city limits magazine, june/july 1976 issue

8/3/2019 City Limits Magazine, June/July 1976 Issue

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CITY LIMITSCOMMUNITY HOUSING NEWSAssociation of NeighborhoodHousing Developers Inc.29 East 22nd Street New Vork. N.V. 10010 2126747610 JUNE-JULY 1916Vol. I No.5

MVDCMANHATTAN VALLEY DEVELOPMENT CORPORATIONby Leah Schneider

Manhattan Valley Development Corporation (MVDC). acommunity operated not-for-profit housing developmentand services organization. was founded in 1968 by a numberof local community groups and political leaders in responseto the fact that Manhattan Valley as a community wasbeing by-passed by city, state and federal housing development and renewal funds. funds that were literally pouringinto immediately adjacent communities. From the beginning. MVDC recognized that government urban renewal andredevelopment programs too frequently resorted to the"bulldozer." followed by the erection of lifeless, high-risemiddle-income towers. The vitality of once-strong neighbor-

(Jeft to right: Diego Cruz, Atahualpa Dominguez, DannyVillaronga, and Jose Acuna_)


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2 mvdc ComjouedMany are in excellent condition structurally, but increasingly show signs of age and hard use, not to mention deferredmaintenance. Old-law tenements built before the turn ofthe century are concentrated along Columbus Avenue,where the old 9th Avenue EI ran until the early 1940's, andalong Amsterdam Avenue. Old-laws are also interspersedamong the new-laws on the side streets.

The Frederick Douglass Houses, a public housing development housing approximately 2,200 low-income families, occupies an 8-square block area of Manhattan Valley.On Cathedral Parkway (West 1I0th Street), CathedralParkway Towers was opened for occupancy in the fall of1975. It is a mixed-income housing development. Park WestVillage and the many new housing developments of theWest Side Urban Renewal Area lie just to the south ofManhattan Valley and extend to West 87th Street.

Surrounded by communities of relative affluenceMorningside Heights to the north, the Riverside Drive/WestEnd Avenue community to the west, and the moderate andmiddle income development communities emerging in theWest Side Urban Renewal Area - Manhattan Valley remainsa vital, bu t neglected, community of mainly low-incomepeople.

From many viewpoims, Manhattan Valley is the last"plum" to be picked by the real estate operators who areincreasingly dominating the economics of the housingmarket on the Upper West Side. Several buildings inManhattan Valley have already been converted by privatelandlords into comparatively high rent housing and severalothers would have been, had it no t been for the vigilance ofMVDC along with other neighborhood groups in insistingthat private rehabilitation efforts provide apartments forlow-income families.

Accompanying the speculative pressures is the alarmingrate of abandonment by private owners who have neitherthe capital nor the know-how to undertake the renovation

The typical family in Manhattan Valley had a 1970income equal to approximately three-fourths of the medianincome for families in Manhattan, a disparity that hasremained about constant during the last ten years. Over20% of the families in Manhattan Valley receive some formof public assistance. Manhattan Valley is predominantly acommunity of low wage earners with limited skills. Giventhe grim employment prospects in New York City - aproblem exaggerated in communities like Manhattan Valley- the economic prognosis for Manhattan Valley families incoming years is no t good. These are the families who needlow-rent housing - families who cannot afford to spend themajor portion of their incomes on shelter, when food,clothing, and other necessities are already so difficult toafford.

Manhattan Valley Development CorporationMVDC was organized in 1968 and has emerged in the lastthree years as the community group in the neighborhoodmost effective in housing action. While housing has beenMVDC's major emphasis, MVDC realizes that housing

cannot be divorced from the other problems and needs inthe neighborhood. Accordingly, MVDC has become involved in a wide range of neighborhood issues.

MVDC has a Board of II members, nine of whom"areelected by a vote held among all bona fide communityorganizations in Manhattan Valley. Two technical advisorsserve at the pleasure of the nine other directors. The Boardmeets on a monthl y basis - more often when necessary. Thepresent officers and board members are:Felix Velazquez, President; Alvin Peart, Vice President;Leah Schneider, Secretary; Olga Perez-Martinez, Treasurer;Rosita Flores, Ramona Intriago, Kurt Schneider, JoseValentin and Eddie Williams, Jr_, members-at-Iarge; OlgaFernandez and Leonard Lerner, Technical Advisors; andJose Acuna, Director. All of these individuals are residentsof Manhattan Valley and they truly reflect the diversity of


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4/18

4NEWS UPDATES QQQQQQQQQQQ

NATIONAL PEOPLE'S ACTION WASHINGTONCONFERENCE A ROUSING SUCCESS

1,000 Attend, Testify andDemonstrate for"Neighborhoods First"On Sunday and Monday , June 13th and 14th, over 1000men and women, blacks, whites, Chicanos , Hispanics andothers, from all over the USA, gathered in Washington, D.C.for the Fifth Annual Conference of National People'sAction. Stressing the theme of "Ne ighborhoods First." theparticipants heard representatives of community organi

zations demand better government responses to neighborhood issues in the areas of redlining and reinvestment,community development, senior citizens, FHA mortgagepractices, crime and public utilities.

