Delsenia Glover, Ellen Davidson and State Senator Brad Hoylman answered questions about the rent laws. (Photos by Maria Rocha-Buschel)
By Maria Rocha-Buschel
More than 200 tenants attended a housing forum hosted by State Senator Liz Krueger’s office on September 10 to learn more about the impacts of the rent laws that were passed in June, addressing the repeal of vacancy decontrol, preferential rents and new rules for major capital improvements.
The forum, held at CUNY’s Graduate Center on Fifth Avenue, was also attended by State Senator Brad Hoylman, State Senator Brian Kavanagh, the former Assemblymember for District 74 and currently the Chairman of Committee on Housing, Construction and Community Development for the Senate, housing advocate Delsenia Glover of Tenants and Neighbors, NYS Homes and Community Renewal (HCR) Commissioner RuthAnne Visnauskas and Legal Aid attorney Ellen Davidson.
The local elected officials, experts and advocates at the forum discussed some of the major takeaways from the new rent laws that were passed, specifically regarding how they would affect rent-regulated tenants, and answered questions about housing-related issues.
Visnauskas said that the strengthened rent laws are helping to preserve affordable housing throughout the state by removing loopholes that landlords could exploit to increase rents and push apartments out of rent stabilization.
This week, some residents of Stuyvesant Town received notices that the Division of Housing and Community Renewal had approved the owner’s request for hot water heater major capital improvement rent increase.
One resident shared the MCI notice on the Tenants Association’s Facebook page, which stated the increase to tenants’ rent would be $1.86 per room per month. However, MCI charges can vary slightly from building to building and this one is for the whole complex.
The ST-PCV Tenants Association had opposed this MCI, but the DHCR rejected its arguments that it would cause a financial hardship to tenants and that it was unfair because the property’s six commercial garages would also be benefitting from the upgrade. In its notice to tenants, the DHCR wrote that the garages are getting their own separate hot water systems, so they aren’t benefitting from the hot water heater (exchanger) system.
Repairs on Stuyvesant Town building facades began last Monday and will continue through October 2017. Management announced the work in a newsletter sent to residents earlier this month, noting that the work is being done to comply with Local Law 11, a citywide program through the Department of Buildings that requires owners to inspect and maintain building facades.
StuyTown Property Services community affairs manager Marynia Kruk said that the amount and scope of the work are building-specific based on what repairs are necessary, but most of the work may result in noise and will require scaffolds that will be dropped from the roof of the building.
Harvey Epstein, a tenant member of the Rent Guidelines Board, pictured at last year’s preliminary vote (Photo by Maria Rocha-Buschel)
By Maria Rocha-Buschel
Rent-stabilized buildings in the Stuyvesant Town and Gramercy area had the greatest increases in rent in Manhattan from 2014 to 2015, a study released by the Rent Guidelines Board found.
According to the data, announced in the 2017 Income and Expense Study discussed at the RGB’s first public meeting of the year last Thursday, rent went up by 7.6 percent in Community District 6, which includes Stuyvesant Town, Peter Cooper Village, Gramercy Park and Murray Hill.
Rent increased in every community district in the city in that time frame, with only three Brooklyn neighborhoods with higher increases than district 6.
Although rent increases are governed by the guidelines set out by the RGB, variations occur because of vacancy allowances, the termination of preferential rents, individual apartment improvements and building-wide improvements (major capital improvements).
The study, which examines Real Property Income and Expense (RPIE) statements from rent stabilized buildings filed with the Department of Finance, also found that net operating income (NOI) for owners grew by 10.8 percent, marking the 11th consecutive year that the NOI has increased. The study does not break down the NOI increases by community district, but the increase in core Manhattan, which is defined as south of West 110th Street and south of East 96th Street, was 7.8 percent.
The Stuyvesant Town-Peter Cooper Village Tenants Association is seeking neighbors’ help in an effort to challenge the recently announced video intercom MCI.
The major capital improvement rent increase, if approved, will impact the following Peter Cooper Village buildings: 420 and 440 East 23rd Street, 350, 360, 360 and 390 First Avenue, 2 and 3 Peter Cooper Road and 431 and 441 East 20th Street.
ST-PCV Tenants Association President Susan Steinberg (Photo by Sabina Mollot)
Susan Steinberg, president of the Tenants Association, said this particular MCI, one of four on the horizon, is expected to cost tenants $2.13-$2.50 per room per month.
