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December 2013 Alicia Glen, Formerly at Goldman Sachs, HPD Seeks to Change to Head Housing & Development Efforts M-L Succession Rules

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December 2013 Alicia Glen, Formerly at Goldman Sachs, HPD Seeks to Change to Head Housing & Development Efforts M-L Succession Rules MITCHELL-LAMA RESIDENTS COALITION Vol. 18, Issue 4 WEBSITE: www.mitchell-lama.org December 2013 Alicia Glen, formerly at Goldman Sachs, HPD seeks to change to head housing & development efforts M-L succession rules an a former banker, especially one He also wants to use one billion dollars roposed changes to succession rights in who worked at Goldman Sachs, from the city’s pension funds to preserve Mitchell-Lama buildings would alter the Chelp generate affordable housing 11,000 units, and to raise taxes on vacant Pability of various categories of relatives for New York City? property. to assume the apartments of the current resi- Mayor Bill de Blasio thinks so, In her work at the bank, Ms. Glen dents, regardless of how long the relatives have which is why he appointed Alicia Glen, directed more than $2.8 billion to projects lived there in most cases. who for over a decade -lead the giant in low-income areas. She has been praised Among other changes, the new rules, if bank’s Urban Investment Group--and by both tenant advocates and housing adopted, would eliminate “succession rights for who also served as assistant commis- developers. nephews, nieces, aunts and uncles,” and suc- sioner for housing finance at HPD--as cession in other cases will only be authorized deputy mayor for housing and urban “where the tenant/cooperator of record has development. Nearly 1,000 affordable units either died or been relocated to a long term In a press release, Ms. Glen said slated for Melrose section in care facility.” the new administration’s goals included Further, regarding spouses and children building “a new generation of afford- Bronx who are at least 18 years old, succession will able housing and help[ing] New Yorkers ive new buildings containing 985 units only be allowed if the spouse’s or children’s secure good-paying jobs that can support Fof affordable housing are on the draw- names “appeared on the applicant’s initial a family. .” ing board for the Melrose section of the application.” The City’s Housing Preservation “We can’t remain the greatest city Bronx. and Development agency released the pro- in the world when half of New Yorkers The complex will also include a wide posed changes prior to a hearing it held on are living in or near poverty,” she said in variety of amenities, such as a new YMCA November 6. a statement. and a recording studio. Under current rules, succession is De Blasio reportedly plans to Residents eligible for the units must granted to residents who can demonstrate create 200,000 units over ten years, in earn between thirty and one hundred per- either a financial or emotional interdepen- part by requiring developers to include cent of the area’s median income. dence with the applicant of record, so long as affordable apartments when building The development is expected to cost they have lived there for the past two years. residential projects in rezoned areas. around $345 million. This applies as well to spouses or partners in same-sex relationships. According to HPD, current succession rules have allowed some people to sign leases, Strengthen MLRC live elsewhere, and then hand the apartments Join today (use form on page 2) Continued on page 8 GENERAL MEMBERSHIP MEETING SATURDAY, January 25, 2014 Time: 10:00 a.m. – 12:00 p.m. Members are urged to voice concerns regarding their developments (Refreshments at 10:00 a.m.) CONTACT: [email protected] PLACE: Musicians Union Local 802 322 West 48th Street (near 8th Avenue) Ground Floor, “Club Room” TRAINS: No. 1, train to 50th St. and 7th Ave.; Q, W trains to 49th St. and Broadway; E train to 50th St. and 8th Ave. Mitchell-Lama Residents Coalition Box 20414 P.O. Station West Park 10025 York New York, New Page 2 December 2013 Promenade to exit M-L; owner promises to keep rents affordable under NYC contract UPCOMING EVENTS he Promenade, a Mitchell Lama of new housing under the Low-Income rental in the Marble Hill area of the Housing Trust Fund Program,” according TBronx, was purchased in October by to its website. GENERAL the Nelson Management Group, Ltd., which Under the deal with HPD, Nelson plans to remove the structure from the pro- will pay no property taxes, although it may MEMBERSHIP gram within the next few months. have to pay a three percent tax on whatever The company plans to maintain the income it receives from the tenants (both Saturday, January 25, 2014 318-unit development, constructed in 1972, residential and commercial). In addition, as affordable housing for current residents it will avail itself of the the J-51 program, a ---- through a four-decade agreement with the