city limits magazine, may 1977 issue

8/3/2019 City Limits Magazine, May 1977 Issue

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CITYLIMITSCOMMUNITY -HOUSING NEWSMAY,19n VOl.2NO.4



161 buildings

-rehabilitation underway on 546 units in 82 buildings

-rehabilitation planned for 2,458 units in 433 buildings

- the completion of 196 units of new construction

-construction in progress on 445 new units

- the planned construction of 2,041 units of new housing

- the partial or total management of 3,399 apartments

in 151 buildings

-within the twelve-month period from July 1975 to

August 1976,

• assisting organized tenant groups in 229 buildings

containing over 4,748 apartments• managing 665 apartments in 28 buildings under

Article 7A administration• assisting tenants with the "self-help" management

of 105 buildings with 2,138 apartments• working with homeowners and tenant groups to

develop rehabilitation or transfer of ownership

plans for 217 buildings containing 1,979 units

• offering assistance on an individual basis to 19,791

tenants and homeowners with housing-relatedproblems.

The study also focuses on the major issues confronted by neighborhood-based housirig groups and

discusses housing rehabilitation and new construction,housing management and direct assistance services

within this framework. The structure of the groupssurveyed is examined, with particula r emphasis on theirboards of directors and current staffs, and a major

section of the report is devoted to overviews of eachgroup's history and neighborhood.

The study, which began as an Association internship project in the Summer of 1976, was made possible

by generous grants from Morgan Guaranty TrustCompany. The printing, publication and distribution of

the report have been generously assisted by an additionalgrant from Morgan Guaranty Trust Company, and a

grant .from the New York Urban Coalition. Specialthanks for transforming the report from manuscript tobook is due to Louis Fulgoni, the Association's talentedand patient Art Director. Copies of The Neighborhood

Housing Movement are in limited supply, and are avail

able from the Association for $1.50 (to cover postageand handling) by filling out the order form on page



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LEGAL BRIEFS

Ed. Note: The Association's Counsel, Jim Harris, here

starts a monthly column to give announcements aboutupcoming legal events and to share with readers answersto legal questions which are asked from time to time.

Announcement: Jim is normally at the Association on

Wednesday afternoons. He wants to help Associationmembers with legal problems (stopping short of actuallyacting as counsel for members). In particular, Jim hasoffered to visit any member who wants to have its legalstatus (by-laws; minutes, contracts, tax status, etc.)

checked over. He will do this and review his findingswith the member's staff. Please contact him if you wishto take advantage of this service.Case Note: We were asked whether a community can

any person who suffers real damage as a result of a

nuisance the right to sue for that damage. I t gave asexamples people who sued a tire shop which smelledbad, a business which sent up clouds of dust and the

City which was doing open landfill burning.

Th e plaintiff (the party who brought the suit -Puritan) was the owner of a building across the streetfrom the vacant building. Plaintiff came to court withexperts who said plaintiff's building was worth $30,000less than it would have been if the defendant (Holloschitz) had not abandoned her building. The plaintiff

won - and got a judgment for $30,000 against the

defendant. (The defendant never appeared in court.)

Th e court specifically said that in a neighborhood



ORGANIZED COMMUNITY GROUPS

HELP W I N . ! u l ~ ~ l l E X T E N S I O N Republican Majority in

StateSenate Bows to Tenant Pressure

In a surprise move, the Republican partymembers who control the New York State Senate,announced on April 25th that they wouldintroduce and vote for legislation extending, for

four years, the present Emergency Tenant Protection Act and laws which control rents on apartments in Albany and several other upstate com

munities. Earlier this year, the Democraticcontrolled Assembly passed a bill extending theselaws for three years, but an extremely lengthy anddifficult fight had been expected in the upper

house. The Republican bill, which is expected to

be introduced this week, has been assured of bipartisan support and is certain to pass in bothhouses of legislature. Presumably, GovernorCarey will sign the bill, although the chief executive has been conspicuously silent on the entirerent control issue.

What is significant about the Republicans'action, in addition to assuring thousands of NewYork City rent-stabilized and upstate rentcontrolled tenants of continued protection, is the

manner by wh!ch its was brought about.As was reported by "a staff correspondent"

fo r the New York Post:

" . . . intense picketing and pressure in the districts

represented by New York City 's seven GOP

Senators forced yesterday's quick decision."

to vote against rent control in order to prevent the

bill already passed by the Assembly from passagein the Senate.