The second day of the conference was given over tomeetings with FHA and CDA officials , testimony atcongressional hearings and before the Democratic Partyplatform committee, tieing a "redlining" ribbon around theWashington Hilton Hotel where a convention of theAmerican Bankers Association was in progress and presenting a "Bicentennial Monument" to HUD . consisting of bitsand pieces taken from FHA foreclosed and abandonedbuildings around the country.

NAZAR lOS AWAROED GRANTFOR LOWER EAST SIDE PRESERVATIONIt is with special gratification that we announce theaward of a grant of 520,000 by the John Hay Whitney

Foundation to Roberto and Ruth Nazario, which they willuse to continue and expand their efforts to organize andassist the Lower East Side community to obtain fundingfrom the city and private sources to preserve and improvetheir neighborhood.

For several years, "Rabbit" and Ruthie have workedagainst incredible odds and have accomplished impossiblefeats on the "Loisaida." They, and their fellow workers ,have made AdoptaBuilding into an exemplary neighborhood housing organization.At the same time, Rabbit has given his unstintingservices and leadership as President of ANHD since 1974and Ruthie has, for the past year, served as a VicePresidentand member of ANHD's Operations Committee.

ASSOCIATION HOSTS TOUR FORUNITED KINGDOM HOUSING OFFICIALSAs part of the US/UK Housing Exchange Program,funded by the Ford Foundation (US), the Department ofEnvironment (UK) and the Rowntree Foundation (UK) and

coordinated by Columbia University's Graduate School ofArchitecture and Planning, nineteen British housing expertstoured a variety of housing programs in New York City, St.Louis, Missouri and Washington, D.C., from June 4th to


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NAMES IN THE NEWSIn an article appearing in the June 4th edition of theNew York Post, entitled "Why Morris Heights Has Hope,"

ANHD member, Morris Heights Neighborhood Improvement . Association, was cited as successfully turning theneighborhood around through its "preventitive abandonment" program_The article, written by Post correspondent PeterFreiberg, discussed the effectiveness of tenant organizingand leadership development. Well deserved credit was given

to Mildred Zucker, Roger Hayes, Andrew Heath and theentire MHN IA staff.

..........TOWN OF FLATBUSH GIVES TOUR 5

The Flatbush Development Corporation, a new memberof ANHD, held a neighborhood tour on Sunday, June 13th.Assisted by a small grant from the Human Rights Commission to defray the costs of advertising, FDC enabled visitorsto the area to sample hospitality while viewing architecturally distinctive apartments houses and private homes.Unique among neighborhood tours, it featured spacious ,reasonably priced vacant apartments as well as beautifullyfurnished occupied apartments and homes.

The aim of the tour was to attract new people,particularly young families, to the neighborhood and fromthe large turnout on Sunday Flatbush may get its wish _

COLLEGE INTERNS JOIN ANHD STAFF

ANHD is proud to announce that it was one of only tenagencies in New York City to be selected for the MorganGuaranty Trust Company's Summer Internship Program_Under the program, the bank hires a graduate student forten weeks and the student is assigned to a selected agency .

Gini Sherry, our Intern, comes to ANHD well qualifiedfor her job, which will be to prepare a quantitative reporton the accomplishments and activities of ANHD memberorganizations. Gini is a graduate of New York University,where she majored in political science and is now pursuing aMaster of Urban Planning degree at Hunter College. She hasbeen an Intern with Suburban Action Institute and had ateaching ~ s s i s t a n t s h i p at Hunter this academic year,working With an undergraduate urban affairs seminar.

ANHD is delighted to have Gini's assistance and we havepromised her a very challenging ten weeks. .-


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6announcements

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ADOPT-A-BUILDINGSPONSORS SCHOOL FOR ORGANIZERSAdopt-a-Building has made sure that no one's Tuesdayevenings need be dull this summer. Whether you're new to

the housing movement and working as a volunteer, or anexperienced organizer, the Training School for Organizerswill prove valuable and informative. An outline of thetopics to be covered follows:

I. BUILDING ORGANIZING : Coordinating role, analyzing the situation, tenant organization, tenant committees.

2. OWNERSHIP INFORMATION: Research on owner ,taxes, liens . followed with a trip downtown.

3. BUILDING REPAIRS/TENANT MANAGEMENT:Examples of tenant-run buildings, contacts in EmergencyRepairs Program, suppliers, repairmen.