At a meeting last month, Steinberg said the four MCIs would be challenged for different reasons, including issues with paperwork.
ST-PCV Tenants Association President Susan Steinberg, pictured at a Rent Guidelines Board hearing in June, describes the ways stabilized rents are legally padded until they’re unaffordable. (Photo by Sabina Mollot)
By Sabina Mollot
The state housing agency has approved major capital improvement rent increases (MCIs) for four buildings in Peter Cooper Village that underwent exterior restoration work — and more are expected to be approved.
The Tenants Association warned neighbors about the approvals of the MCIs, previously referred to by TA President Susan Steinberg as CWCapital’s “goodbye present,” in an email blast on Sunday.
As of July, the association had heard about the MCIs being filed for 19 different buildings in Peter Cooper and Stuyvesant Town. The cost varies at different addresses, from about $1.15 to $3 per room per month.
Reached on Monday, Steinberg said the association, which did challenge the MCIs, will continue to do so.
“There are a variety of reasons,” said Steinberg. “In a couple of instances, it was past the two-year window when it should have been submitted. There was some question whether Sandy insurance money had been used for some of the work. So we are not letting it go.”
Some of the MCIs were requested as far back as August of 2014.
Recently, a Stuyvesant Town resident, who often has a friend from out of town stay with him, learned that guest key-card status for the woman would be rejected — that is, unless she agreed to register with the owner as an occupant. However, the resident, who didn’t want his name published, told Town & Village she doesn’t live in the apartment, and therefore has so far refused to register as an occupant. Along with friendship, she also fills an occasional role of caretaker for some of his health issues, he said. Management, meanwhile, said the tenant, hasn’t budged and has refused to issue a guest card.
A spokesperson for CWCapital did not respond to a comment on this issue, but Council Member Dan Garodnick told Town & Village that he has heard from “a handful” of residents who said CW has become more selective about issuing guest cards lately. Garodnick said this practice seems to run contrary to the key-card policy.
“The rule is that there is no limit to the number of key-cards a tenant can get,” said Garodnick. “Guests should be provided with permanent key-cards and guests include friends who come to visit on a regular basis or as needed to care for a tenant or their apartment. That’s the rule.”
After a tenant acquires four guest cards, additional ones come with a fee of eight dollars, but, stressed Garodnick, “you can get an unlimited number.”
He believes management’s reason for the recent denials has to do with weeding out illegal, short-term rental activity.
Rent Guidelines Board tenant members Sheila Garcia and Harvey Epstein (at podium) with Council Member Corey Johnson (Photo by Maria Rocha-Buschel)
By Maria Rocha-Buschel
The City Council member representing Greenwich Village, Corey Johnson, has called on the mayor to reform the Rent Guidelines Board and eliminate the price index from the calculations used to determine the annual rent adjustments for stabilized tenants. Elected officials and tenant advocates joined Johnson at City Hall last Thursday to support his legislation on the matter because they say that the Price Index of Operating Costs (PIOC) does not accurately reflect the costs and revenues accrued by landlords, causing unfair increases for tenants.
The price index doesn’t measure what owners actually spend running buildings but instead estimates their costs based on changes in prices for goods and services, like utilities, without taking changes into account, like the weather. The price index also doesn’t measure any of the income received on the properties.
“The PIOC overestimates landlords’ expenses by as much as one third and doesn’t measure income,” Johnson said. “Tenants deserve a fair shot. The 2.5 million rent-stabilized tenants in New York deserve a metric that accounts for actual income and expenses.”
Mike McKee of TenantsPAC said that the price index study is “an enormous amount of work” and that there is nothing in the law that requires the board to use the data from the study in their decision.
Your story of January 8, 2014, entitled “New business aims to find sublets for students in Stuyvesant Town,” may lead to a misimpression, namely, that making arrangements for a sublet through Lucas Chu may be the complete, legal process.
Tenants should be aware that ST/PCV sublets are governed by rent stabilization regulations. DHCR Fact Sheet #7 lays out the obligations of the prime tenant which include, among other things, informing the owner of an intent to sublet 30 days in advance by certified, return receipt letter and spelling out the terms of the sublease.
