City Limits Magazine, February 1979 Issue

8/3/2019 City Limits Magazine, February 1979 Issue

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CITY LIMITSCOMMUNITY HOUSING NEWSFEBRUARY 1979 VOL. 4 NO.2WELFARE TENANTS FACEFORCED RENT PAYMENTS

TAINO:"DREAM" HOUSINGFOR POOR SET TO OPEN

by Susan Baldwin"It's like a dream, and I'm going to be in there. I just know it," saysDorca Santiago, who, along with her husband Pedro, is the last tenant in atinned-up, squalid building around the corner on Second Avenue (romTaino Towers, the majestic 35-story glass and concrete Federal project inEast Harlem that she expects to call home in a few weeks .Born out of rent strikes and City Hall promises in the early 1960's forbetter housing and health care for the poor, Taino Towers has become areality to 656 low income families who will be vacating theirsubstandard, often overcrowded, housing to move into this

by Timothy J. CaseyEach month, some middle andupper income tenants withhold rentto pay for repairs or services thatlandlords have failed to provide.Newspaper and television editorials

do not attack them for destroyingthe city. Politicians do not petitionthe federal government to step inand make it impossible for them todo so. Mayor Koch does not accusethem of theft.Yet over the past year there hasbeen a concerted campaigninvolving landlords, the mayor andsome Bronx politicians on behalf ofa policy, and a particular projectimplementing this policy, to deprive


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The silence of public officials and commentatorswhen middle and upper income tenants withhold theirrents, and their vocal support of a policy which woulddeprive some poor tenants of the right to do so is notdifficult to explain. The tenants who would be affectedby this policy and who have been berated and attackedare welfare recipients who receive public assistancefrom the Home Relief (HR) and Aid to Families withDependent Children (AFDC) programs. Although thenumber of AFDC and HR recipients in New York Cityis substantial-about 250,000 AFDC families, including555,000 children, and about 105,000 HR families andsingle persons-as welfare recipients they are not apopular or a politically powerful group. They are poor,mostly children, and disproportionately female andminority group members.

Because of their political weakness and their dependence on the government for their income, welfarerecipients have been a traditional target of landlordattacks. Fo r decades landlords have claimed thatindecent housing conditions are the result of welfarerecipients' failure to pay rent and have sought to havethe city's welfare agency either pay welfare recipients'rents directly to them (vendor checks) or to issue welfarerecipients benefits checks that can be used only to payrent. (two-party checks)

This landlord claim has reaped some success. Morethan 50,000 welfare families and individuals currentlyreceive restricted checks, 40,000 under AFDC and 10,500under HR, according to the city's figures.

The claim is also false and the policies advocatedharmful. Thousands of welfare recipients who do paytheir rent live in intolerable housing. When the city hasstepped in and guaranteed rent payment by welfarerecipients it has removed the only real incentive land

now clear that the goal of current city officials is thecreation of a separate system of landlord-tenant law forwelfare recipients to be administered by the city's welfare agency. Its central principle would be that welfarerecipients must pay their rent whether or not their landlords meet their obligations.

The city has already taken major steps toward theimplementation of this system. In 1977 the New YorkState legislature eliminated from the Home Relief program the last remnants of the principle of recipientcontrol over welfare benefits. The city's welfare agencytherefore now issues HR recipients a two-party checkfor rent-a check made out to both the recipient and thelandlord and which only the landlord can cash-whenever a landlord, including the city in the case of its ownbuildings, requests such a check. I f two-party checks arenot turned over to the landlord by the recipient, the citythen makes direct "vendor" rent payments to the landlord. There is no requirement that landlords providedecent housing in order to receive these rent guarantees .

Federal law, which is not applicable to the HR program because no federal funds are involved, creates twoobstacles to the full extension of this policy to AFDCrecipients. First, because Congress believed that poorpeople should have the same right to control theirincomes as other Americans, recipient control of howAFDC benefits are spent may only be restricted whenthere has been a finding by the public assistance agencythat the adult AFDC recipient has not managed thefamily's benefits consistently with the welfare of thechildren in the family. Second, to prevent improperfindings of "mismanagement" of benefits by agenciesoverly responsive to landlord demands, there is a ceiling,currently 20070, on the number of AFDC recipientswhose control over benefits may be restricted. New


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why not. As with HR recipients, if these checks are notturned over to the landlord, direct rent payments to thelandlord are then made.The city would like to go further. It has now seizedupon the idea of "demonstration projects" as a meansof evading federal requirements.Since the representatives of West Bronx landlordshave been the most politically active, the city is askingthe Department of Health, Education and Welfare toapprove a demonstration project to be run inCommunity Planning Districts 5 and 7 in the WestBronx in which compliance with the "mismanagement"determination and the 200/0 ceiling would be waived.AFDC recipients in those areas whose landlords enrolledin the project would be issued two-party checks for rent-even if they were completely current in their rent-iftheir landlord said they had paid rent late for whateverreason in any of the preceding six months, if the citysaid they did not return a form which would be sent tothem explaining the project, or if, responding to theinevitable pressures from the city and their landlords,they "voluntarily" agreed to participate.In return, their landlords would "promise" the city toremove housing code violations. Rent guarantees wouldbe provided even for housing with major code violationsand continued unless the city decided the landlord had"absolutely failed" to keep his or her promises.HEW Secretary Joseph Califano has authority towaive compliance with federal AFDC requirements inconnection with demonstration projects designed toobtain important information otherwise unavailable.