4. BOOKKEEPING: Recording rents, budgets, monthlyreports.

5. LEGAL PROCEEDINGS: Dispossess, litigation, 7A,19A, Article XI, other laws that can be used.

6. HOUSING PROGRAMS: Who's who in various cityagencies, processing techniques ..plus a tour of the bureaucracy.

7. CITY OWNED PROPERTIES: The law, Departmentof Real Estate, alternatives.

8. VACANT BUILDINGS: UB's, structural inspections,demolition, seal-up.

Sessionswill be held every Tuesday, beginning July 13thand will be held at EI Teatro Ambulante, 433 East 6thStreet . There will be 15 sessions and people from allneighborhoods are welcome. Because the best training takesplace ON THE JOB, we will also work with each personfrom the Lower East Side on an on-going basis during thesummer to provide advice.A fee of S75.00 will be charged to housing workers

employed by an agency in a community_ A contribution of$5.00 (for materials) would be appreciated from peopleworking as un-paid volunteers.

For more information, call Adopt-a-Building, 677-8700 .

CITY LIMITS ADVERTISING POLICY

The Operations Committee of ANHD has decided toaccept limited advertising to help defray the cost ofpublication.

Advertisements will be accepted from bona-f ide businesses upon recommendation by an ANHD member and/orstaff person. Only reputable businesses with prior satisfactory relationships with an ANHD member organization orstaff person will be accepted.

Rates are as follows :For Camera-Ready Copy -


7/18

NEWS ABOUT THECOMMUNITY DEVELOPMENT LAWSUITAssociation Joins in Petition to HUD to Set AsideC.D.2 Programs Which Ignore Poor and Minorities

On Wednesday, June 2, 1976, one day after New YorkCity officially filed its Second Year Community Development Plan, a Petition was filed with the U. S. Housing andUrban Development Department's New York Area Administrator, Mr. Joseph Monticiollo, and served upon MayorAbraham D. Beame, calling upon HUD to review andamend the City's Plan. The Petition bears the signatures ofthe New York Housing and Community DevelopmentCoalition (the new name for what used to be called thePratt Conference Coalition), the Association of Neighborhood Housing Developers, Inc., and about-a' dozen othercity-wide and community organizations.

Basically, the Petition asks that a number of theprograms included in the City's Plan be disallowed as no tcomplying with the requirements of the 1974 Housing andCommunity Development Act for maximum feasible priority for programs designed to meet the needs of the poorand minorities and to combat slums and blight. Petitionersspecifically attack such allocations as $10.7 million for HDAadministrative costs as well as large sums for privatelyowned shopping centers on Fordham Road in the Bronx,Fulton Street in downtown Brooklyn and in Jamaica,Queens.Also criticized are over $5 million for sewers inmiddle-income neighborhoods of Queens and Staten Islandand $3 .5 million for new elevators in a Brooklyn publichousing project. The Petition contends that funds are

7HUD Area Director Monticiollo has already acknowledged receipt of the Petition and has called on MayorBeame to respond to each and every point raised by thePetitioners. A ruling is expected to be issued from HUDquite soon.

MORE ORGANIZATIONS NEEDED"This action is an open-ended thing," said Ron Shiffmanof the N. Y. Housing and Community DevelopmentCoalition. "We welcome participation by all concernedcommunity organizations."If you want to consider joining in the Petition and inany legal action that may follow, call the Association at674-7610 for a copy of the Petition and for information asto how you can join.

Getting to Know Our Community Development LawyersAbout: Judy Tumoc:k and Kellis E. ParkerIn our last issue, we promised to tell you more aboutJudy Turnock and Kellis Parker, the attorneys representingthe New York City Housing and Community DevelopmentCoalition and other city-wide and community-based organizations in a lawsuit challenging the City's proposed use offederal community development funds. Judy and Kellisbring an impressive array of skills, eXRerience, qualificationsand dedication to the task they have undertaken.

Kellis Parker grew up in Kinston, North Carolina, a rural,segregated black community. Kellis left Kinston in 1960 toattend the University of North Carolina at Chapel Hill.During his undergraduate years, he spent a good deal of


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8 os ..

JOB OPENINGBathgate Community Housing Development Corporationhas an immediate opening for the position of TenantRelations Specialist. An experienced, bi -lingual tenant

organizer is preferred, but a highly-motivated beginner willbe considered. As well as tenant relations duties, theSpecialist will also be responsible for rent projections, somebudgeting, etc. Will train.Call and/or send resume to: Max Jacobs, Director,Bathgate Community Housing Development Corporation,1660 Bathgate Avenue, Bronx, New York 10457, (212)

294-3720.

JOB OPENINGASSOCIATION COMPTROLLER

DESCRIPTION OF DUTIES: Reports directly to Executive Director. In charge of all Association fiscal, accountingand bookkeeping matters, including all special programsand projects (e .g. CETA and CJCC). Prepares accountingand fiscal monitoring systems, budgets, financial reports(except annual audit). Supervises Administrative Managerand Chief Bookkeeper, including liaison and technicalassistance in accounting, bookkeeping and office manage

c.d. continued

During the past several years, Kellis has written numerous articles relating to problems of minorities, legaleducation and housing, and has authored a Case Book forlaw students, "Modern Judicial Remedies." This year,Professor Parker has conducted seminars on CommunityDevelopment and Urban Development Control amongothers.

