http://www.stpcvta.org//my_template_group/my_template/ en jhmiii@stpcvta.org Copyright 2010 2010-09-02T21:31:12+00:00 http://www.stpcvta.org/ta/post/judge_rules_no_foreclosure_yet/ http://www.stpcvta.org/ta/post/judge_rules_no_foreclosure_yet/#When:21:31:12Z Judge puts CW Capital-Pershing Square case under advisement and stays foreclosure pending his decision “soon.” After hearing arguments Thursday, September 2, on whether or not to issue an injunction on the foreclosure of ST/PCV, State Supreme Court Judge Richard Lowe said that he will take the matter under advisement and announce a decision “soon.”  Tenants Association board members who were present at the hearing interpret that to mean within two weeks. The judge heard arguments by both sides in CW Capital’s effort to win an injunction blocking the planned auction of the property by Ackman’s Pershing Square Capital Management LP and Winthrop Realty Trust originally scheduled for September 8th.  The decision, basically, will determine whether CW Capital or Pershing Square Capital Management and Winthrop Realty Trust will control our community.  However, CW was not barred from “noticing” their intent to foreclose (providing 30 days notice as required under federal law) and may do so as soon as tomorrow, September 3. Whatever the outcome, the Tenants Association remains firm in its objectives:  to maintain Stuyvesant Town and Peter Cooper Village as an affordable community into the future, to make it possible for residents to either buy or to remain as renters, to preserve our open spaces, ensure a high level of maintenance, and ensure a stable future, and to preserve the integrity of the property.   2010-09-02T21:31:12+00:00 http://www.stpcvta.org/ta/post/cw_capital_letter_supports_tenants_association_goals/ http://www.stpcvta.org/ta/post/cw_capital_letter_supports_tenants_association_goals/#When:22:32:40Z Special Servicer’s letter focuses on tenants’ goals of affordability, choice of ownership or renting, and preserving community’s character and configuration.  Read more. CW Capital, the Special Servicer for the first mortgage on the property, has committed itself to exploring ways to achieve the Tenants Association’s goals for the future of their homes.  In a letter to Moelis & Company, the TA’s restructuring advisors, CW restated those goals as: Maximizing choice and opportunity for residents to elect either cooperative or condominium ownership of their apartments, or to remain as renters under the same protections afforded by existing rent stabilization laws; Preserving the long-term affordability of the property and its diverse population and income levels for current and future generations of New Yorkers; Establishing a stable and viable long-term ownership and capitalization structure for the property; Protecting the current physical configuration of the Property, including the existing buildings and open spaces, and the operation of the Property as a unified complex; and Promoting community cohesion among the residents of the property. Association president Al Doyle says that CW’s cooperation with the tenants is important. “The tenants are not going away — our goals have to be satisfied in order for any plan to work.  Getting CW Capital to recognize that is a serious step forward,” Doyle said. “Our Board of Directors has been working closely with our advisors over the summer on developing our own restructuring plan.  CW Capital’s letter supporting our goals helps get us closer.” CW Capital also proposes regular communication with the Association and its advisors, and to developing a mutually acceptable process for sharing information going forward.  Noting the enormous complexities involved in this process, CW stated that they are committed to the smoothest possible transition for the ST/PCV community. Doyle thanked City Council Member Dan Garodnick for his leadership in bringing about the commitment from CW Capital so the Association can continue in pursuit of its primary goal — to advance the interests of the community’s residents. 2010-09-01T22:32:40+00:00 http://www.stpcvta.org/ta/post/foreclosure_on_hold_for_now/ http://www.stpcvta.org/ta/post/foreclosure_on_hold_for_now/#When:23:51:25Z On Thursday, August 19th a court granted a temporary restraining order until September 2nd.  Read more about it here. As you may have heard or read, CW Capital filed a lawsuit on Wednesday August 18th, against Pershing Square Capital and Winthrop Realty, the joint venture that recently acquired some of the mezzanine debt in a move to gain control of Stuyvesant Town/Peter Cooper Village. This is another twist in what will surely be a complicated situation.  CW Capital, the special servicer of the senior debt, sued Pershing Square and Winthrop in an effort to prevent them from foreclosing on the property, a move they had announced for August 25th. On Thursday August 19th, Justice Richard Lowe (the same judge who has the Roberts v. Tishman Speyer case pending before him) granted a Temporary Restraining Order, which will keep Pershing and Winthrop from going forward with the foreclosure proceeding until further notice.  