city limits magazine, april 1976 issue

12
I TY LIMITS COMMUNITY HOUSING NEWS Association of Neighborhood April 1976 I I HoUsing Developers Inc . 2 9 " . st 22n d Street New York. N.Y. 100 10 21 267476 10 .... ____ " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " __ """"'" ..... Vol. I No.3 W ~ S T HARLEM GROUP ASSISTANCE A Member Profile by Kathy Sanden That there is a critical need for housing preservation and rehabilitation in West Harlem is immediately evident as one walks the streets north of 125th. The need is evident no t only because there is visible and serious deterioration but also because one ca nnot help but be struck by th e architecture and building design, that by today's standards is both structurally and artistically irreplaceable. Most importantly, perhaps, West Harlem is the Black Capital of the nation and as an area rich in the culture and history of Black America, should be preserved and restored. As in many other parts of the City, a number of grass-roots organizations are developing programs to address the housing problems of the area. One such nqn-profit community-based organization is Harlem Group As- sistance, Inc., which concentrates its housing improvement and preservation activities in the · area between West 125th and West 155th Streets from Eighth Avenue to Riverside Drive, St. N · icholas Avenue and Edgecombe Avenu«, Founded in 1970 by a group of Columbia University law students, some of whom were residents of West Harlem, WHGA originally attempted to provide professional assist ance to neighborhood residents. During WHGA's formative months it was determined that housing was, by far, th e most common and critical need of th e neighborhodd. WHGA immediately began to explore ways in which tenants could be assisted in obtaining the housing services they needed and had been paying for. Since that time, WHGA has continuously expanded its scope of work. The staff, once pnmarily Columbia University slUdent volunteers, is now made · up almost entirely by West Harlem residents. Mrs. Virginia Thomas is the Director of WHGA, and coordinates the organization's ac tivities fr om a lar ge building on West 126th Stree t, which is shared by a number of other social service agencies. Mrs. Thomas first heard of WHGA from a fellow-tenant · · who had read an article describing WHGA in the Amsterdam ."ews. Her building, abandoned by the owner, was without heat and hot water. WHGA tenant . organizer herself. Along the way, she also acquired management skills, which . Ied to her appointment as I)irector in 1974. (WHGA Staff) Robert Harmon, Virginia Thomas, Unda Sanders, Glenda Wright, WHGA concentrates its efforts on the management of five buildings, which contain 79 apartments, now in Receiver ship and part . of the Community Management Program, administered by HDA's Office of Evaluation and Compli ance. WHGA finances its operations through Community Management fees and small grants. At present, Mrs. Thomas is ably assisted by an energetic and committed staff. Serving as administrative assistants to th e Director are part-time college students, Tom Federer, Albert Smith III and Donay Queenan. Unda Sanders and Glenda Wright work long hours as Bookkeeper and Secretary, respectively. Bob Harmon, a graduate of Columbia University's Graduate School of Architecture and Planning, supervises a staff of handymen and is responsible for negotiations with th e City and the tenants on repairs and maintenance. Having experience manag ing both 7 A and Receivership buildings, Mr. Harmon feels that although the Community Manage ment Program is somewhat restrictive, it has been compara tively successful and he looks forward to its expansion. - 7 9

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Page 1: City Limits Magazine, April 1976 Issue

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ITY LIMITS

Association of Neighborhood April 1976I HoUsing Developers Inc .29" . st 22nd Street New York. N.Y. 10010 2126747610

.... ____ . a " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " " __" " " " ' " . .

Vol. I No.3

W ~ S T HARLEM GROUP ASSISTANCE

A Member Profile

by Kathy Sanden

That there is a critical need for housing preservation and

rehabilitation in West Harlem is immediately evident as one

walks the streets north of 125th. The need is evident not

only because there is visible and serious deterioration but

also because one cannot help but be struck by the

architecture and building design, that by today's standards

is both structurally and artistically irreplaceable. Most

importantly, perhaps, West Harlem is the Black Capital of

the nation and as an area rich in the culture and history of

Black America, should be preserved and restored.

As in many other parts of the City, a number ofgrass-roots organizations are developing programs to address

the housing problems of the area. One such nqn-profit

community-based organization is West Harlem Group As-sistance, Inc., which concentrates its housing improvement

and preservation activities in the· area between West 125th

and West 155th Streets from Eighth Avenue to Riverside

Drive, St. N·icholas Avenue and Edgecombe Avenu«,

Founded in 1970 by a group of Columbia University law

students, some of whom were residents of West Harlem,

WHGA originally attempted to provide professional assist

ance to neighborhood residents. During WHGA's formative

months it was determined that housing was, by far, the

most common and critical need of the neighborhodd.

WHGA immediately began to explore ways in which

tenants could be assisted in obtaining the housing services

they needed and had been paying for. Since that time,WHGA has continuously expanded its scope of work.

The staff, once pnmarily Columbia University slUdent

volunteers, is now made·up almost entirely by West Harlem

residents. Mrs. Virginia Thomas is the Director of WHGA,

and coordinates the organization's activities from a large

building on West 126th Street, which is shared by a number

of other social service agencies. Mrs. Thomas first heard of

WHGA from a fellow-tenant ··who had read an article

describing WHGA in the Amsterdam ."ews. Her building,

abandoned by the owner, was without heat and hot water.

She sought help from WHGA and soon became a volunteer

tenant .organizer herself. Along the way, she also acquired

management skills, which .Ied to her appointment as

I)irector in 1974.

