Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2014 Co-op City Times
Vol. 49 No. 7
Board approves exploration of zero down equities for transfers At an Open Board meeting Wednesday evening in Dreiser Center before approximately 50 shareholders, the Riverbay Board of Directors, by a vote of 8 to 2 with 3 abstentions, approved a resolution to direct Management to explore with the state Division of Homes and Community Renewal (DHCR) the possibility of allowing residents, particularly senior residents transferring to smaller apartments, the possibility of transferring without the required 25% down deferred equity requirement. Director Bernard Cylich led the discussion on this resolution with a prepared Power Point presentation showing his numbers indicating that allowing 0% down for transfers would in fact make necessary transfers more affordable to residents, particularly fixedincome seniors who are more likely to downsize, while also producing more BY BILL STUTTIG
Board President updates community on labor negotiations
Saturday, February 15, 2014
income for the corporation and its shareholders – Co-op City residents – by reducing the time it would take to fill available homes and thus begin collecting carrying charges faster.
Director Othelia Jones said Co-op City had more liberal, shareholderfriendly transfer policies for many years until a few years ago when the state’s DHCR forced Riverbay to adopt the same policies and stringent require(Continued on page 4)
NOTICE to Shareholders: 1098 Explanation
Riverbay Corporation pays the mortgage, and the interest of that mortgage is allocated to all shareholders based on the size of their apartment. For calendar year 2012, the mortgage interest was $45,626,610, which, spread out over the entire complex of 72,666 rooms, equals $627.90 per room. The 2013 mortgage interest was $14,282,480, divided by the total number of rooms in the complex, 72,666 rooms, equals $196.55 per room. The drastic reduction in mortgage interest is due to the excellent achievements of Management in refinancing the mortgage at a very low 2.4% interest rate HUD guarantee mortgage. Previously, in 2012, that was the NYCB mortgage at a 5.7% interest rate, along with prepayment penalties and other fees which were incurred when that loan was paid off. Although shareholders are not receiving the high benefit of a large mortgage interest deduction for tax purposes, they are benefitting by carrying charges that were maintained at a very low level because of the HUD guaranteed mortgage, and without which, there would likely have been a much larger carrying charge increase. —Riverbay Finance Department
Riverbay Holiday closings and Co-op City Times deadline notice
Riverbay’s administrative offices will be closed on Monday, February 17, in observance of Presidents’ Day. Shareholders may contact the Emergency Maintenance Desk for service emergencies, and the Co-op City Public Safety Department at (718) 671-3050, and 9-1-1 for all other emergencies. Because of the holiday shortened work week, all Directors’ viewpoints and club articles must be submitted by 9 a.m. on Tuesday, February 18. Material received after this time will not be considered for publication in the Saturday, February 22nd issue of the Co-op City Times. Please note that this deadline will be strictly enforced to ensure that we meet our production schedule. Articles and viewpoints may be submitted electronically by emailing 24/7 to cctimes@riverbaycorp.com or by faxing to (718) 320-2595. Material may also be slipped under the door of Room 21 in the Bartow Community Center, 2049 Bartow Avenue, Bronx, N.Y. 10475. We wish our readers a safe and enjoyable holiday weekend.
25¢
Ramirez v. Local 153 informed President’s Message Riverbay Riverbay that the As you may have costs for their health seen in this week’s plan would increase President Co-op City Times, from $1,375.12 to Riverbay’s labor counsel responded to $1,713.25 per employee, per month, an the allegations lodged by a handful of increase of $337.88 per month, per current and former Riverbay employees employee. This increase results in an regarding their hours and wages. I met additional $14,000 per month cost. with Riverbay's labor counsel regarding Local 153 has further indicated that to same and although, under advice of maintain the current medical coverage counsel I cannot share the particulars of under the Local 153 Health Fund, the that conversation, I can inform you that premiums would increase an additional Riverbay asserts in good faith that all $359.85 per employee, per month over hourly employees have been properly the life of a three-year collective barcompensated for all hours worked and gaining agreement. further asserts that these employees These increases may be so high due were paid in strict accordance with the to the fact that Local 153 does not have various collective bargaining agree- single rate vs. a family rate, but rather ments to which Riverbay is a party. requires a blended rate of $1,713.25 Riverbay intends to vigorously defend premium per month, per employee against this suit. Riverbay’s labor coun- regardless of whether that employee is sel will address the full Board in an single, married or married with chilExecutive Session to be held on dren. Wednesday, February 26. Riverbay has a medical plan that it Local 153 offers to its non-union employees I also wanted to take the opportunity which has both a single and family rate. to address the status of the negotiations Riverbay has been attempting to with Local 153 and the various mis- explore whether it is economically feastatements that have been made by sible to transition Local 153’s members Local 153's representatives these past into Riverbay’s health insurance plan. weeks. Since contract negotiations Since the outset of negotiations, commenced, Riverbay has negotiated in Riverbay has repeatedly requested that good faith with Local 153. When the (Continued on page 2) contract expired on January 31, 2013,
Bill Gordon
Kaufman petitions Mayor to help ease Co-op City’s annual $4M asbestos abatement expense
(Below is a copy of a letter that former Assemblyman Steven Kaufman sent to Mayor Bill de Blasio on Tuesday, February 11, on behalf of Co-op City residents. Kaufman has been in the forefront of trying to eliminate the unnecessary payment of approximately $4 million per year for asbestos abatement removal when no danger or health hazard is posed by asbestos in Co-op City’s floor tiles which are encapsulated in mastic glue and not airborne.) Dear Mayor de Blasio:
I wish to take this opportunity to congratulate you on your impressive election victory. New York City is indeed fortunate to have a Mayor who cares about the four other boroughs, not just Manhattan. During your campaign you emphasized addressing the imbalance between the people who live in two different New York City's - one wealthy, and one not doing nearly as well. I wish to talk to you about the plight of what is a third city—Co-op City: the largest housing development in all of New York City, located in the Northeast corner of the
Bronx and providing affordable housing for some 50,000 middle income residents. The people from this third city — Co-op City — are calling loudly and desperately for help, and the solution is obvious! Now is the time for you, Mayor de Blasio, to do the right thing and immediately rescind the punitive directive requiring Co-op City to abate an asbestos problem that does not exist. There is no friability, since all asbestos is encapsulated in the mastic glue of the floor tile and therefore not airborne, so there is no hazard, and there should be (Continued on page 2)