MCI Agreement Reached

http://www.stpcvta.org/ta/post/stuyvesant-town-peter-cooper-cw-capital-settle-millions-mcis

ST/PCV Tenants Association and CWCapital Negotiate Settlement of MCI Orders, Saving Tenants Money

The Stuyvesant Town–Peter Cooper Village Tenants Association and CWCapital reached an agreement that settles the dispute over the five Major Capital Improvements (“MCIs”) applied for by former owner Tishman Speyer in 2009. Today, DHCR issued an Order confirming the agreement. This settlement will significantly reduce the impact of the recently approved MCIs for tenants. Specifically, it eliminates 100% of retroactive charges for current tenants and reduces each tenant’s payable monthly increase. Specific details of the agreement are summarized below. The settlement marks the second time that the terms of a Stuyvesant Town or Peter Cooper Village MCI have been modified through negotiated settlement.

“The Tenants Association appreciates having been able to negotiate these issues amicably with CWCapital,” said TA Chair Susan Steinberg. “Residents have been saved a great deal of money in retroactive costs, which have been completely eliminated, and some relief in the MCI rent additions. Notably, the negotiations saved months of time and lots of money in legal filings and responses. The best news is that the outcome is at least as favorable to tenants as any we could have won the harder way.”

“We are very pleased to have worked with the Tenants Association to reach a settlement,” said Andrew MacArthur, Managing Director of CWCapital Asset Management. “We have worked closely with the TA to reach an agreement that mitigates the impact of the increases for our residents and brings finality to this dispute.”

The five MCI Orders cover: video intercoms, security system, video command center, water tanks/valves, and repaving of the walkways. Two of the Orders impact residents in Peter Cooper Village and three of them impact Stuyvesant Town residents. This agreement eliminates lengthy and expensive administrative and legal challenges and brings tenants financial relief and finality to the proceedings

As with the recent successful Tenants Association/CWCapital settlement relating to service reductions, DHCR hosted and assisted in the negotiations between the ST/PCV-TA and CW.   Both sides are thankful for DHCR’s assistance in achieving a settlement.

While all residents benefit from this agreement, specific benefits are individually calculated.   Below is a summary of the agreement that will help individual residents estimate their benefit.   These terms represent a general summary of the agreement and are not inclusive of every detail included in the agreement.   We have tried to be accurate in providing this summary, however if there are any inconsistencies between this summary and the agreement, the terms of the agreement prevail.  Residents should read the agreement in its entirety (which DHCR will mail together with the Reconsideration Orders) to understand its full impact and should consult the TA to address specific questions.

General Terms:
●      All current residents are included in this settlement except those who moved in after the Orders were issued (approximately October 2013).
●      The Settlement is retroactive to January 1, 2014.
●      Credits noted below will begin to appear on the May rent bill.
●      In May, a retroactive credit will be added to the rent bill. This credit will include the benefit amount for January, February, March, and April.
●      The retroactive and permanent increase amounts noted below are all clearly stated in the MCI Orders that residents received in the mail. This number is different for all residents and depends on many factors including: building, unit size and move-in date.
●      If a resident cannot find his/her Order, that resident is advised to call DHCR at 1-800-ASK-DHCR (1-800-275-3427) to request a duplicate copy.
Benefits for Non-Roberts Tenants Paying Full Legal Rent:
●      100% of retroactive charge is waived.
●      5% of the permanent MCI will be credited for the duration of each resident’s tenancy.
●      This group includes tenants who are paying full legal rent other than the Electrical Upgrade MCI under the Opt-In/Opt-Out program previously approved by DHCR.

Benefits for Non-Roberts Tenants Paying Less Than Full Legal Rent:
●      100% of retroactive charge is waived.
●      100% of the permanent MCI will be credited for the duration of each resident’s tenancy.
Benefits for SCRIE/DRIE Residents:
●      SCRIE/DRIE residents will not be responsible for either the retroactive increase or the permanent increase.
●      PCVST management has already filed the appropriate paperwork with the NYC Department of Finance (“DOF”).
●      DOF is in process of processing all of the required adjustments.
●      The MCI increases may appear on rent bills until DOF completes its work. At that time, PCVST will make all appropriate adjustments to ensure that SCRIE/DRIE residents are not charged.

Benefits for Roberts Residents:
●      100% of retroactive charge is waived.
●      5% of the permanent MCI will be credited for Roberts residents paying the full Legal Rent.
●      50% of the permanent MCI will be credited for Roberts residents paying either the maximum Modified Legal Rent or the maximum Roberts Preferential Rent. These two terms are defined in the Roberts Settlement.
●      100% of the permanent MCI will be credited for Roberts tenants paying less than the Modified Legal Rent or Roberts Preferential Rent noted above.
●      All of these credits will continue for the duration of each resident’s tenancy.
●      A hotline has been set up for Roberts tenants to find out which category applies. This hotline will continue to operate for 30 days. Roberts residents should call (212) 420-4940.