The obvious strategy for the pro-rent controlforces was to put as much heat as possible onNew York City Republican Senators - especiallythose like Padavan and Knorr whose districts

contain a good number of tenants. For a change,the tenants organizations worked together. ManyQueens groups, along with the New York StateTenant and Neighborhood Coalition and theMetropolitan Tenants Council, a city-wide organization, joined in leafleting Queens residents. MetCouncil also conducted a parade and demonstration in Senator Conklin's home district in the BayRidge section of Brooklyn.

From all appearances, the City Republicansfelt the pressure and, before it built up to an evenhigher pitch, they called on their upstate compatriots to overcome their normal hostility to rentcontrol and announce their support of an

extension of the present laws. Without a wellplanned, coordinated and executed action

program by the organized tenant groups, the turnabout would not have happened.

The laws which will be kept alive are due to

expire on June 30th of this year. The EmergencyTenant Protection Act, which was adopted in 1974and given only a one-year extension last year,



NYC COMMISSION ON HUMAN RIGHTS

RELEASES REPORT ON REDLINING

Calling the report "the most systematicanalysis to date of an issue that has received little

if any attention of a comprehensive nature, conSidering the enormous consequence of its

impact," Eleanor Holmes Norton, chairperson of

the New York City Commission on Human Rights,has released a 103-page report on redlining bybanks and other lending institutions in New YorkCity.

The report, entitled "Economic Investmentand the Future of Neighborhoods," is the result of

a series of public hearings held by the Commission in November, 1976.

Over 100 witnesses testified on the degree to

which redlining is practiced and what measuresought to be taken to stop the problem. Representatives of financial institutions, elected representatives, housing and real estate experts, andneighborhood leaders participated in thehearings.

Among the recommendations of the reportare:

• Federal agencies responsible for regulatingbanks and savings and loans should both collect

and analyze the data required by them under disclosure regulations in a manner that makes suchinformation useful to the public.

• State legislationwhich

has beenintroduced by Assemblyman George Cincotta

should be enacted to require lending institutions

to provide mortgage loan applications to all

members and staff to the regulatory bodies whichgovern financial institutions should make certainthat such appointees are committed to the needsof neighborhoods.

• The Board of Directors of the New YorkProperty Insurance Underwriting Associationwhich administers the State's Fair Plan should bereconstituted to include a better balance of public

- members, including consumers and

neighborhood leaders.• To address in a comprehensive manner thecritical housing needs of low- and moderateincome families, the State should establish ahousing finance program to provide mortgagesand rehabilitation loans at below market interest.

• The Urban Reinvestment Task Force shouldinstitute a program to secure Federal HousingAdministration (FHA) insurance for many neigh

borhoods and blocks which are presently deniedgovernmental mortgage backing.

• An effective mechanism at the federal levelshould be developed to expand significantly theNeighborhood Housing Services Program (NHS)currently in operation in only 27 neighborhoods inthe country.

• Any legislation which would permit an

increase in the State's usury ceiling for mortgages

on residential property should be accompanied by. a prohibition on any future investment in out-ofstate mortgages.

• The New York City Banking Commission



SOUNDS FAMILIAR DEPARTMENT

Louisville_ Three archit .why their city's Neighborhood~ t s , askec:' to find outHUD often can' t onservatlon Office andspent to repair h O ~ ~ e e ~ n how much money should be

• C· , Y reasons are:ltV runs up rehab Costs b .

everything in the house that . h Y tryIng to replaceprogram's 20- mIg t wear out before the

year mortgage was paid of f

• HU.D appraisers take a p e s s i m i s t i ~ viewerty value In the marginal neighborh d . of prop-

• Sound familiar? 00 s most Involved.

(from "c .ommunlty Development Digest ," March 8, 19n)

STARR TO DEBATE SAVINGOF NEW YORK CITY

most interesting and

What shapes a ~ : h e d u l e d for Thursday,informative debate 1S

tP blic School41, 116West

May 19th at 7:30 p.m. a u hen Roger Starr takes11th Street in Manhattan, v: t of "How New York

Paul deBrui on the subJecon" .Can Be Saved. t of "Planned Nelgh-

Starr, leading e x ~ o n f e n er Administrator of. k " IS orm

borhood Shnn age, . and Developmentk City HOUSIng

the New Yor he occupies the Henry

Administration. ~ r e ~ e n t ~ Y ' h e d Professor of UrbanLuce Chair as D l s t l ~ ; u ~ ~ i v e r s i t y and is on theValues at New Yo ew York Times.editorial board of t,he.N. by several years and

ADOPT·A·BUILDING WINS CITYSEAL·UP CONTRACT

Another Break·Through ForCommunity Groups

After more than a year of persistent, and attimes very frustrating negotiations, Adopt-aBuilding, a leading community housing group onManhattan's Lower East Side, has finally securedapproval fo r an $85,000 contract which will enablethe group to seal approximately 10 multiple

dwellings in its neighborhood. This marks the first

time the city will contract with a community group

fo r the sealing of unsafe buildings. Heretofore, allsealing as well as demolition of buildings hasbeen done by private contractors who bid fo r

individual building contracts.

