Senator Tom Duane and Assemblymember Brian Kavanagh joined Senator Schumer in participating in the event.
Brookfield representative Jonathan Moore, Tenants Association professional advisors Meredith Kane and Alex Rubin, and elected officials were on hand to answer nearly 25 tenant questions during the 1hr 15 minute town hall. Tenants submitted questions online during the registration process as well as posed them live during the event.
The Tele-Town Hall was sponsored by the entire Tenant Association Board of Directors. On hand to facilitate the event were Tenant Association President Al Doyle, Executive Vice President Susan Steinberg and board members John Sheehy and Jennifer Kops. Other board members monitored the call from their homes and from as far away as California.
“The fact that over two thousand of our neighbors joined the town hall indicates the tremendous level of interest and excitement in our plan to take control of our own future, protect current residents and ensure that Stuyvesant Town and Peter Cooper Village remains affordable to middle class families for the long haul,” said Alvin Doyle, President of the Stuyvesant Town-Peter Cooper Village Tenants Association. “Over the next several months as we put together our bid, we will continue to provide opportunities for tenants to get more information, offer input and get involved in this historic process.”
In addition to the elected officials who participated, the town hall was co-sponsored by Senator Kirsten Gillibrand, Congresswoman Carolyn Maloney and Borough President Scott Stringer.
Background:
This November, the TA announced an agreement with Brookfield to develop a bid over the coming months to submit to CW Capital – the special servicer that represents senior bondholders. The bid would allow tenants who wish to buy their apartments at reasonable rates while offering protection from harassment or eviction to those who wish to remain as rent-stabilized renters. The proposal would also aim to create a set of permanently affordable rental units with help from government sources, improve maintenance and upkeep across the development, and preserve the community’s existing open space.
]]>The reversal came in response to the Tenants Association’s December 1, 2011 predicate notice sent to Rose Associates by the TA’s Counsel, Tim Collins of Collins, Dobkin & Miller charging that the implementation of an $8.00 per card charge was a reduction in service under the Rent Stabilization Code. News of management’s reversal came in a letter to Mr. Collins, dated December 14, 2011, from management’s General Counsel.
]]>This has been an exciting week for all of us as we begin to put together a bid to CW Capital to protect the long term stability and affordability of Stuyvesant Town and Peter Cooper Village. We feel confident that our partnership with Brookfield will give us the ability to deliver a plan that is both commercially viable and also satisfies our goals.
You may have received a letter recently from Guterman-Westwood Partners LLC describing an alternative partnership with tenants to bid for Stuyvesant Town and Peter Cooper Village. It is important that our community have the facts, and that is why I am sending this follow-up letter.
During this extensive process, we met with the representatives of Guterman-Westwood, as well as with dozens of other potential partners. After consulting with our advisors from Paul Weiss and Moelis & Company, we decided to select Brookfield Asset Management over all the others because they have both the credibility in the real estate market and the commitment and ability to live up to the principles and goals of the Tenants Association. Those goals are clear: to allow residents the choice to either purchase their apartment at an affordable price or to stay on as rent-stabilized tenants; to improve the maintenance and upkeep of our community; to prevent new development on open space, and to ensure that the middle-class character of Stuyvesant Town and Peter Cooper Village continues for the next generation.
There are some important facts about the Guterman-Westwood proposal that the T.A. and our Advisors find worrisome and that our community needs to consider.
1) Financial Commitment- Guterman-Westwood has outlined a “pricing plan” for tenants to purchase their apartments. We are concerned with the plan’s ability to raise the amount of capital needed to purchase the property from CW Capital. It is critical that any bid put forward by Tenants have the capability to engage CW Capital.
2) Short-Term Partner – When we began this process, the TA committed to finding a long-term partner to help our community buy the property – and then to stick around to help us improve it. Guterman-Westwood has made it clear that they would convert the property and have no continuing involvement
3) Converting to a co-op, instead of a condominium. Guterman-Westwood’s proposal calls for converting Stuyvesant Town-Peter Cooper Village into a cooperative. After careful review of this issue, we believe, along with our professional advisors, that a co-op conversion could present problems. For example, a co-op would mean a common tax lot and a master mortgage, increasing the chance of systemic financial distress that could impact every resident in the community. The risk of such financial headaches could make it difficult for residents to find lenders willing to help them buy their apartments during the conversion process. In addition, the costs of repaying a property-wide “master” mortgage would mean higher monthly maintenance charges for residents. A condominium conversion would avoid all of these challenges, allow for more flexibility when we choose our community’s governance structure, and allow us to target property tax abatements directly to rental or “affordable” apartments on a unit-by-unit basis.
We are now at the beginning of what will be a long process of listening to our neighbors, gathering feedback and input, and preparing to put forward a tenant-led bid that will put us in charge of the future of our community. I want to thank the volunteers of the Tenants Association whose work has been critical to our effort, and the thousands of Stuyvesant Town and Peter Cooper residents who have offered their support and ideas throughout this process.