Professor Parker's activities have not been confined tothe academic world. He has been consultant to the NAACPLegal Defense Fund, CALS (Community Action LegalServices!. the Ford Foundation and the National Committee Against Discrimination in Housing.

Judy Turnock's early life was also spent in a segregatedneighborhood - the exclusive, white, upper middle classCleveland suburb of Shaker Heights. In 1967, Ms . Turnockgraduated from Smith College and spent the next five yearsworking in Cleveland and Washington, D. C. in a variety ofprograms, including the Neighborhood Youth Corps, apublic interest law firm representing citizen groups againstmajor broadcasters, the National Organization of Womenand the Prison Reform Project of the American BarAssociation. This last job entailed an enormous amount oftraveling throughout the United States. Judy saw, firsthand, the living conditions on Indian reservations, the ruralsouth and the major urban ghettos.In 1972, Judy entered Howard University Law School.During her first two years, Judy worked on the LawJournal and with the Public Defense Service. In her thirdyear, Judy practiced criminal law, representing indigentpersons, under a special court ruling which made Judy a


9/18

RECENT DEVELOPMENTS INFEDERAL HOUSING LEGISLATION

U.S. Senate and House of Representatives Pass,Hud Opposes Bills Calling for Significant Expansionsof Public Housing and Rehabilitation Programs

by Robert Schur

A major housing policy confrontation may be brewingbetween Congress and the Ford Administrat ion over federalhousing programs. The outcome of this battle will have verysignificant impact on how much and what kinds of housingfunds will become available for New York City over thenext two to three years at least.At the outset, it should be noted that this legislation isslated to be in addition to and not as a substitute orreplacement for the Community Development Act BlockGrants and Housing Assistance (Section 8) Programs -although in some respects the bills will affect the community development programs.At the end of April, the Senate, by a vote of 55-24,passed a bill (5.3295) enti tled the "Housing Amendments

of 1976." On May 26th, the House of Representatives, aftermaking major changes in the bill voted by its Banking,Currency and Housing Commit tee, passed by a vote of33227 the "Housing Authorizations Act of 1976"(H .R.l2945). The Senate and House bills are substantiallydifferent from one another and both bills will now go to aSenate-House Conference where an effort will be made tosecure agreement on a uniform bill which can be approvedby both houses. Observers expect that the conference "willbe long and acrimonious."

LOW-RENT PUBLIC HOUSINGThe Senate bill authorizes $696 million in new contractauthority for public housing. Of this amount, $200 millionwould go exclusively for traditional public housing, $465million for new construction or substantial rehabilitation ofeither Section 8 assisted or traditional public housing, and

$60 million a year for two years for public housingmodernization. Further sums are authorized for assistanceto FHA-insured projects in financial trouble and foroperating subsidies to local public housing authorities.

The House bill, as finally passed, merely authorizes $850million in new contract authority for public housing andSection 8. All specific allocations were killed, which meansthat the administration (HUD) could allocate this money asit pleases.

The administration obviously prefers the House versionand has reiterated its opposition to any resumption of theprevious program (in effect from 1936to 1973) under whichthe great bulk of our existing public housing was built. Inshort, HUD and the President want to continue the presentSection 8 program as the exclusive vehicle for providingnew and substantially rehabilitated low-rent multifamilyhousing. Many members of Congress feel that Section 8isn't working and that a return to direct funding for publichousing projects is the only way to get that programmoving again.

As for the proposed upping of federal funds for publichousing modernization in the Senate bill , HUD claims thatthe local authorities would no t be able to utilize the $60

9


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10 FEDERAL LEGISLATION ContinuedThe Section 235 program has, in the past, providedmortgage insurance which has enabled low-income innercity residents to buy their own one- and two-family homes.A great many 235 mortgages were the subject of wellpublicized scandals involving FHA employees, private realestate brokers and mortgage lenders. So much so that theprogram was virtually shut down as part of the Nixonhousing freeze in 1973. Section 235 mortgage insurance isnow becoming available again, so far on a limited bas is, andit has been restructured to reach moderate ($9-16,000)income rather than poor families. The House bill raises

current income limits which could make the program evenmore of a "moderate-to-middle" than a "low-income"housing program.