Unsuspecting tenants may not realize their obligations or even that they may be in violation of rent regulation laws and unknowingly circumventing these requirements. The result could be eviction should the landlord choose to pursue it.
Ultimately, the approval of a sublet rests with landlord. As CWCapital’s spokesperson pointed out, Mr. Chu is marketing a legal service. This “legal service” is essentially a matchmaking service, but will CWCapital/Compass Rock vet the subletters? Is CW/CR now relaxing subletting requirements?
It used to be – and may still be – very difficult, if not impossible, for long-term tenants to get approval for a sublet. Are students in a privileged position?
Frequent short-term subletting increases the transient nature and instability of our community. It depletes our quality of life. It undermines our security. Characterizing Mr. Chu and the landlord’s apparent comfort with his services as outrageous is understating the case.
Susan Steinberg, Chair, Stuyvesant Town-Peter Cooper Village Tenants Association
Tenants pack the auditorium of the Simon Baruch Middle School for the Tenants Association meeting on Saturday. (Photo by Maria Rocha-Buchel)
By Maria Rocha-Buschel
While the future of Stuyvesant Town/Peter Cooper Village remains as uncertain as ever, at a meeting held on Saturday, tenants got walked through what some of the legalese concerning the foreclosure that had been planned for earlier this year and then canceled means for the community.
This was one of the topics covered at the meeting, which was held by the ST-PCV Tenants Association and attended by around 500 residents who packed the auditorium of the Simon Baruch Middle School.
Council Member Dan Garodnick discussed how when the foreclosure was canceled, the deed of property was transferred to the senior level of the trust. He said that this means the bondholders now own the property but CWCapital continues to represent their interests. He noted that the agreement put in place means that CWCapital could represent the bondholders for a term of three years, which is renewable for a second three-year term. He added that they originally acquired the property for $3 billion and are open to the possibility of conversion but only if they get back the $4.7 billion they are owed.
When a resident asked later in the meeting why the amount had increased so much, Garodnick noted that it was due to interest and fees.
“A whole list of junk,” he said. “‘Special servicing fees,’ that’s what they claim to be owed.”
Garodnick also addressed a question from a resident about CWCapital’s parent company, Fortress. While Fannie Mae and Freddie Mac have pledged to not approve of any deal that reduced affordable housing, Garodnick noted that it was possible to cut Fannie and Freddie out of the process if CWCapital hands the property over to Fortress, although he noted that this scenario is unlikely.
State Senator Brad Hoylman speaks to the crowd, while Assembly Member Brian Kavanagh and Council Member Dan Garodnick listen. (Photo by Maria Rocha-Buschel)
Along with Garodnick, other local elected officials were in attendance to address the TA’s conversion effort, the state of affordable housing and other topics.
Congresswoman Carolyn Maloney and Assemblymember Brian Kavanagh were also at the meeting and were joined later in the afternoon by City Comptroller Scott Stringer, State Senator Brad Hoylman and Manhattan Borough President Gale Brewer.
Stringer assured the crowd his office is committed to preserving affordable housing, especially given the recent Democratic losses in Albany.
“Our office is ready to partner with whatever plan this Tenants Association puts forward,” he said. “Even the most important and ambitious housing plan can’t make up the loss if Stuyvesant Towns and Peter Cooper Villages of the world are lost.”
Stringer added that it was his son’s third birthday, eliciting cheers from the crowd. But when State Senator Brad Hoylman, who spoke next, made sure everyone was aware that it was also Governor Cuomo’s birthday, the room was silent.
“It’s just a fact. We’re gonna need him,” Hoylman said apologetically among laughs from the crowd after the negative reaction.
Holyman then discussed the Democrats’ current fate in Albany.
“Unfortunately it’s not very different from what you see out the window: cold, dreary and windy,” he remarked.
Hoylman blamed poor voter turnout in the recent midterm elections for Democratic losses in the state. With the rent laws up for renewal next year, he said that the Republicans’ new operational majority will make protecting tenants more difficult.
“Some Republicans live closer to Cleveland than to Manhattan,” he said. “But physically making yourself known makes a difference. We have numbers on our side and a lot of smart people on our side.”
He added that legislation protecting tenants did get passed in 2011 when Republicans also had a majority so he encouraged residents to remain optimistic.
TA attorney Tim Collins also spoke to address specific questions and concerns about rent and MCIs.