The ostensible purpose of the West Bronx demonstration is to study the effect of guaranteed rent payment onhousing conditions. With more than 50,000 welfarefamilies and individuals already living on restricted

(N.Y.C. Chapter), Casa Nuestra, the Task Force on theNew York City Crisis, the New York State Tenant andNeighborhood Coalition, and the Puerto Rican LegalDefense and Education Fund.Those who believe that tenant rights are importantand that welfare recipients should have the same rightsas other tenants are urged to communicate their opposition to Califano. Address letters or telegrams to Secretary Joseph Califano, HE W, Wahsington, D.C. 20201.Whatever action is taken by Secretary Califano concerning this project, the city will undoubtedly continueits efforts to extend the use of two-party rent checks anddirect rent payments to landlords. The Mayor hasalready announced plans for developing a demonstration project for AFDC recipients in city-owned housing.It is also possible that the city will go to Congress again.o

On February 5, the New York State Department ofSocial Services (NYSDSS) issued proposed regulationsconcerning restricted rent checks for welfare recipientswhich would be much better for tenants than the currentNYSDSS regulations. NYSDSS will consider the comments people send in on the proposed regulations indeciding whether it should adopt them as law. I t is therefore important that NYSDSS hear from tenants andtenant groups.The Center on Social Welfare Policy and Law, 95Madison Avenue, N.Y.C., N.Y. 10016, Tel. (212) 679-3709, is preparing a memorandum analyzing the proposed regulations and explaining how comments shouldbe submitted. Persons who wish to receive copies of thismemorandum should call or write Timothy Casey at theCenter. Questions al.>out the general subject of restrictedrent checks may also be addressed to the Center.


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CHARLOTTE STREET HOUSING PROJECTLACKED SOLID PLANNING FOUNDATIONby Bernard Cohen

"We are proceeding to build on Charlotte Street, thearea where the President stood, because of the fact thatwe have adequate community facilities; we have acrossthe street a park; we have subway stops; we have anelementary school and junior high school and we have awelfare center nearby. We have shopping facilities andall that is required in order to provide for a total community." Deputy Mayor Herman Badillo, Nov. 16,1978.

"The Crotona Park area presently lacks adequatecommunity facilities, commercial enterprises, developedopen space and job opportunities. The housing there isabandoned or seriously deteriorated." City PlanningCommission, Oct. 16, 1978.

"It was to get something started in this community.Board 3 in the last 10 or 15 years has been last man online in the South Bronx to receive housing assistance.It's about time we got our fair share." Paul Muscillo,president, Neighborhood Community Renewal Corp.and member of Bronx Community Board 3.

Charlotte Street was too many things to too manypeople. Caught in the crossfire of politics and planning,and lacking a strong identity of its own, Charlotte Street

"I resented using Charlotte Street as a priority justbecause Carter stood there. I resented the fact that ourpriorities were not given preference or even discussed.Badillo was the main pusher ofCharlotte Street. We felthe was doing it for political motives, to get brick andmortar up here by 1980 and look good for Mr. Carter.Charlotte Street was never a priority in this community. "June Salters, member, Bronx Community Board 3, Jan.5,1979.

"Charlotte Street is an appropriate site for a low-riseand low-density housing project. I t is quite defensible.The federal government is interested in having earlyaction projects, not just a plan. This project by itselfwill strongly add to the health and welfare of the SouthBronx and is worth doing by itself." Edward Logue,executive director, South Bronx planning, Feb. 9, 1979."There used to be a strip area along Wilkins Streetwith a cleaners, a drug store, other businesses. Noweverything is out of the neighborhood. I feel sorry forpeople who don't have cars. You need a car." Claudette Phipps, a 14-year resident of the Charlotte Streetneighborhood, Dec. 15, 1978.

struction when there is so much deteriorated housing inneed of rehabilitation? Isn't it important to get something started quickly as a sign of good faith to the people


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I t is hard to see how Charlotte Street fits either principle too comfortably. It is easier to s.ee how it emerged asthe priority of one man who saw its value in symbolicterms and convinced many people that Charlotte Streetwas a test of New York City's own will to rebuild theSouth Bronx.

Areas of StrengthCharlotte Street is a "short dump" in the inelegantlanguage of the New York City Sanitation Department.Dozens of tank-like sweepers rumble down its threeblocks daily to drop their cargos of cans and bottles andpaper and dirt, vacuumed from the gutters of the surrounding streets. The trash is bulldozed into neat piles,then sprinkled with water to batten it down against thewind. Later it is hauled away in trucks, except for whatblows across and sticks to the acres of rubble.Miguel Perez, owner of the Spanish-Americangrocery just around the corner from Charlotte Street,would love to have seen the new housing go up. "It'sunbelievable. This place is like a ghost town," saidPerez, who has lived in the neighborhood for 15 years.Two years ago, Perez did about $3,000 worth of business a week. He ordered 350 pounds of meat alone.Today, despite the fact that his store is open three hoursa day longer, business is down to $1,200 a week, and 150pounds of meat is enough for his customers.There is but a single occupied building in the tenblocks that make up the triangle-shaped site for theproposed housing. The view is dominated by abandonedstructures and large tracts of empty space where the

land was cleared years ago for schools that were neverbuilt. Hardly anyone traverses the area on foot or bycar. Children living on the fringes say they cannot getfriends from other neighborhoods to come visit them.Many of the stores that lined the streets two years agoare boarded up. The only medium-sized supermarket,Food Pageant, closed many months ago. An inventory

of human services in the area, prepared for DeputyMayor Herman Badillo, is practically blank on the pageentitled "shopping area." Residents take buses, drivecars or walk a hefty distance for clothes, food, appliances, medicine and other.necessities.At the crest of Charlotte Street, P .S. 61, now theFrancisco Oller School, was nearly shuttered two yearsago to save money. The school has a capacity of 988students and a current enrollment of 440. There were35,000 students in the school district five years ago.Now there are 15,000. There were 150,000 people livingin the community district in 1970. Nearly one-third weregone by 1975 and the population loss has undoubtedlycontinued.Police presence has also declined. The 42nd Precincthas been cut by 21 per cent (26 officers) in the past yearas a result, according to police, of redrawn boundariesthat transferred several high crime sectors to otherprecincts.Charlotte Street is stark, even by South Bronx standards. Still, appearances can deceive. There are a lotmore human services-schools, associations and clubs,child care facilities, churches, employment and training

