Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2012 Co-op City Times
Vol. 47 No. 33
Saturday, August 18, 2012
25¢
Progress reported in HUD deal HCR recommends contract extension for Riverbay management negotiations as deadline approaches BY BILL STUTTIG The New York State Division of Homes and Community Renewal (HCR), the government agency with direct supervisory authority over Co-op City, recently informed Board President Helen Atkins in writing that the agency has determined that Co-op City’s Managing Agent, Marion Scott Real Estate Inc., has “performed satisfactorily” during the recently passed 12-month contract period which ended on June 30th of this year. The letter from Robert Damico, Director of HCR’S Housing Management Bureau goes on to state, “Therefore we would approve an extension of the contract for an additional 12 month period.” Damico continues in his letter to Atkins, “The Commissioner has prescribed an increment of 2.6% in the managing agent base rate fee for the period commencing July 1, 2012 through June
30, 2013. Accordingly with respect to your specific development, the total maximum compensation would be $165,818 per month. “Please note,” Damico goes on to state, “that the managing agent fee cited above is the maximum HCR will approve. As always, a lesser fee as negotiated by the owner will be permitted.” Riverbay First-Vice President Khalil Abdul-Wahhab commented to the Co-op City Times earlier this week after receiving a copy of the letter last Friday, “This Friday, the Riverbay Board received word that HCR, Co-op City’s supervising agency, approved the performance of Marion Scott Real Estate as managing agent for Riverbay Corporation. Although HCR has expressed their approval for a one-year contract extension for Marion Scott Real Estate, we as the Board of (Continued on page 13)
Public Safety seeks identity of pellet gun shooter BY BILL STUTTIG The Department of Public Safety is asking for the community’s help in finding whoever is responsible for two separate incidents is which a person was injured by a pellet shot from an air rifle or bb gun. The first incident occurred on August 2nd when a Public Safety Officer patrolling the Dreiser Mall at approximately 7:15 p.m., felt a pain in his shoulder blade. He turned around to spot three young men running away. The cause of the pain was the pellet from a bb gun striking him. In the second incident, which
occurred four days later on August 6th, a man walking in the vicinity of Building 21 on Bellamy Loop at approximately 4:30 p.m. felt a sudden sharp pain in his shoulder which was caused by a pellet shot breaking his skin and causing a small wound. It is not known whether the two incidents are related, but Public Safety is asking anyone with knowledge of the person or persons responsible for these incidents to call Public Safety 718-671-3050 or the 45th Precinct at (718) 822-5411. All information provided will be kept confidential.
BY JIM ROBERTS With a looming Sept. 15 deadline less than one month away, negotiations between Riverbay and the U.S. Department of Housing and Urban Development (HUD) over the final terms of a possible $621 million low-cost mortgage refinancing deal are coming down to the wire. In a memo to the Riverbay Board of Directors dated Aug. 14, Jeffrey Buss, Riverbay’s General Counsel, advised the board of the status of negotiations. “Significant progress has been made in the last ten days on major issues relating to the possible HUD refinancing of Riverbay’s existing mortgage,” Buss wrote in his memo. “Having successfully financed loans with NYCB [New York Community Bank] in 2004, 2009 and 2011, there is no reason why Riverbay should be legally or financially unable to refinance in 2012. “Legal and management are working diligently to ensure that if HUD issues a Commitment Letter acceptable to the Board, Riverbay will be ready and able to close the loan in a timely manner,” Buss wrote. The Riverbay Board of Directors will have to approve any loan deal that is negotiated with Wells Fargo and HUD. In a letter dated Aug. 9 from HUD to Wells Fargo bank, the lender seeking to make the loan to Riverbay that the federal government would insure, a HUD official confirmed that as long as there were no significant changes due to “assumptions” or outstanding reports, the deal is on track to be completed.
“This letter is not a commitment to insure the mortgage for this property but is an indication of our goodwill to move forward with a successful closing,” wrote Marie D. Head, deputy assistant secretary for multifamily housing programs, U.S. Department of Housing and Urban Development. Issues still to be negotiated between Riverbay and HUD include potential changes to existing federal regulations in the future that could effect Co-op City and delegation of supervisory authority. Also still under discussion are changes proposed by Riverbay to the standard mortgage agreements that HUD uses with forprofit borrowers, final authority over maintenance increases, and several other topics. The proposed HUD-guaranteed Wells Fargo mortgage is projected to drop Coop City’s mortgage interest rate to approximately 3% for the 35 years of the loan, which will then be paid off. The deal guarantees a set mortgage rate and eliminates concerns over the current NYCB mortgage, which has to be refinanced in 15 years. The current NYCB mortgage rate rises to 5.75% this October, goes to 6% next July, increases again to 6.25% in 2016 and tops out at 6.5% in 2021 before requiring refinancing in 2026. The HUD-guaranteed Wells Fargo mortgage at the projected 3% interest rate would save shareholders approximately more than $15 million over the next 20 months and then between $11 million to (Continued on page 2)
JASA changing kosher food service BY JIM ROBERTS The non-profit agency that operates Co-op City’s three senior centers has hired a catering service to deliver daily kosher lunch meals and will no longer prepare the food on site. The change is designed to cut costs while maintaining the delivery of highquality food for seniors, according to the agency. “In order to best use funding for the Coop City senior centers, and in order to maintain our high level of service, JASA is changing how its meals will be provided,” said Leah Ferster, chief services officer at Jewish Association for Services for the Aged (JASA), the non-profit agency that operates Co-op City’s three senior centers through funding from New York City.
“The decision has been made that beginning August 20, JASA will provide hot kosher meals through Mauzone, a catering service, under the supervision of the OU [Orthodox Union],” Ferster said. “JASA will continue to provide kosher meals and non-kosher meals in Co-op City senior centers and the non-kosher meals will still be delivered to the centers as they have been in the past.” JASA has faced threats of budget cuts from New York City that would have closed the Dreiser senior center in each of the past three fiscal years. In 2010, the city’s Department for the Aging (DFTA) ruled that the Dreiser Center was not a “baseline” senior center (Continued on page 2)
Splish, Splash … Hundreds of Co-op City children lined up to participate in some good clean and cool summer fun on Thursday afternoon as the Riverbay Fund arranged for two giant water slides to be set up on the Greenway near the stage area. In addition, the city’s Parks Department brought a playmobile into the area offering games that did not require a bathing suit. The water slides will return and be on the Section 5 Greenway next Wednesday, Aug. 22 weather permitting, beginning at 11 a.m. Photo by Bill Stuttig