Collins discussed rent and MCI concerns at the beginning of the meeting. Residents of 431 East 20th Street in Peter Cooper Village said that they had received MCIs for façade work at the end of November and residents from 601 East 20th Street and 2 Peter Cooper Road also received docket letters from DHCR about MCIs for façade work.
“How is it restoration and improvement?” one tenant asked, prompting laughter from neighbors. Collins agreed with the assessment, noting, “It’s not an improvement, it’s a repair.”
A notice from the TA that was released on Monday said that more buildings will likely be hit with the MCI for façade work. The statement encouraged residents to keep the docket letters they receive about MCIs from DHCR and send copies to the TA so it can keep track of which buildings have received them and help tenants fight the rent increases.
Another issue discussed was apartment inspections with tenants skeptical that management only needs to give a day’s notice to come in for inspections. However, Collins confirmed that this is correct. If management needs to get into an apartment to do any work or make repairs, the tenants need to be informed a week in advance but if they need to get in just for inspections, they only need to inform tenants 24 hours before.
Collins also addressed late fees that some tenants have been charged with, including tenants who have been charged but said they don’t have a provision for late fees in their lease.
“If you have been charged a late fee, talk to management because there is no legal recourse for the fee,” he said, adding that tenants with such a provision who have been charged more than five percent should be getting a refund. He noted that there is also some leniency for tenants who are late on their rent the first time and he recommended talking to management about the fee.
TA chair Susan Steinberg noted that the TA will be meeting with management on December 16 and would be able to address questions from residents raised at the meeting, including the lack of action from public safety concerning speeding electronic bikes, disruptive NYU students and residents who are in non-compliance with the floor covering rules.
An application has been filed for a new major capital improvement (MCI), this time for work on building facades.
Susan Steinberg, chair of the Stuyvesant Town-Peter Cooper Village Tenants Association, said on Wednesday she just learned about the pending MCI, with residents at two buildings getting notices. At 541 East 20th Street, the work had been completed in in August, 2012. The other building is 17 Stuyvesant Oval.
As with any MCI, recipients of the notices have 30 days to challenge the MCIs or request an extension, the latter of which Steinberg said the TA would like to do. The work on the facades was extensive as opposed to the brick pointing that takes place around the complex from time to time. While Steinberg acknowledged some buildings’ facades were in serious need of repair, she said the TA still wants to review the details of the project, as it does with any MCI.
At 541, the work, which management estimated cost over $100,000 would cost tenants $3 per room per month.
“Which,” said Steinberg, “doesn’t seem like a lot, but it’s on top of other MCIs.”
At this time, the association’s attorney is still reviewing two MCIs that the TA had unsuccessfully attempted to fight through the Division of Housing and Community Renewal. The DHCR had shot down arguments the TA had made against roof and elevator MCIs for some buildings in Stuyvesant Town.
Assemblyman Keith Wright with tenants at Riverton (Photo courtesy of Assemblyman Wright)
By Sabina Mollot
It turns out tenants in Stuyvesant Town/Peter Cooper Village aren’t the only ones attempting to fight MCIs.
At Riverton, an apartment complex in Harlem, the Tenants Association has sued CWCapital, which took over the property after it went into foreclosure, over what tenants claims are inflated major capital improvement (MCI) charges.
The MCIs were for work on roofs and elevators at the property as well as the redesigning of a park when Riverton was owned by Stellar Management. The MCIs vary in cost per apartment, and according to Riverton Tenants Association President Randreta Ward-Evans, it’s mostly seniors who seem to be overpaying.
“I have a senior who’s 97 years old who’s paying $200 more than she should be paying.” she said.
She added that tenants learned from attorneys, during a legal clinic held in March by Assemblyman Keith Wright, that many of them were overpaying.
“We knew we had a problem. We just didn’t know how massive it was,” she said.
In the lawsuit, which aims to collect $10 million for tenants, the Riverton Tenants Association argues that MCIs that have been charged are “inflated, overstated, excessive and fabricated.” It accuses CW of refusing to roll back the rent, despite requests by the RTA and continuing “to collect unlawful rent increases including, but not limited to, increases based upon purported Major Capital Improvements (“MCI”) since in or about 2010 or such other earlier date.”