(WHGA Staff) Robert Harmon, Virginia Thomas, UnSanders, Glenda Wright,

WHGA concentrates its efforts on the management of fi

buildings, which contain 79 apartments, now in Receivship and part .of the Community Management Program

administered by HDA's Office of Evaluation and Comp

ance. WHGA finances its operations through CommuniManagement fees and small grants. At present, Mrs. Thom

is ably assisted by an energetic and committed staff. Servinas administrative assistants to the Director are part-tim

college students, Tom Federer, Albert Smith III and Don

Queenan. Unda Sanders and Glenda Wright work lon

hours as Bookkeeper and Secretary, respectively. Bo

Harmon, a graduate of Columbia University's Gradua

School of Architecture and Planning, supervises a staff handymen and is responsible for negotiations with the Ci

and the tenants on repairs and maintenance. Havinexperience managing both 7 A and Receivership building

Mr. Harmon feels that although the Community Manag

ment Program is somewhat restrictive, it has been compar

tively successful and he looks forward to its expansion.

-7 9

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2

OCEANHI LL-BROWNSVI LLE TENANTS ASSOCIATION

-by Members of OHBT A

(Some Basic Principles and Programs of the Organization)

(A) BASIC PRINCIPLES

(I) OHB Tenants Association exists to SERVE THE

PEOPLE - salaries of employees, good relations with the

city and private bureaucratic agencies, popularity with local

politicians and poverty programs are all secondary to the

service of the people.

(2) We believe that a local agency serving the people

should not try to isolate the problems of the people. We

begin with a family's housing problem, but then help them

to solve their other social problems of 551, welfare,

education, employment, health care, etc. We try not to

refer people to other agencies; we attempt to deal with the

overall situation of the family.

(3) We are opposed to the private ownership of prop

erty. We believe that the very means of production should

be pu t into the hands of the people. In the area of housing,

we are opposed to landlord ownership and we believe

strongly in cooperative tenant ownership.

(4) We oppose racism in any form_ We are equally

opposed to all forms of white racism, black racism and

Spanish-speaking racism. We will work with anyone who

serves the people.

(5) We believe that workers and volunteers of the OHB

Tenants Association should not only initiate and direct .

housing programs, but should also share in the physical

labor that is involved in the program.

(B) PRESENT PROGRAMS

(I) Our office is visited every day by many, many

tenants. One staff worker and one volunteer man the office

every day. We deal with whatever problem the tenant

presents us with. These problems include housing com

plaints; dispossesses, eviction notices, Housing Authority

referrals, fires, relocation, welfare, social security, employ

ment, etc. Once a month we conduct a general tenant

meeting which is attended by 100 to 300 tenants.

(2) Organization of tenant groups in buildings: Our

major work is the organization of tenant groups in the

various buildings. When a group of tenants come into our

office, we arrange to meet with them and the other tenants

of the building some evening in the building. At the

meeting, we help the tenants organize and explain to them

the various approaches that they might follow. Sometimes

the tenant group will pressure the landlord to give better

service; sometimes the landlord is dismissed in favor of a 7A

Administrator; in the case of abandoned buildings, the

tenants band together, open their own bank account, put

the rent money into the bank and then purchase their own

fuel and services. In effect, this results in the formation of a

tenant- controlled cooperative. In all these situations, wework with the tenant group just long enough to permit

them to elect their own officers and take over th

management of their own building. Then we step back.

(3) HOA Community Management Program: We manage buildings for the HOA Office of Evaluation an

Compliance. Philosophically, we feel ou t of place taking th

role of the landlord and seeking the rents from the tenant

However, we have also observed some positive aspects o

the Receivership Program. It is a good program to crea

greater organization of tenants in a building; the use o

community persons as handymen in the program create

jobs for some residents arid assures real interest in the tyPe

of work performed in rehabilitating and maintaining th

buildings. Most importantly, we find that this progra

makes good, decent housing available for families of ou

community.

(4) New Construction: We are the designated sponsoof sites 115, 1I0C, 1100 and 67M here in Central Brooklyn

We have insisted with all the city and federal agencies tha

these sites must be developed as 100% low-income sites. W

have also insisted on the concept that high-rise, box-shape

buildings are not acceptable to us on these sites. Ou

architects have prepared drawings for low-rise, high-densit

duplexes. We are now negotiating with HUO on the packag

we submitted to them. At the completion of this housing

OHB Tenants Association will manage the development.

(5) CETA Sweat Equity Rehabilitation Program: W

have now launched a program of rehabilitation for 2149

2151,2153 and 2185 Pacific Street using paid labar by CETA

and sweat equity labor for prospective tenants. Thes

buildings. will all become tenant-owned cooperatives at th

completion of renovation. Besides getting rehabilitate

housing, the program also pays the salary of seve

community trainers and twenty young men trainees wh

will be taught construction skills over the course of th

next 12 months. The trainees will have to p priority for th

rehabilitated apartments. They will also be required to do

three hours of unpaid labor each Saturday for thei

a p a r t m ~ t . We hope to finish the first building, 2149 PacifiStreet, by July 15th.

(Ed. Note: This article was written and contributed by

~ H B T A . We welcome contributions from

otherorganizations at any time.)

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STAFF PROFILES

STAFF PROFILE: ADRIENNE STOLLER

by Kathy Sanders

My dour image of the "company bookkeeper" was

forever shattered when Adrienne Stoller joined ANHD's

~ f f last summer as Fiscal Officer. Adrienne is a study in

.>ntrasts .

On the one hand she exhibits all of the work habits of

the stereotypical fiscal manager; she's terribly organized,

tight with the buck and, by her own admission, a fiscal

conservative who definitely does no t believe in deficit

spending, at least at the Association. On the other hand, shehas a kooky star-quality about her. Perhaps a residue of her

long training as a dancer, primarily received at the High

School of Performing Arts.

She feels that her two ' c a r e e r s " may be merging at the

Association. Her credentials as a fiscal wizard are solid.

After a tour of duty at Encounter, a drug rehabilitation

program, as fiscal manager, Adrienne went on to serve in a

similar capacity at the Fortune Society's headquarters.

Although her involvement in the community housing

movement is recent, it did no t take her very long to

understand and adopt the philosophy of the movement.