SECTION 518(b) REIMBURSEMENT FORHOUSING DEFECTSThis is an important protection for purchasers ofFHA-insured homes. The law permits owners to apply to

the federal government for reimbursement for seriousstructural defects present when they purchased their homes- defects which SHOULD have been found and required tobe corrected by FHA inspectors before the houses werepurchased. Under present law, the protection is availableonly to owners who purchased the ir homes between 1968and 1973. The Senate bill would cover houses insured after1973, including future FHA-insured sales . Ms. Hills claimsthat this would "add a new element to FHA insurance."The bill's proponents state that this would merely expandan already existing program and that, if FHA corrects theevils and corruption which pervaded its small homeinsurance program, there should be very few claims forhomes purchased in the future.

HOUSING FOR ELDERLY AND HANDICAPPEDBoth bills, although not identical, authorize sufficientfunds for di rect federal loans for approximately 100,000units of housing for elderly and handicapped persons.HUD's present plans call for only 15,000 units.

The Ford administration opposes this program, contending that funding for housing rehabilitation should comesolely from allocations of community development blockgrant funds. Ms. Hills notes that municipalities around thecountry have already targetted $230 million of such funds(9% of their total community development grants) forrehabilitation loans. She would limit 312 funds only to areasthat do not receive block grants.

Supporters of the program state that the demands onlocal levels for rehab loan funds far exceed what can bemade available from community development block grants.They also note that state constitutions in at least 24 stateslimit or prohibit communities from using block grant fundsfor rehab loans. (New York City, for example, contendsthat our state's constitution does not allow its communitydevelopment grant to be used fo r loans to owners of one- ortwo-family dwellings.)

Community housing groups will be well-advised tofollow closely the further developments in what may shapeup as another major battle between the Democratically-controlled Congress and the Republican Presidential administration. This controversy may well ' provide fuel for theup-coming Presidential election, although candidates ofboth parties have been conspicuously silent on housingissues thus far.

Another thought which comes to mind from thislegislation is that it suggests that Congress is not too happywith the results of the 1974 Community Development Act .There may be some strong hints of a desire to return tocategorical housing programs. The publ ic housing provisionsin the Senate bill and the sections 202 and 312 extensions inboth bills certainly point in that direction.

END


11/18

11Part 2GLOSSARY OF HOUSING TERMS

by Rober t Schur and Richard Zeitler

BINDER I. A written document. signed by a seller (orh s or her agent) and a buyer of real estate usuallyacknowledging the payment by the buyer of a sum ofmoney as a down payment on account of the purchaseprice of the property. It generally precedes the preparationand signing of a more formal and detailed contract of sale.Whether a binder is a binding contract which can beenforced in a court of law by one party against the other oris merely a receipt for a deposit, in which case the seller canback out of the deal by refunding the deposit to the buyerand the buyer can back out by forfeiting the deposit, isoften a tricky and difficult question . The general rule isthat if the binder mentions all of the essential terms of thedeal it is a contract; otherwise it is not.

2. In insurance, a written statement issued by theinsurance company, agent or broker, which makes thecoverage effective (whether or not the insured party paysany money) pending the issuance and delivery of the actualinsurance policy. If you are purchasing fire, liability orother insurance and you are given a binder by the companyagent or broker, be sure that it is signed and ~ h a t it specifiesthe location of the property, the kind and amount ofinsurance and the date on which the insurance becomeseffective.

BLOCK A portion of a city or urban area bounded by

members of an ethnic minority are buying or renting, orabout to buy or rent houses on the block. Sometimes a saleis first arranged to a minority family (the first sale beingmade by a white owner to the broker or a standin for thebroker who immediately resells to a minority purchaser).The idea is to panic the white owners into putting theirproperties up for sale, usually at lowerthannormal prices,which the broker buys and then resells, at a much higherprice to minority families.

BOILER INSURANCE see, "Insurance"BOND . A written instrument, signed by a borrower(called the "issuer" or "debtor" or "surety") whichcontains a promise to pay a sum of money at a future time

or upon the happening of a specified event. There aremany different kinds of bonds, issued for all kinds ofpurp.oses, which are common in real estate transactions.Some of the most common types of bonds are :- Mortgage Bonds issued by an owner of real property

to one who lends money to the owner. Such bonds areusually issued together with a mortgage (see def. "Mortgage") which secures the repayment of the amount borrowed.

- Public Bonds . issued by a government or a governmental agency (such as the United States, the State of New


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12- Performance Bonds - a bond guaranteeing that oneparty to a contract will perform a specified act or series ofacts which that party has agreed to perform_

- Bail Bonds - a bond guaranteeing to the governmentthat a defendant charged with the commission of a crimewill appear in court for trial.BROKER - One who, usually for a fee, arranges a sale ora lease or a mortgage of property _ The job of a brokerordinarily is to locate a buyer or tenant or lender for anowner of property who wants to sell or lease it or borrowmoney. A broker can also act for one who wants topurchase or rent property, or lend money, in which case thebroker' s job will be to find an owner of a suitable property

who wants to sell or lease or a lender desiring to make aloan.BUILDING AND LOAN ASSOCIATION - An organization (usually a corporation) consisting of members (wh.o aresometimes called shareholders) who deposit money (calledsavings) with the association, which in turn lends money toits members to help them purchase or improve homes or

other property. Members who borrow from the associationgive either mortgages on their property or deposit theirshares in the association, as security for the repayment oftheir loans. The association charges interest on the loans itmakes to members (usually at a higher rate than savingsbanks or savings and loan associations - to whom buildingand loan associations have a close resemblance). Profitsresulting from interest charges (less expenses and lossesfrom loans which are not repaid) are distributed tomembers as dividends.