continued on page J7


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CETA HOUSING JOBS THREATENEDA decision to eliminate or vastly reduce the CETA

programs of many community housing organizations inNew York Ctiy is being reconsidered following a noisyprotest by about 200 people at the office of HousingCommissioner Nathan LeventhaLThe demonstration January 29 won an immediatemeeting with Leventhal, Stanley Brezenoff, commissioner of the Department of Employment and sevennegotiators representing 38 housing groups with CETATitle VI (public service employment) programs.The 38 groups, which are linked together under theAssociation of Neighborhood Housing Developers,have a total of 375 CETA jobs this year and had appliedfor 335 jobs for the next contract, beginning in March.The negotiators learned that HPD intended to reducethe groups' allocation to 80 jobs under the ANHD contract and to 23 jobs under a separate contract with theCollege of Human Services.The Manhattan Valley Development Corp., for

example, which had 21 CETA VI jobs this year andapplied for 18 under the new contract, would have beencut to eight under the city's plan. Jose Acuna, directorof MVDC, said the cut would not only be "disastrous"for the neighborhood, but "would set the city's housingprogram back two or three years" because MVDC usesmany of its CETA workers to maintain and repair cityowned buildings. "The city would be getting morephone calls from people who were not getting properservices," Acuna said.Among other examples, Kelly Street Block Association was to be cut from 26 jobs to 4; West HarlemCommunity Organization from 34 to 4 and the Peoples

inating against groups doing tenant organizing andcounseling ("software" jobs) that would be more likelyto create future headaches for the agency.

"I t seems to me that HPD and DOE have turnedaround the concept of CETA and are using it for theirown purposes," the representative of one hard-hitcommunity group said.Leventhal denied that HPD intended to discriminateagainst tenant organizing, saying, "I happen to thinktenant organizing is very important." However, headded that HPD would be "foolish" not to tie theCETA program in with HPD's priorities and programs.

Other HPD officials acknowledged that rehabilitation does claim a new priority for CETA jobs. A muchgreater demand is now being placed on CETA VI forrehabilitation jobs, particularly from organizations withfederal contracts, because of a recent reduction in thenumber ofCETA I job training jobs available."We had a certain commitment (of CETA VI) to

meet of f the top," Deputy Commissioner MarvinMarkus said, referring to a large bloc of 234 jobs goingto organizations with rehabilitation contracts. The ironyis that those groups would prefer to have the jobs underCETA I. (See November, 1978 City Limits.)Markus also told City Limits that HPD's ability todeliver was an important criterion for evaluating proposals. For example, he said, it would not make sense tofunq a level of tenant organizing jobs that would createa future demand for housing services and programs thatHPD could not meet. "It's a question of raising falsehopes," Markus said.A major source of confusion has been the ambiguity


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$1 MILLION FOR WEATHERIZATIONUNTOUCHED; FISCAL WOES CITEDby Bernard CohenMore than $1 million earmarked for housing weatherization in New York City has gone unspent because ofquestions about the fiscal accountability of the cityagency that was to administer the money, according toreliable sources.The original plan was to route the $1.07 million fromtwo federal agencies, the Department of Energy and theCommunity Service Administration, through the stateto the city's Community Development Agency.CDA was to funnel the money to community actionagencies and neighborhood organizations to pay forinsulation, weather-stripping and other materials toprotect apartments from the cold and conserve energy.

At an estimated cost of $350 to $450 per unit, themoney would have been sufficient to weatherize morethan 2800 apartments.Sources said the Division of Economic Opportunityof the New York State Department of State received the

money from the federal agencies last summer and gaveCDA a $105,000 advance. Upon learning that CDA washaving problems with fiscal controls and that the agencycould not obtain a "statement of adequacy" from thecity comptroller's office, DOE and CSA ordered thefunds frozen.After first denying through a spokeswoman thatCDA had been having fiscal problems, CommissionerRoger Alvarez admitted that CDA lacked a "statementof adequacy" but said it stemmed from accountingdifficulties during the period of October, 1976 through

City when it announced last October that it was terminating the weatherization program at Open City becauseof alleged fiscal irregularities there. Open City, too, hasundergone reorganization, its contract has been reinstated and its role in weatherization expanded, according to CDA officials.

Haskell Ward, then commissioner of CDA and now adeputy mayor, criticized city audits at the time for notdetecting Operation Open City's alleged problems andsaid, "CDA's findings . .. suggest serious shortcomingsin the city's fiscal oversight mechanisms."State officials said they are now actively solicitingproposals and ideas from community organizations. Atthe same time, they said it is still possible the moneycould be routed through CDA if its problems are resolved."We want to get the money out into the communities ," said one state official. "We are trying to get information out to all groups in New York City. We aretrying to assess the capacity of everyone and are in theprocess now of evaluating and putting together a totalweatherization plan."While the money will pay for materials, it does notcover the cost of labor. The possibility of combining thefunds with CETA (Comprehensive Employment and

Training Act) jobs is being explored. 0ANNOUNCEMENT

There is more than $2.1 million available for weather


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COUNCIL, TENANTS EYE FIGHTTO TIGHTEN FORECLOSURE LAW

by Susan BaldwinCommunity groups and City Councilmembers are

showing signs of wear and growing distrust of eachother as the time draws closer for the Council to t ake itsclosely watched vote on the amended bill that wouldtighten up the loopholes and the timetable for landlords to recover their buildings from foreclosure.

The bill, known as Intro. 492A, passed the Governmental Operations Committee of the Council January24 by a vote of six to three after disgruntled Councilmembers and their aides had spent weeks lobbying cityagencies to tighten up the prevailing easy installmentagreements for redeeming properties.

The full Council meeting, originally scheduled forFebruary 20, was put of f to February 27 because ofCouncilmembers' vacation schedules.

