Co-op City Times 03/26/11

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Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2011 Co-op City Times

Vol. 46 No. 13

Saturday, March 26, 2011

Possible refinancing deal discussed in Washington with HUD BY JIM ROBERTS New York state officials and a representative for Riverbay Corporation went to Washington, D.C. this week to talk with leaders of the federal Department of Housing and Urban Development in an effort to make some progress in the ongoing pursuit of a refinancing of Co-op City’s $475 million mortgage. Michael Skrebutenas, President of the Office of Housing Preservation of the New York State Homes and Community Renewal (HCR) department; Richmond McCurnin, Deputy Commissioner of HCR, and Herbert Freedman, principal of Marion Scott Real Estate Inc., managing agent for Co-op City, met with HUD officials to find out what the federal government needs to consider guaranteeing a proposed refinancing of Co-op City’s current mortgage by Wells Fargo/Wachovia. According to Freedman, the HUD officials indicated they could consider Riverbay’s request that HUD guarantee the proposed mortgage refinancing under the agency’s 223F program if they receive a satisfactory plan that provides debt service reserves, along with assurances that the state HCR will play a significant role in ensuring that the federal

loan guarantee is protected. A HUD guarantee of a loan refinancing deal will require that Co-op City remain as affordable housing under the state’s Mitchell-Lama program, according to Freedman. Several bankers from Wells Fargo accompanied Freedman and the New York state HCR officials to the meeting with HUD in Washington. The meeting in Washington was arranged after a meeting one week earlier with HUD’s local regional director Adolfo Carrion, the former Bronx Borough President, made it clear that direct talks with Washington HUD officials were the best avenue to pursue. As a result of the Washington meeting, Riverbay officials, working with Wells Fargo, will present a plan to HUD in Washington in early April to determine if HUD is comfortable in moving ahead with the proposal. State HCR officials will also submit assurances that the state agency can and will protect HUD, according to Freedman. Even with an approval from HUD, the process will take at least six months or more and other issues will have (Continued on page 2)

New shareholders may qualify for first-time homebuyer credit BY BILL STUTTIG Co-op City residents who bought their apartment before April 30th, 2010 and closed on the purchase before September 30th, 2010, may qualify for a first-time homebuyer tax credit first made available by the federal government through the Housing and Economic Recovery Act of 2008 and later renewed through the Worker Homeownership and Business Act of 2009. Called the first time homebuyer credit, it allows new home buyers to declare a tax credit of up to 10% of the value of their purchase up to a value of $8,000. Riverbay’s Director of Finance Peter Merola explained that in the case of Co-op City, where purchase values are between $13,500 for the smallest available home – 3 rooms – or $29,250 for the largest apartment available to new shareholders – 6 and ½ rooms, the amount of credit that can be claimed ranges from $1,350 to $2,925. Merola explained that the credit is available to shareholders whose purchase of an apartment here represents their very first home purchase. Residents who likely will qualify include families who have moved here after previously renting an apartment elsewhere or young people who purchased here after moving from their family’s home for the first time.

According to a press release from the Internal Revenue Service updated January 25th, 2011 the new law also provides a “long-time resident” credit of up to $6500 to others who do not qualify as a “first time homebuyer.” To qualify for this, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eightyear period ending on the date of purchase of a new home as a primary residence. Merola strongly advised shareholders to consult with their certified tax preparer before filing for the credit. According to the website asktaxguru.com, you cannot claim the credit if you do not use your Co-op City apartment as your principle residence or if your modified adjusted gross income exceeds certain minimum requirements. According to the press release from the IRS, the new law raises the income limits for people who purchase homes after the November 6th date when the new law went into effect. The full credit is available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000 or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000 or (Continued on page 4)

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Petition period ends Monday; Fourteen shareholders have picked up petitions for 2011 Riverbay Board Election BY ROZAAN BOONE As of press time Friday, March 25, fourteen shareholders had picked up qualifying petitions indicating their intention to run for a seat on the 2011 Riverbay Board of Directors. The deadline to return all signed petitions is 5 p.m. this Monday, March 28. The Riverbay Board of Directors election will be held on Wednesday, May 18. Shareholders will vote to fill five seats on the Board as the terms of Directors Rev. Dr. Calvin E. Owens, Eleanor Bailey, Leticia Morales, Emmanuel “Manny” Torres and Jose Rodriguez are expiring. There will be one vote per unit by residents who are shareholders of record as of March 28, 2011. Three of the five incumbent Board Directors—Emmanuel “Manny” Torres, Eleanor Bailey and Rev. Dr. Calvin E. Owens—have picked up their petition packages.

Eleven other shareholders, some of whom have run for the Board in previous years, as well as a few former Board members, also picked up petitions since they became available on Monday, March 14. They include Frank Belcher, Yolanda Canales Schumann, John Rose, Kenneth Mercer, Sr., Leah Graham, Carmen Howell, Michelle S. Davy, Krystal Serrano, Daryl Johnson, Dom Masters and Tony Illis. Any shareholder in good financial standing can run for a three-year term on the Board. Seventy-five valid cooperators’ signatures are needed on candidates’ petitions in order for them to qualify to run for the Board. After the petitions are returned on Monday, March 28, the signatures on each candidate’s petitions will be certified against the signatures of shareholders of (Continued on page 4)

Water Problems – What Happened in Buildings 3 - 28 - 29 On Wednesday morning, March 23, the Board of Education undertook repair of pumps at M.S. 180. Upon completing their work, M.S. 180 did not inform the Riverbay Power Plant that they were refilling their system and that action

caused us to lose pressure in our sitewide hot water system which resulted in damage to several hot water coils. The system is a closed, pressurized system, (Continued on page 4)

Benedetto invites MTA Chairman to tour Co-op City BY BILL STUTTIG After nearly nine months of meetings, surveys, petitions and protests, State Assemblyman Mike Benedetto has decided to change strategy and go right to the top in his quest to have the MTA restore some or much of the Co-op City bus service cut by the agency last year. This week, Benedetto personally invited MTA Chairman Jay Walder to come to the community in the near future and join him and City Council Transportation Chairman James Vacca in touring the community and surveying the quality of the bus service Co-op City residents receive in the wake of last summer’s cuts. In a letter of invitation sent to the Chairman on Tuesday, March 22, Benedetto stated: “When changes were made to the Co-op City service routes last June, we were all upset. ‘Why change

something that works and has worked for some 40 years?’ was the question on the lips of all the residents. Over the past eight months, Co-op City has lived with the changes and with the ‘tinkering’ made to the new routes and the opinion of all is: they just don’t work. “I invite you to come to Coop City. Let me introduce you to the fine people who live there and see for yourself the difficulties they have faced since last June. I think when you do, you will realize, as I do, that these changes don’t work and that we should return to what was.” Benedetto, who has made several attempts to try to get the MTA to reconsider the cuts to Co-op City’s bus service over the past eight months, told the (Continued on page 5)


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