Co-op City Times 09/28/13

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Co-op City’s official newspaper serving the world’s largest cooperative community.

Vol. 48 No. 39

Store owners billed only for taxes they owe; Daily News story inaccurate BY JIM ROBERTS Commercial real estate tenants in Co-op City are billed only for the commercial real estate taxes that they owe based on their signed lease agreements, a fact that was reported incorrectly in the New York Daily News this week. In his response to that article, Riverbay Director of Finance Peter Merola explains that the increase in tax bills that merchants received this year came when the New York City Department of Finance raised the commercial tax bill to Riverbay. Riverbay pays the entire city tax bill and then charges the tenants for their portion. When some merchants questioned the tax increase, Riverbay agreed to lower their higher bills and paid a larger portion of the taxes out of shareholder funds, Merola explains. Merola addressed all the inaccurate statements reported in the Daily News article in his response published below, along with a comment from Riverbay General Manager Vernon Cooper. “A recent Daily News article has reported on an event that transpired

over a year ago regarding Riverbay’s commercial tenants and Real Estate taxes. The article is very misleading and does not tell the whole story. This incident started in July, 2012 when Riverbay Corporation received its tax bills from New York City Department of Finance (NYCDOF). Riverbay Corporation saw that NYCDOF had allocated more taxes to its three commercial property parcels, and less to its residential parcels than in prior years. After numerous phone calls to various New York City and New York State agencies, Riverbay was still unclear as to why NYCDOF made this change. Riverbay’s commercial tenants have all signed leases for their stores. A clause in almost all of these commercial leases requires Riverbay to allocate the commercial real estate tax bill to each of the stores based on the size of their location. Based on the lease and the bills received from NYCDOF, Riverbay allocates a small portion of the overall real estate tax bill to the (Continued on page 3)

NYS registration process for Basic STAR tax credits ongoing; Enhanced STAR recipients not affected Deadline is December 31, 2013

Co-op City shareholders should have received by now, or should be receiving soon, their specific Basic STAR code that was mailed by the New York State Department of Taxation and Finance in order to register with the state by the December 31, 2013 deadline to receive the credit in 2014 and in subsequent years. Shareholders who receive Enhanced STAR do not have to participate in this registration process with the state and should continue to do what they have been doing all along – either reapply each year for STAR or opt in for automatic annual income verification. This Basic STAR registration process was undertaken by the New York State Department of Taxation and Finance in an effort to protect taxpayers from inappropriate or fraudulent School Tax Relief Exemption (STAR) claims. This registration process is a one-time assignment. BY ROZAAN BOONE

DHCR-ordered 1% carrying charge increase to be implemented Oct. 1

© Copyright 2013 Co-op City Times

Saturday, September 28, 2013

According to the State Department of Finance and Taxation website, once registration is completed by the December 31st deadline, homeowners who are receiving Basic STAR will not have to re-register every year. Going forward, based on the information provided in the registration process, the Tax Department will monitor homeowners’ eligibility in future years. If you are currently receiving Basic STAR credit and do not receive your code from the State Department of Taxation and Finance in the coming weeks, you should call them at (518) 457-2036 for further directions. Basic STAR recipients can register for the 2013/2014 STAR tax credit at the New York State Taxation and Finance Department’s website at www.tax.ny.gov, or by calling the department at (518) 4572036, Mondays to Fridays, 8:30 a.m. – 8 p.m. and on Saturdays from 9 a.m. to 1 p.m. (Continued on page 4)

25¢

BY ROZAAN BOONE The 1% increase in carrying charges ordered by the Commissioner of the state supervisory agency for Co-op City, the NYS Division of Homes and Community Renewal (HCR), will be implemented on Tuesday, October 1, 2013. Riverbay’s Director of Finance, Peter Merola, told the Co-op City Times on Thursday that the maintenance bills for October reflecting the 1% increase in carrying charges were being mailed and cooperators should begin receiving them soon. A reminder of the increase is printed on each of the October maintenance bills. In addition, each shareholder was mailed a copy of the HCR Commissioner’s Order which was issued on September 16 and published in the Saturday, September 21st issue of the paper, as well as posted in the residential buildings and townhouse

clusters. The increase raises the average carrying charge from $205.06 per room to $207.11 per room in Co-op City apartments as of October 1, 2013. The Commissioner’s increase order was issued after HCR heard from shareholders of the Riverbay Corporation at a rent conference which was held in the Dreiser Auditorium on September 12, 2013. Before making its final determination as to the amount of the increase, DHCR staff also reviewed written comments that were submitted by shareholders within a given time frame. At their March 13th meeting, the Riverbay Board of Directors approved budgets for the next two years which included a 1% increase in carrying charges (Continued on page 4)

SCRIE & DRIE may help defray increased carrying charges for some Co-op City residents BY ROZAAN BOONE Eligible Co-op City shareholders who are registered with the city’s Senior Citizen Rent Increase Exemption (SCRIE) and the Disability Rent Increase Exemption (DRIE) programs may be able to avoid paying the monthly carrying charge increase which goes

into effect on Tuesday, October 1. The 1% increase in carrying charges raises the average carrying charge to $207.11 per room from $205.06 per room in Co-op City apartments as of October 1, 2013. (Continued on page 2)

TO ALL COOPERATORS: EMERGENCY OVERNIGHT DOMESTIC HOT WATER SHUTDOWN

As part of its preventive maintenance program, Riverbay’s Power Plant workers will be replacing aging valves on the main steam header within the Power Plant. This will require a total shutdown of the Power Plant for an extended period of time. However, residents will only be affected by a temporary loss of hot water.

In an effort to minimize the inconvenience to cooperators, work will be performed overnight during the early morning hours. Activities will begin on: TUESDAY NIGHT, OCTOBER 1, at 11:00 p.m.

As soon as the work is completed, the hot water will be restored. However, it may take some time for the system to build up to the proper temperature, so we anticipate hot water will be restored by WEDNESDAY MORNING, Oct. 2, around 9:00 a.m. COLD WATER WILL REMAIN AVAILABLE FOR YOUR USE.

We apologize for the inconvenience and appreciate your patience and understanding in this matter.

—Riverbay Corporation


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