Co-op City Times 09/21/13

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Co-op City’s official newspaper serving the world’s largest cooperative community. © Copyright 2013 Co-op City Times

Vol. 48 No. 38

DHCR orders 1% increase in carrying charge for Co-op City residents effective October 1, 2013

Saturday, September 21, 2013

ORDER OF THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL HCLP-81

RIVERBAY CORPORATION, hereinafter referred to as the “applicant”, a limited-profit housing company duly organized and existing under the provisions of Article II of the Private I lousing Finance Law, subject to the supervision of the Commissioner of the New York State Division of Housing and Community Renewal, owns and operates a limited-profit housing development known as Co-op City in the City of New York, County of Bronx, State of New York. The said applicant filed an application dated March 15, 2013, in the office of the Commissioner of Housing and Community Renewal requesting that the present carrying charges be increased, because the present carrying charges, together with all the other income of the said applicant, are insufficient to enable it to meet the payments required to be made by the provisions of the Private Housing Finance Law. Notice and application, together with the Division of Housing and Community Renewal financial projections, were given to the cooperators with a notification that written statements in opposition to the proposed carrying charge increase could be sent to the Commissioner not later than September 3, 2013. The purpose of such statements is to afford an opportunity for the cooperators or their representatives to refute, correct, supplement, or otherwise modify the allegations and figures contained in the statement, exhibits, and schedules attached thereto. A meeting was scheduled for September 12, 2013, at the Riverbay Corporation, Auditorium “A”, 177 Dreiser Loop, Bronx, New York l0475, at which the cooperators, their representatives, and representatives of the housing company had the opportunity to meet with DHCR staff. All comments and submissions were reviewed by DHCR staff prior to this determination. NOW, on considering the entire record, from which it appears that owing to causes beyond the control of the applicant, there have been and will be substantial increases in the cost of operating the development, including, but not limited to, the increased cost of maintenance and operating expenses; and that the present maximum average carrying charges are insufficient to meet such increases in costs and to make other necessary and authorized expenditures. I FIND AND DETERMINE that, owing to causes beyond the control of the applicant, the present carrying charges are insufficient to enable it to meet, within reasonable limits, all necessary payments required to be made by the provisions of the Private Housing Finance Law and that such insufficiency cannot be corrected by reasonable economies in the management and operation of said development. I FURTHER FIND AND DETERMINE that the minimum increase in the maximum average monthly room carrying charges necessary to enable the said applicant to make the payments required to be made is one point zero percent (1.0%) per rental room per month, including utilities, effective October 1, 2013. The increase authorized herein is not in excess of the minimum amount necessary to enable the housing company to make the payments required to be made by the provisions of the Private Housing Finance Law. I, THEREFORE, ORDER AND DIRECT the said applicant to increase the maximum average monthly room carrying charges in one stage, to an average of one point zero percent (1.0%) per rental room per month, including utilities, effective October 1, 2013. Additionally, at least 90 days prior to October 1, 2014, DHCR will undertake a review of the second budget year projections to determine if any further carrying charge adjustments are warranted. A copy of this order shall be transmitted to each cooperator to be affected at least five (5) days prior to October l, 2013. Service shall be made in the manner prescribed by the Real Property Actions and Proceedings Law for the service of a notice of petition in summary proceedings, or by first-class mail.

BY ROZAAN BOONE After hearing from shareholders of the Riverbay Corporation, the New York State Division of Homes and Community Renewal (DHCR) has ordered a 1% carrying charge increase for residents of Co-op City which will be implemented on October 1, 2013. After a majority of the Riverbay Board of Directors approved budgets for the next two years at their March 13th meeting which included a 1% increase in carrying charges for fiscal years 2013/2014 and 2014/2015, Riverbay Corporation applied to DHCR—the state supervisory agency for Mitchell-Lama developments like Co-op City—for the carrying charge increase effective October 1, 2013, and zero percent increase for fiscal year 2014/2015, which ends on March 31, 2015. Presently, the average carrying charge in Co-op City is $205.06 per room, and the proposed 1% increase would raise this figure by $2.05 to an average $207.11 per

25¢

room in apartments as of October 1, 2013. Following set procedures, once DHCR received Riverbay’s application, DHCR staff reviewed the application and financial projections and formulated the agency’s own preliminary projections, which concurred with Riverbay’s 1% increase proposal to help the corporation meet its financial obligations. However, before a final decision was made on the proposed rent increase, shareholders were first served with notice of the increase, along with the housing company’s application and projections. Residents were then given an opportunity to review the application and projections and to submit written comments to DHCR. At the conclusion of the 30-day comment period, a rent increase conference (meeting) was scheduled for last Thursday, September 12th, at 7 p.m. in the Dreiser Auditorium where residents (Continued on page 2)

Follow-up on Heat Exchanger resolution discussed at Open Board meeting last week A discussion regarding Resolution #13-78 was held during the Riverbay Board of Directors Open Board Meeting on Sept. 11. The resolution to purchase of High Temperature Heat Exchangers Retubing was approved by the Board by a vote of 11-1 with two abstentions and one absent. In order to clarify that discussion, Herbert Freedman, Principal of Marion Scott Real Estate, Inc., the managing agent for Riverbay Corp., wrote the fol-

lowing memo to the Board of Directors which points out that the contract that was approved saved $483,052 over the estimated cost of the project. The memo also includes spending requests for non-critical repairs through Riverbay’s mortgage refinancing. That mortgage is guaranteed by the federal Housing and Urban Development agency (HUD). (Continued on page 4)

Dated: New York, New York this 16th Day of September, 2013

Co-op City College, Career and Resource Fair is Sept. 28th (see page 3)

Looking up…Riverbay Ombudsman Joe Boiko (l.) led a team of consultants on a site inspection of the Bartow Community Center on Wednesday as they prepare to begin work on the specifications and design of a new elevator to serve the center, the only Co-op City community center not presently being served by an elevator. Joining Ombudsman Boiko on the tour were (l. to r.) Mauricio Garcia and Chet Bowman from the elevator design firm Castrillon, Barker and Associates, and Lou Persico and Mike Coiro from Ver-Tech Elevator, Riverbay’s elevator maintenance contractor. It is hoped that the new elevator will be installed and running by next summer. Photo by Bill Stuttig


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