She hopes to contribute to the movement both as being the

"back-bone" of the office at ANHD, and also by developing

some special events fund-raising for Members. She is

currently toying with the idea of a "Disco PartY." Thus, the

merging of the theatrical and the fiscal!

Finding the time will be difficult, however. Since the

CET A Job Training and Rehabilitation Project has begun,

me weekly payroll for which Adrienne is responsible has

jumped from 6 to 56. And, since this is a g o v ~ n m e n t -funded program there are the regular and recurrmg ava

lanches of forms and reports. Through it all, Adrienne

continues to keep smiling and keeps us smiling (and, so far,

has kept the auditors smiling).END

ADRIENNE STOLLER: A SELF-PORTRAIT

by Adrienne Stoller

ed.note: In our continuing efforts to close the communications gap and, as always, with the best interests of our

IJ"oups in mind, we bring you another exciting and

invigorating PERTINENT PROFILE of a member of the

Association staff. Her name is Adrienne and she's our

humble fiscal officer ...

I always wanted to be a star, ever since I was a child

taking ballet lessons every Saturday. They really meantmore to me than I realized. The once-a-week dance lessons

at the neighbothood Y soon became twice-weekly trips' by

bus and subway to the Metropolitan Opera Ballet school

which eventually became daily roundtrips from Queens to

the High School of Performing Arts, in Manhattan, as a

dance major. Essentially, between the ages of 4 and 19, Ihad 15 years of artful, cultural and personal DISCIPLINE.

More often than not, I've been asked, "What's a nice girl

like you doing in a place like this?" I never really

understood what was m ~ n t until just recently . last

summer - when I joined the Association staff. When youhave talent and personality, what better way to direct your

energies? Be a bookkeeper for the movementl I was told at

the agency, before I had my audition, that this would

probably be the most important role of my career, the most

important rung on the ladder to success. "Probably" was

more accurate than I care to admit. When I got the part of

fiscal manager for the run of the show, my thoughts went

haywire - the lights, the glitter, the excitement, the crowds,the partY at Sardi's .. Oy-vayl 4 9

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MEET THE OFFICERSRoberto Nazario

- An interview with Kathy Sanders

leaders of movements usually insist on delivering an

historical introduction before launching into a discussion of

present activities. Happily, "Rabbit" Nazario is no excep-'tion. "It is important," he stressed, "to know the history of

my relationship to the lower East Side and the oommunityhousing movement in order to understand how I see my

role as President of the Association of NeighborhoodHousing Developers."

Born in Mayaguez, Puerto Rioo, in 1947, Rabbit moved

with his family to New York's Lower East Side in 1954 and

with few exceptions his childhood memories are rooted in

the lower East Side's streets, stoops .and schools. Along

with many friends, he decided at the age of 17, to save the

lower East Side.

His first serious involvement waS as a oo-founder of the .

Real Great Society, Inc., a non-profit oommunity organiza

tion which plunged into an endless number of projects and

business enterprises. Among its most note- worthy ventures

was the establishment of th e University of the Streets - the

first alternative school to exist in New York City.

In 1968, during the height of the oonvulsions which wereshaking the City, Rabbit was removed from the local scene

and drafted into the army. Two years later he returned to

find efforts for the Real Great Society enmeshed andalmost strangled in a tangle lawsuits.

'.This period marked a real turning point for me,"

Rabbit said. "I spent close to a year working on a

day-to-day basis with some of the best. lawyers andacoountants in this City. I learned the power of the law

every day and began to · hink about using professionalskills, such as law, management, oonstruction, etc. to dea;with the problems on the Lower East Side."

"At that time," he went on, "I was living in a buildin

on East Jrd Street in the winter of '71 and our landlord waone of the worst. I researched tenants' rights and began t

teach other tenants . That' s when I joined Adopt·ABuilding."

As Adopt-A-Building grew, Rabbit grew with it. A

though Rabbit feels strongly that tenant organizing must

the back-bone of any effort to improve housing oonditionthe activities which he and Adopt-A- Building have unde

taken during the past . few years include sweat-equirehabilitation, tenant ownership and management, pionee

ing efforts in the use of solar energy, job training program

and many others. These activities called for new technic

skills and necessitated a good deal of negotiating aninteraction 'with various government agencies.

It was at this juncture that Rabbit and ' several oth

o o ~ f o u n d e r s of the Association began to see the need for

City-wide organization that would facilitate the sharing

information among housing groups, work for progressiv

changes in government housing policy and provide technic

assistance, particularly to the newly emerging groups.

fact, on this last point, several of the founders of th

Association had been spe!1ding greater and greater amounof their time helping new community housing groups.

After a lengthy series of meetings, the Association o

N ~ i g h b o r h o o d H o u ~ i n g Developers, Inc. finally emerged

mld-1974 and Rabbit was elected its first -and so far onlyPresident.

''Taking on the role as President of a City-wi

organization, as ~ I I as my work at Adopt-A-Building, hl

been . a chall,engmg but extremely rewarding task," sai

Rabbit. "On the selfish side," he pointed out, "I've gained

lot of knowledge that has helped our efforts on the LoweEast Side. For instance, through getting to know th

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ABRAMS AND HOUSING ACTIVISTS 5

SEEK BILLIONS IN SAVINGS BANK INVESTMENTSAS PRICE FOR NEW CHECKING ACCOUNT PRIVILEGES

by Robert Schur and Kathy Sanden

Bronx Borough President, ROBERT ABRAMS and agroup of community housi·ng leaders, including RAMON

RUEDA of Peoples' Development Corporation, ROGERHA YES of Morris Heights Neighborhood Improvement

<;sociation, RON SHIFFMAN and BRIAN SULLIVAN of

. (att Center, and ROBERT SCHUR of ANHD, called on

the State legislature to refuse to allow Savings Banks to

issue checking accounts "unless the bill contains toughprovisions compelling the banks to halt their practice of

exporting billions in mortgage capital to other states and

begin reinvesting in New York's urban and suburbanneigh borhoods ."

