Developers Reaped $1.6M From Affordable BK Housing Lies: DA

NEW YORK CITY — Six New York City developers who reaped $1.6 million in tax breaks by pledging to lease out affordable housing instead charged exorbitant rents in the promised cheaper apartments, prosecutors said.

The developers all face indictments leveled Wednesday by Manhattan District Attorney Alvin Bragg, who accused them of defrauding a state program designed to nurture much-needed affordable housing.

"Not only did they illegally charge substantially higher market rents for years, but they did so while personally reaping the benefits of generous property tax abatements," Bragg said in a statement.

The developers — Joel Kohn, Michael Ambrosino, Alen Paknoush, Mendel Gold, Ioan Sita and Gheorghe Sita — sought tax breaks through the state's 421-a program on properties in Bushwick, authorities said.

All promised to set aside units as affordable housing, prosecutors said.

But, time and again, they rented them out at higher rates, authorities said.

Ambrosino, for example, promised to set aside two units in 300 Eldert St. as affordable apartments at $1,071 a month, prosecutors said. He instead charged up to $2,100, authorities said.

The buildings in the indictments are:

• 70 Bushwick Avenue, Brooklyn, owned by Joel Kohn and Bushwick Powers LLC
• 300 Eldert Street, Brooklyn, owned by Michael Ambrosino and Ambrosino Equities-300 Eldert LLC
• 682 Bushwick Avenue, Brooklyn, owned by Alen Paknoush and Bushwick Plaza LLC
• 305 Stockholm Street, Brooklyn, owned by Ioan Sita and Gheorghe Sita and 305 Stockholm LLC
• 140 Stanhope Street, Brooklyn, owned by Mendel Gold and 140 Stanhope Group, LLC
• 1140 Bushwick Avenue, Brooklyn, owned by Mendel Gold and 1140 Realty Corp. LLC