Cover Stories: City's Auction Sales Going, Going, Gone? Community protests of city-owned property auctions by Susan Baldwin; Oliver Wendell Holmes: Profile of an Organizer by Bernard Cohen.
Other stories include Susan Baldwin on the dismissal of Aramis Gomez, HPD's assistant commissioner of relocation, after almost five years of constant quarrel with community groups; Coverage of the launch of HPD's Tenant Interim Lease program; Bernard Cohen on the CETA jobs program facing a major government revamping; National People's Action's meeting with HUD Secretary Patricia Roberts Harris; Margaret Gillerman on Article 7-A and tenant rights in Part II of a two-part series.
Cover Stories: City's Auction Sales Going, Going, Gone? Community protests of city-owned property auctions by Susan Baldwin; Oliver Wendell Holmes: Profile of an Organizer by Bernard Cohen.
Other stories include Susan Baldwin on the dismissal of Aramis Gomez, HPD's assistant commissioner of relocation, after almost five years of constant quarrel with community groups; Coverage of the launch of HPD's Tenant Interim Lease program; Bernard Cohen on the CETA jobs program facing a major government revamping; National People's Action's meeting with HUD Secretary Patricia Roberts Harris; Margaret Gillerman on Article 7-A and tenant rights in Part II of a two-part series.
Cover Stories: City's Auction Sales Going, Going, Gone? Community protests of city-owned property auctions by Susan Baldwin; Oliver Wendell Holmes: Profile of an Organizer by Bernard Cohen.
Other stories include Susan Baldwin on the dismissal of Aramis Gomez, HPD's assistant commissioner of relocation, after almost five years of constant quarrel with community groups; Coverage of the launch of HPD's Tenant Interim Lease program; Bernard Cohen on the CETA jobs program facing a major government revamping; National People's Action's meeting with HUD Secretary Patricia Roberts Harris; Margaret Gillerman on Article 7-A and tenant rights in Part II of a two-part series.
Cover Stories: City's Auction Sales Going, Going, Gone? Community protests of city-owned property auctions by Susan Baldwin; Oliver Wendell Holmes: Profile of an Organizer by Bernard Cohen.
Other stories include Susan Baldwin on the dismissal of Aramis Gomez, HPD's assistant commissioner of relocation, after almost five years of constant quarrel with community groups; Coverage of the launch of HPD's Tenant Interim Lease program; Bernard Cohen on the CETA jobs program facing a major government revamping; National People's Action's meeting with HUD Secretary Patricia Roberts Harris; Margaret Gillerman on Article 7-A and tenant rights in Part II of a two-part series.
SEPTEM BER 1978 VOL. 3 No.7 CITY'S AUCTION SALES GOING, GOING, GONE? Oliver Wendell Holmes: Profile of an Organizer Oliver Holmes, left, with tenant E. Nesbit and his daughter in front of 1239 Boston Road. by Bernard Cohen "You have nothing to fear about a rent strike. You have been in trouble, and now it is time to get out of trouble. A rent strike is legal. Nobody in this country can put you out." The small group of tenants crowded into the neatly furnished living room of Musette Cousins's four room apartment at 1239 Boston Road in the South Bronx listened intently as Oliver Holmes con tinued to speak. continued on page 13 by Susan BaldWin To most people, it was a normal h o t ~ slow summer day at City Hall, workers strolling in the shadows of the municipal building, chatting and enjoying their luncheon break. Other citizens who had made the trip to this part of town did not find the atmosphere as much to their liking. They were headed to the monthly auction of city-owned (In Rem) properties at No. 1 Police Plaza, finding themselves running the gauntlet of several dozen angry citi- zens outside on the bricks who were picketing the place and chant- ing, "Stop the auctions, fix the buildings, and organize!" Once inside the auction room, would-be purchasers lost still 'more of the glow of daring, opportunity, and challenge suggested to them by the gaudy cover of the monthly auction booklet as they read the cautionary letter within from the General Services Commissioner. Here the buyers were warned that by paying their money they would not necessarily get their choice. The city was asking them to remove housing code violations from the buildings they bought, and to swear that they were not tax-delinquent on other properties they might already own. These new covenants hobbling the free-wheeling spirit of past auction sales have ended