The statement was issued at a press conference heldMonday, March 22nd, outside of the New York StateMutual Savings Bank Association's Park Avenue office. Mr.Abrams outlined legislation he is proposing that wouldinclude I) a ban on all o u t ~ f - s t a t e investments, noting that

it will take decades before a proper balance is restoredbetween in-state and o u t ~ f - s t a t e investments, 2) the

creation of a $5 billion' shared risk pool of capital forinvestment in red·lined neighborhoods, and 3) the extension of democratic protections to depositors by establishingelected boards of directors of savings banks.

The action taken by Abrams and community housingleaders represent the latest development in an issue that hasbeen brewing for years.' For several years, legislation to

extend checking account privileges for savings banks hasbeen routinely introduced and routinely rejected. last year, .however, the savings banks conducted a strong lobbyingeffort and were met, for the first time, by counter

'oposals from some Democratj.c leaders. They felt that if(he privilege were granted to the savings banks they shouldbe compelled to do something ·about the well-knownpractice of red-lining and taking local depositors' moneyou t of the state. By the end of session last year, a bill had

been negotiated, known as the Nicolosi Bill.

~ I e f t to right:) Bertha Hellman, West Side TenantsUOIon, Manhattan; Roger Hayes, Morris Heights Neighbor

~ o o d Improvement ·Association; Kathy Sanders, Association of ~ e i g h b o r h o o d Housing Developers; lawrence Burr,Commu,OIty Planning Board No.3, Bronx; Ramon Rueda,P e o ~ l e s Development Corporation; Philip Snider, Comm U ~ l t y Planning Board No.7, Bronx; Bronx BoroughP r ~ l d e n t Robert Abrams; Andrew Heath, Morris · HeightsNeighborhood Improvement Association; Ron Shiffman,Pratt Center; Father Thomas McNulty, Our lady of MercyChurch, B r o n ~ ; Gerald Esposito, St. Nicholas Neighborhood Preservation and Housing Rehabilitation CorporationBrooklyn; Brian Sullivan, Pratt Center, Brooklyn. '

Briefly, this bill would create a fund to be administeredby a Board of Directors, appointed by the Governor, amajority . of whom would be bankers. The fund couldrequire savings banks to contribute amounts equal to 15% of

all new loans that they make; with a $3 billion ceiling. Thefund would make mortgage loans in "community development areas" defined as ""areas of the state, designated bythe Superin.tendent of Banks in which a significant portionof real property is in need of repair, improvement,rehabilitation, reconstruction, redevelopment, preservationor stabilization; or which is underdeveloped or developing;or in which there exists chronic.unemployment or underemployment." Further provisions, which we feel furtherweaken the possible effectiveness of the. law, would requirethat designated areas be considered to have "investmentopportunities" and that all loans made be considered"reasonably prudent." This definition is so broad as to

make it possible, if no t probable, that no funds wouid go to. needy neighborhoods.

The Nicolosi Bill was quietly slipped through theAssembly by the Democratic Majority. When the billarrived in the Senate, ANHD · pointed ou t the obviousdefects in the bill and urged that it be strengthened.Finally, a 24-hour "powerhouse" lobbying effort by the

commercial banks resulted · in the Nicolosi Bill's defeat inthat chamber.

In the meantime, the Savings Banks have re-doubledtheir efforts. First, they convinced the Superintendent ofBanks to permit the savings banks to offer "NegotiableOrder of Withdrawal Accounts," which are actually the

same thing\as checking aCcounts, only better because youreceive interest on your money while it is on deposit. In afew short months, the Savings Banks opened over 150,000NOW accounts. Trust our commercial bank friends not to

be asleep, however. They promptly went to court and got aruling that NOW accounts are illegal. The court ordered thesavings banks to phase ou t all NOW accounts by April I,

1976. t-4owever, the Superintendent of Banks has extendedthat ~ e a d l i n e to May I, 1976. . -4 6

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Abrams and Housing Activists (continued)

Not coincidentally, this has allowed the savings banks to

mount what one veteran State Senator has called "the most

powerful letter-writing campaign I have seen in all my years

in the Legislature." Bills, which are now pending and seem

to have very strong support, will give savings banks

checking account privileges without their giving up any

thing in return.

Once again, ANHD has taken a firm position. We do not

oppose savings ba nks checking accounts as such. In fact, we

think that the increased competition will probably be of

benefit to consumers all over the state. But make nomistake, the savings banks 'stand to make ~ n o r m o u s financial profit and since savings banks are SUPPOSED to

exist solely for the benefit of their depositors, it seemsentirely appropriate that they begin to make investmentsthat serve the interest of their depositors. For instance, I •

what benefit is it to a deposi tor in Brooklyn if his savi.,.

and that of his neighbors go toward the financing of a "RRancho" development in Arizona, when at the same ti n

loan applications for mortgages and home improvemenare automatically rejected because the neighborhoodrc;!d-lined?

ANHD is suggesting to th e legislature that it requiresavings banks which want th e checking account business toagree to advance to a state-operated fund an amount equalto one-tenth of one percent (_01%) of their total depositseach for ten years. This would generate at least $50 millionper year or a total of $500 million after ten years. Thisstate fund could be used exdusively for making low-interestrehabilitation loans in tru<y needy areas of the state. 'By

means of a small subsidy, the state would guarantee th ebanks against any losses of principal and interest, which

would amount to the average interest paid to theirdepositors. ANHD is also urging that priority be given inthe making of loans to non-profit coops and non-profit,

community-based housing organizations. <We urge all of our readers to communicate with their

elected state representatives about this issue. Letters aregood, and face-to-face meetings are even better. If you

would like ou r help in setting up an appointment with your

Senator or Assembly member, either in New York or in

Albany, don't hesitate to call on us. If you plan to write aletter, you can find your representative's address in

ANHD's "Directory of Local Decision Makers."