The Court has scheduled oral argument on this matter for Thursday, September 2nd.  Until then, everything remains in status quo. The Tenants Association is continuing to work with our professional team to be ready to respond to any scenario. 2010-08-19T23:51:25+00:00 http://www.stpcvta.org/ta/post/cw_capital_moves_to_stop_foreclosure/ http://www.stpcvta.org/ta/post/cw_capital_moves_to_stop_foreclosure/#When:20:07:09Z Led by CW Capital, the special servicer for the senior debt, Bank of America and U.S. Bank Corp have filed papers in N.Y. State Supreme Court in Manhattan on Wednesday to stop the foreclosure action by the Pershing Square and Winthrop Realty partnership scheduled for Wednesday, August 25th.  Read the statements on this action by Tenant Association President Al Doyle and Council Member Dan Garodnick. Statement by Tenant Association President, Al Doyle:  “We have said consistently that we are willing to work with any entity that offers a plan consistent with our clearly stated goals:  To maintain the affordability of our community now and into the future, to enable tenants to remain in their homes as either owners or renters, and to ensure the integrity of the property’s configuration and a return to the high level of maintenance that was delivered by its original owners.” Statement by Council Member Dan Garodnick: “We are disappointed that ownership of the property has degenerated into litigation, but we are not at all surprised.  As the creditor parties fight this one out, the tenants are prepared to join with the right partner to help us achieve the goals we have articulated. “Those goals include: giving tenants an opportunity to buy their units, or remain as renters; protecting long term affordability for future generations of New Yorkers; ensuring quality maintenance services; preserving the historic configuration of the property and keeping open spaces from development; maintaining the property as a single, unified whole; and ensuring a long-term, stable ownership and capital structure. “As the news of the day pivots from hedge fund managers to lawsuits, it bears remembering that Stuyvesant Town and Peter Cooper Village were built – with considerable assistance from the City and State – to be the model of stable housing.  They were designed to be a place where “[f]amilies of moderate means might live in health, comfort and dignity in parklike communities, and that a pattern might be set of private enterprise productively devoted to public service.”[1]  They were supposed to be the place where the private sector showed its devotion to public service.  The creators of this property would feel no pride in the fact that the home to 25,000 New Yorkers is being treated like a pawn in a financial chess game.  “No matter where this litigation leads, the tenants have a central seat at the table, and are prepared to offer their own restructuring plan.  They are working with their professional team at Moelis & Company and Paul, Weiss, Rifkind, Wharton & Garrison in pursuit of a plan that respects not only the residents who live there today, but also those people of moderate means who aspire to live there in the future.  “The tenants continue to be united and committed to seeing the process through to the right outcome.  The events of the past two weeks have made even more clear that no future owner can or will be successful without the support and participation of the tenant community.” 2010-08-18T20:07:09+00:00 http://www.stpcvta.org/ta/post/statement_on_winthrop_realty_trust_pershing_square_stuyvesant_town/ http://www.stpcvta.org/ta/post/statement_on_winthrop_realty_trust_pershing_square_stuyvesant_town/#When:17:53:53Z Tenants Association president Al Doyle’s statement on the Pershing Square and Winthrop Realty Trust move and a restatement of the unwavering principle goals of the unified tenants of Stuyvesant Town and Peter Cooper Village. The ST/PCV Tenants Association has understood from the outset of the process to restructure the financial mess bequeathed to the community by TIshman Speyer that the road ahead holds unexpected twists and turns. So we are not surprised to see a new player—in this case Pershing Square Capital —enter the fray.  Together with our advisors,  we are willing to evaluate any proposal and work with any party who shares our goals and who seeks to reach a restructuring that is in the best interest of all concerned, especially the residents who make this community the valuable asset that it is for our city.  The tenants of our community are united.  We are committed to the principles we have laid out to determine our own destiny: being able to purchase our homes or remain as renters, preserving long-term affordability, keeping a high level of maintenance, preserving our open spaces, and ensuring that we have a stable future.  These are our homes and we will protect them.  