A socialist experiences a significant downfall in capitalism.
Jumaane Williams, the NYC public advocate, has recently lost a two-family home he owned in Brooklyn.
This situation arose after he had taken out real estate loans to support what turned out to be a failing business venture.
A judge sided with the bank in January, granting a “final decision on foreclosure” for a property located at 1392 E. 98th St. in Canarsie. Williams had defaulted on a $389,600 mortgage dating back to 2006 while trying to fund a vegan sandwich shop in Park Slope.
In 2010, he was earning an annual salary of $184,800 as public advocate but had ceased paying an additional $1,344 in rent that same year.
Four years later, Bank of America filed a foreclosure lawsuit against him after acquiring the loan from the original lender during the subprime mortgage crisis.
By May 2023, a court-appointed judge determined that Williams’ mortgage obligations—including interest and penalties—had ballooned to $784,927.13, as per legal documents.
Despite appealing the ruling, he was unsuccessful. Last month, the property was listed for sale during a foreclosure auction, but it reverted to Bank of America since no bids matched the outstanding debt.
Williams had bought the Canarsie home with his mother in 2005 for $370,500 and achieved full ownership a year later.
Critics, like Councilman Robert Holden, have pointed out the implications of Williams’ struggles with finances, questioning his capabilities in managing public responsibilities.
“Despite receiving a six-figure, taxpayer-funded salary for years, he couldn’t pay his bills or take care of his property,” Holden stated. “If he can’t manage his own life, why should anyone expect him to handle the public’s affairs?”
Over the years, Williams has attributed his financial issues to the terms of his loans and tenants’ payments. His vegan café in Park Slope closed back in 2008.
The irony in his housing troubles is evident, especially for someone who has positioned himself as a tenant advocate. His office frequently highlights the city’s worst landlords.
Williams has faced harsh scrutiny, particularly for failing to collect rent from his tenants while continuing to draw a substantial salary, prompting claims of hypocrisy.
In recent inspections, his Canarsie property has incurred multiple fines, including a $300 penalty in 2020 for maintaining unsanitary conditions, which escalated to a total of $401 before he settled for a lesser amount.
Additionally, he has a history of delaying water bill payments, accumulating over $10,000 in debt by 2022, although his records indicate that it has since been cleared up.
Interestingly, Williams does not reside near his Canarsie property. Instead, he lives with his lobbyist wife and stepdaughter in a townhouse in Bay Ridge near a U.S. Army base.
A spokesperson for Williams emphasized that public advocates often face challenges from exploitative banking practices that lead to foreclosure processes, impacting many New Yorkers who are struggling amid a housing crisis.