END

BROOKLYN COMPREHENSIVE

PLANS BENEFIT CONCERT

••••••

Dizzy Gillespie and Joe Farrell

to Headline

(left to right:) Valerie Malcolm of New York Urban

Coalition;F ~ n k l i n

Garrett, President of BCC; DizzyGillespie; Miriam Allen and Hannah <Roberts, studentinterns.

On Saturday, May 1st, DIZZY GILLESPIE, the acknow

ledged master of the jazz-tr umpet and JOE FARRELL

equally reknowned on tenor-sax, will give a concert tobenefit th e BROOKLYN COMPREHENSIVE CORPORA

TION. In order to make it convenient for you and you

friends to attend, two performances will be held; th e first at

7:30 p.m. and th e second at 10:30 p.m.

The proceeds of the Concert, which is being sponsored

by Brooklyn Comprehensive and th e New York Urban

Coalition, will go toward the support of Brooklyn Compre

hensive's non-profit housing rehabilitation and tenant assis

ance programs. In addition, a portion of the proceeds wil

be set aside to be used as a revolving seed-money fund for

fellow ANHD member groups' fundraising events.

FRANKLIN GARRETT, President of Brooklyn Compre

hensive, is quite enthusiastic about the evening's program

He told us, "In addition to the sweet sounds of jazz, we

also <plan a special screening of GOD BLESS THE CHILD, a

filmon the tenant movement produced

byth e

NewYork

Urban Coalition. Also, we p l ~ n to have some surprise guest

and speakers." Garrett hopes for a strong turn-out from

ANHD members and affiliates.

Tickets <f ~ r the performances are available at the

Brooklyn Academy of Music Box Office (30 Lafayette

Street, one block from Flatbush Avenue), the ANHD's

22nd Street office and all TIcketron locations. "Special

Contributor" tickets are available for $25.00 -and are

tax-deductible. Regular tickets will sell for $7.50, $6.50

and $5.50. See you Saturdav, May 1st!

BIRD LIVES!

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NEW YORK CITY'S 312 LOAN PROGRAM

Rehabilitating What For Whom?

7

by Robert Schur

One of the better kept secrets at HDA has been the

quiet revival , for a select few, or what is known as thE! 312

Rehabil ita t ion Loan Program. Once again the City has

perverted the process of citizen participation and has

miserably failed to max imize the effect iveness of the scarce

312 dollars. While we strongly support those organizationsdesignated as sponsors (which include organizations in St.

Nicholas Park, Atlantic Termina l, Brownsville and Fulton

Park Urban Renewal Areas, the Marcus Garvey Neighbor

hood Development Project Area and Tompkins Park ,

Bushwick, East New York, Sunset Park , Crown Heights ,

Coney Island , South Ozone Park and New Brighton) and

believe that these organizations serve well the needs of their

neighborhoods, we are obliged to criticize the manner in

wh ich they were designated. While no one in the City

bureaucracy can be accused of deliberately hiding the facts

(this reporter was spoken to candidly and openly by an

HDA representative l. the agency has nevertheless quietly

gone about committing some 53 million of very scarce

federal loan money in a manner very different from whatwould seem to be the public policy expressed in the City's

Community Development Plans and which strongly suggests

that some very private, and perhaps questionable, deals

have been made .

First , let's take a quick look at what the 312 program is

all about and how it normally operates. Then we'll contrast

it with what HDA is actually doing to channel a lot of

federal dollars into a min imum and highly selective number

of buildings and neighborhoods .

The program 's name comes from Section 312 of the

Federal Housing Act. First enacted in 1964, it is the ONLY

federal program which provides direct loans of governmentmoney to owners of bu ildings who want to rehabilitatethem. The loans are on extremely easy and inexpensive

terms: they run for 20 years and bear interest at only 3% .

When yo u compare a 20 year, 3% loan with a City

Municipal rehab loan or an FHA insured loan for 30 years

at the latest interest rate of 8%% (plus a to %% annual

service or insurance charge) the importance of the low

interest rate is at once apparent. If you borrow $10 ,000

under 312, the annual debt service is 5555 , or 546.25 per

month. At 8%% plus service or insurance charge the yearly

cost is $945-$960 per year, or 578.75-580.00 per month

- and you will have fully repaid the 312 loan ten years

ahead of the other kinds .

312 loans are also extremely flex ible . You can borrow

for anything from removal of code violations all the way up

to a very substantial renovation . The only limit is that you

can't borrow more than $17,400 per dwelling unit. You

may borrow for commercial as well as residential renova

tion. And you do not have to refinance existing indebted - .

ness. If yo u have a mortgage on your building, the feds will

take back a second mortgage to secure a 312 loan. Under

certain circumstances , if you are an owner-occupant and by

borrowing for rehabilitation, on to p of an existing mort

gage, your total debt service will eat up to o large a

percentage of your gross income, HUD will include refin

ancing at 3% as part of your 312 loan .

Sounds like a good program_ Why hasn't it worked f

New York City residents? Well , as with virtually eve

housing program that starts off sounding like it can d

some good , when you look further you find the jokers

either hidden away in the law itself or in the way it geadm inistered

312, unfortunately, is no exception .

First off , the law limits its applicability to certa

specified areas of the City . It is available to owners of I to

family dwellings in federally -assisted Urban Renewal Area

It is also available to repair or rehab ilitate any kind

building in "designated Federally -assisted code enforceme

areas." I n. the entire history of the Act, there have bee

only three such "designated" (by HUD) areas within th

City of New York - the last designation expired

mid-1972.