VERY IMPORTANT:
The agreement requires the Tenants Association to use good faith efforts to prevent the filing of individual Petitions For Administrative Review (PARs), which directly or indirectly challenge the settlement. Such PAR could result in the agreement being nullified in the sole discretion of the owner. Nullification would result in forced repayment of the retroactive charges and any waived portion of the permanent charges by all tenants who benefited from the agreement. The possibility of nullification by the owner due to an ill-advised PAR is a very serious concern to the Tenants Association.

There are two types of "ministerial errors" which may be corrected by filing a PAR that will not jeopardize the agreement:

1. The MCI order you receive has an inaccurate room count. An inflated room count may result in unwarranted additional charges. Such problems are rare, however, and usually concern misunderstandings about what is considered a room. Note that what constitutes a "room" has a specific definition which can be found in DHCR Policy Statement 93-2 located online at www.nyshcr.org/Rent/PolicyStatements/orap932.pdf.
2. Tenants may be exempted permanently or for a limited time from the MCI charges if they:
a) moved in after DHCR served notice of the pending MCI applications (served in 2008 and 2009); and
b) never received notice of the pending MCI application in their initial lease or a lease rider, or do not have a clause in their lease allowing such increases on renewal; and
c) are not covered by the settlement in Roberts etal. v. Tishman Speyer.

Note that even if you are exempt from the charges because of a lack of notice in your initial lease, charges may be added on renewal if your lease contains appropriate language allowing the addition of MCIs to your rent. You may have an MCI Rider or a Rent Increase and Eligibility Rider attached to your lease — or a similar rider — which clarifies this. Your lease may simply state something like "The rent established in this lease may be increased or decreased by an order of the DHCR or the Rent Guidelines Board." According to DHCR policy, that is sufficient to allow the owner to add the MCI increase mid-lease after the first renewal.

Management has set up a hotline to resolve such problems at (212) 614-5805. If you checked the DHCR definition of rooms and believe there is an error in your room count; or, if you meet the criteria described in 2 above and have checked your lease and find no notice of pending MCI increases, you should PROMPTLY call the management hotline to resolve those issues.

If you are unable to obtain a resolution through management, please notify us as soon as possible, either by calling the TA message center at (866) 290-9036 or by emailing the TA using the Contact Form at stpcvta.org.  We will provide the information and forms you need to file individual PARs to ensure you are protected against unwarranted MCI increases.

Remember that PARs must be filed within 35 days of the date on the DHCR order.

This is it: THE FUTURE OF STUYVESANT TOWN & PETER COOPER VILLAGE

Read this carefully if you want to know what the future holds for us. Note the amazing similarities between our complex and Parkmerced in San Francisco. This blog has already predicted such a change, as recently as yesterday in the comments section. On occasion, I've been privately contacted by someone in Parkmerced who has followed the events in PCVST and has noted the similarities to Parkmerced, too.

Given the outrageous value of the expansive land here at PCVST, given the gluttony of greedy real estate and their influence over local politicians, this WILL HAPPEN. Parkmerced is the template now. The only thing that will stop this is a severe economic downturn, which some are predicting is a possibility. Otherwise....

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http://www.sfgate.com/bayarea/article/Parkmerced-transformation-wins-approval-2370555.php#ixzz1NNmO8fDr

By Will Kane, Chronicle Staff Writer

The San Francisco Board of Supervisors gave the go-ahead Tuesday to a $1.2 billion plan to transform the sprawling Parkmerced area from a car-centric neighborhood to a state-of-the-art sustainable neighborhood. In a 6-5 split, the board voted to replace 1,500 rent-controlled town homes with 7,200 new energy-efficient units over the next 20 to 30 years.

When the project, which currently houses about 8,000 residents, is completed in 2040, an additional 14,000 people will be living in the 152-acre neighborhood, originally built in the 1940s as a suburban outpost in San Francisco. Units where rents are currently controlled will stay that way, but new ones will be rented or sold at market rate. The rebuilt Parkmerced will have a maximum of 3,200 rent-controlled units, the same number it has today.

The new neighborhood will have a school, easy access to transit, and stores within walking distance of homes designed to save water and power, a dramatic change from the expansive lawns and wide streets now found in Parkmerced. All existing garden apartments will be demolished, while the 11 landmark towers will remain.

The vote followed loose ideological lines, with progressive Supervisors David Campos, John Avalos, Ross Mirkarimi and Eric Mar opposing the project. Supervisor Jane Kim also voted against the plan, which, following standard procedure, will be up for what's expected to be routine final approval in two weeks.

Supervisor Sean Elsbernd, whose district includes the Parkmerced complex, said the proposal by developer Stellar Management would improve San Francisco.