We will make certain that no outside entity will be able to maneuver around us. 2010-08-10T17:53:53+00:00 http://www.stpcvta.org/ta/post/new_wrinkle/ http://www.stpcvta.org/ta/post/new_wrinkle/#When:23:00:30Z Pershing Square Capital Management and Winthrop Realty Trust have bought the first mezzanine loan on Stuy Town and Peter Cooper and have announced they plan to auction the property on August 25th.  In a Tenant Alert, Association president Al Doyle gives an initial reaction to the move. You may have heard the news that a hedge fund named Pershing Square Capital has made a strategic move to buy some of the debt in Stuyvesant Town and Peter Cooper Village, and is now seeking to hold a foreclosure sale of the property.    We wanted to give you a sense of what happened, and what will likely occur next.  We worked with Councilman Dan Garodnick and our professional team at Paul Weiss and Moelis & Co. to put this summary together quickly and comprehensively. The quick takeaway: it is not unexpected to see maneuvers like this in a complex restructuring, and it does not change our ability to achieve the goals that we have set out.  It also does not affect anyone’s rights as a rent-stabilized tenant.  However, it likely means that the restructuring process will become more complicated, and even litigious.  We will continue to fight to ensure that the tenants of this community are protected, no matter what scenario unfolds. As you will recall, our property was sold in 2006 for $5.4 billion—which included a $3 billion first mortgage, $1.4 billion in what is known as “mezzanine” debt, and $1 billion in equity (Tishman Speyer and BlackRock).  The property today is now considered to be worth considerably less than $5.4 billion—some estimates have said that it could be as low as $1.7 billion.  Pershing Square Capital recently bought out the portion of the debt that falls just behind the $3 billion first mortgage.  This portion is known as Mezzanine 1-3, and was worth about $300 million at the outset.  Pershing Square bought it, presumably at a very steep discount, with a goal of foreclosing on the property and becoming the owner—and then likely triggering a bankruptcy to restructure the debt in a way that would ensure them some value.  A notice in the New York Times Business Section yesterday indicated that Pershing Square would be holding a foreclosure auction (a UCC foreclosure) on August 25.  If they were to succeed in foreclosing, they would extinguish the rights of all of the other lenders behind them—everyone from the Government of Singapore, to the Church of England, to SL Green, to of course Tishman Speyer/BlackRock.  As you may recall, CW Capital—which represents the interests of the $3 billion first mortgage—already has an order of foreclosure from a Court.  That means that they have the right to foreclose, but must give 21 days notice before doing so.  If CW Capital were to foreclose on behalf of the $3 billion first mortgage, they would extinguish the rights of all other lenders, including Mezzanine 1-3, which is now owned by Pershing Square.  Confusing enough?  We all knew that since Tishman Speyer defaulted, this process was going to be complicated (and may even become litigious).  Pershing Square’s action to try to become the owner is clear evidence of that.  The one constant in this process will always be the 25,000 unified residents of this community, and addressing our needs is the only route to success.  The goals of the Tenants Association have been clear from the start:  maximizing choices for tenants by giving them an opportunity to buy their units or to remain as rent-stabilized tenants if they wish; protecting the community as affordable for future generations of New Yorkers; ensuring quality maintenance services; preserving the historic configuration of the property and keeping open spaces from development; maintaining the property as a single, unified whole; and ensuring a long-term, stable ownership and capital structure. We have made our goals clear to all applicable parties, and will continue to work to ensure that they are satisfied.  As the creditors wrangle for control, the tenants continue to be united and committed to seeing the process through to the right outcome.  We will continue to demand that services be maintained, and will welcome the opportunity to partner with an entity that will satisfy the tenants’ goals.  No future owner can or will be successful without the support and participation of the tenant community.  We will continue to keep you updated as we go forward.  2010-08-09T23:00:30+00:00 http://www.stpcvta.org/ta/post/j51_update_retroactivity_ruling_favorable_to_tenants/ http://www.stpcvta.org/ta/post/j51_update_retroactivity_ruling_favorable_to_tenants/#When:16:50:07Z Plaintiffs in the Roberts (J-51) case scored a significant victory in an order published Thursday, August 5th on the Court website. Justice Richard Lowe of the New York State Supreme Court ruled to dismiss the case, brought by Met Life, paving the way to the possibility of retroactive payments to former market rate tenants.  