I hope that you will continue to stay informed and involved as we move forward. For more information, please visit our website at www.ProtectSTPCV.org, or feel free to call us at (646) 403-9747.
Sincerely,
Alvin Doyle
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An agreement that will permit tenants who have used the trunk storage service in the past to continue to use it with some limitations will be issued and implemented just after the holidays in early January.
Management has assured us that during this holiday period those tenants who have retrieved items from storage starting in July may return their items to storage, and those who need to access seasonal and holiday items may indeed retrieve and put items back into trunk storage during this time.
Management has asked that tenants consolidate their items wherever possible so that management may continue to remediate and consolidate trunk rooms and deal with abandoned trunks.
Should you call to restore trunks and management representatives provide information inconsistent with the above, please alert us immediately.
In a letter from the Tenants Association Counsel Tim Collins to Rose Associates, the Tenants Association challenged the recent change in management’s policy regarding the implementation of an $8 per card charge for card keys used for guests and employees.
Prior to this recent change in policy, the 2005 DHCR Rent Administrator’s decision allowed management to transition from the old key access system to the current card key system premised on a guarantee that that the first four key cards for guests and employees would be supplied without charge.
As set forth in the letter, the Tenant’s Association believes that the implementation of the new $8 per card charge constitutes a rent overcharge and/or a reduction in services.
The Tenants Association has called on management to reverse the new policy and restore the approved practice of only charging for keycards after the tenant has received four cards for their guests and employees without charge.
A copy of the letter can be found here.
]]>Dear Neighbor:
I wish to share with you some exciting and important news. Today the Tenants Association reached an agreement to work with Brookfield Asset Management to put together a bid to buy Stuyvesant Town and Peter Cooper Village.
Our community has been through a lot over the past five years, and we continue to live in a state of limbo, with the future ownership of the property unclear. We simply cannot – and will not – sit idly by and wait for our future to be determined for us.
That is why for the last year the TA has been actively working with its professional advisors and our Councilman Dan Garodnick to determine the best way to restore long-term stability and affordability to Peter Cooper Village and Stuyvesant Town. We believe that the time is now right to put forth a conversion proposal that will give residents the opportunity to buy their apartments at a reasonable price, while also allowing rent-stabilized tenants to continue renting without fear of harassment should they decide not to buy. In addition, our plan would:
After an extensive process, the Board of the TA decided to work with Brookfield Asset Management as our capital partner. Brookfield is a highly respected global real estate and investment manager, with extensive expertise in complicated transactions like this one. Most importantly, they also share our goals. That said, our agreement with Brookfield is flexible enough to allow us to entertain alternative concepts and proposals as we develop our bid. We expect that with Brookfield on our team, CW Capital, the entity representing the senior bondholders of the property, will find it extremely difficult to ignore us.
This is an important moment for our community and for empowered tenants across the city, but it is only the beginning. Over the coming months we will be gathering input and holding a community wide conversation as we finalize our bid. Join us for the first step in that conversation this Saturday, to hear more details and get answers to your questions:
Saturday, December 3, 2011, 1:00 P.M.
Mason Hall, Baruch College, Lexington Ave. & 23rd Street
(Doors open at 12pm; pre-registration is advised)
RSVP & Details at http://stpcvta.org/decembermeeting
You can also visit us at our website at http://www.stpcvta.org or feel free to call us at our dedicated Protect ST/PCV hotline: 1(646)403-9747.
Our efforts will be guided by the strength and commitment of the residents of this community. And as always, our unity in purpose will be our strength.
Sincerely,
Al Doyle
P.S. Our move to protect our homes and take our future into our own hands is already gaining attention, please see the NY Times article here: http://goo.gl/t5dfR
On Monday April 4th, the Roberts attorneys submitted a letter to Justice Lowe consenting to the extension and advising the Court that we have reached an agreement with CW Capital’s lawyers that will accommodate the reasonable needs of tenants who may be waiting to see the DHCR’s recommendations before deciding whether to renew for leased terms that begin May 1.
Specifically, the parties have agreed as follows:
(a) all tenants who have received renewal notices that must be responded to on or before April 15, and who wish to renew their lease or remain in their apartment pending review of the DHCR’s opinion, should turn in their signed notices by the date originally requested;
(b) any tenant who elects to renew will have a right to rescind that decision within five (5) days after DHCR issues its Advisory Opinion (for example, until April 15 if the DHCR issues its opinion on April 10, and until April 20, if DHCR issues its opinion on April 15);
(c) all tenants who wish to rescind their election to renew MUST notify the owner within that 5 days that they have rescinded their elections to renew; and
(d) any tenant that timely rescinds his or her election to renew will still be required to pay the first month of the renewal lease at the increased rate requested, and will then have until the end of this first monthly payment period to vacate their unit. For example, if a tenant who has to renew today has a current term expiring on April 30, he/she would have the option of waiting until May 31 to vacate if DHCR issues its opinion on April 15, but only if (i) the tenant timely notifies the owner of the intention to rescind, and (ii) timely pays the new renewal lease rate for May (rent being due at the beginning of the month).