Under 492A, an owner who defaults on any quart-erly installment agreement will lose through fast foreclosure procedures both his property an d the money hehad already paid.

The quick foreclosure aspect of 492A was one of themajor amendments proposed by Councilmembers RuthMessinger (D, Man.), Stanley Michels (D-L, Man .), andJane Trichter (D-L, Man.) prior to the January 24committee session and incorporated into the KochAdministration's amended version of Intro. 492.This is critical because, under the old law, an ownercould enter into an installment agreement with the city,make a down payment, and pay no more until the next

Housing, gave a different interpretation of 492A." I t simply shortened the amount of time from eight

years to four years that a landlord has to pay," she said."Also, all he has to do is put 20 per cent up front.That's even less than the 25 per cent from before . . .It deals with finances, not people, and it's a clear indication that the Koch Administration knows it has a hotpotato that it wants to get rid of as soon as it can."

Under the city's permanent law known as SectionD.17 of the Administrative Code, a landlord had to pay25 per cent down of the arrears owed and was allowedonly the same number of calendar quarters that he wasin arrears to pay up the balance, up to a maximum offour years. With Local Law 34, passed in September,1978, and the original Intro. 492, proposed as a companion law to 34, a landlord could redeem his buildingby paying as little as 15 per cent down on the taxes owedand by agreeing to pay up the balance over a period aslong as eight years.

The January 24 committee hearing attracted some 300attentive and sometimes boisterous citizens. They toldCouncilmembers about unattended and unservicedbuildings, strengthening the case for legislation to require that landlords correct major building code violations, and to screen ou t landlords whose recordindicates they will not honor such commitments.

A series of amendments that called for the correctionof the major building code violations, notification of


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from Councilman Robert Rodriguez (D, Man.-Bx.),who said that he had mixed feelings about Intro. 492and 492A, and that he agreed with forces that wereopposed to easy redemption. He, in turn, was chastizedduring the roll call by Chairman Katz.After the session, Rodriguez explained his position."They thought I was going to go along, that I was in thetank. They think they can take you for granted, but Iusually apply my votes by following my people andwhat they say. This is why I voted no."Prepared testimony from Chairman Isaiah Robinson,Jr., of the City Commission on Human Rights wasrejected by Mayor Koch's aides who reviewed it prior tothe hearing because it supported restrictions on ownersattempting to redeem property.In his suggestions for reform Robinson was to havespoken out for "a screening process . . . which would disqualify landlords with a history of either tax arrearageor failure to provide services."Certain Council members and their aides are currentlymustering support for two amendments that would callfor the screening of landlords and the proviso thatlandlords redeeming their buildings sign installmentagreements to correct major violations on their properties. These amendments will be raised, along with 492A,

at the February 27 Council meeting.Messinger said that she and her other Councilcolleagues will support an all-out floor fight for the twoamendments. She reported that a city workers' union,District Council 37 (AFSCME), is lobbying Councilmembers to vote for 492A and the amendments.A negative opinion of 492A was voiced by MarkGoldowitz of the Bronx Coalition on City-OwnedProperty. "Three provisions help the landlords, onehelps the city collect taxes, and nothing helps thetenants," he said.Another opponent expressed a similar view. "Wewould like to see all pro- tenants Councilmembers voteagainst 492Aso that the Koch Administration could seethat this movement is not divided," said Tom Gogan ofthe In Rem Tenants (IRT), a city-wide coalition that isorganizing tenants in city-owned buildings."It 's not enough just to have this quick foreclosure,"he said. "W e believe that the tenants deserve more fromthe city and that if all forces stay united, they willreceive it . . . The Koch Administration has simplyadopted this 492A position because it makes it lookgood with Washington and the banks. We are stillcalling for programs for the people." 0

CD FUNDS FOR IN REM UNCERTAINNew York City's hopes for receiving continuedCommunity Development (CD) funding to maintain itsever increasing number of tax-foreclosed (In Rem)properties in the upcoming budget year could be dashedif a strict interpretation of the federal guidelines prevails.The city is calling on Washington for approval ofsome $100 million in CD funds to operate its expanding

operating costs and maintenance, nor do they permitnew construction . . . But, of course, all proposals aresubject to interpretation. And that application [NewYork's] has yet to be approved."City sources, however, said that there appears to be amore conciliatory attitude toward New York on HUD'spart. And the White House is known to have expressed


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BANKS TESTED ON eRA

TN IlANK

Anna Marie Reinthaler of Northwest Bronx Community and ClergyCoalition.

More than 60 anti-redlining activists convened recently in front of the Rockefeller Center branch of the DimeSavings Bank of New York to inaugurate a new stage inthe fight to increase the flow of credit into neighborhoods.The members of the Coalition Against Redlining.andNational People's Action came together after testingmore than 30 banks to see if they were in compliancewith recent federal regulations intended to "encourage"financial institutions to meet the borrowing needs oflow and moderate income neighborhoods within theirlending areas.Under the law, called the Community Reinvestment

monitor them vigilantly. Not a lot of research is required.Although the regulatory agencies maintain that theexamination process will be subjective, they must takemany specific factors into account when assessing thebanks' records, including:*What effort did the bank make to reach out anddetermine the actual credit needs of the community?*How has the lender marketed or advertised loanavailability?*Has the bank discouraged loan applications by notmaking forms available, by charging non-refundableapplication fees, by requiring excessively high downpayments or by granting very short loan terms?*Do the bank's loans favor wealthier sections withinthe community? Has it opened branches in the suburbsor wealthy sections of Manhattan and closed branchesin low-income areas?