,...

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EDITORIAL

We've hsd s modicum o fgood news to report

Istely. In our Isst issue, CITY LIMITS noted theclosing o f s city contrsct with Morris Heights

Neighborhood Improvement Associstion which

wil l give i t s $98,000 budget fo r s vsriety o f com

munity housing services sctivitiBS. Previously,

Flstbush Deve lopment Corporstion wss swsrded

s contrsct for plsnning snd mplementing s neigh

borhoodstBbilizstion progrsm in it s sres.

This month, we report on th e first unssfe

building contrsct to win spprovsl fo r s community

housing group - Adopt-s-Bui/ding on th e Lower

Esst Side. We slso proclsim the closing o f the f irst

SHIP contrsct with Esst New York Development

Corporstion.

We sre indeed "bresking the ice" o f city

hostility snd immobility to community groups'

demsnds thst they should become ful l psrtners in

the delivery o f housing services to their neighbor

hoods. But this is stil l only s smsl l beginning. Wesll hsve to work even hsrder snd stick even more

'Closely together to secure these, snd other,

benefits fo r sll locsl housing groups thst csn snd

desire to conduct progrsms to preserve snd

improve the communities.

While we congrstulste these successful

orgsnizstions, none o f us should rest on their

Isurels. Le t us redouble our efforts to secure the

funds we need to bring better housing snd neigh

borhoods to our constituencies - sll over the city.



-.:-.. .;.... -: .. :.:.:-:-:.::-::.:.:: l '. .. . - .... .. - ... . .. :. ..

To the Editor:

. .... .

Enclosed please find a $4 check for a subscription

to CITY LIMITS. I work as an assistant to a StateSenator in a Brooklyn district office, where I becamefamiliar with your periodical, and with the many housing and tenant problems facing the City's communities.I find CITY LIMITS most informative and especiallyenjoy your articles regarding the efforts and programsofcommunity groups to rehabilitate their neighborhood.

I will look forward to receiving CITY LIMITS, tokeep informed of the newest developments with Citytenant groups and the housing situation in New York.

Sincerely,

Barbara Przybylska

income levels reached, piggyback subsidies, and 10ssfrom default, other federal subsidy programs are prettymuch on a par with Section 8, with the possible exception ofpublic housing, which benefits from guaranteesand irrevocable annual contributions contracts from thefederal government.

These are technical and financial issues that havebeen and will continue to be debated and, as such, willcontribute to our knowledge and responsibility in policymaking. We do not object to such debate.

However, the attack on the Settlement HousingFund (the organization you refer to) is highly objectionable and must be answflred. Here, then are tM facts.

In December, 1975, we were asked by ManhattanPlaza Associates and H.D.A. to undertake a ninety-day

affirmative marketing study fo r the use of Section 8 inManhattan Plaza. For more than three months, ourBoard hesitated to get involved in the controversial

. situation but finally we were convinced to lend ourassistance because of the serious financial issuesinvolvedfor the city.

We decided to undertake the study only after thecity and the developer agreed that we were free topublish our conclusions independently and that wecould disavow ourselves from supporting the policies of

either the city or the developer. We chose ProfessorDavid Muchnick to direct the study,· in turn ProfessorMuchnick insisted on his right to disagree with the city,the developer, and the Settlement Housing Fund.

We formed a policy committee, chaired by LyndaSimmons, which met many times and deliberated therecommendations.

Professor Muchnick and his research associatestudied very carefully the economic and social implications of several alternative subsidy approaches. The

study was far from a real estate promotional piece. Itasked for and obtained data on potential residents,family size and income that are often very hard toobtain. The market was carefully analysed. Thefindings



l

IIfI

to disagree with our proposals regarding ManhattanPlaza; however, he does not have the right to attack ourintegrity by describing us as "a long time friend of thecity administration ". SHF's record as a leading

. advocate for decent housing for low and moderateincome New Yorkers is well known and easily docu

mented and Mr. Schur's characterization is totallyunwarranted and unprofessional.