This proposal is solely as to the present two week extension that DHCR has requested. If DHCR requests a further extension, this proposal would not apply to such further extension and we will need to re-visit this issue at that time. All parties have reserved all of their rights in the litigation with respect to what the Court should do with respect to the rent formula once DHCR issues its recommendations.
Upon the release of the DHCR’s opinion the Roberts attorneys will post a copy on the Tenants Association website.
The Roberts attorneys wish to further stress that any tenant who agrees to the terms of the renewal lease will, during the period of the lease term, only pay a maximum of the “lower rent to be charged” in line 5 of the Renewal Lease Form. In the event that it is determined during the tenants’ lease period that the legal rent is in fact less than the “lower rent to be charged” that the tenant agreed to, the attorneys will ask the Court to lower the tenant’s rent to the correct legal rent for the duration of the lease term. On the other hand, in the event that it is determined that the legal rent is in fact higher than the “lower rent to be charged” specified in the renewal lease, the Owners have represented that the tenant will still only be charged the lower rent for the duration of the lease term, at which point the owners could, upon renewal, ask for a rent up to the correct legal rent. In other words, if a tenant is comfortable paying the “lower rent to be charged,” they can renew their lease knowing that such amount will be the maximum that they will pay during the renewal lease period, subject to the terms of the Rent Guidelines and Rent Increase Eligibility Rider provided with the renewal lease. Note, however, that the Owner has reserved its right to raise rents in the event the Rent Stabilization Laws are not renewed this June. It is not clear whether the Owners would be permitted legally to enforce that right if the RSL expires, and the Roberts lawyers offer no opinion on that subject at this time. If the RSL does expire, and the Owners elect to raise any tenant’s rent to market value, the Owners have represented in Preferential Rent Rider that they will give the tenant 60 days thereafter to terminate the lease. For further questions please contact Michael Liskow of Wolf Haldenstein, LLP at liskow at whafh.com, or if you do not have access to email, by phone at (212) 545-4611.
]]>DECEMBER 6, 2009
Three years ago, Tishman Speyer Properties, L.P. and BlackRock Realty Advisors bought Stuyvesant Town and Peter Cooper Village for $5.4 billion, premised on the notion that they could quickly turn rent-stabilized apartments to the market. They engaged in aggressive tactics toward tenants, including serving legal notices on many long-time, perfectly legitimate people who had lived in the community for a generation. We fought back at every turn, and they did not achieve their goals.
Today, the property is worth less than $2 billion, and the Court of Appeals in Roberts (J-51) v. Tishman Speyer last month re-regulated all of the apartments that previously had been rented at the “market rate.” On November 6, Tishman and BlackRock turned the loan over to mortgage servicer CW Capital. According to the Fitch ratings agency, the property doesn’t produce enough income to pay the debt and a reserve fund probably will be depleted by year-end. It is well understood that Tishman and BlackRock need to restructure their debt, as the property verges on default.
The tenants of this community believe that their interests should be protected. In light of the fact that a considerable portion of the senior debt in this transaction is owned by Fannie Mae and Freddie Mac – two government-owned companies charged with protecting affordable housing, and bailed out by considerable federal taxpayer funds – there is also a public responsibility to do so.
Any plan supported by the Tenants Association and local elected officials, including a tenant-initiated bid, will need to significantly protect the affordability of the community for both current and future tenants. It will also need to ensure a proper level of maintenance and protect the configuration and unity of the Property.
We welcome scenarios which create long-term affordability on the property, either through a model of home ownership and/or permanent rent protections.
The lack of funds for maintenance can cause deteriorating conditions in a community. The tenants of Stuyvesant Town and Peter Cooper Village wish to avoid a reduction of service by ensuring that adequate funds are set aside for the purpose of maintenance. We will want to see a clear plan for achieving day-to-day maintenance, as well as a 5 – 10 year plan for all operational needs.
There are efforts underway to secure landmark status for Stuyvesant Town and Peter Cooper Village. Tenants will oppose efforts to develop on open spaces. We believe that the historic configuration of the property should be protected.
Stuyvesant Town and Peter Cooper Village were built for veterans returning from World War II. Its buildings are the iconic post-war development for middle-income families who wanted to build a life in New York City. We believe that there should be no legal distinctions made between Peter Cooper and Stuyvesant Town. They are, together, one community, and should stay that way.
The tenants of Stuyvesant Town and Peter Cooper Village want to work to preserve this community as affordable housing, with adequate maintenance and robust open spaces, where people at the middle of the income spectrum can live and raise a family in peace and safety. We believe that any future owner of this property must respect the principles set forth above, and we look forward to finding the right partner to achieve our goals.
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