separate NYC tax abatement program, after 10:00 a.m. - Noon city’s Departent of Housing Preservation and it agrees to improve the building’s decks. Development (HPD). The new owner has already begun On its website, Nelson claims to be the process of elevator replacement, which Members are urged to voice “particularly adept in the ownership/man- may take at least a half year to complete. concerns regarding their develop- agement of Rent Stabilized, Section 8 and ments, especially long- and short- Mitchell Lama properties.” It currently owns term standing issues or manages twenty-two housing develop- ments, containing a total of more than seven- Heritage tenants face rent ty-three hundred units. hikes as LAP ends ---- The previous owners have reportedly claimed that it was unable to secure financ- ong-time tenants at the Heritage, a for- Musicians Union, 322 West 48th ing necessary to maintain the building. As a Lmer Mitchell-Lama development once Street, between 8th and 9th result, residents often complained about inef- known as Schomburg Plaza, are facing Avenues fective maintenance. imminent market-rate rent hikes as their Nelson purchased the Promenade one protection--the Landlord Assistance after creating a housing development fund Program--comes to an end. LAP is a pro- For more information, e-mail: company, which is eligible to receive funding gram offered by landlords to tenants, but is [email protected] and other assistance from the state’s Housing not regulated by any government agency. Trust Fund Organization. The primary func- Local media reports indicated that tion of the HTFC is “to create decent afford- the owner, Urban American Management, able housing for persons of low-income by which purchased the 600-unit building at providing loans and grants for the rehabilita- 1295 Fifth Avenue in East Harlem in 2007, Mitchell-Lama Residents tion of existing housing or the construction has given tenants only thirty days to either Coalition, Inc. pay market rents or vacate. Officers Co-chairs: Jackie Peters Ed Rosner JOIN THE MITCHELL-LAMA RESIDENTS COALITION Margo Tunstall 2014 INDIVIDUAL $15.00 per year and DEVELOPMENT 25 cents per apartment Treasurer: Carmen Ithier ($30 Minimum; $125 Maximum) Financial Sec’y: Alexis Morton Name________________________________________________________________ Recording Sec’y: Sonja Maxwell Corresponding Sec’y: Katy Bordonaro Address______________________________________________Apt.____________ City________________________State___________________Zip Code__________ MLRC NEWSLETTER STAFF Evening Phone_______________________ Day Phone_____________________ Editor: Ed Rosner Fax______________________ E-mail ___________________________________ Assistant editors: Katy Bordanaro Sonja Maxwell Current ML: Co-op__________________________ Rental _____________________ Jackie Peters Margo Tunstall Former ML: Co-op__________________________ Rental _____________________ Editorial Coordinator: Nathan Weber Development_______________________________ Renewal____New Member____ Circulation: 5,000 President’s Name: _____________________________________________________ Donations in addition to dues are welcome. Articles, letters, and photographs are wel- come. Send to MLRC, P.O. Box 20414, NOTE: Checks are deposited once a month. Park West, New York, NY 10025 Mail to: MLRC, PO Box 20414, Park West Finance Station, New York, N.Y. 10025 Fax: (212)864-8165 Voice Mail: (212) 465-2619 MLRC fights for you and your right to affordable housing! email: [email protected] December 2013 Page 3 term, fixed-rate multifamily rental loans, Affordability crisis grows impending reform of the housing finance sys- tem will also have profound implications for the cost and availability of multifamily credit. for tenants across nation Although some have called for winding Edited and reprinted with permission from “America’s Rental Housing: Evolving Market down Fannie’s and Freddie’s multifamily and Needs,” 2013, Harvard Joint Center for Housing Studies, www.jchs.harvard.edu activities and putting an end to federal back- stops beyond FHA, most propose replacing gainst the backdrop of the rental their numbers by more than 2.5 million the implicit guarantees of Fannie Mae and market recovery, declining renter over the decade. For families and individu- Freddie Mac with explicit guarantees for incomes continue to add to long- als unable to find affordable housing, the A which the federal government would charge a standing affordability pressures. Already consequences are dire. Among households fee. up sharply before the recession began, the with less than $15,000 a year in expendi- share of cost-burdened renters took a turn tures (a proxy for low income), severe cost for the worse after 2007. As a result, the burdens mean paying about $500 more for Federal role critical Proposals for a federal backstop dif- share of renters paying more than thirty housing than their
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