Astoria lawmakers want AG to investigate nonprofit
by Benjamin Fang
Dec 27, 2016 | 9188 views | 0 0 comments | 169 169 recommendations | email to a friend | print
Three legislators representing Astoria are calling on New York Attorney General Eric Schneiderman to investigate possible mismanagement at the New York School of Urban Ministry (NYSUM).

The Christian nonprofit rankled local elected officials earlier in December when it pushed to evict 39 tenants from its dorm-style housing. Even after officials spoke with the organization’s leaders by phone, NYSUM said it planned to go through with the evictions by New Year’s Day.

“Claiming financial hardship to pressure low-income tenants out of their homes during the holidays is a new low,” said State Senator Michael Gianaris, who advised tenants to stay put until they’re legally evicted. “Needy residents should not be victimized by poor management looking to make more money off of their misery.”

According to elected officials who spoke with Pastor Peter DeArruda, the organization’s executive vice president, the decision was about the alleged loss of money from operating costs. Officials claimed NYSUM was looking to make a profit by handing over the facility to a homeless shelter provider.

According to Gianaris’s office, DeArruda confirmed his intentions to lease the building to a third party for more money, even though the 39-unit dorm has already been fully paid off and clear of any mortgage.

In the letter to Schneiderman, the lawmakers said NYSUM claims a net rental income of $446,881, according to their 2014 tax forms.

“This income appears to be sufficient to cover operational costs that may exist, given the tax status of the organization,” they wrote.

Gianaris, Congressman Joseph Crowley and Assemblywoman Aravella Simotas offered to meet with DeArruda to discuss a solution, but he did not respond to the request.

“At a time when our city is grappling with an unprecedented homelessness crisis, we need to make sure we’re doing everything possible to keep people in their homes ad protect them from unscrupulous landlords,” said Crowley in a statement.
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