Co-op City Times 03/01/1980

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Vol. 13 No. 12

44 pages

Saturday, March 1, 1980

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By Cha.des K. Parness I am still hopeful that we can reach a settlement before the Commissioner of Housing deems it appropriate to exercise his statutory authority to impose a unilateral rent increase. Now that DHCR has scheduled a public hearing for March 27, 1980, preliminary to the possible imposition of an unconscionable immediate 55 percent rent increase or $80.05 per room level, it seems appropriate to bring the community up to date on the status of our contínuíng negotiations 'With the State over the past four months. The advantages of a negotiated settlement are obvious. In the first place, it would mean less of an increase than

This report includes the summary of a new State offer made

this week. that which the Commissioner is likely to impose on his own. Secondly, any settlement that we would find acceptable would also provide the financing necessary to allow us to repair our construction defects. There could be no provision for construction defect financing if increased carrying· charges are imposed by the Commis-

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oti síoner. Finally, the settlement that we have been negotíatíngfor would provide a means of stabilizing rent increases for the next few years at least, another feature which could not be contained in a rent increase ordered by the Commissioner. Because of the delicacy and intracacíes of the various factors involved in the negotiations, it was impossible until now to carry them out in public. We felt that 'the Negotiating Team's capacity to deal with the State would be strengthened to the extent that it was the single voice speaking for the community - but the negotiators have always made it clear that whatever settlement might be reached would require approval of the Board of Directors, after submission .. to a public referendum of the cooperators. In addition, we have from to time reported key concepts and actions: 1) Legislative approval will be required to finance whatever agreement might be reached; 2) We have already gone so far beyond the November 1, 1979, date when the State expected our rents to be increased, that we will probably extend our current rent schedule without any increase by at least five and perhaps six months from No-

Section S Post Offleeopens

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vember 1 before any new increase express i.tself in an orderly reterencould take effect; and dum; C) that. we preferred a peaceful 3) the Commissioner has now ini- solution rather than an upsetting tiated the rent hearing proceedings to strike which would be costly for both allow him to raise rents without our sides; D) that we were looking for consent. Because we have made con- stability in order to know what ou:r siderable progress in our negotiations rents a:re going to be for as many to date, I must report that a real years to come as possible; E) that we possibility of a settlement seems im- could reach no settlement without a minent if we are able to achieve some solution to the problem of financing additional progress. construction defect repair: and D) Principles set that any rent increase must be within We have set forth certain principles the realm of what the people who live in our negotiations thus far. These in Co-op City can reasonably afford. include A) the concept that we would We also agreed that it would be accept no retroactive rent· increase; desirable to be in a financial position B) that the Board would not act until to run our business without the need to the community had the opportunity to (G:mtilrmed on page 2)

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Dear Mr. Parness: I have been disheartened by the inaccurate and misleading comments that have · appeared in the media regarding my commitment to a Mitchell-Lama bill and that have served to hinder the progress of legislation rather than to build a badly-needed consensus. Therefore, I am writing to clarify events of the past year and to reaffirm.my commitments. Although some residents of Co-op City believe the contrary, I want to say for the record that my administration's efforts to bring stability to Co-op City have . been steady and continuous. However, administrative

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actions alone cannot solve the problems at Co-op City. There is an important limit to administrative discretion. Administrative decisions cannot be made that cost the State money that has not been appropriated by the Legislature. The Housing Finance Agency (HFA) is not a division of the executive branch of State government. Rather, it is a public benefit corporation run by a Board of Directors I' appoint to carry out a fiduciary responsibility to those who have invested in the bonds that financed the

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Residents of Section 5 jammed into the new Post Office sub-station at !Einstein Center last Monday following ribbon cutting ceremonies at noon. •· Attending the opening were General Manager George Steiner, Brorax Postmaster frank Viola, Riverboy Manager of Commercial Ventures Renee Gaines, Assemblyman Elio, Engel, Senior Citizens Coordinating Cou11cilPresident Joseph Halpern and other organization officials. The new sub-station will dispense stamps, stamped envelopes and mail orders, and will accept first dass mail, parcels and regü;tered and certified items. The station is open 9-5 Monday througli-.=riday.

black-top areas. Special temporary permits will only be issued to vehicles essential to repair and service work in progress within Co-opCity, and then only for the actual time their equipment is required at the work site.

Riverbay General Manager George Steiner is cautioning all contractors, employeesand residents that Riverbay Corporation will not be · responsible for any behíeles towed from restricted black-top, London block or grassy areas in Co-op City. All charges· incurred· by illegally · parked vehicles will be the responsíbílíty of the violator and will be payable to the towing company. Ríverbay manageA new red, white and blue ment will not void any of these "Class-A" sticker will be issued charges. to those emergency and special "There is no reason .for any vehicles which . must use the

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(Continued on page 4)

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t Beginning Monday, March 3, Ríverbay will be enforcinga vigorous towingprogram against all vehicles found on Co-op Qty property. The "Class-A" stickers (shown below), originally issued for emergency·parking on black-top areas, are no longer valid.

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ay Illegal parking on Co-op City's grounds. There are eight large garages here to accommodate residents, visitors, and contractors," Steiner stated. -Rieb

Inside President's Report page 2 Letters to the Edito.r •••• page 6 Manage.r's Desk .••.••.••• pa.ge 8 Consumers Comer .•.••.• page 10 Focus ••••...••••.••...•..•• page 18 Metroviews ••••••••••.•••• pa.ge 19 Ed Park News •..••..•••.•. page 28 Sem.or Topics pa.ge 32 Bulletin &a.rd page 33 Happem.ngs .••.••••••.••.• page M This Week page M Religious News page 35 Fim.te:rS l page 38 Classifieds ~ pa.ge 41


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