I t is important to know that CRA requires every bankto maintain a public file for comments that you or yourorganization want to bring to the attention of the bank'sofficers.Banks are now required to disclose by zip code orcensus tract where they hold mortgages and where theygranted loans last year. The main branch will have theinformation.A CRA examination will be conducted about every 18months, even if a bank has not applied for permission toexpand. I f your local bank has a poor loan record, youare within your rights under CRA to demand an investigation by the regulatory agency even if the bank has notfiled an application.You can also contact the regulatory agency cited inthe bank's CRA public notice to request notification ofany applications the institution submits to the agency.Already, Bank on Brooklyn and South Brooklyn


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INSURANCE DEADLINENew York State is racing a federal deadline forreducing FAIR Plan property insuranct:. rates with novisible sign that the Legislature is going to comply.Under federal law signed by President Carter lastOctober, states had until Jan. 31 to make their FAIR

Plan rates equivalent to those charged in the privatemarket of face loss of federal riot reinsurance.When that date passed with no action by the Legislature, the Federal Insurance Administration notifiedNew York State insurance companies that their riotreinsurance was being terminated . The termination issubject to a 30-day notice, so that action by the Legislature before March 3 would permit continuation of theinsurance.The federal law was passed because of the FAIR Plan-a pool set up to provide "last resort" propertyinsurance in neighborhoods that have been redlined byinsurance companies-charges rates that are up to fivetimes higher than are paid in the private market.Known as the Holtzman Amendment after Rep.Elizabeth Holtzman of Brooklyn, the law also requiresthat one-third of the FAIR Plan's governing board bepublic members with no ties to the insurance industry.In New York State, all 13 board members have insurance industry connections.There has been a growing public awareness of theharmful impact on neighborhoods of the blanket denialof fire and homeowners insurance.A report last year by the Department of Housing andUrban Development said that "insurance redlining iswidely practiced" and that "risks are rejected not on thebasis of objective underwriting standards but rather onhighly subjective perceptions of risks assumed for

There are presently 75 insurance contracts providingriot reinsurance to 263 insurance companies in NewYork State. 0In Rem continuedlarger amount of CD money into the 1979-80 budget,"he said, adding, "We are trying to work with the cityand also meet the intent of the statute." He mentioned$70 million as the city's requested amount for the InRem funding.Garrity also pointed out that New York City is the"only place in the country where they [city officials]have requested block grant money to maintain property."The final application to HUD in Washington is notdue until June or July.

"We are not going out and encouraging the city toput in this application, but we do understand that NewYork does have a serious problem," he concluded."Within the law, we want to help them. I think you cansay that that is our position at this time."Meanwhile, Congressman S. William Green (R-Man.)conducted public fact finding sessions to gather moreinformation on the city's critical In Rem housing condition, and area HUD officials have submitted a detailedquestionnaire to HPD seeking specific data about thecity's massive property holdings . Rep. Green is amember of the House Subcommittee on Banking,Finance and Urban Affairs. 0

The Rent Guidlines Board will hold a public meetingon March 7 at 10:30 a.m. at One Police Plaza in Manhattan to decide on rent increase ceilings for 800,000stabilized apartments from July 1, 1978 to June 30,1979.


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POOR PEOPLE:THENEWENVIRONMENTAL HAZARD

by John DouwIn December, the U.S. Court of Appeals ruled ou t

New York City's plan to build 160 units of public housing on a vacant site along Columbus Avenue and West91st Street in the West Side Urban Renewal Area.

The West Side Urban Renewal Area has been thescene of a struggle for adequate low and moderateincome housing for almost a generation, and the Court'sdecision makes it likely that the struggle will continuefor a long time to come.

What is startling about the ruling is that it implicitlyfinds low income people to be a threat to the environment, equating them with the more familiar kinds ofhazards protected agains t by federal environmental law .I f that viewpoint stands, if fear and opposition in thecommunity is a "social environmental impact" to beavoided, and if concentration of public housing aloneviolates federal environmental law , it is hard to think oflocating it anywhere that won't be vulnerable to such 'alawsuit.

The twenty-block area, running from West 87th to97th Streets, Amsterdam Avenue to Central Park West,was first planned for urban renewal in the 1950s. Developers had good reason to be interested in the area-theproximity of Central Park, adequate public transportation, the prestigious luxury apartment buildings alongCentral Park West and brownstones, suitable for reno

Site 30

income units there now, but as many as 900 could bephased out over a period of time.A number of methods have been tried to produce theunits. Four Housing Authority projects were completedin the 196Os . In addition, the city attempted to reserve acertain number of units (at first 20 per cent, then 30 percent) for low income families in the new middle incomebuildings .

The idea of economically integrated buildings is


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Streets.The Trinity School, a private Episcopal school onColumbus Avenue, brought suit against the city and theDepartment of Housing and Urban Development to bar

any further public housing in the Urban Renewal Area.The Strycker's Bay Neighborhood Council intervenedas a defendant early in the case. Trinity has since withdrawn as a plaintiff, leaving two brownstone ownersand a loose-knit organization primarily of middle classhomeowners called CONTINUE (Committee of Neighbors to Insure a Normal Urban Environment) to carryon the fight.Among the allegations were that by converting Sites30 and 4 to public housing the city had fundamentallyaltered the plan from its original conception and thatfurther public housing would "tip" the area, causingmiddle and upper income residents to leave.

In fact, there has never been any sign of "tipping."Brownstones are purchased or rented by upper income'Jeople. The new buildings along Columbus have waitingists. Rents are going up drastically, and owners seem tohave no trouble finding tenants at the increased rents.Far from the middle class fleeing the community, thepoor are being squeezed out.The case had been narrowed down to the issue ofwhether HUD complied with the National Environmental Policy Act (NEP A) in agreeing to fund the lowincome project for Site 30.