"Today is a big day for the city of San Francisco and for the region," he said before the vote. "This is a regional project."

Some residents and tenant groups vociferously opposed the project, arguing that it is a modern-day land grab by a developer hoping to evict tenants and eliminate rent control at the complex.

They promised to fight the board's approval of the project in court or at the ballot box, using the city's voter-initiative process to overturn the board's decision.

"I think it is wrong to demolish 1,538 people's homes," said Mitchell Omerberg, a tenant activist. "Every time we've done that in this city, we've regretted it."

Some supervisors worried that the development agreement, which outlines rent-control guarantees and the details of the project, isn't strong enough to protect renters, despite assurances from the city that it is.

"There are times when going as far as possible is simply not enough, because the law is in such a state that there is still a degree of uncertainty," Campos said.

Hoping to make the agreement stronger, Supervisor David Chiu introduced 14 pages of amendments Tuesday morning that, among other things, give tenants the right to sue if the developer reneges on promises and guaranteed money if rent control is eliminated.

PJ Johnston, spokesman for the developer, said supervisors had no reason to think the developers will not keep their promises.

"We're very heartened by the wisdom and courage of the supervisors who voted for the project," he said in a statement. "We're also mindful of the legitimate concerns of those who voted against it. We intend to live up to the best intentions of all 11 supervisors and to continue to earn the trust of our residents."

But Parkmerced residents at the hearing said they have no faith that the developer or the city has their best interests at heart.

"I think this is a travesty," said Michael Russom, a Parkmerced resident. "There's no guarantee that we're protected."

Early in the meeting, Cathy Lentz, a resident of Parkmerced, had to be dragged out of the board chambers by sheriff's deputies after she began yelling at supervisors.

As three deputies held her outside of the meeting room, her eyes filled with tears.

"I've lived there 50 years," she wailed. "What are they doing?"

Lentz, 60, was escorted out of the building and not arrested, said Eileen Hirst, a Sheriff's Department spokeswoman.

Elsbernd said that while he appreciated the concerns of Parkmerced residents, they weren't considering what would happen if the project was not approved and the 1940s-era development continued to slip into disrepair.

"We talk about what the risk is to the tenants if the project moves forward," he said. "What about the risks to the tenants if the project does not?"

Rents could increase to fund maintenance and residents could be evicted so chunks of the land could be turned into student housing for neighboring San Francisco State University, he said. While the current proposal requires some upheaval, it is better than doing nothing, he said.

Craig Hartman, an architect with Skidmore, Owings and Merrill who designed the new Parkmerced neighborhood, said many other cities would model their new developments after Parkmerced.

"What I really hope for is a neighborhood that will be really, truly of San Francisco," he said. "It is an example of what can be done to make new, intelligent forms of human settlement."

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STR here:  Yes, I've noted "residents could be evicted so chunks of the land could be turned into student housing for neighboring San Francisco State University."  Just replace SFSU with NYU. Voila!

Find out more about Parkmerced, and see more similarities (Met Life built the place, too) at the Wikipedia entry for that complex:

http://en.wikipedia.org/wiki/Parkmerced,_San_Francisco

And read what this blog said over a year ago about the future of this complex:

http://stuytownreport.blogspot.com/2013/01/the-future-of-stuy-town-and-peter.html

Preview of "We Live in the Projects" -- The Falling Apart Tour

Today was a nice day to take a tour of parts of Stuy Town....  And some of the parts are falling apart.

(Click on photos to make them larger.)

 

PCVST: 5,000 Additional Tenants!

Someone over at the management office let out the numbers. In a recruitment search for a "Tenant Liaison" position, PCVST management wrote that the complex now houses "a residential population estimated at 30,000."  While the exact numbers have always been vague, the Wikipedia page on Stuy Town and Peter Cooper Village approximates "over 25,000" residents, which is the number I'm familiar with. Yes, 30,000 is over that amount, but in approximations one would expect a possibility of, at most, a thousand or so more, but not five thousand, otherwise the notation would mention 30,000 and not 25,000. Even more bizarre, Realtor.com gives the number of residents at 20,630!

Whatever the exact numbers, it comes as no surprise to anyone living here that we've seen a population growth, with, chiefly, students who tend to occupy apartments with three or more bodies to an apartment. Such a population growth strains the resources of PCVST where maintenance can never catch up, and everyone's quality of life is lessened. It should be noted that it's illegal for there to be more than three unrelated tenants living in a single apartment.

More BS from "Team PCVST"

What do you do if you're management when services decline in PCVST?  You push residents to sign up for Oval Amenities to take care of their needs!

As posted on the TA Facebook page, United Parcel Service will not be leaving packages in certain buildings based on the amount of thefts that have been occurring in these buildings. Now, one would think that the high-tech, award-winning security system we have, with thousands of HD cameras all over the complex and inside, and for which we are paying a MCI, could help to solve these thefts, but no, that's not going to happen. So the solution? Have your packages delivered to Oval Concierge!  (Don't even ask: Of course, there is a charge.)

