National Arts Club apartments will finally return to the market.

They don't look very good right now, but ten Gramercy Park apartments formerly controlled by ex-president Aldon James and his brother John will soon be returning to the market. Relatively soon, that is, following gut renovations that were much-needed after the apartments' time in the hands of the two hoarders.

Last week, Real Estate Weekly reported that the National Arts Club had finally reached a settlement with the Attorney General's office allowing it to tidy up the club's governance, financial controls and the filthy apartments. Today a state appeals court upheld the National Arts Club's decision to boot the James brothers, the New York Post reported.

The James brother still have some issues to work out with the Attorney General's office, however, which filed suit against them in late September for mishandling $2 million in club funds. The bulk of the badly managed monies—some $1.5 million—from the rent deals Mr. James gave himself and his friends, thereby depriving the club of significant income.

Mr. James allegedly commandeered more than a dozen apartments when he was president and rented them to his cronies for far below market value. He also kept a number for himself and his brother. The brothers, who are hoarders, told the court they needed the apartments to hold all the belongings they compulsively bought at auctions and antique stores.

The apartments are said to be in horrible shape, with holes in the walls and urine-caked bathrooms—hence the gut renovation. And there may be more rehab needed in the future. "The James gang" still controls four apartments in the building, although they have not been allowed to return since being ousted.

The revamped apartments will, according to terms worked out with the attorney general, be rented at market rate. Unfortunately, they will not be available to the open market, but only to club members. Much like the coveted keys to the Park!

kvelsey@observer.com

Ms. Bernhard.

The National Arts Club sent out a press release today that sought to counter victorious statement made by former president Aldon James, and the document really reveals how contentious things have become in this case.

The club was dealt a blow this week when a Manhattan Supreme Court judge put an injunction on the club's internal attempts to evict Mr. James from his apartments in the building. Mr. James responded to this by declaring that he and his cohorts were "taking back the club."

Now, from the desk of the new president, Dianne Bernhard:

“O. Aldon James, currently under investigation by the New York City District Attorney’s office and the State Attorney General’s office for alleged financial misdeeds while at the helm of The National Arts Club, told the press: ‘We’re taking back the Club.’ But we’re asking: From whom is Mr. James taking it back? From the Members, to whom this Club rightfully belongs, who pay annual dues that support this public institution? Or is he taking it back from the democratically-elected Board of Governors that he himself voted for this past May?

And for what purpose is Mr. James taking back the Club? So that a quarter-century of neglect can continue until the building falls down around us, or law enforcement appoints a receiver? Or maybe he’s taking back the Club so he can continue using the Members’ dues to write questionable checks from the Club’s bank account without any oversight?

Yikes! Looks like there's no end in sight here. Your move, Mr. James.

Aldon James.

Aldon James, former president of the National Arts Club may soon depart his cut-rate apartment at the club’s tony Gramercy Park building, DNAinfo reports.

Mr. James was removed from office following accusations that he used institution as a personal checkbook, taking luxuries that included cheap apartment in the building for his own use, as well additional rooms for his twin brother John James and their friend Steven Leitner.

Though they’ve been gradually seen at the club less and less, the three may be out for good very soon, according to DNA info.

The club had filed charges in July to begin the process to evict the threesome, according to sources. The three are expected to have a hearing at the end of August in front of a committee chosen by the board, which will then make the final decision about a week later.

Head over to DNAinfo to see their very worthy slideshow of how the trio used their rooms.