Details will follow. Please check back for more details.  You may read Justice Lowe’s decision here. A NYLJ article on the case can be found here. Assemblymember, Brian Kavanagh has released a statement on August 5th, 2010 that can be read here. Councilmember Dan Garodnick also released a statement on August 5th, 2010 that can be read here.   2010-08-05T16:50:07+00:00 http://www.stpcvta.org/ta/post/elect_expanded_board/ http://www.stpcvta.org/ta/post/elect_expanded_board/#When:16:21:43Z Leadership Strengthened, Association Faces New Challenges With Confidence Members of the Stuyvesant Town/Peter Cooper Village Tenants Association completed the election of a new and expanded Board of Directors and approved several amendments to the by-laws at the organization’s Annual Meeting, held Saturday, July 10th. Elected to the Board of Directors, now numbering 15 members, are Al Doyle, Julie Ehrlich, Kevin Farrelly, Soni Fink, Jennifer Kops, John Marsh, Judith Preble Miller, Steven Newmark, Virginia Rosario, James Roth, Ann Salzberg, John Sheehy, Susan Steinberg, Helen Thompson and Jonathan Wells. The Tenants Association’s expanded Board will select new officers at its first meeting later this month. “This election marks an important step for our organization and for all residents,” said current president Al Doyle. “We believe our decision to increase Board membership will enhance our ability to serve Stuyvesant Town and Peter Cooper Village tenants in our current efforts to preserve the character and affordability or our community and to represent their interests actively in the future.” The Annual Meeting, held at Simon Baruch Middle School 104, had been rescheduled when the number of ballots received by the original date of June 12th fell just short of the necessary quorum of a majority of paid-up members. More than 500 additional ballots — well over the number needed —were returned in response to a second mailing to members who had failed to vote first time around.  Each ballot was checked against a master list of eligible members and counted immediately after the meeting by eight staff members of Merriman River, the professional supervisor overseeing the election. The certification of the election and the returns can be viewed at the link below. 2010-07-15T16:21:43+00:00 http://www.stpcvta.org/ta/post/elevator_mci_charge_clarification/ http://www.stpcvta.org/ta/post/elevator_mci_charge_clarification/#When:15:25:25Z Explains the new charge appearing on some tenants bills beginning with the June 2010 rent statements. Some Stuyvesant Town residents have noticed an extra charge on their monthly rent statements that nearly doubles the elevator MCI they have been paying for the past several months. That is not a mistake: It is the retroactive charge being applied. To assist tenants with the elevator MCI, the Tenants Association distributed a packet of information back in May 2009. It included forms for filing with the Division of Housing and Urban Renewal (DHCR) a Petition for Administrative Review (PAR), together with instructions about how to complete them. If a tenant filed a PAR with DHCR prior to June 1, 2009 then, according to the regulation, they are covered and should not have to pay the “retro” portion of the rent as listed on the rent bill, while the PAR is being adjudicated. The landlord may argue that it has not received the notification from DHCR and may insist on receiving the full amount of rent (which includes both the “net” and “retro” portion of the MCI) starting with the June 1, 2010 rent bill. Many tenants have decided the bookkeeping will be easier if they pay the full amount. Any tenant who wishes to challenge the retro charge and has a copy of the PAR form filed, can contact DHCR at 1-866-275-3427. 2010-07-15T15:25:25+00:00 http://www.stpcvta.org/ta/post/important_information_for_formerly_market_tenants_renewing_their_lease/ http://www.stpcvta.org/ta/post/important_information_for_formerly_market_tenants_renewing_their_lease/#When:22:25:59Z An important correction to a FAQ regarding lease renewals affected by the J-51/Roberts case. The prior FAQ erroneously stated that tenants will have 90 days to decide whether they will accept the proposed renewal lease or decide to vacate their unit. Instead, the rent stabilization laws allow tenants only 60 days after receipt of the renewal lease to determine whether to extend their tenancy.  Formerly market tenants at Stuyvesant   Town and Peter Cooper Village who wish to renew their lease must do so within 60 days of receipt of the renewal lease or, as allowed under the rent stabilization laws, the owner has the right to either treat the non-response as an agreement to vacate or deem a renewal lease in effect with the appropriate percentage increase (using the length of the lease term for the expiring lease as the term for the renewal). If you have any further questions please contact Michael Liskow of the class members’ law firm Wolf Haldenstein at liskow at whafh dot com. 2010-07-05T22:25:59+00:00