finkelstein, owner of 2770-2780 Kingsbridge Terrace, told the Bronx Times he plans to appeal that decision and will try to get a stay on the repayment order.
If the appeal is unsuccessful, he said he would pay the tenants. “We’re not going anywhere. The tenants will get their money.”
Ten-year battle
Finkelstein bought 2770-2780 Kingsbridge Terrace in 2010 after a 2008 fire revealed that it, along with a portfolio of nine other properties, was owned by a bank and had no real landlord.
In 2015, he renovated the bathrooms, kitchens and piping at a cost of $1.27 million and filed to increase rent under MCI.
Tenants opposed the increase, arguing that Finkelstein had entangled business interests with the building superintendent, contractor and subcontractor who performed the work. However, the state Division of Homes and Community Renewal (DHCR) approved a permanent rent increase in 2018 of $52.50 per room per month, which included the bedrooms, living room and kitchen.
Tenants immediately appealed the decision and continued to point out what they believed was improper conduct by Finkelstein. DHCR was supposed to rule within 90 days but didn’t make a decision until January 2025, according to residents.
In eventually granting the tenants’ appeal, DHCR ruled that Finkelstein’s documentation of the reasoning for the rent increase was misleading and potentially fraudulent.
The decision was especially sweet for longtime residents, such as Yeniset Estrella, who has lived at 2770-80 Kingsbridge Terrace for 31 years.
“This victory is proof that when tenants stand together and fight back, we can win,” she said in a statement.
“For years, we were forced to pay fraudulent rent increases, and some of our neighbors were even pushed out of their homes. Today, we celebrate this ruling as a major step toward justice, but we know the fight is not over.”
Not over yet
As it turns out, residents may have to wait longer for a final outcome. Finkelstein said he will appeal as soon as this week but will comply with the repayment order unless a stay is granted.
He called the tenants’ accusations of fraud “ridiculous.”
“When we took over these buildings, they were considered the worst buildings in the Bronx,” which he has since turned into “nice buildings,” Finkelstein said.
Current records show 111 open housing code violations for the 79-unit Kingsbridge Terrace property, but he maintains he is working hard to maintain his properties. While some violations date back to 2019, others were issued as recently as this year.
According to Finkelstein, the DHCR decision were the result of tenants’ and DHCR’s misinterpretation of his cost breakdown for renovations and an unintentional omission in his paperwork.
“We made a mistake when we filed the application, and we checked the wrong box. One box,” said Finkelstein.
He said he did not properly disclose on the original paperwork that he was using his super to perform some of the renovations—which, he noted, kept the costs down. Finkelstein said he spent $18,000 per unit to renovate the bathrooms and kitchens, which he called well below market cost.
“How do you use the super of the building to do the work and claim that we’re trying to put something over on somebody? It makes no sense,” said Finkelstein.
DHCR also indicated that he was playing fast and loose with his numbers.
The DHCR ruling, for example, questioned Finkelstein’s claim that he renovated a retaining wall for just $500, suggesting the figure undermined the reliability of his documentation. However, Finkelstein clarified that the $500 was “just a fee,” while the actual renovation cost was $119,000.
Mistakes and misinterpretations were at play, not fraud, he said. “The order is based on some very bad thinking.”
‘MCI king’
Juan Nuñez, who works with NWBCCC and whose mother lives in the Kingsbridge Terrace building, told the Bronx Times that residents were unhappy paying higher rents in exchange for what they considered shoddy renovations.
Nuñez said what Finkelstein is doing is not new. “[MCIs are] another way that landlords evict and displace tenants,” he said.
As for Finkelstein, “He’s known as the MCI king almost.”
In 2016, tenants at one of Finkelstein’s South Bronx buildings sued him, citing similar complaints as the Kingsbridge Terrace tenants.
Finkelstein was also named by the Right to Counsel Coalition as one of the city’s “worst evictors” during the COVID-19 pandemic. According to the coalition, he “often” uses MCIs to increase rent, which drove some tenants out of their homes during a vulnerable time.
Nuñez said that conditions in the Kingsbridge Terrace building were “pretty bad, even before [the rent increase].” He said it has been infested with mice and rats and that an elevator in the 2780 building has been down for years.
“This landlord is known to do the bare minimum,” he said.
Finkelstein, who owns 70 other Bronx residential buildings, said he keeps rents reasonable and maintains the properties.
“We don’t have a lot of violations. We take care of the building,” he said. “We want to run nice properties. That’s what we try to do.”
Reach Emily Swanson at eswanson@schnepsmedia.com or (646) 717-0015. For more coverage, follow us on Twitter, Facebook and Instagram @bronxtimes