We havefought vigorously in every way to promotelow income housing goals and we achieved some notablesuccesses even in the dark years of the federal Moratorium. We attribute our success and the respect wehave obtained to our tactics and strategies which arebased on constructive criticism, professional integrity,and cooperative action.

I would like to conclude by pointing out some

technical errors in the article:1) Section 8 is available under special circum

stancesfor single non-elderly individuals.2) The regular Section 8 limit is $14,500 for a

family of four. It was originally in 1974 $11,450, butwas adjusted upwards at the request of community

The AuthorReplies:It seems that Ms. Clara Fox chooses to equate a

reference to the Settlement Housing Fund, the organization which she heads, as "a long-time friend of the CityAdministration" as "an attack on our integrity." Wereally didn't intend to imply that friendship with thepresent City Hall incumbents necessarily, or even probably, indicates a lack of ntegrity. The sensitivity to such"guilt by association" must be Ms. Fox's; it certainly isnot ours. Indeed we could probably think of a number

groups, civic organizations and state and local officialsto permit economic integration.

3) At least 30 per cent of Section ·8 assistancemust be fo r very low income families, with incomes forafamily of our, under $8,000 annually

Finally, the statement that the city will peddle the

$90 million mortgage fo r about 35 cents on the dollar isjust not true.

In fact, the city will realize almost the full value ofits mortgage investment on Manhattan Plaza throughthe 223F program precisely because of the Section 8subsidy. For those who don't care about performingartists or the preservation of Clinton and the theatreindustry, the impact of the mortgage savings on thecity's budget should make a powerfUl case for Section 8subsidy in Manhattan Plaza.

Yes, as I said in the beginning, there is anotherstory to be told about Manhattan Plaza and we, at SHF,are proud about the role we played in the conversion ofthis development from an affluen1 Mitchell Lama to asubsidized performing arts community, with a fair shareof he apartments occupied by local residents.

Clara Fox,Executive DirectorSETTLEMENT HOUSING FUND

As for the alleged "technical errors" to which Ms.Fox refers:

1. We agree that Section 8 is available for singlenon-elderly individuals "under special circumstances. "We didn't state the contrary. But playing in a band oracting in a play is NOT one of the special circumstancesthat make a single-person, non-elderly householdeligible.

2. The City of New York obtained a higher-thanusual income limit fo r Section 8 assistance because



NEJWSENERGY TASK FORCE ISSUES

"HOW-TO" LEAFLETS

a non-profit o r g a n i z a t i ~ n The Energy Task Force, servation measures In

hich is promoting energby ' I ~ ~ ~ g s has just issued twOw . . . n of older UI 'the rehabllitStlo h' hdocuments. _ . eral piece, W ICexcellent h ublications IS a gen 'es on the

One of t e P newspaper stOri s

includes r e ~ ~ ~ i O ~ p ~ ~ c t at 5'9 E a s ~ ~ ~ t ~ ; : r : ~ : r s energy con . I which showS how you to make hotwell as materia. . solar collectors . . d-

by insulation, I n s t ~ I I l n 9 r own electricity uSing wind generating yOU

,water an d nd-followmillS. . a strikingly easy-to-

reaheat loSS

: The Other IS . hoW to preven, . e diagram shoWingslngle-pag d windows. re informa-

throuFgh ~ ~ ~ ~ = of these pamphletsa ~ n 1 0 : ~ of energyor . I assistanCe on Task Force

tion and ~ e c h n l ~ ~ t a c t Travis Price, E N n e ~ g y ' 0 0 0 9 or callconservation, c t New York, . 'at 519 East 11th stree ,

228-S044.

DISCLOSURE, WORKSHOP PLANNED

On Friday, May 13th, the New York City Commission on Human Rights' Neighborhood Stabilization Pro

gram will sponsor a "Disclosure Workshop."

A no-nonsense agenda that offers participants an

opportunity to learn how to collect and analyze data

now available from banks on their lending practices is

planned. In addition, a workshop on community action

will o ffer some ideas as to how best to use the informa

tion.

Participating groups include ANHD, New YorkPublic Interest Research Group, Pratt Center, Operation

Open City, Peoples Housing Network, St. Nicholas

Housing Corporation, Neighbors of Greenpoint and

Williamsburg, Bronx Borough President Abram's office

and the Northwest Bronx Community and Clergy

Coalition.

