WVTF   Newsletter

 November  2013

•  PRIVATIZATION UPDATE

As you are probably aware, over the past 18 months Westview Taskforce has been intensively involved in discussions related to the proposed exit from the Mitchel Lama (ML) program. Our focus has been on a seamless transition to affordable co-op while protecting rents and funding building repair needs.

The fact that Westview's Ownership structure is different than Island House (IH) plus some internal conflicts and rift among Westview's shareholders themselves has not make this process an easy one. We have made significant progress on some issues but a number of other important matters are still outstanding.

For example: Just a few months ago the WV Owners shifted their position on the level of the initial rent increase they wish to implement.  While at IH, the Owners were authorized by DHCR to increase rents by 5% initially,  for WV Owners suddenly proposed a double digit initial rent hike upon exiting from Mitchel-Lama. 

We immediately notified the state agency overseeing this process, DHCR, now known as HCR, and in July HCR Assistant Commissioner McCurnin sponsored a three-way meeting  at his office with Owners, WTI and our attorneys present. In addition to the rent increase issue, there were 2 other remaining matters were also discussed - removing conversion uncertainties and reducing the proposed new mortgage to a level consistent with affordable maintenance, as was the case at IH. At the conclusion of the meeting the Owners promised to follow up with our attorneys within 2 weeks but failed to do so. Instead, we recently learned that the Owners have shifted their position on rents again, and now wish to implement an astounding 21% initial rent hike.

It is important to understand that the circumstances related to the ML exit, especially here on Roosevelt Island, are complex and heavily regulated by virtue of the ML own regulations, the existence of affordability restrictions in the General Development Plan (GDP), and short term of the current ground lease (controlled by RIOC). The Taskforce, through our attorneys, have asserted out rights for seamless transition and preservation of affordable housing at WV on a number of occasions. The Owners simply cannot unilaterally do whatever they want.

We met again with Mr. McCurnin at HCR this month and communicated our concerns for the continued delays on the part of the Owners and their shifting positions on rents. Mr.MCurnin promised to sponsor another meeting with the Owners soon in an effort to resolve all outstanding issues.

Because state agencies are involved, we are also seeking help from our elected representatives.

Despite the existence of these outstanding matters and delays, we believe a resolution consistent with our objectives, NYS objectives, and the Owner's objectives is within reach. Westview residents have invested significant resources over the past 12 years to protect our homes, and we are committed to gettinf the job done.