Park Slope Mortgage Deal Plunges Mayor Into $173M Controversy

PARK SLOPE, BROOKLYN — The mortgages for Mayor Bill de Blasio's Park Slope homes come from a bank founded by the brother of two men who have a controversial real estate deal with the city for $173 million, the Daily News reports.

The mayor secured his mortgages for his two properties on 11th Street through Wall Street Mortgage Bankers, which operates under the name Power Express Mortgages and was founded by Abraham Podolsky, the brother of Jay and Stuart Podolsky.

Jay and Stewart sold 17 buildings to the city earlier this year in a deal that is now being looked into by City Comptroller Scott Stringer, the News reported.

The deal came under criticism because of Jay and Stuart's questionable past and because independent appraisals valued the property at just $143 million. Stringer issued a subpoena for documents from the city to investigate the inflated $173 million price.

Jay and Stuart are also known for poorly maintaining their properties and were once the subject of a federal probe, the News reports.

The brothers are also represented by Frank Carone, who is the chief attorney of the Brooklyn Democratic Party and a partner at a law firm that has donated thousands of dollars to the mayor. Carone also worked for Power Express Mortgage Bankers.

A spokesman for Jay and Stuart said neither they nor Carone knew about de Blasio's mortgage deals. He added that the brothers have parted business ties with their brother, Abraham.

“The only thing that factored into this deal was the best interest of our homeless New Yorkers," de Blasio spokeswoman Freddi Goldstein said. "Nothing else played a role.”

The mortgages were for de Blasio's personal row house on 11th Street, for $625,000, made in June 2014, and for his second property down the street with a $630,000 deal with Wall Street Mortgage Bankers.