A legal dispute is intensifying over the proposed $30 million sale of a parking lot by the Village View co-op in Manhattan's East Village. Sebastian Kot, a resident and shareholder, has initiated a lawsuit in Manhattan Supreme Court, seeking access to financial records and questioning the alleged disappearance of nearly $16 million from the complex's reserves.
The petition filed by Kot outlines concerns about years of alleged governance issues within the seven-building Mitchell-Lama complex. These issues include claims of missing or inaccurate meeting minutes, conflicting financial disclosures, and repeated denials of access to corporate records.
"It’s an important step toward restoring transparency and lawful governance at Village View," Kot stated. "The issues raised in the petition are all documented, statutory matters, and having them under judicial review ensures they can no longer be ignored or minimized."
A presentation from the Village View Housing Corp. board of directors, included as a court exhibit, indicates that the co-op's reserves dropped from $18.6 million in 2021 to $2.9 million in 2026. Kot alleges that this substantial decrease has occurred without adequate explanation.
Attorneys for the Village View board have asserted that the requested documents are "privileged and/or constitute confidential and sensitive corporate records," according to an exhibit in the court filing. They did not respond to requests for comment.
The proposed sale involves Parking Lot 7, which is adjacent to 40 First Avenue. The board aims to generate approximately $30 million after taxes from the sale. According to a board presentation filed by Kot, the purpose of this sale is to eliminate the development's annual debt, cover rising expenses, replenish reserves, and maintain the affordability of the complex's 1,236 units.
Kot argues that New York's Business Corporation Law requires a two-thirds majority vote from Village View shareholders for such a transaction to proceed, and he is challenging the co-op's ability to move forward without this approval.
The parking lot in question measures roughly 100 by 230 feet and accounts for approximately one-third of the complex's 345 parking spaces. In June, hundreds of shareholders, led by Kot, signed a petition demanding greater transparency concerning the proposed sale and redevelopment of the lot.
This legal action follows a separate lawsuit filed in early September by another resident, Steven Andruseaski. Andruseaski, who is disabled, sued Village View Housing Corp. over new parking rules he claims could lead to him being removed from his space in Parking Lot 7, potentially facilitating the sale of the lot and the elimination of its parking facilities.