NEPA, since its enactment into law in 1970, hasprovided the basis for hundreds of lawsuits by conservation and environmental groups to challenge federalprojects-highways, military bases, nuclear powerplants, and the like-which are destructive of thenatural environment. However, NEPA's coverage is notlimited to the natural environment. It also deals with the

project and thus lessen "social environmental impact,"the court in the second appeal found sufficient reason tobar the project on Site 30.The Court found that because other public housingwas located in the immediate vicinity of Site 30, particularly the 4OO-unit Stephen Wise Houses on the sameblock, there was an increase of racial and economicconcentration which violClted NEPA. It ignored the factthat there is also a great deal of middle-income housingand brownstones in . the saine proximity, that highincome limits at Stephen Wise Houses have brought inmoderate income families, and that there is a highdegree of racial integration in Housing Authorityprojects in the Urban Renewal Area.Calculations by a community organization, theUnited Tenants Association, based on income levels ofexisting and planned buildings in the immediate area ofSite 30, show 785 low income units and 794 middle orupper income units, a 50-50 split that suggests economicintegration rather than concentration.The courts have rejected most of the plaintiffs' allegations on the more technical question of adherence to theoriginal plan.Not only did the court say no to Site 30 because itconcluded that another site away from this supposed"concentration" along 91st Street would have less"social environmental impact," but it required HUD togive further thought to low-rise and mixed income housing, regarding it as "folly not to heed the most modernthinking on the subject where a major undertaking isinvolved. After all," the court continued, "what doctorwould fail to use the most recently discovered curativemedicine merely because the patient had become il lprior to the discovery. "


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MANAGEMENT GROUPSGET $7.8 M FOR SIX MONTHSThe Board of Estimate approved applications for twonew Community Management groups and renewed contracts for 13 existing groups at its February 8 meetingfor a total funding of $7.8 million.The 15 contracts, effective March I, run for sixmonths.Contracts for three groups, including a new applicant,were laid over until a later date.And, at its March 8 meeting the board will consider

awarding a new $2 million contract to the New YorkUrban Coalition to train smaller neighborhood groupsin self-management.The three new groups that submitted CM contractsare: Sunset Park Redevelopment Committee in Brooklyn for a total of 200 units; the Upper Park AvenueCommunity Association (UPACA) in Manhattan, 100units; and the Urban Renewal Committee of SouthJamaica, 100 units. Consideration of South Jamaica'sapplication was postponed.According to Sandra Moore, director of the Community Management unit at HPD, the South Jamaicaapplication qualifies as a pilot project in that the 100units identified for management are located in one andtwo-family homes, not in multiple dwellings.Each group, Moore explained, will start managing amuch smaller number of units than the total allotted toeach neighborhood for the life of the contract.

The board will consider awarding the $2 million contract to a non-profit company set up by the New YorkUrban Coalition to oversee management of propertiesaround the city by smaller groups which lack the experi

At the present time, HPD has more than 50 requestsfor entrance into the CM program. It plans to acceptonly a few more this year, bringing the total to 25 byJune 1. A total of 30 CM groups are planned by June,1980.Under the MIPP program, Dale explained, the largerorganization can take on supervision of nine or tensmaller groups a year, thus maximizing the number ofcity-owned properties in alternative managementprograms.After the two-year training program is completed, headded, it is expected that community groups or tenantassociations that have been managing the properties forthe trial period may be ready to buy their building orenter into the interim lease program.Groups tentatively scheduled for the MIPP programfor a total of 600 units are the Elmhurst-Corona Neighborhood Association (Elm-Cor) in Queens, the Ministerial Interfaith Association in Harlem, Alliance forProgress in the Highbridge section of the Bronx, and theCrown Heights Management and Maintenance Corporation in Brooklyn.

The approved CM contracts were as follows:Contract Amount

ContractorsClinton Housing DevelopmentCorp., Inc. . . . . . . . . . . . . . . . . . . . . . . . . .Interfaith Adopt-A-Building, Inc . . . . . . . . .Inter-Neighborhood Housing Corp. . . . . . .Kelly Street Block Association .. . . . . . . . . .Manhat tan Valley Development Corp . . . . .Morris Heights NeighborhoodImprovement Association . . . . . . . . . . . .Nuevo EI Barrio Para La Rehabilitation de

(CD Cost)$ 409,956500,036543,605657,030

621,506220,812


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Taino Towers continuedFirst priority for the apartments goes to the 350families that were displaced to construct the buildings.Neighborhood residents who have been on waiting listssince the early 1970's will also be given priority. According to Taino Tower officials, more than 7,000 peopleare on the list."If you're going to be living here, you'll have to learnhow to sew your own curtains because of all the glass,"Carmen Cruz, director of public relations and researchfor the Taino Towers project, said to Dorca during arecent apartment tour, as the frail, but wiry 34-year-oldwoman raced through the model apartment checkingout the "amenities" that many critics have called tooluxurious for "poor people's housing.""I don't care," Dorca answered. "I'm just happythat I'm going to be in here. This is just wonderful.What a big bath tub. I am just going to be very happyhere. And I'm not even going to change the walls . I'llleave them just the way they are."The 656 units include 113 efficiency, 130 one-, 184two-, 201 three-, and 28 six-bedroom apartments. The

"fair market" rental for equivalent housing in NewYork City is $560 per month for the efficiency; $646 forthe one-bedroom; $779 for the two-bedroom; and $900to $990 for the three-bedrooms and up. According toAlexander Naclerio, director of housing for HUD's areaoffice, "There really is no price tag for the six-bedroomapartment because this is unheard of in publichousing."Construction on Taino Towers began in September,1972, after the community sponsor, the East HarlemCouncil for Human Services (then the East Harlem

At present there are about 35 lawsuits pending onTaino Towers. According to Joseph Burstein, a HUDassistant secretary who is project manager for theTowers development, HUD has won back at least $18million against Silberblatt and "expects to recoupeverything.' ,Bruce Silberblatt acknowledged that the lawsuits werecontil'\uing but refused to discuss any details of what hecalled "quite an interesting story."The total cost of building Taino Towers has still notbeen added up, but estimates run from about $46million to $62 million. And estimates for the per unitcost for the residential space, if all commercial andcommunity space is leased, run from $22,500 to $33 ,000each.The major problem facing Taino Towers at this timeis renting up the community space."W e are not worried about the commercial space,"Julio Vasquez, administrator of , he project, told CityLimits recently. "I know everybody is talking about thenon-residential part of the Towers, but I am notworried . We have signed up Fedco for most of the

commercial space, and we expect to bring in ChemicalBank, a travel agency, and possibly a franchise restaurant like Burger King." Fedco is a minority-ownedsupermarket chain.Vasquez also said that he is negotiating with the stateto open a group home for mentally retarded patientsand that two organizations with Headstart programshave shown interest in the day care facility, equipped tohandle 260 children.