BUILDING CODE - The compilation of laws whichregulate and establish standards of engineering, design andsafety for buildings which may be constructed. These lawsrelate to such things as the types of materials andequipment which mayor must be installed in buildings, therequired means of egress, sizes of rooms, sanitary facilities,locations of doors and windows, widths of halls andstairways, placement of lighting and electrical fixtures and

BUILDING LOAN - Also called a "construction" or"building improvement loan_" A temporary and usuallyshort-term loan to an owner of property given to providefunds for the erection of a building or for the improvementor rehabilitation of an existing building. It is usually madewith the expectation that, after construction is completed,the owner will obtain a longer-term (or "permanent") loanto replace the building loan. Building loans usually aresecured by mortgages on the real property and are oftenmade in stages, as the building construction or rehabilitation takes place. (See def. "Progress Payments") . Buildingloans normally are made at higher interest rates thanlong-term mortgage loans because of the risk that the ownermay not complete the work and because the security of anunfinished building is worth less than a completed structure.

BUILDING RESTRIC:rIONS - Limitations which restrict the freedom of a property owner to erect any kind ofbuilding on his land. They may be made in laws (see defs."Building Code" and "Zoning Ordinance") in deeds to theproperty , by agreement among adjoining owners or bydeclarations filed by a previous owner of the property withan appropriate public agency.There are a great many different kinds of building

restrictions, including those which limit the height, .widthor bulk of the building, its distance from the street or otherboundary line of the property (see def. "Building Line"),the type of style of architecture which may be used, thematerials from which the building must be constructed, thepurpose or purposes for which the building may be used, itscost, etc. , etc .

BULK REGULATIONS - Usually found in ZoningOrdinances (see def. "Zoning Ordinances"), restrictionsthat control the total mass or volume of a building thatmay be lawfully erected on a particular plot of land. Oneway of establishing and measuring the permissible bulk of abuilding is by fixing a maximum ratio of the total floor areaof the building to the area of the land on which it is to be


13/18

Government Housing 13ProgramsNEW YORK CITY'S ARTICLE a-A,MINI-LOAN PROGRAM EXPLAINED

by Robert SchurWith the long-awaited publication of the official Rulesand Regulations, the city's program of small loans forhousing rehabilitation (known as the Article 8-A orMini-loan Program) is at last about to get under way. Or

we should say, revived, for there once was, for a brief time,an actual mini-loan program, bu t it made few loans and wasquietly "impounded" when the present city administrationtook office.However we characterize it, the present program has $4million of community development block grant fundsappropriated to it and it would be well for housing peopleto understand its basic guidelines and procedures.

The program is authorized by Article 8-A of the NewYork State Private Housing Finance la w . It was originallyenacted in 1970, bu t was amended in 1974.Basically, the statute and the Regulations authorize NewYork City to make direct loans to owners of multipledwellings situated anywhere within the city limits, for thepurposes of eliminating any substandard or insanitaryconditions which violate the Multiple Dwelling la w or theHousing Maintenance Code, or to provide for I'8placementand rehabilitation of heating, plumbing, electrical andrelated systems as shall be reasonably necessary to prolongthe useful life of the building.loans are limited in amount to $3,000 per dwelling unit

APPLICATION AND PROCESSING PROCEDURESAny owner or anyone having a contract to purchase amultiple dwelling may apply for an Article 8-A loan_ Theprogram is administered by HDA's Office of Evaluation andCompliance, and applications are to be made on formsobtainable from that office, whose address is 2 lafayetteStreet, 3rd Floor, New York, New York 10007. The

application must be accompanied by:- A non-refundable filing fee of $75. If an applicationcovers two or more contiguous buildings, the fee is $75 for

the first building plus $50 for each additional building.- A sworn affidavit stating that. within the preceedingsix months, the owner attempted to obtain private financing for the proposed rehabilitation or improvement fromat least two lending institutions that 'normally provide this

type of financing, bu t was unsuccessful.Processing of loan applications will be handled by theOffice of Evaluation and Compliance, similar to the HDAprocedures for Article 8 loans. That is to say: OEC willreview scope of work, specifications and cost estimates aswell as the current and projected income and expenses of

the building. In general, the rehabilitation will have to bringthe building into "substantial" code compliance within oneyear after the date for commencement of payment of debtservice. Thus, the scope of work for which the loan isapplied will no t have to correct all violations, bu t whereviolations will remain after the work is completed, theborrower will have to provide a program for their totalremoval within a year thereafter.