The suit argues CW isn’t entitled to the MCIs because the company waited too long to collect them. “Pursuant to DHCR policy and precedent the Defendants waived all MCI rent increases if they did not collect same within 120 days of the applicable MCI order or in the next renewal lease after the MCI order. Defendants did neither.”
CWCapital subsidiary CompassRock Senior Vice President David Sorise and Karl Griggs, Riverton’s property manager, are also named in the suit.
While not mentioned in the lawsuit, Ward-Evans said numerous tenants have also complained of paying rent only to have their checks not be deposited. Then, “after three months they get eviction notices.” Though she isn’t sure how many tenants this has happened to, “It’s a huge group. I only know about the people who come to me, but I’m sure there are a lot of people that don’t come to me,” said Ward-Evans.
About 30 percent of the tenants are market rate while the rest are rent stabilized. A stabilized one-bedroom unit will typically rent for $800-$1,000 a month, while the market rate, renovated one-bedrooms are around $1,800. Many of the stabilized renters are seniors, who in some cases were there since Riverton opened as an alternative property to non-white would-be tenants of Stuyvesant Town, which was originally segregated.
Meanwhile, Ward-Evans said tenants at Riverton have enjoyed an “excellent” working relationship with CWCapital for the past four years. Tenant leaders meet with reps for the owner regularly on tenant concerns. “They respond immediately and I really appreciate it,” she added. However, she said tenants felt a lawsuit was the only option to fight the MCIs since an attempt to do so through the Division of Housing and Community Renewal (DHCR), went nowhere.
“I think more tenants will probably take the same route of suing the owner instead of going to the DHCR because it seems that it’s always in the realtor’s favor,” said Ward-Evans. “I think this is going to be the first of many. It doesn’t have to be just Harlem. Going to the DHCR? Done it. Did it. The law has to be dealt with and changed.”
Meanwhile, Wright, who also lives in Riverton, summed up the situation as “a shame, really. “What you have here is yet another chapter in the story of our city’s affordable housing crisis. Honest, hard-working individuals who are robbed of the opportunity to remain in the place they have called home, some such as myself, have been here for decades. These overcharges are egregious and unacceptable but we are committed to seeing this fight through until the end.”
According to a report in the New York Times, Andrew MacArthur, a managing director at CWCapital, seemed surprised by the litigation.
In an official statement to T&V from spokesperson Brian Moriarty, CWCapital indicated the same thing. “We received this lawsuit without prior notice or discussion and are now in the process of trying to understand the specific complaint,” CW said.
“It appears this relates to actions ‘in or about 2010 or such other earlier date’ during which time the property was either owned by a prior owner or managed by a prior management company. Since CWCapital took control of the property we have enjoyed a positive and productive relationship with the TA and have worked hard to re-build the trust between the property owner and our residents that was lost with the previous owners. We have invested heavily in Riverton’s physical condition and have re-vamped maintenance and janitorial procedures to better serve our residents. We will investigate the claims immediately and fully.”
Council Member Dan Garodnick said that he was also looking at the suit to see if there were any parallels between the Riverton and Stuyvesant Town MCIs. The Stuyvesant Town-Peter Cooper Village Tenants Association told T&V earlier this month that it was conferring with counsel over the rejection by the DHCR of arguments made by the TA against two MCIs. One was for roof work, the other for elevators.
The Division of Housing and Community Renewal has rejected arguments made by the ST-PCV Tenants Associations against two MCIs for projects done years ago and now, retroactive portions of the MCIs are subject to collection. One was for new elevators in 2006, and the other was for work on building roofs in 2005.
The MCIs (major capital improvements) were for Stuy Town only and not all buildings got them. However, both were challenged through a petition for administrative review (PAR), which Susan Steinberg, chair of the Stuyvesant Town-Peter Cooper Village Tenants Association, said was shot down this week.
Steinberg said she got the notice from the state housing agency on Tuesday, which was dated August 29, denying tenants’ arguments that the old elevators hadn’t outlived their useful lives and other challenges that were related to the projects. “They kept repeating this phrase: ‘They do not see our claims as basis for revoking the administrator’s order,’” Steinberg said. The TA has 60 days from the date of the notice to challenge the order through an article 78. “We’re conferring with our attorney,” Steinberg said.
The elevator MCI costs tenants in 70 buildings between $9-13 per room in their apartments. The roof project took place at 31 buildings with MCIs of $7-8.50 per apartment. MCIs, which are paid in perpetuity, also come with a retroactive portion dated to the time of the work. Tenants who had filed PARs were exempt from having to pay the retroactive portion while the MCI was pending appeal.
Reps for the DHCR once told the Tenants Association leaders that one fifth of the MCI applications it sees come from ST/PCV. “I think Stuyvesant Town/Peter Cooper takes up one third of their filing cabinets,” said Steinberg. The TA has in the past blasted the DHCR for acting as a “rubber stamp” for the owner. The August 29 notice comes months after a settlement between CWCapital and the Tenants Association to eliminate or reduce five other MCIs that were approved last fall.
Reps for CWCapital and Homes and Community Renewal, the umbrella agency that includes DHCR, didn’t respond to a request for comment by Town & Village’s deadline.
Correction: The print version of this article incorrectly states that cost of the roof MCI as being per room, rather than per apartment.
Those interviewed also question necessity of improvements made
By Sabina Mollot
Following the announcement last Thursday that the ST-PCV Tenants Association had reached an agreement with CWCapital to reduce the cost of MCIs for some tenants and eliminate them completely for others, tenants have been able to talk about little else. When questioned about their thoughts by Town & Village, a few residents who got the 5 percent reduction of the monthly portion of the MCIs naturally said they wished they’d gotten more shaved off their rent bills. However, mainly what they expressed was their disgust at the system that allows owners to pass the costs of building upgrades onto renters.
“It seems very unfair,” said Katie Bernard, who’s lived in Stuy Town for 10 years. She was especially annoyed that MCIs were charged for the video intercom system, which she said was unnecessary. “I can’t tell you how little it works. I miss the old system. I don’t need a screen.”
Another resident also said she didn’t understand the need for the security upgrades that qualified for MCIs.
“It didn’t make my life any safer,” said Carol Szamtowicz. “These capital improvements, I’m sorry I have to pay for them.” As for the settlement, she thought it was good that the Tenants Association fought the increases, “but,” she added, “five percent isn’t very much.”
Meanwhile, another resident, Bob Novick, said he was glad to hear the retroactive portion of the increases had been eliminated. “They did get the retroactive off and that is significant,” said Novick. However, he too said he didn’t get why the intercom system needed replacing on the tenants’ dime. “We got new intercoms 8-10 years ago,” he recalled, adding that he thought the new ones were “essentially the same. The new ones are more sophisticated, but I’m wondering what the purpose was other than to increase the rents.”
And Bill Oddo, a longtime resident, said he wasn’t impressed with the settlement at all. “I don’t see where the success is when
Tenants Association President John Marsh, pictured last fall (Photo by Sabina Mollot)
we’re only getting 5 percent off on all those items,” he said. “I have to pay $15 a month for video cameras and they don’t do anything. The security cameras don’t make us safe. They only help after the fact. You can’t possibly monitor 1,200 cameras 24/7.” Besides, he added, “For 65 years, this has been one of the safest communities in the city. It’s safer than St. Patrick’s Cathedral.” Oddo added that together he’ll be paying over $50 a month in MCIs, for improvements he thought his existing base rent should cover. “I can’t figure out why tenants have to pay for them,” he said. “I know (the Tenants Association) tried hard, but they’re losing this battle. People are leaving. Older people are dying and they’re just turning these apartments over. I love young people, but it’s a dormitory.”
In contrast, a “Roberts” tenant interviewed said of course he was glad he wouldn’t have to pay the increases following the settlement. “Less is more,” quipped Henry, who asked that his last name not be published. “Obviously if you’re paying less for your apartment, you’re better off.” But Henry added he wouldn’t be celebrating just yet since he’s been dealing with a lack of heat in his apartment. “I’m in the living room with two comforters and sweatpants,” he said.
On the TA’s Facebook page this week, the TA received heaping praise as well as a few complaints about the settlement.
In response, TA President John Marsh said that, though not part of the recent round of negotiations, tenants’ increases had already been reduced by 23 percent as a result of TA action. This was after the TA presented the DHCR with “detailed explanations of deficiencies” on a building-by-building basis for each MCI application, Marsh explained to T&V. This was when the work was done in 2009. After the agency reviewed the TA’s concerns as well as Tishman’s responses to them, “the total of all DHCR Orders were 23 percent less than the total of MCI rent increase applications filed by Tishman Speyer.”