The East Harlem Council for Human Services Neighborhood Health Center has been operating itscommunity facility in the complex since October, 1978.Its annual rent is $120,000.


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LANDLORD MINISTER UNDER FIREby Jay Flavin

The Jekyll-and-Hyde case of Daniel Potter the minister and Daniel Potter the "slumlord" has led to sharpdivisions within the New York City Council ofChurches, the Protestant umbrella group of whichPotter is executive director. On February 15 the Councilmet but apparently did not make a decision on whetherto terminate Potter. The major denominations belonging to the Council had been threatening to abandon shipand leave Reverend Potter as shepherd without a flock .

Potter has served for 26 years on the Council, most ofthem as its director and chief fund-raiser. His criticsconcede that his efforts as fund-raiser (in particular, theannual "Family of Man" dinner which he organizes)have kept the Council financially afloat. But recentrevelations that Potter is owner of numerous deteriorating tenements in Albany-where he is known to cityofficials, neighborhood associations, tenants and themedia as "the Reverend Slumlord"-has led to a movement within the Council to unseat him.Two recent votes of the Council's Board of Directorsfailed to remove Potter, despite an internal investigationthat raised questions not only about his rental propertiesbut about his finances as well. The most recent vote, onJanuary 18, was 29 to 22 against replacing Potter asexecutive director. One board member, ReverendLawrence H. Alexander of the United Church of Christ,has already resigned in protest, and others have statedtha t they will pull ou t if Potter is not removed."Unless there is some plan announced on the 15th forthe redevelopment of the Council's leadership, with a

with our intention to form a new organization.""The Council as now structured has not been responsive to the needs of its members," claimed Boates. Hecited Potter's continued and successful emphasis onfund-raising while social problems such as housing andyouth lacked leadership.Other ministers contacted called Potter a "disgrace"and a "liability."Alexander was a member of the investigative commission set up the the Council last fall to look into thecharges against Potter. "There were serious questions

about Dan Potter's management of personal incomefrom the Albany properties and Council of Churchesincome which were not answered by the Commission'sinvestigation," he asserted. Potter's attorney , GeorgeDuff, has prevented the committee from seein!5 Potter'sfinancial records, despite the statement of a CertifiedPublic Accountant that he could not certify the veracityof financial statements provided by Potter to the committee. Duff also serves as attorney for the Council, towhich position he was appointed by Potter, and is amember of the Council's Board of Directors who votedagainst the firing of the director.

"Potter's current troubles began last fall with asurvey of his tenements by the Albany Urban Ministry.Results of the survey and research by United Tenants ofAlbany produced a litany of complaints and seriousviolations which spilled over into the Albany newspapers. This publicity caught the eye of New York Cityclergy, notably State Senator (and Minister) CarlMcCall of Manhattan. McCall demanded Potter's resig


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buildings are in the Arbor Hill neighborhood, a poor,85 percent black area adjacent to the state governmentcomplex.With over 50 apartments, Potter's gross take isestimated conservatively at $60,000 a year. As directorof the Council, his salary is reported over $70,000annually . He currently owes in excess of $50,000 inunpaid real estate taxes to Albany County, while collecting over $10,000 a year from the county's Departmentof Social Services, through direct rent voucher checks,for his tenants who are public assistance recipients.

Though Potter claimed $48,000 in repairs on his taxforms the investigative committee agreed with rehab-ilitation specialist Virginia Worthington-Pac that "whatlittle there was of Reverend Potter's handiwork wasshoddy and not meeting even the most minimalstandards of workmanship." The committee reportstated: "Most of the buildings which the Commissionmembers saw were in deplorable condition. Withoutexception, the opinion among those of us who saw thebuildings was that these were not dwellings we wouldrecommend for human habitation."

Potter's most recent arrest occurred on October 8, forfailing to have an apartment inspected prior to rental, asrequired under Albany's code. He pleaded guilty inPolice Court and was fined $200, the maximum. "Shoplifters have been fined more," charged Roger Markovics of United Tenants of Albany.While the fight over Potter's tenure with the Councilrages, the tenants of Arbor Hill properties only knowthat they are subjected to indecent living conditions.They pray for relief. 0

to middle income housing. "They tried to take theproject away from us because of the default on themortgage," she recalled. "This is when we had to tellWashington it was ours and we wouldn't give it up. Ithink they saw we really meant business . Then we hadthe change in the Administration. And then SecretaryHarris listened to us."Dorca Santiago lingered with another visitor after hertour of the model apartment. "I really h ~ v e to go homenow, but I am hoping that after three weeks or so, I'llnever have to go back there," she said.

"I am going to have to change my furniture andeverything, but I can't wait," Santiago added. "Eventhough it's cold in my apartment, I won't be coldbecause I'll be thinking of the new place."Dorca and her husband have been living in a buildingthat has been virtually without heat since 1971. Thelandlord abandoned the building in 1975, and the citytook title in 1976. The Santiagos became the sole tenantsof the building after the city attempted to vacate thepremises last summer.

"The city is trying to move us right now, but I don'twant to have two movings in three weeks," Dorcaconcluded. "I have asked them to leave us alonebecause I am sure we.'ll be moving to Taino."