The workshop will be held at Pratt Institute's

Memorial Hall, located on the Pratt Campus on Ryerson

Street and will run from 9:00 a.m. to 3:30 p.m. For moreinformation, call 233-3984.

t



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NYC HOUSING AND COMMUNITY

DEVELOPMENT COALITION PRIES

FAVORABLE C.D. LEGAL OPINION

FROM CORPORATION COUNSEL

Climaxing a two-year campaign, the NewYork City Housing and Community DevelopmentCoalition has finally obtained an authoritativeopinion from the New York City CorporationCounsel that federal community developmentblock grants paid to New York City are NOTsubject to State Constitutional restrictions. In asingle two-sentence letter, the city's chief lawyersays that these grant funds may, in effect, be usedto provide loans and even grants to one- and twofamily homeowners.

The tale of wasted time and energy and of

how the ruling was finally obtained is both bizarreand depressing. Shortly after the 1974 Housingand Community Development Act was passed byCongress, HDA raised the question as to whetherArticle XVIII of the New York State Constitution

which prohibits the state or any municipalitiesfrom using public monies for "gifts or loans" to

any private persons or corporations, applied to

federal community development block grants. Thequestion was important, because while a limited

exception to the prohibition exists, it does not

affect one- and two-family dwellings. That is why,fo r example, the city's municipal loan program,authorized by Article 8 of the State Private

Housing Finance Law, and the "mini-rehab" loanprogram under Article 8A of that Law, allowrehiabilitation loans to made only to owners of

multiple dwellings. But what about loans where

-.. - I

a similar letter with the same conclusion from the

Secretary of State to the Town at Islip, LongIsland. And it called attention to 'the fact that

dozens of municipalities around the State werecreating loan and grant programs using CDBGfunds for the rehabilitation of small homes.

Our fair city persisted in its own opinion, or

rather in an alleged opinion by someone in HDA.So, it said that the only way the federal fundscould be used for one- and two-family homes wasif the homes were situated in an urban renewalarea. This view contributed to the two-year delayin getting East New York's Small Home Improvement Program (SHIP) started since the city had to

go through the whole process of revamping the

boundary lines of the East New York Urban ·Renewal Area before any funds could be released.It also permitted the city to refuse to allocate anyfunds to rehabilitate houses under its urban homesteading program.

The Coalition, time and again, pleaded with

the city to ask for an official opinion-either fromthe State Attorney-General or at least from it s own

Corporation Counsel, but to no avail. Smallwonder that more than a few people began to

suspect that the city would rather not inaugurateany new housing programs to help low-incomehomeowners and was using HDA's homegrown"opinion" as an excuse for non-action.

It took a combination of luck and inventiveness, by Ron Shiffman, Director of the PrattInstitute Center for Community and

Environmental Development, to break theimpasse. Shiffman approached James Cavanaugh,the ex-Deputy Mayor who is'a consultant with theFund for the City of New York. Mr. Cavanaugh, in



CITY COUNCIL TO CONSIDER

RESOLUTION ON CD3

MOVE TO STOP "THEFT"

OF FUNDS

Councilwoman Miriam Friedlander hasintroduced a resolution in the City Council which

calls on the Board of Estimate to eliminate anyexpense budget items from the Third YearCommunity Development Block GrantApplication. The resolution has been applaudedby the New York City Community DevelopmentCoalition, whIch has been opposing attempts bythe City to utilize C.D. funds for regular cityexpenses. The resolution reads as follows:

. .

L D ~ , T h e Federal Housing and Development Act of 1974 defines the primary objective of the Community

Development block grants program as "the development of viable urban communities by providing decent housingand a suitable living environment and expanding economic opportunities, principally for persons of low- and

moderate-income"; and

L D The Act further provides that no grant ma y be made unless an application is submitted

to

the Secretary ofHousing and Urban Development describing a program designed to "eliminate or prevent slums, blight and

deterioration where such conditions or needs exist, and provide improved community facilities and publicimprovements"; and

j



NS WORKSHOP ON: e ~ ~ ~ : ~ 2 L O A N P R ~ ~ M -T H U R S D A ~ •.MA7 se given to an

Due to the enthUSiastiC re. po 8 Rehabilitationn the Section HD '11

ANHD workshop 0 Id last month, AN WI.