Under the1974 federal Housing and

CommunityDeveopment Act , however, 312 loans may be made in "certifie

community development areas." There are neighborhood

where the City, under its Community Development Pla

has some other C.D . activities planned or in operat ion an

which the City says it "designates" for 312 loans . In its C.D

Plans, the City has so designated some 13 neighborhood

So, at least any "owner" in any of these areas ought to b

able to get a direct 3% federal loan to fix up his building .

If only it were that simple . Joker Number Two is th

limit on the federal dollars available for the program. Th

Ford Administration in Washington (like its Nixon pred

cessor) opposes the 312 program. It feels that the bloc

grants and housing assistance allowances under C.D . are a

the federal monies ' that should be spent for housing

Fortunately, Congress disagrees and has insisted that 312 b

continued. But in order to escape Presidential vetoes, it ha

had to agree to limit the overall size of the program. 31

therefore has only $75 million available nationwide. Tha

sum is parceled ou t by HUD among its twelve regiona

offices, which in turn subdivide their shares among th e are

offices . The New York Area thus has about $7 million , bu

not all of that is avai lab Ie for loans withi n New York City

The Area includes Long Island and upstate suburbs as fa

north as Poughkeepsie and beyond .

Traditionally, HUD has not been too friendly to ou

City and at this writing they aren't even telling us how

much of the $7 million we may be allowed to spend . HDA

officials say that it will be "a t least" $2 million and

"maybe" as much as $5 million - even the higher figure i

distressingly small.

BESIDES, THE WHOLE $7 5 MILLION NATIONWIDE

IS ONLY AVAILABLE TO AUGUST 22, 1976 - when th

authority to spend expires . Congress can, and we hope wil

renew the 312 program and appropriate additional funds

But until it does so, we have very little to go on .

-4 12

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8

NEWS UPDATES

New York City's Community Development

Plan Stalled in Board of Estimate

Hassles Over Who Gets

What Delays Action

Remember when we all testified at the City Planning and

Board of Estimate Hearings on the proposed C.D. Year One

Amendments and the C.D. Two Draft Plan? That was way

back in January and .early February. So what has happened

since? Officially, nothing, as th e Board of Estimate which

has the final word before the Plans go to HUD, keeps

"laying over" the matter from session to session .

While nothing is being said in public, we hear that theBoard of Estimate's executive sessions have produced some

hot fights . Seems that Donald Manes, Queens Borough

President, thinks his Borough is being short·changed by the

C.D . One Amendment and he wants more . No t for housing

preservation or ERP or rehab, naturally. Manes wants more

sewers, libraries and whatever else ' his middle - and higher·

·income supporters think their communities ought to get.

Seems also that other Borough Presidents have caught on to

the idea and C.D. is now becoming another name for

scratch·my-back-and-I'II-scratch-yours . And, we may ask,

what about citizen participation in all of this?

Latest rumor is that C.D. One will finally be voted on, as

submitted (probably before wego

topress).

bu tC.D.

Two

may get some further revision in favor of sewers, etc.,

before it gets the Mayor's signature and goes to Washington .

.*******

C.D. Lawsuit Heating Up

Ad Hoc Committee Hard at Work

Even without more tinkering by the Board of Estimate,

community groups are fed up with th e discrimination and

tokenism rampant in the City's Plan for Community

Development Year Two.

Representatives from the Association have been meetingwith people from the Pratt Coalition, Operation Open City,

the PAC Coalition and Model Cities to firm up issues fo r a

lawsuit to bar HUD from giving C.D. Two funds to the City

unless a better Plan is developed, including more attention

to the housing needs of low- and moderate-income residents

and minorities, less money for HDA Administration and a

meaningful Citizen's Participation program. The group is

also starting to contact public-interest lawyers and law

firms to ge t the strongest possible legal representation.

Better watch ou t Abe,John and Carla . We'll be seeing

you in court before you pour ou r dough down a Queens or

Staten Island manhole!

********

TRAINING FOR ORGANIZERS

The National Training and Information Center is c

rently offering PARTIAL SCHOLARSHIPS to their tra

ing school , located in Chicago, Illinois. Courses range

length from one week to one year , and cover technic

assistance, community organizing, fund·raising, coalitio

building, video politics, health politics, issues of Sen

Citizens, r edlining/reinvestment, etc. For information, wr

to Mr. Shel Trapp, Training Director , National Training a

Information Center, 121 West Superior Street , Chicag

Illinois 60610 (Tel. 312·751·1601) .

* .* ••• _.

GOVERNMENT PUBLICATIONS AVAILABLE FOINSTRUCTORS AND STUDENTS INTERESTED

IN CONSTRUCTION TRAD ES SKILLS AND TRAINI

The United S t a t f ; ~ Government has published sev

Manuals designed to assist high school students intereste

careers in the construction industry as well as an Instruc

Manual outlining a course curriculum for 7 specific tra

The publications are available at nominal prices

should be of interest to groups and individuals involve

planning housing repair or rehabilitation activities.

The manuals are:

99M INSTRUCTOR'S MANUAL. Offers a sugge

course outline and curriculum for seven specific tra

Punched for a three-ring binder. 1975. 106 pages. $4.15

100M STUDENT MANUAL. The student compleme

the instructor's manual, it gives general information a

each of seven types of jobs available in the construc

field. These are wood working, finishing, heavy equipm

metal working, masonry, electricity, and engineering,

port, and management services (including draftsmen). 197 pages . $1.'35

Each of the following student manuals discusses all

characteristics of and duties involved in one ofparticular construction trades mentioned above. The m

uals for heavy equipment, finishing, and enginee

support, and management services will be listed in a fu

issue.

101M MASONRY. 1975.66 pages. $.90

102M E LECTR ICITY . 1975. 53 pages. $.85

103M WOOD. 1975. 82 pages. $1.15

104M METAL. 1975.120 pages $1.55

To o b ~ a i n order forms for the above-listed publicatio

call or wnte to the Association .

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'. West Harlem (cont inued)

The Board of Directors of WHGA, chaired by Thomas F.

Cunningham, Esq ., is made up of both local residents and

professionals. " One advantage," Mrs . Thomas pointed out,

" is that we have never been without legal and architectural

assistance since we started - a problem many groups

cont inuously face . As well as shaping policy, our Board of

Directors is also a constant, much-needed source of

technical assistance."

regard to future plans, Mrs. Thomas hopes toobtain the necessary funds with which to bring on a

full-time tenant organizer. She also looks forward to a

positive outcome in the fight for C.D. funds , so that groups

li ke WHGA can move ou t of their present "holding

pattern " and get on with the job of rehabilitation.

END

Adr ienne Stolle r (continued)

The ledgers ,the

budgets,the

payroll,the

meetings,the

phone calls, the auditors, the taxes, the checkbook balance ,

the I RS, the accounts payable, the creditors, the bank

managers , THE FISCAL CRISIS, the chicken soup ...

This all may be very lighthearted, bu t it's only because I

take my job so seriously that I am able to make fun of it. In

these times, when there are so many obstacles we must

overcome , it is important to be able to relax and laugh and

with each goal we reach, enjoy the fruits of our labor .

It's as if the curtain has come down on Act I and the

crowd leaps to its feet ; the applause fills the theatre ; they

know there's more to come. The show is a hit! Suddenly,

you know the hours of blood, sweat and tears were no t allin vain and just one more time the effort was worth it .

Sure, there were re-writes; sure, there were budget cuts;

sure , there were character changes, rehearsals till three

o'clock in the morning, bended backs, broken bones,

broken hearts, but with'the drive and determination of our

troops, it was destiny! There's no keeping us down! You

can take the star ou t of the greaspaint bu t you can't take

the greasepaint out of the star.

On with the show!

END

Roberto Nazario (continued)

Renigades, I've learned a lot about sweat-equity construc

tion . The ANHD staff have also helped a great deal : Bob

Schur has assisted us in many ways like helping on the

building Seal-up Contracts; Ernie Winston has taught us a

lot about construct ion and management ; and Judy Flynn

has helped us survive with Joint Fundraising. Also, we've

taken advantage of HCC's Home Repair Training Course ."

Asked to describe his style of leadership , Rabbit

answered, "I serve as President because the members asked

me. I feel very fortunate in helping to steer a City-wide

movement and helping strengthen ou r weaknesses . I'm not

a 'rubber stamp,' and I've always been aware of my role as a

negotiator that is obviously needed in an organ ization made

up of so many people from different neighborhoods ."

"I think, as President, I've ' helped to develop a structure

that on the one hand ensures broad-based decis ion -mak ing

on important issues and, on the other , concentrates

responsibility in a representative Operations Comm ittee

that can spend the time necessary to monitor the day-to

day operations of the Association and its staff . For

instance, the other day at an Operations Committee

meeting we made some decisions on budget and staff t ime

but referred several other items to the general membership

since they were issues about wh ich everyone should be

informed and have an opportunity to voice an opinion on

and vote on ."

Rabbit is very conscious of the problems that occur

when decision-making power is concentrated with too few

people_ "Sometimes," he continued , "we'll just have to

wait to hear from the general membership. Speed cannot be

our goal. There must be understanding and cooperation .

Finally, we must be constantly training new leaders so that

the housing movement does no t rely solely upon a few

individuals."

As we walked in the freezing rain, back to the unheated

sweat-equity construction site on East 11th Street, Rabbit

summed up his role as President as that of a "problem

solver. "

"The City is in deep trouble. We have some answers.

Right now we' re training unemployed people and rehabili

tating housing at the same time for a fract'ion of the cost

the City or a private developer would spend . What we have

to do in 1976 is get our solutions heard and accepted. We

have to turn around ou r politicians; we've got to make sure

that C.D. money is spent on rebuilding our neighborhoods.

Yes, it's going to be a challenging y ~ a r . "

END

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10

ENERGY CONSERVATION AND THE

COMMUNITY HOUSING MOVEMENT••••*.

Let's Get In On The Ground Floor

by Robert Schur

For the past few years, we have been hearing a lot about

energy conservation. It may even replace Motherhood and

Apple Pie as symbols of patriotism. Rather than discuss the

pros and cons of why we should no t be for or against this

or that idea or proposal because it is good or bad forconserving our energy resources, let's examine a couple of

very concrete ways that we may be able to relateenergy -saving systems to help us deal with housing prob

lems and costs in our own neighborhoods here in New York

City .

Right now, there appear to be two rather novel but

relatively simple ideas that we ought to be at least thinking

about - and maybe doing something about. The first is

using solar energy; the other is developing systems to use

waste materials to create fuel and saleable fertilizer.

Solar energy is a very easy concept to understand .Basically, it involves using the sun 's rays to provide heat

and ho t water for home use . One basic system is to install

"solar co"ectors" on the roof. These collectors capture theheat from the sun, use it to warm water which is then

circulated in insulated pipes throughout the building.

Such a system has been installed by Adopt-a-Building

and th e sweat equity tenant-cooperators at 519 East lith

Street in Manhattan . Three rows of brightly-colored glasspanels have been se t up on the roof of this S-story IS unit

tenement. While only just completed, the system works -even in the wintertime, it produces enough heat from the

sun to provide the entire building with a constant,

round-the-clock supply of hot water .

Less simple and less developed technologica"y, so far at

least, are waste handling systems, the most interesting of

which are called "methane digesters_" In this system,

human wastes are combined with other organic materials(such as ordinary garbage, old newspapers, wood chips,

etc.) in a storage tank to produce methane gas. Methane is

very similar to the gas which we buy from Con Edison andcan be used fo r all home purposes, as an acceptable

substitute. As a by -product, the solid material that remains

after th e gas is generated makes extremely good fertilizer

and soil conditioner and might readily be sold to plant

nurseries and farms, or used to help grow grass and flowers

in a favorite empty lot.

While some investigators claim that methane gas "cook

ers" are no t adaptable to urban environments, others

disagree (until very recently, almost everyone believed that

solar collectors would be useless in New York City because

we · don't get enough sunshine - they seem to have beenquite wrong) .

A major point to be made about these energy-producing

schemes is that they may be able to produce significantsavings in the costs of buying ordinary fuels (coal, oil, gas,or electricity) fo r heating and cooking. While installationcosts, especially where cheap, mass-produced units are

unavailable , may be high, substantial savings can be effected

over time. For instance, at 519 East lith Street, the solar

collector is expected to supply year-round ho t water for the

entire building . This ought to save not only a lot of heating

oil bu t wi" also permit the main boiler and oil boiler to beshut down completely during the warm weather months ,

thereby saving on maintenance costs and greatly prolonging

its useful life .

\\\ I

"'-..' /'

/'"--- ' - . J

/I\ \

Furthermore, there may be excellent opportunities , right

now, for obtaining government or private assistance to helppay for initial installation costs. 519 got its system paid for

by a federal grant (which included engineering expertise

and lots of insulation that will further reduce heating bills) .

There are also very good possibilities for other benefits,

such as tax abatements, to come along in the near future .

At least one bill is pending in Congress to give tax

deductions or credits for equipment purchases or energysaving equipment to homeowners.

And once you get "energy conscious," you can save in

other ways. More careful planning for insulating materials,

room layouts, placement of windows and doors a" can

reduce heat loss and save lots of dollars on fuel bills - no t

only in winter, bu t in the hot weather too, by making

air-conditioning units operate more efficiently . You can

even change your "lifestyle" in terms of the clothing you

wear and how much heat yo u "need" at different times ofthe year . Or, how about the idea of a windmill on the roof

to generate electricity ... ?

With fuel running about 20% of building maintenance

and operating costs, there are lots of possibilities. Ashousing developers fo r low- and moderate-income people,

we ought to keep a sharp eye out for cost savings

opportunities. Energy conservation may be a good place tobegin .

led. note : fo r interested readers there are lots of ideas

and how-to-do-it advice in a stimulating book called "Other

Homes and Garbage" by Leckie, Masters, Whitehorse and

Young, published by Sierra Club Books of San Francisco,

California, at $9.95 .)END

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UNSUNG HEROES OF THE CETAlCJCCJOB TRAINING PROGRAM

CORRECTIONS AND APOLOGIES

In our March issue , the art icle on the CETA/CJCC Job

Tra ining and Rehabilitation Program made mention of

several organ izations whose part icipation and assistance

were vital to the s.uccessful launching of the first projects.

We neglected to mention others whose contributionswere equally vital and without which the Program could

not have proceeded. We hasten to correct this oversight and

to complete the record .

- The Consumer·Farmer Foundation, Inc. provided seed

money loans and advances to keep the projects "alive"

dur ing the long, organizing months of negotiations and

processing . To Meyer Parodneck and Martin Young of that

organization belong special appreciation for their faith and

be li ef that, despite gloomy predictions and against tremen

dous odds , the Program would somehow come to fruition .

- The Ford Foundation, The Fund For the City of New

York and The Chemical Bank furnished a total of $40,000in guaranty funds against possible cost overruns, without

which our friends at HDA would not have proceeded. Ms .An ita Miller of Ford , Messrs . Gregory Farrell and Jack

Newsom at the Fund and Messrs. Doug Ades and Juan

Villanueva at Chemical - all of them' old and dear friends

of community housing groups and their efforts - are also

heroes and their contributions cannot go un-noted.

"City Limits" is pleased to include them on the roster of

contributors to the CET A/CJCC Program and regrets the

inadvertent omissions in the eariip.r story.

JOBS

The Association of Neighborhood Housing Developers,Inc. has been awarded a Summer Internship Grant fromFirst National City Bank. The grant will pay a student

enrolled in college or graduate school $140 per week for aneight-week period, commencing on or about July 1,1976.

The position will require the intern, under ANHD staffsupervision, to write a manual (which will be printed inEnglish and in Spanish) telling tenants of newly-abandonedbuildings what to do and how to operate and manage theirbuilding. The way things are going, this should have a lot of

use In the coming fall and winter.

Applications will be accepted until April 30, 1976. Se.nda written resume and, if possible, a sample of somethingyou have written , to Kathy Sanders at the Association, or

call Kathy (674-7610) for further information.

Immediate:

Job Opening in Brooklyn for Secretary . Must speakfluent Spanish and take shorthand. Salary is $170 per week,plus benefits. If interested, call Kathy at ANHD, 674-7610.

APRILI

APRil 6

APRll7

APRil 8-9

Pratt Conference Coalition MeetingThursday,l:OO p.m.

. I I

Amalgamated Clothing Workers ofAmerica Building33 West 14th Street (between 5th and6th Avenues)

Primary Day _. Polls Openfrom 6:00 a.m. to 9:00 p.m.

ANHD General Membership Meeting6:00 p.m., 105 East 22nd Street Room'

SPRING SPRUCE-UP at ANHDThursdjlY and Friday, 10:00 a.m. to 6:00

p.m.

APRil 15 Deadline for filing Income Taxes

APRll23,24,25 Third National Alliance For

Neighborhood Government ConferenceFriday, Saturday and Sunday 'Hartranft Community Corporation2415 Germantown AvenuePhiladelphia, PennsylvaniaFor more information: write to Alliancefor Neighborhood Government 226

Capitol Street, Washington, D.C. 20003

APRIL 29 Catholic Interracial CouncilHousing Forum

Commodore Hotel (42nd and Lexington)

5:00 p.m. to 7:30 p.m.

For more information call Peter Gardella, 751-9445

MA Y I Benefit Concert for

Brooklyn Comprehensive Corporation(See ou r story in this issue for details)

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