In the meantime, the Santiagos continue to pay thecity $77 a month and to walk to the basement each daywith gallon milk jugs to store their water supply. Thewater line was cut of f some time ago because it wasdeemed unsafe. 0Charlotte Street continuedcenters, health facilities, housing offices, recreationalt:enters and transportation lines-than are immediately


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first time around) that it was necessary to make an earlystart and that future federal aid hinged on approval ofCharlotte Street, a linkage that was later denied by theWhite House and HUD."Carter was there and this makes it easier to get thenext piete. That's how the world works," a member ofBadillo's staff quoted him as having said. It almostworked.In defending the City Planning Commission's approv

al of Charlotte Street, despite obvious misgivings, Chairman Robert Wagner lr . told a public forum in December, " I f the commission had voted down CharlotteStreet it would have given Washington an excuse towalk away from the South Bronx. It is our one hope ofpinning him (Carter) down to a commitment."PartnershipHousing plans developed over the years by four coalitions in Board 3 were passed over to clear the way forCharlotte Street. "Charlotte Street was not our firstchoice or anywhere near it," said Dana Driskell, thedistrict manager of Board 3. "We have had other priorities over the years. This was given to us as a 'fait

accompli' for us to accept or reject." Rev. William 1.Smith said Board 3 had been "isolated" from the planning phase.Although Board 3 approved the housing project 28 to7 on August 11, there were a lot of unanswered questions. Did the housing meet the real needs of the area?How much would it cost and who would live there?What was meant by cooperative low income apartments? Would the construction create jobs for localpeople? What other housing improvements were beingplanned to support the project?

Although preference was to be given to residents ofthe immediate area, living in the new housing would

all unskilled jobs and 20 per cent of skilled jobs. Community organizations had pushed hard for a higherratio. Anticipating that the issue might have heated uponce the project was started, the Police Departmenttook aerial photographs of the site to determine the bestlocation for a temporary post.Finally, the city planners said that at least 3,000 housing units would need to be rehabilitated. Ideas for upgrading the units were on various drawing boards, butno one had any idea where the money would comefrom. One city planner said that other neighborhoods,Bathgate in particular, would have been preferable for aone-shot investment.Even if the money had been found, it is questionablewhether it would have been spent around CharlotteStreet. Ramon Rueda, head of Board 3's housing committee, said, "We will not continue to reinforce thatproject at the expense of other areas. There are otherparts of the board that are living, sustainable areas witha moderate amount of dollars."With all of the questions, then, why did Board 3approve Charlotte Street? The major reason has to beBadillo's strong advocacy and an impatience on everybody's part to see something started. Interviews with 14members of Board 3 show that many of those who votedfor the project believed that if they rejected CharlotteStreet, the housing would have been built somewhereelse, further starving their district. "It's very simple.We're in bad shape in this area. It doesn't matter whostarts to do something as long as it starts," said Rev.Kenneth Folkes, a board member. George Abarca, alsoa board member, said, " I t is better to have somethingthan nothing," adding that without a beachhead such asCharlotte Street, "We'll never get on our feet."Self-interest undoubtedly also played a role. Many


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32 CD NSA'S PICKEDThe City Planning Commission has identified 32neighborhoods for designation as NeighborhoodStrategy Areas over the next three years. Ten wereselected as demonstration projects for the first year.NSA's are areas in which federal Community Development funds will be concentrated and coordinatedwith other government and private sector programs.There are no extra CD funds for the NSA program. Itwill be funded out of the $242 million fifth year allocation for the city, starting in September.The Planning Commission initially proposed to namefive NSA's for this year. Following two public hearings

at which more than 130 people testified, the commissiondoubled the number to 10 and said 32 neighborhoodswould qualify over three years.The neighborhoods designated for this year were :Bronx - Kingsbridge, Bronx River/ Soundview; Brooklyn - Bedfore Stuyvesant, Sunset Park and Flatbush;Manhattan - Washington Heights/ Inwood, ManhattanValley; Queens - Corona, Jamaica; Staten Island -North Shore.The remaining neighborhoods are: Bronx - Aldus

Green/ Longwood, Belmont, Bronx Park South/ WestFarms. Highbridge/East Concourse, Morris Heights/University Heights/West Tremont, Morrisania, St.Mark's Park; Brooklyn - Brownsville, Bushwick,Crown Heights, East New York, Fifth Avenue/ SouthBrooklyn, St. Nicholas, Southside; Manhattan - CentralHarlem, East Harlem, Hamilton Heights, Lower EastSide; Queens - Astoria, Long Island City, Far Rockaway, Ridgewood, Woodside/ Sunnyside. D

Advertisement

RENT COLLECTIONRent collection is far higher in tenant and communitymanaged buildings than it is in city-owned buildings in

general, HPD Commissioner Nathan Leventhal told alegal forum recently.According to Leventhal, the rate of rent payment is95 per cent in buildings managed by tenants under theinterim lease program; 80 per cent in community-managed buildings and 45 per cent in city-owned buildingsas a whole.Leventhal produced another interesting statistic,which is that welfare recipients make up less than 30 percent of the tenants of city-owned buildings.Speaking at the same gathering, Roger Starr, formerhead of the Housing and Development Administration(HPD's predecessor) and now a member of the editorialboard of the New York Times, said the city's attemptsto deal with its housing crisis "cannot possibly succeed."Starr said a decline in the city's economy had made itimpossible for a large segment of the population toafford decent housing. He called the In Rem program awaste of money and said the city should operate on areduced scale.Sounding none to confident himself, Leventhal said,"I'm not convinced that we're going to succeed," buthe reaffirmed a commitment to exploring all availableoptions. D

NYSTNC AGENDAThe New York State Tenant and Neighborhood

Coalition elecredoff icers and adopted its 1979 legislativeprogram at a statewide membership meeting held inAlbany on January 28.


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City Limits Magazine, February 1979 Issue