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14ARTICLE 8-A Continued

TENANTS' INTERESTS, RENT CONTROL,RENT RESTRUCTURING AND MANAGEMENT

The Regulations contain several provIsions to insuretenant involvement and utilization of the building for "lowincome" families.

Every applicant -for an Article 8-A loan will be requiredto notify the tenants, in writing, of the proposed rehabilitation or improvement and to hold at least one meeting withthe tenants " or their representatives." OEC is also requiredto determine "that there is not substantial reasonableobjection by the tenants to any new rents to be established" as a result of the loan.

Apartments within the building will not have their rentcontrol status affected by the loan. They will remain underthe same status as being rent controlled or rent stabilized asthey had before the loan is made.

Rents may be "restructured," however, in order toassure economic viability of the building after the rehabilitation is completed and debt services commences. Rentrestructuring will be in accordance with recently publishedRules and Regulations of the Office of Rent Control. (Inour next issue August-September, 1976 - we shall describethe city's rent restructuring regulations to be used inconnection with Article 8 and 8A rehabilitation loans.) Ingeneral, any rent increases will become effective aftercompletion of the work and when payment of debt servicebegins. As a further condition for a loan, owners will haveto covenant in writing to make vacant apartments availablesolely for "persons or families of low income," which theRegulations defines as persons paying rentals not in excessof the average city Mitchell-Lama rentals. Removal oftenants in occupancy is prohibited, except "temporarilyduring the course of construction ."

OEC may also require submission of a satisfactorybuilding management plan as a prerequisite for making anArticle 8-A loan.

INCONSISTENCY OF THE REGULATIONS WITHCITY'S COMMUNITY DEVELOPMENT PLANAs a final comment, and without casting aspersions onOEC, which designed the Regulations, it should be noted

that the Regulations themselves purport to make theArticle 8-A loan program available on a city-wide basis.Indeed, it is probable, especially where tenant selfhelp is tobe involved, that 8-A loans can prove to be excellentfinancing devices for buildings such as those acquired via"direct sales" from the city or otherwise, by their tenantsor by a local community group. And these building will ofcourse tend to be situated in the lowest income neighborhoods of the city.

How does this analysis square with the city's statementin its Second Year Community Development Plan that the8-A program "will operate primarily in transitional areas,where private ownership is viable, where the tenants canafford to pay economic rents and where private financing isnot available,"? And why are both the Regulations and theCommunity Development Plan silent on the use of Section8 existing housing subsidies where needed in connectionwith Article 8A rehabilitation loans?

The resolution of these issues by OEC and the higherechelons of HDA may provide important clues as towhether this, on the whole well-conceived, Mini-LoanProgram will be pu t to the service of truly low-incomeresidents or whether it will be perverted to the service of a"neighborhood shrinkage" or "triage" philosophy.

Ed _Note: For statutory authority, see New York StatePrivate Housing Finance Law, Article a-A (McKinney's,Consolidated Laws of New York, volume 41.) The MiniLoan Regulations were published in the City Record onMay 13, 1976_ For copies, as well as application forms andother information, contact HDA, Office of Evaluation and


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MVD'C .ContinuedRehabilitation

MVDC's first rehabilitation project, 63-65-67 West107th Street, was completed in 1973. The 57-unit projectincludes three new-law buildings that were moderatelyrenovated with tenants in occupancy. The project wasfinanced with a $538,000 Municipal Loan and federal rentsupplements were secured for the entire project. Thehousing is owned by the 63-65-67 Tenants CorpOrationwhich has 15 80ard members, nine elected by the tenantsand six appointed by MVDC. The Corporation has established an excellent track record including the payment ofmonthly debt service on the mortgage to the City in theamount of $3,530.68 per month.

MVDC's second rehabilitation project (a cooperativeconversion), started in April, 1975, and was financed with aMunicipal Loan for S258,26 3. It was completed in February, 1976. The project consists of two old-law tenementslocated at 931-933 Columbus Avenue. The properties werevacant and burned-out City -owned buildings. They wererehabilitated into 16 beautiful apartments. Seed money forthe project was secured from Morningside Heights institut ions in the amount of $6,800. Local labor was trained onthe job and the services of local sub-contractors weresecured. MVDC sponsored the project and was the firstcommunity operated organization in the City to receive asponsor's fee under the Municipal Loan Program fordevelopment services.