Demonstration Program h\ hops devoted to a partlbegin hosting monthly wor s

cular housing program. 'th AN H D staff , will not onlyGuest experts, along WI do .but also hoW g r o ~ p S

explain what these programsf

them, what the typicalcan best take advantage 0

problems are, etc. . 312 rehabilitation loan programThe federal Sectiona 26th at 3:00 p.m. at ANHD

'11 be discussed on M y and HowardWI PhT St Georges - Iheadquarters. liP d' Ramon Rueda of p ~ p asBurchman of U-HAB ?n will share their expenences

Development c o r p o r a : ~ t t e n materials on the programith the 312 program. n

:iII also be available. . of future workshops will beSuggestions for tOPICS de either at the 312

. t d and may be magreatly apprecla e 26th or by calling ANHD.workshop on May C"'"1'" :::::J

JOB OPENING

Rehabilitation Specialist/Building

Evaluator

. P o ~ i t i o n a v a i l a b l ~ for individual with experience ine v a l ~ a t m g the physIcal condition and rehabilitation

reqUlre':"8nts of . p r e - ~ o r l d War" multi-unit residentialpr<.>pertles, pnmarlly situated in low-incomeneIghborhoods throughout New York City E Iwith priv t . . mp oyment

d . a e, non-profIt housing organization entailsren ~ n n g technical assistance to non-profit rouseekmg to .determine feasibility of preserving ~ e t orated housIng per f . en-rehabilitation s ' c h e m ' : s m ~ ~ d ~ n a . ' y s e s of appropriatereh bTt . eSlgnmg comprehensivetiona I I atlo!'l progra,!,s for specific buildings. In addi-

I ' ~ p a C l t y to traIn other individuals in the aboareas IS necessary. ve

h a b i l ~ ; u i r 7 s i n d i v i d ~ a l with direct experience in re' ~ n constructIon. and housing maintenance.~ c : : e ~ l I c background m architecturelengineering is

. geous, but not determinative of suitability' forPOSitIon.

Salary dependent upon experienceContact Jirri Yasser or Kathlee ·S

Association of Neighborhood H o u s i n ~ r : e : ~ 7 ~ e':! theEast 22 Street, New York, N.Y. 10010, 6 7 4 - 7 6 1 0 ~ , 29

SCHUR TESTIFIES AT U . S ~ SENATE C.D. HEARINGS

On April 21st the ANHD's Executive Director, BobSchur, testified before the U. S. Senate Committee onBanking, Currency and Urban Affairs in Washington,

D.C. Bob was invited by the Committee Chairperson,Senator Ashley (Oem. Wisconsin) to give his views, asa representative of the New York State Tenant andNeighborhood Coalition, of whose Executive Committee

Speaking of the need for better coordination, Bobproposed changing the rules which now forbid localgovernments from switching public improvements out

of C.D. plans in order to utilize Public Works Act fundsand which put unreasonable constraints on the use of

CETA job training funds in conjunction with C. D.projects because of the Housing and Community



JUNE 12-13.1971

HOWARD UNIVERSITY

WASHINGTON, D.C. 20001



- -- - ---- ---ASSEMBLY HOUSING

COMMITTEE TO HOLD

HEARING ON CD-3 PROGRAM

-

The New York State Assembly's StandingCommittee on Housing, chaired by A s s e m ~ I y m a n

'11 hold a public hearing onEdward Lehner, WI '00 A M at 270 BroadwayFriday May 6, at 10. . '

. 'R f - 6th floor) in Manhattan. .(Hearing oom of the hearing is to elicit testl-

The purpose

mony on the following issues: d Y Community !1 Do the proposed Thlr ear .D e v e l ~ p m e n t Plans and .pro?grams provIde

maximum assistance for housing. 't2 Do the proposed Third Year C ? m m u ~ 1 Y

D e v e l ~ p m e n t Plans and Programs c o ~ t a ~ f ~ ~ : ~ ~ ~ proposals which should more proper Y e

as e x r e ~ ~ ~ : u d g ~ ~ i ~ : ; : ' ~ ~ Development funds

available fo r housing in the first and s e ~ ~ n d yearsf the program been spent as expedItIously as

~ o s s i b l e ? If not, has the housing stock of the

State suffered as a result? . ' h' h4 Proposals fo r State legIslatIon w

would hell> maximize the use of Com",:,unltyDevelopment funds fo r h O U S i ~ g purposes In the

most expeditious manner p o s s l ~ I e : .l ' If you are interested in testlfymg m person or

1 in writing contact Mr. William R. Howel.I, p r ~ g r ~ m Analyst, Standing Committee on HOUSing, ~ I S -lative Office Building, Room 716, Albany, ew

LYOrk 12248 (518-472-2760).

CODE ENFORCEMENT FUNDS - -V

RESTORED TO STATE BUDGETIn a last-minute m .