the days of the continued on page 2 A UeT/ON continued simple sale of "shipwrecked" property to the salvagers. Why the new restrictions? It's because, despite the auctions, the city is fast becoming the nation's number one slum landlord, foreclosing an ever-increasing number of properties, many of which have seen the auction block before. Whereas in the past a- delinquent landlord had three years to pay real estate taxes, now after one year, under a City Council ordinance, his holdings are seized for nonpayment of the taxes. Problem buildings become the city's problem that much sooner. "There are a number of problems with the city's auction process, and they cannot be blamed on abuse by speculators," James Meyer, legislative aide to Councilman Stanley Michels (D-Man.) and a member of the Task Force on City-Owned Property, said recently. "No matter how many restrictions the city puts on its auction policy, it still has and will continue to have the wrong attitude about disposing of its property. The city is acting as a real estate broker, and that's the attitude that has proven to be wrong ... In the long run the city may be losing money, properties, and neighborhoods by following these same old blind procedures and falling into the same old traps. "Anyone with any savvy knows that they are allowing themselves to be deceived if they claim auctions put properties back on the tax rolls," Meyer continued. "The reality is that this just does not occur, and figures to support this position were worked up in [former Deputy Mayor John] Zuccotti's secret report. Anybody who is knowledgeable knows that this is not true. In the long run, everybody loses. The neighborhoods decay, more properties decay and come back into the city's hands, costing the city more money." In a management audit of the old Department of Real Estate circulated confidentially in January, 1977, Zuccotti's report charged: "Recent audit samples show that four years after an auction sale by the Real Estate Department 94 per cent of the properties sold are in tax arrears, 54 per cent are again eligible for In Rem proceedings, 44 per cent no longer provide suitable housing for city residents, and 25 per cent of the purchasers paid no taxes at all. The data indicates that unscrupulous purchasers utilize in- adequacies in the system to the disadvantage of credible auction bidders who factor mortgage and tax payments into their bids." Responding to reports like this, a group called the Ad Hoc Committee to Stop the Auctions picketed last month's auction. Organized during the summer months, this committee of neighborhood housing activists has called for a halt to the auction sales on the grounds that the city's present policy does not guarantee that new landlords will maintain the buildings better than the previous owners. Citing the city's loss of more than 170,000 units of housing between 1970 and 1975, the committee has also 2 pointed out that the city has no control over vacant buildings being bought by speculators who can charge high rents for cheap repairs or can keep these buildings vacant for future profit. Under the city's interim guidelines for disposing of In Rem property-guidelines which critics claim only go "halfway towards meeting the urgent problem of housing abandonment and neighborhood deteriora- tion" -all city-owned properties in designated community board districts in Manhattan (CB's 3,9, 10, 11, and 12), the Bronx (CB's 1-6), and Brooklyn, (CB's 3,4,5,8, and 16) will be barred indefinitely from sale at public auction. In addition, other multi-family residential In Rem properties within certain restricted areas will be removed from the auction list unless their sale has been approved by the Department of Housing Preservation and Devefopment (HPD) or by the City Planning Com- mission. In the restricted areas, however, the sale of one- and two-family homes will be allowed so long as the owner-occupant agrees to live in the building for five years. According to Eli Rabineau, director of the planning commission's division of public facilities, these guidelines are currently being implemented by the com- mission, but no formal vote has been taken for their adoption as city policy. The last and decisive word on the efficacy and propriety of placing properties on the monthly auction calendar is spoken by the Board of Estimate. This board, comprising the three city-wide elected officials and the five borough presidents, is empowered to remove properties from the auction block by a simple majority vote. