Co-op City Times 02/18/12

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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. 7

Saturday, February 18, 2012

Kaufman urges full Board to unite to fight unnecessary abatement work BY DEREK ALGER Stephen Kaufman, who represented Co-op City in the Assembly for 18 years, reported to the Board this week that asbestos abatement work on flooring tiles was unnecessary because there was no hazard from asbestos since it is encapsulated and not airborne. Kaufman said the problem at the moment was to determine whether the state or the city has actual jurisdiction over the “selective enforcement” requiring such work in Co-op City, which is costing some $4 million per year. “We’re being punished for no reason,” Kaufman told the full Board at a meeting Wednesday evening. “This is a noble battle, you did nothing wrong. I think this is a battle you need to be united on.” An extensive report was completed by Kaufman, with the assistance of Joseph Miele, a former commissioner of the City of New York’s Department of Environmental Protection (DEP), who was also at the meeting. The Board now has the report and is considering what is the best course of action to try and eliminate the unnecessary asbestos abatement work which has so far cost Co-op City in excess of $20 million. According to the report, Kaufman noted, some 65,000 tests were conducted,

with no cases of hazardous conditions found since the asbestos is not friable, or airborne, and it is contained within the mastic glue of the floor tiles. “If there is no friability, there is no problem,” Kaufman said. “The solution to prevent any asbestos problem is encapsulation, and the mastic glue in the tiles does that.” Kaufman argued the State of New York should re-take the jurisdiction that prior administrations gave to New York City over Co-op City, a state MitchellLama housing development. “There is no value added to what you’re doing,” said Miele, the commissioner of the city’s DEP from 1996-2002. “All you are doing is wasting assets. The bottom line is there is no risk, all asbestos is contained and no one has said there was a problem.” Kaufman and Miele both observed that the city says the asbestos abatement work is being required by the state and the state is saying it is being required by the city. “There is no basis in fact for requiring this work,” Miele said. “Co-op City is the only residential housing required to do such work. Why did they pick you out? The left hand doesn’t know what the right hand is doing.”

Co-op City teenager arrested on gun and marijuana possession charges BY BILL STUTTIG A 17-year-old Co-op City resident was arrested by 45th Precinct Detectives on gun possession and marijuana charges after the investigators found several illegal weapons inside the bedroom closet of the suspect last Friday afternoon, February 10th, according to a criminal complaints released by the Bronx District Attorney’s office. The criminal complaint states that investigators found inside of a backpack stored in a bedroom closet of the suspect, a loaded 9mm semi-automatic pistol, a loaded 12-gauge shotgun, a Billy club,

and 27 clear zip-lock bags filled with a substance identified by investigators to be marijuana. The suspect was taken into custody and, according to the criminal complaint, charged with three counts of criminal possession of a weapon, possession of ammunition, and unlawful possession of marijuana. According to the Bronx District Attorney’s office, the teenager was arraigned last Saturday, February 11th and released on his own recognizance, with no (Continued on page 4)

H olid a y closin g M on d a y a n d Co-op City Times d ea d lin e n ot ice Riverbay’s administrative offices will be closed on Monday, February 20, in observance of Presidents’ Day. Shareholders may contact their local CSO for services and the Co-op City Public Safety Department at (718) 671-3050, and 9-1-1 for emergencies. Because of the holiday shortened work week, all Directors’ viewpoints and club articles must be submitted by 9 a.m. on Tuesday, February 21. Material received after this time will not be considered for publication in the Saturday, February 25th issue of the Co-op City Times. Articles and viewpoints may be submitted electronically 24/7 to cctimes@riverbay corp.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. We wish our readers a safe and enjoyable holiday weekend.

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N.Y. agrees to HUD guarantee request to insure Co-op City’s $600M refinance loan BY ROZAAN BOONE Wells Fargo has reported that both the City and State of New York have agreed to the combined $70M top loss guarantee requested by the U.S. Department of Housing and Urban Development (HUD) in January in order for Co-op City to receive mortgage insurance from HUD through the 223F program by the Federal Housing Administration (FHA). In recent correspondence to Herbert Freedman, principal of Riverbay’s managing agent, Marion Scott Real Estate, Inc., the Managing Director of the FHA Platform at Wells Fargo Multifamily Capital, Cathy Pharis, reported that “…the State and City are on board with HUD to take a $70MM combined top loss…” Previously, Wells Fargo had secured a $35M combined top loss guarantee from the City and State of New York, however, in mid-January, HUD requested that the local guarantee be in excess of 10% of the loan amount (in the range of $70M) or better, to “assure the on-going solvency of the overall mortgage insurance fund in the unexpected event of a claim on this project.” In management’s update to the Board

dated February 14, Freedman wrote: “On the one hand, we are happy to report that we have been advised that New York State and New York City have agreed to a $70,000,000 ‘guaranty’ which makes the HUD/HFA loan possible….” Freedman pointed out that the HUD loan guarantee is significant because at present rates of under 4.5% on a self amortizing, 35 year loan, savings of over $4M a year could be realized. The HUD loan guarantee would also result in savings of $6M a year starting in 2013 when the current NYCB loan rate rises. “The [HCR imposed] October rent increase can or could be reduced or eliminated and if we use the cogeneration savings for capital projects, the HUD loan savings can be used to keep carrying charges low. And yes, Marion Scott Real Estate is the catalyst for both opportunities and we will not let anyone try to make light of our role,” Freedman stated in his update memo to the Board, noting that a recent “opinion” by a Board Director implied that a Board member (Continued on page 2)

Electrical Substation Maintenance Work in Building 2 Tuesday Phase 2 activities for Building 2 will take place on Tuesday, February 21, beginning at 9:30 a.m. The electrical breakers have to be removed for re-calibration and repair work, and spare breakers will be installed, resulting in temporary loss of power for approximately 30 minutes while the breakers are removed. Re-calibration and repair work will take two days. Phase 3 work for Building 2 will be performed on: Friday, February 24, starting at 9:30 a.m.

Massive voter registration drive on tap for Co-op City BY BILL STUTTIG Residents who are not registered to vote will have no excuse for not doing so this year as Riverbay is launching a massive community-wide voter registration drive beginning this week. Voter registration forms will be available at all lobby attendant desks and Cooperator Services Offices (CSO), in addition to the Bartow Center reception area at the administrative office on a continuous basis through the October voter registration deadline for this year’s general election. Not only can forms be picked up at this location, but completed forms can also be dropped off there as well and

Riverbay will make sure that each form is sent off for processing. “All we are asking unregistered eligible voters to do is to pick up a form, fill it out in their homes and then return it to your building’s lobby attendant and we will make sure that the form is processed and you will be officially registered to vote,” explained Riverbay Ombudsman Joe Boiko, who is coordinating the community-wide effort. Once you register to vote, you are registered for life. If you move, you have to notify the Board of Elections of your (Continued on page 4)


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