19n-78 New York S t a t e o : ~ d JUst b e f o r ~ it adoPted th'erestore the full $8 m'W g h ~ t , the legIslature voted toeliminated for state r a ; , ~ ~ n w Ich Governor Carey hadcode enforcement ex u r ~ e m e n t to York City forreprieve was due in l a r : a e ~ : ~ ~ r e s h This eleventh-hour

on the legislative leadersh' b e heavy p ~ e s s u r e putorganizations, including t ~ e York CIty housingand Neighborhood Co rr ew ork S ~ a t e TenantSociety and the Citizens I lo.n, CommunIty ServiceMany community-based ouslng and Planning Council.their'own Senators and AssgroubPS, hMelped by contacting

Th em Y emberse restoration of this it .

means that New York Ci . em the state budgetstate for every dollar it ty W ~ ' get fIfty cents from theactivities during the fisca,spen s h ~ n Code Enforcement

The city now has no excuyea;w Ich began on April 1st.sive Emergency Repair pse or not pushing an aggres-roster of housing i n s p e c ~ o g r a m and for bringing itsBetween state reimbursemeC:;:a back to fu!, strength.ment funds, the city should nd communIty developemasculating its code enf no longer plead poverty foris back in Mayor Beame ~ r ~ e ~ ~ n t . p : o g r a m s . The ballcourt. n mlnlstrator Appleby's

- --



TENANTS FIGHTING

RENT HIKES

A group of tenant org'anizations has engagedcounsel to obtain an injunction against thedecision by Rent Commissioner Daniel Joy to

grant landlords up to 7V2 % rent increases this

year. This rent increase constitutes a labor pass-along won by building employees in the recentLocal 32B strike.

The groups include Metropolitan Council onHousing, Tudor City Tenant Association, West

side Tenants Union, New York State Tenant andNeighborhood Coalition , and the West 79th StreetBlock Association. Other tenant organizations areexpected to join in support of this action. Anumber of city, state, and congressionallegislators have also announced their support of

the tenants' assertion that Commissioner Joy

deprived them of due process in granting land

lords a labor pass-a-Iong.

At a recent meeting between rentcommissioners and tenant representatives, Mr.Joy stated that he had been placed under pressurefrom landlord groups to sign a consent decreeinstead of allowing the court to decide the issueon the basis of specific provisions in the MBRLaw, both in its language and intent.

Characterizing Mr. Joy's decision as bothhigh-handed and discriminatory on the part of an

appointed official, tenants pOinted out that the

MBR Law was conceived as a building-by-buildingsystem, and was deSigned specifically to protecttenants from arbitrary blanket increases in their

rent because of rising cost, on an across-the-boardbasis. They cited assurances by previous rentcommissioners, Altman and Leventhal, to tenantsthat their rent would never rise above 7V2% in anyone year, unless individual landlords could show'need, on an individual basis, under the hardship

provision of the MBR Law.A meeting has been sought by tenant groups

and legislators with Mayor Beame, to demand thatthe mayor rescind Commissioner Joy's administrative decision. As yet, such a meeting has not

,been granted.Affected by Mr. Joy's decision are about one

half million apartment units still under the MBRsystem. These tenants have been paying an

annual 7V2 % rent increase since 1970. The pass-along would require tenants to pay rent increasesof up to 15% this year.

Tenants, many of whom live on fixed or

falling incomes, find that they have to make largerand larger inroads on their disposable incomes to

pay rent, at the expense of other necessities, suchas food and clothing, and denounce Mr. Joy's

action as one that will create extreme hardship, in

addition to being illegal.

' - - - I - - - - ~ _________ _ _ J ~ , - - - - - - - - - - - - ~ ~ ~ - - - - - - - - ~ ~ - - - - - - - - - - - - ' - - - - - - - - J



LINGOLETTER K

By ROBERT SCHUR and RICHARD ZEITLER

KEY MONEY - A phrase used to designate a

lump sum payment made to a landlord or agent, aside

from or in addition to the rent and security deposit, as

consideration fo r entering into a lease. Also used to

describe money paid to a tenant as consideration for an

assignment of an existing lease or for a sub-lease.

Statutes, such as the New York City Rent Law and the

Rent Stabilization Law, forbid the giving of "Key

Money" in connection with leases of residential property

subject to those rent regulation laws.

KEEPER - ; Any custodian, manager or

superintendent; one who is charged with the care,

custody or management of a place or thing.

KNOCK-DOWN PRICE - ' The price at which a

specific propertyis

sold as the resultof

competitivebidding, usually at a public auction; thus, the highest

price bid and for which the property is sold.

LETTER LLACHES - A Latin word used in modern legal par

lance to denote a delay by one who has a legally

enforceable claim against another of such an unreason

able length of time as to make it inequitable for a court

to allow the claim to be prosecuted. Usually, the mere

delay in time is not sufficient; the party against whom

the claim or right is sought to be enforced must show

that some circumstance has changed during the period

office is considered to be a "Iame duck" legislative body.

