Vol. 59 No. 9
Saturday, March 2, 2024
HCR Orders Riverbay to Impose 8.1% Carrying Charge Increase President’s Report
Sonia Feliciano Dear fellow shareholders, Last Friday, New York State HCR (Division of Housing and Community Renewal) rejected Riverbay’s proposal for a carrying charge increase of 2.1% and instead ordered Riverbay to impose an increase of 8.1%. HCR’s Order was based on multiple factors. First is the fact that Riverbay’s Certified Financial Statements for 2022 and 2023 show Riverbay has been operating at a loss for those years. Those Financial Statements, based on actual Riverbay records, were prepared by an outside, independent Auditor, and were published in the December 16, 2023 issue of the Co-op City Times for all shareholders to see. Those operating losses were primarily attributable to expenses that Riverbay does not control, as is noted in paragraphs 4 & 5 of the Commissioner’s Order which is printed in this issue of the Co-op City Times. For example, sky rocketing insurance premiums, natural gas price increases, post-COVID inflation and our water bill. The losses were not the result of reckless spending, nor were they the result of too many employees since Riverbay’s work force has decreased. (Continued on page 2)
BSA Provides Update on 500 Baychester Ave. Appeal BY BRANDON ORTIZ
The New York Board of Standards and Appeals held a public hearing on Monday, February 26, 2024 and discussed an appeal filed by Baychester Retail LLC. While the BSA did not deliver any final decisions, the Board was not persuaded by new evidence submitted by the appellants in November of last year. To begin the discussion of the application, chair of the BSA, Shampa Chanda, laid out a recent timeline of events leading up to Monday’s public hearing, and also noted a January 2024 letter from the Department of City Planning (DCP) that discussed the new evidence submitted by the appellants. Chair Chanda expounded on the letter from DCP, which she said “decoded the alteration map and how the New England Thruway’s boundaries were established in the 1947 alt (alteration) map as affirmed by the Board of Estimates approval in 1948.” (Continued on page 9)
Governor Signs New Congressional Map BY BRANDON ORTIZ
Governor Kathy Hochul signed off on a final set of congressional maps for New York on Wednesday, February 28, 2024. The Independent Redistricting Commission (IRC) was in charge of finalizing the maps after the New York Court of Appeals ruled in December of 2023 that the Commission must develop a final set of maps before February 28 of this year. Under the final version of the New York City congressional map, Co-op City will once again be included in Congressional District 16, which is represented by Jamaal Bowman. Following a 2022 court-ordered redrawing of the district by a special master, Co-op City was removed from Bowman’s 16th CD and included in Congressional District 14, represented by Alexandra Ocasio-Cortez. Bowman shared his enthusiasm and excitement to once again be representing Co-op City in a post on his Instagram account. “I’m excited to have our neighbors in Co-op City and CASA Middle School back in NY-16. For over a decade, I’ve worked with the beautiful people of Co-op City, Edenwald and Baychester as a principal, as a community leader, and as a Congressman. We’ve done so much to invest in these communities, and (Continued on page 11)
$1.25
DHCR Notice ORDER OF THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL HCLP-81 RlVERBAY 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 Housing 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 April 6, 2023, 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 January 29, 2024. 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 virtual meeting was scheduled for January 30, 2024, at which time 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, (Continued on page 3)
HCR Rejects Proposed 2.1% Limited Increase; Imposes 8.1% Carrying Charge Increase Effective April 1, 2024 BY ROZAAN BOONE
The NYS Division of Housing and Community Renewal (HCR) approved an 8.1% carrying charge increase for Co-op City shareholders effective April 1, 2024 citing increased cost of maintenance and operating expenses of the development due to circumstances beyond the control of Riverbay Corporation. The HCR Carrying Charge Increase Order, which is dated February 22, 2024, was received by Riverbay Corporation at approximately 7:30 a.m. on Friday morning, February 23, 2024. The Order is printed on page 1 of this issue. Upon receipt of the Order, Riverbay General Counsel Jeffrey Buss immediately followed up on an outstanding request to Co-op City’s HCR representative, George Simon, for a conference call last Friday. The conference call, scheduled days before HCR’s early morning issuance of the Order, was planned to discuss the agency’s analysis of Riverbay’s proposed 2.1% carrying charge increase and HCR’s contention that projected future income and expenses supported an 8.1% increase. The meeting, held among HCR, Mr. Buss, Riverbay Board President Sonia Feliciano and Riverbay Board Director Daryl Johnson, also included a discussion of the Board’s concern that such a significant, one-time increase may be cost prohibitive for many shareholders, especially those on fixed incomes who do not qualify for the city’s Senior Citizens Rent Increase Exemption (SCRIE) or the Disability Rent Increase Exemption (DRIE). In the call, HCR claimed a substantial evidentiary basis for the increase, pointing to the fact that Riverbay’s certified financial statements for the previous two fiscal years showed a loss, and the fact that Riverbay lacked adequate cash to pay its water bill. HCR also claimed that its future projections, based on actual expenses for the previous (Continued on page 5)