The third rehabilitation project of MVDC (the secondcoop conversion) will be developed at 927 ColumbusAvenue under a program devised by the Criminal JusticeCoordinating Council, HDA, and the Association of Neighborhood Housing Developers, Inc. Ex-offenders will betrained on the job, their wages paid by CJCC. A MunicipalLoan for $185,716 will cover the cost of constructionmaterials, archi tectural fees, building acquisition and supervision_ Seed money willi be forthcoming from the Consumer-Farmer Foundation. Construction is to begin immediately after a loan closing tentatively scheduled for

15New Housing

In 1971 the City acquired the Manhattan Day School onManhattan Avenue between West l04th Street and West105th Street_ The site was vacated in June, 1972 and thecommunity went through a prolonged and successfulstruggle, in and ou t of court, against some real estatespeculators who tried to prevent the demolition for the fearthat a Public Housing project, for which the site wasdesignated, would devalue their nearby properties. Architects were hired and,with full community participation, amost attractive and unique low-rise L-shaped design evolvedthat was geared to blend in with the surrounding neighborhood. The housing is to consist of 175 low-income units anda daycare center for 100 children. Additional communityfacilities and park ing space will also be included. The designis completed, the site is clear and ready to go. However, thisdesperately needed housing is held up because of lack offunds. It is presently utilized as a Peoples' Park with abasketball court and a children's playground. MVDC effortscontinue for the development of this site for low-renthousing. Housing Services/Management

MVDC works closely with the City's Office of Evaluation and Compliance. Tenants are assisted in compiling listsof complaints which are then validated by a city codeinspector. When appropriate, the landlord or agent isbrought to Housing Court, and the tenants, with MVDCassistance, attempt to negotiate for improved services andrepairs in the buildings. MVDC is currently working inapproximately 10 buildings on this basis. For three buildings, 153-161 Manhattan Avenue (72 units) and possiblyseveral others, a Receivership management contract is beingnegotiated with the Office of Evaluation and Compliance.MVDC is also working with individual tenants_ Tenantsare being assisted in eviction problems as well as generalproblems of inadequate repairs and services. MVDC alsohelps to relocate tenants in emergency cases into MVDC


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16MVDC Continued

Community ServicesMVDC is active in a wide range of communitv. servicesand activities, including:- supporting the initial efforts of the 948 ColumbusAvenue Sweat Equity group for the rehabilitation of thebuilding which is now a completed project.- supervising 30 youth corps workers on various

community projects (including the Peoples' Park and acommunitybuilt vest pocket park on Manhattan Avenueand West 106th Street) during the summer months.

- providing 160 free lunches each day during thesummer.- organizing informal workshops and exhibits on community involvement in planning and neighborhood develop

ment.- preventing, with active backing of Community Board

No_ 7, th e auction sales of several buildings in ManhattanValley which are part of community development plans.- organizing a seal-up campaign of vacant buildingswhich are a hazard to the community residents, especiallychildren.- conducting a serious effort to convince the Sanitation

Department to provide some of the now little-used Dempsey Dumpsters to be placed in the most strategic places toaid th e residents with keeping the sidewalks and streets freeof garbage, especially in front of abandoned and vacantbuildings .

URBAN PIONEERS Continued

take-off of the nation's most depressed communities. Forthese communities the past few years have not been arecession, but rather a sustained and ravaging depressionwhere wage and price controls meant no wages and highprices. "Sweat Equity" and a full employment programtranslate into more than a decent home and a decent job,but extends the promise of equality of opportunity uponwhich ou r democratic tradition is based, and against whichit shall always be measured.

PDC's rehabilitation program truly resembles an oldfashioned barn-raising, where neighbors and friends jointogether to bring something new into the community andto push the hostile wilderness back a little further.

Among the many who have assisted and supported itsefforts, PDC singles ou t for special mention Bronx BoroughPresident Robert Abrams, Manhattan Borough PresidentPercy Sutton and Congressperson Herman Badillo of the21st District (Bronx). each of whom has helped PDC toovercome the many obstacles to the achievement of thistruly innovative and daring p-oject_

The officers of PDC who have played leading roles in itsprogram development are : George Rodriguez, Chairperson;David Fonsica, Vice-01airperson; Ramon Rueda , ExecutiveDirector; Joe Cruz, Project Director for 1186 WashingtonAvenue; Patria Rodriguez, Communications Officer; Mi-chael Garrison, Summer Program Coordinator; and ProjectCoordinators Victor Merced (Mini-Block Plan) , RobertRios, Danny Soto, Jerry Gonzalez and Eladio Velez.

END


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YOUR ADCOULD BE

HERE

call 674-7610

17

JAMES A. FENNIMAN1 10 FULTON STRE ET

NE W YOR I< . N Y 10 03 821 2 . 26 7 8080

A MINORITY OWNED BUSINESS SERVING NEW YORK CITY


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" ;,""'"~ " Z W " " ._ -........._--cy. $ 4 """'4__-"_'. L

Association of NeighborhoodHousing Developers Inc.29 E 22nd Street N _ York, N.Y. 10010

r Parodneck .Consumer Farmer F o u n d a t i o ~ 101 East 15th St r ee t tNew York, NY 10003 "t J

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city limits magazine, june/july 1976 issue

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