The term is one of derision to signify the relative

lack of power or public respect which an official or body

has when it is certain to, leave office in a short period of

time.

LAND - In the most general sense, the ground or soil

on the surface of the earth and everything attached to it.

In real estate verbiage, the word sometimes signifies

only the natural surface of the earth (as when, for tax

assessment purposes, a distinction is made between

"Iand".and "improvements"); at other times, it signifies

everything attached to the soil, whether placed there by

nature (as in the case of trees, herbage and water) or by

man (as buildings, fences, etc.). "Land" often also

signifies everything under the surface, such as minerals,and the air immediately above it, although in a more

technical sense, things below and above the surface are

sometimes said to be incidents of the ownership of land

rather than "Land" itself, as suggested by the old legal

maxim, "Cujus est solum ejus usque ad coelum"

("whoever owns land owns everything below to the

center of the earth and above it to the heavens").

LANDLORD - In the most general sense, anyone

who holds or owns an estate in land and who grants asmaller or lesser estate, either of the land or a part there

of or an improvement thereon, which includes a right of



normally done by having someone (usually a profes

sional title abstractor or searcher) make an actual

inspection of the records of the official land recording

office for the locality and prepare a written statement

under oath as to what the records show. This docu

ment is frequently referred to as a "Last Owner Search."LATERAL SUPPORT - The legal right of an

owner of land to have such land supported by adjoining

land. Thus, where A and B own adjoining parcels of

land, if B decides to excavate (say for the purpose of

laying a foundation for a building which B plans to

erect), B must take all necessary precautions to prevent

any loss of support to A's land and all buildings on A's

land which may result from the removal of soil on B's

land.LAW - In its most usual sense, a rule or enactment

promulgated by the legislative authority, or a long

established custom which has the force of such an

enactment (the latter is often called "common law").

LAW MERCHANT - The body of jl.lJicially pro

nounced rules, adopted by the English courts during the

17th and 18th Centures, governing the relations

between merchants and their business practices. Much

of the present legal rules governing modern commercial

transactions, such as the laws of sales of goods, chattel

mortgages, negotiable instruments, creditors' rights,

etc. had their origins in the "Law Merchant."

LAWFU L - Anything which is legal, allowed,

permitted, authorized or sanctioned by law; not contrary

to or forbidden by any law.

LAWFU L ENTRY - In real estate, any entry by one

person onto land in the possession of another, whichentry is made under a claim or color of right and without

force or fraud. An example is where a landlord of an

apartment, having reserved the right to do so in a writ ten

"Net Lease").

The purpose and effect of most "Lease-Backs" is

to convert an owner of a fee interest in real estate into a

tenant without disturbing or changing possession of the

property. It is frequently utilized by such an owner as a

means of producing cash (which may be needed in theowner's business) as well as tax benefits (as where an

owner of business or income-producing property has

"used-up" the amortization allowed by the income tax

law but, as a lessee, can deduct the rental payments).

On the other side, purchasing a parcel of real estate and

immediately leasing it back to a secure tenant under a

long-term lease may be attractive to a financial institu

tion or other investor or investment intermediary such

as a trust or pension fund.One of the early large "Lease-Backs" occurred

shortly after World War II, when R. H. Macy & Co. sold

its main store at Herald Square in New York City to a

group of insurance companies and leased it back fo r

ninety-nine years. Macy's thereby raised millions of

dollars of immediate cash which it used to build and

equip new suburban stores and the insurance

companies made a very seCure and high-yielding invest

ment of their surplus funds.

LEASEHOLD - An estate in land held under a lease

(i.e. the interest in the real estate which passes to a

lessee or tenant); any estate in land for a fixed term of

years.

LEDGER - A book of accounts in which a business

entity or individual can summarize owner's dealings

with other businesses or individuals. For each account,

two parallel columns are maintained, one for entriesdebits to the person' or account charged, the other for

credits. The items are posted into this book from the

Journal or daybook. By totalling each of the parallel



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IN THIS ISSUE

• "The Neighborhood Housing Movement" Published

• State Budget Cuts Restored

'OUI sJadol9l'8a DU!snOHPOO4Joq4D!9N JO UO!lB!OOSSV

, • Conferences Planned on Red-Lining and Citizen Participation

• Action in Albany on Rent Regulation and Neighborhood Preservation

LINGO LEGAL BRIEFS NEWS

ANNOUNCEMENTS

city limits magazine, may 1977 issue

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