Almost immediately following this news came other news, this time on the STPC Tenants' Facebook, that Oval Cafe will be temporarily closing to reopen with an expanded menu and... new seating.  Yes, that means the cafe's Kids Korner will be gone. Now, you Stuy Town moms may be upset about this (I don't know why because "Team PCVST"  says they got feedback from you and others on how to make Oval Cafe better), but the solution is obvious: Hasten yourselves and your little ones over to Oval Kids! (Don't even ask: Of course, there is a charge.)

Regarding Oval Cafe, it's obvious that the place is not making money: The seating is usually taken over by students, who just sit there with one cup of coffee and do their hours of studying, and moms with their children, who use the place as a chill-out center. It's not that, as "Team PCVST" states, feedback was solicited of the "community" on how to make Oval Cafe better, but that, to survive financially, the cafe has to make room for more bodies and a higher turn-over rate. (I wouldn't be surprised to see a time-limit in place eventually for studying at the cafe unless more items are bought.)  Oval Cafe also has to push high-priced items and, yes, the sale of alcohol, which I'm sure is still being planned. Make way, kids, for the booze!

Preview of Forthcoming Post -- "We Live in the Projects"

Photos taken today, by the 20th St Loop, in preparation for a major post on PCVST and its kinship to "the projects." I didn't even have to search for what's below. I pass it by almost daily. Click on photos to make them bigger.

Below, on the right, you will see a wavy and damaged railing, with a pathetic attempt to fix it. On the left, the railing is completely missing, and there's poor cement work in the foreground--I guess another attempt at a "fix."

Below: The steps walkway on that side. The concrete at the corner is severely chipped, with missing chunks. Do note the dog crap on the bottom left corner, and, if you can spot it, two turds by the first post. There were more dog turds and smears on the way up.

If you saw something like this when walking through the projects on the Lower East Side, you'd think slum.

Such disrepair is seen day after day and becomes the new "new."  Soon we ignore it and don't realize how much has really changed.

Brookfield...and Another Property in Manhattan

To remind you, Brookfield has partnered with the TA to acquire, if possible, PCVST.

http://therealdeal.com/blog/2014/03/05/brookfield-eyes-stake-in-1b-manhattan-portfolio-sources/

Pack of Dogs Being Walked Casually Around Stuy Town

I wish I had my camera with me this morning. What happened just goes to show how effective are those 1,200 HD security cameras and their human monitors....

I'm going along the back "M" area of the 20th Street ST buildings, on my way to Lenz's. Coming up toward me is an unbelievable, eye-glazing sight. A guy is walking a pack of dogs (five or six), two of which, at least, are banned dogs here in Stuy Town: a pit-bull and a German shepherd. We pass each other by, with me being very careful not to make any sudden movements and wondering if I should go back to the apartment to pick up my camera. I've seen banned dogs in Stuy Town before (and with a frequency that is dismaying), but this is the first time I see them in a pack. I decide against retrieving my camera, as I have other things to do.

With my Lenz's coffee in hand, I go to the Oval. It's not raining anymore, and there's a freshness in the air that is transfixing. I figure this dog walker is just traversing the back area of Stuy Town and will soon be out. Of course, any number of those 1,200 HD cameras would have seen him, and his pack of dogs, very easily. That is if someone were watching and attentive, and if there are no-nonsense rules of engagement with banned breeds in the complex.

So, I'm at the Oval--and then the guy and his pack of dogs turn up! Taking a walk around the Oval!

I now really regret not having my camera with me, but it still will be interesting, I say to myself, to see what happens, and if he will be stopped by Public Safety. A Public Safety vehicle approaches him and his dogs...and passes by.  He takes a full tour of the Oval, passing by the brand new hi-tech Public Safety office. Nothing. He starts a new tour of the Oval. Residents are turning their heads, curious as to why this guy and his pack of dogs are strolling so casually about the Oval walkway. And you can see the stifled alarm in the faces of resident dog-walkers who are taking their little pooches for a walk. No contest if there is a dog fight.

The guy now passes the small security booth, which before was empty, but toward which are walking TWO Public Safety "officers," looking more like schlubs and not the usual crew we are familiar with. The guy and his dogs pass by these "officers"--and not a word from these PS personnel.

So, the 2nd tour of the Oval proceeds. The guy and his dogs are, once again, heading past the new Public Safety office. But now there is an officer out in front, and finally, finally, the officer confronts the dog walker.

Why wasn't this guy and his pack of dogs stopped before? Why was he allowed to stroll about the back ways of Stuy Town and then around the Oval in front of various Public Safety officers with impunity?

A thank you to the officer who finally did stop him.