Retroactive charges eliminated for all tenants who moved in before October, 2013, monthly charges eliminated for ‘Roberts’ and SCRIE/DRIE tenants and reduced by 5 percent for others
ST-PCV Tenants Association Chair Susan Steinberg, pictured at a rally in May against mid-lease rent increases (Photo by Sabina Mollot)
By Sabina Mollot
After months of negotiations, the Stuyvesant Town–Peter Cooper Village Tenants Association and CWCapital settled the dispute over the five major capital improvements (MCIs) that residents were socked with at once last fall. On Thursday morning, the state housing agency, the Division of Housing and Community Renewal, issued an order confirming the agreement, the Tenants Association announced.
The news, announced on the TA’s website, said that the settlement will “significantly reduce the impact of the recently approved MCIs for tenants.”
The settlement eliminates all of the retroactive charges for current tenants and reduces the monthly increases by 5 percent. “Roberts” tenants won’t be charged any monthly MCI, nor will SCRIE/DRIE tenants.
“The Tenants Association appreciates having been able to negotiate these issues amicably with CWCapital,” said TA Chair Susan Steinberg. “Residents have been saved a great deal of money in retroactive costs, which have been completely eliminated, and some relief in the MCI rent additions. Notably, the negotiations saved months of time and lots of money in legal filings and responses. The best news is that the outcome is at least as favorable to tenants as any we could have won the harder way.”
Andrew MacArthur, managing director of CWCapital Asset Management, also cheered the settlement.
“We are very pleased to have worked with the Tenants Association to reach a settlement,” said MacArthur. “We have worked closely with the TA to reach an agreement that mitigates the impact of the increases for our residents and brings finality to this dispute.”
The five MCI orders cover video intercoms, a security system, a video command center, water tanks/valves and repaving of the walkways. Two of the orders impact residents in Peter Cooper Village and three of them impact Stuyvesant Town residents.
The MCIs were requested by previous owner Tishman Speyer in 2009. After they were all approved by the DHCR in the fall,
Tenants pack a meeting on MCIs, held at the Simon Baruch Middle School auditorium last fall. (Photo by Sabina Mollot)
the TA said it would be challenging them. In response, CWCapital made an offer to reduce the MCIs’ retroactive portion for tenants who’d agree not to challenge them, but the TA cautioned residents not to sign on to the offer. Negotiations between the TA and CW began soon after that.
“Squeezing every penny out of residents through MCIs long ago became a common practice in Stuyvesant Town and Peter Cooper Village,” said Council Member Dan Garodnick. “The Tenants Association wisely took advantage of an opportunity to negotiate a deal with CWCapital that will save tens of millions of dollars for residents over the next ten years. This is a victory for tenants that will mitigate the damage of imperfect law that favors landlords, and I am grateful for the Tenants Association’s efforts.”
Meanwhile, the settlement could still be nullified through additional challenges by individual tenants through PARs (petitions for administrative review.)
“Such PAR could result in the agreement being nullified in the sole discretion of the owner,” the TA said. “Nullification would result in forced repayment of the retroactive charges and any waived portion of the permanent charges by all tenants who benefited from the agreement. The possibility of nullification by the owner due to an ill-advised PAR is a very serious concern to the Tenants Association.”
Exceptions to this would be if a tenant filed a PAR for something like an inaccurate room count in his or her apartment, since MCI charges vary based on the amount of rooms.
According to the TA, a few more details of the settlement are as follows:
● All current residents are included in this settlement except those who moved in after the orders were issued (approximately October, 2013).
● The settlement is retroactive to January 1, 2014.
● Credits noted below will begin to appear on the May rent bill.
● In May, a retroactive credit will be added to the rent bill. This credit will include the benefit amount for January, February, March and April.
● The retroactive and permanent increase amounts noted below are all clearly stated in the MCI orders that residents received in the mail. This number is different for all residents and depends on many factors including: building, unit size and move-in date.
● If a resident cannot find his/her order, that resident is advised to call DHCR at 1-800-ASK-DHCR (1-800-275-3427) to request a duplicate copy.
The Tenants Association will hold a general meeting to discuss the settlement on Saturday, May 10 at 1 p.m. at Simon Baruch M.S. 104 on East 20th Street between First and Second Avenues.