Co-op City Times 01/21/12

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Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2012 Co-op City Times

Vol. 47 No. 3

Saturday, January 21, 2012

HUD requests for larger city and state guarantee for possible $600M loan BY ROZAAN BOONE The U.D. Department of Housing and Urban Development (HUD) this week asked Wells Fargo to attempt to secure a larger guarantee from the city and state of New York before proceeding with the refinancing of Co-op City’s mortgage at the $600M level. Wells Fargo had previously secured guarantees from both New York State and New York City for a combined total of the first $35M of a possible $600M loan to Co-op City from HUD through its 223F program, insured by the Federal Housing Administration (FHA). HUD, however, is requesting a larger guarantee, in the range of $70M or more, to “assure the on-going solvency of the overall mortgage insurance fund in the unexpected event of a claim on this project.” In a letter dated January 18, 2012 to Alan Weiner, Managing Director of Wells Fargo Multifamily Capital, HUD’s Deputy Assistant Secretary for Multifamily Housing Programs, Marie D. Head, wrote: “By now, you are aware of HUD’s commitment to the preservation of affordable housing, and we look

forward to the opportunity to assisting in the preservation of the 15,372 units located in Co-op City.” The letter further states: “The Department recognizes the significant savings to the shareholders inherent in the HUD transaction, with a total savings to the co-operative of approximately $111 Million ($7,000 per member) in reduced principal and interest payments over the 15 year term of the existing loan. We also understand the enormous benefits provided by HUD’s 35 year self-amortizing loan, which would totally eliminate the refinancing risk in the 15th year that they face under the current loan… “Because this loan would be the largest ever done by HUD under the multifamily insurance fund, we need to assure that it is done in a prudent manner,” the letter went on. “Of great importance to us is the support and involvement of the state, and its level of oversight of Mitchell-Lama co-ops. We have been impressed with the professionalism and knowledge of the state representatives we have met with, and recognize (Continued on page 2)

Buildings Department approves reopening of all remaining balconies in Co-op City BY ROZAAN BOONE The City of New York Department of Buildings (DOB) recently approved the reopening of the remaining balcony lines that were affected by the vacate order of May, 2010 which resulted in the closure of approximately 1,000 balconies in 7 Co-op City hi-rise residential buildings. The remaining balcony lines cleared for reopening during this final round of inspections were the A line in Buildings 2A & B, and Buildings 3A & B; the B and L lines in Building 6, the E and H lines in Building 7 and the B and E lines in Building 8. With the city’s approval that these balconies are structurally sound and therefore can be put back into use, the city has essentially rescinded the vacate order of the summer of 2010. However, while Proto Construction, the contractor doing the façade and terrace repairs in Co-op City, has reopened the B, E, H and L line balconies in Buildings 6, 7 and 8, the A line balconies in Buildings 2A & B and 3A & B will remain closed until the terraces can be coated in the Spring when the weather improves. According to the Riverbay Construction Department, the contractor

has indicated that the weather has to be 50 degrees and up for the coating work to be done. It is hoped that after March 15, as soon as the temperatures start to rise, they will begin the coating work since the scaffolding is already in place. The coating of the terraces will take approximately 3 weeks to complete. “I am glad to be able to report that the restoration of the balconies that were closed as a result of the city’s vacate order has, in fact, been done in line with what the community was promised after the initial closings took place,” said Riverbay’s General Manager Vernon Cooper. “I also thank the Board of Directors for their wisdom in approving the refinancing of the New York Community Bank loan which enabled us to afford this work, as well as the other capital projects that we are undertaking simultaneously, such as the window and balcony door replacements and the roof replacements. “The progress made with the balcony restoration program will enable cooperators in these buildings to enjoy their balconies this summer as intended.” (Continued on page 4)

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Einstein Center Post Office taken off closure list; Dreiser Post Office still in jeopardy BY BILL STUTTIG The Einstein Center Post Office in Section 5 has been removed from the list of 17 Bronx Post Offices being studied for possible closure and will apparently remain open indefinitely, it was announced by Congressman Joe Crowley in a press release issued earlier this week. A day later, the Co-op City Times confirmed this with the New York City communications office of the United States Postal Service. After making the announcement through his press office, Crowley later told the Co-op City Times that he believed that public pressure from Coop City residents and its leaders and elected officials played a big role in persuading postal officials that the Einstein Post Office should not be considered for closure. The Dreiser Post Office still remains in jeopardy however, and the Congressman promised that he will continue to help the community fight the closure of this facility as well. He

said a public rally to protest the proposed closure of the Dreiser facility, similar to the one that was held outside the Einstein facility in November, will be held in the near future. He said his office is also working with the Bronx Postmaster to reissue surveys sent out regarding the Dreiser Center Post Office because he heard that many Coop City residents did not receive the Dreiser survey or confused it as a duplicate to the Einstein survey and threw it away. Crowley said, “While it is true that the Postal Service needs to modify the way it does business in these changing times in order to remain fiscally solvent, the closing of community facilities should never be part of those modifications.” Riverbay Board Director and retired postal supervisor, Eleanor Bailey, has led the fight within this community to make sure that voices of Co-op City residents (Continued on page 2)

Gas leak in Building 21A Ser vice r em ains shut down t o “A” line a pa r tm ents. A gas leak in Building 21A this week resulted in service to the A & B line apartments being shutdown. Riverbay’s Maintenance personnel worked to restore service to the “B” line by Thursday afternoon, but service to the “A” line apartments remains off. In order to restore gas service to the A line apartments, Maintenance staff have to access each apartment and change the gas valves, nipples and caps. Only after each of these items have been replaced in each apartment and the line tested and cleared, can gas service be turned back on. It is estimated that the work will take one week to be completed. Shareholders on the “A” line apartments in Building 21A are urged to contact the Maintenance Department at (718) 320-3300, press option 3 and follow the instructions to schedule an appointment to have the necessary work done in their apartment. Thank you for your cooperation.

Co-op City’s recycling efforts and revenue increase by approximately 50% over last year BY BILL STUTTIG Revenue earned through the community’s recycling efforts in 2011 increased by roughly 50% over the previous year as nearly 1.3 million tons of recyclable refuse was collected from the buildings and sold to waste management firms for processing and use as materials for goods production in this and other nations. Kevin Keenan, Riverbay’s Director of Operations and Safety, has overseen the community’s recycling efforts since 2006. “When we first started in 2006, the materials that we collected in the first month earned us approximately $200. Now today, we are earning an average of

$9,000 per month if not more by selling these materials,” Keenan said. “Prior to us starting the recycling program, all this reusable material was disposed of as household waste. Now, instead of filling up landfills, it is going back into the economy in the form of new products, while helping this community’s economy in the form of increased revenue.” Keenan said that for 2011, Riverbay collected and sold close to 1.3 million tons of recyclable material including 1,178,095 tons of paper and cardboard, 92.75 tons of recyclable metals, and 617.79 tons of co-mingled plastic. (Continued on page 4)


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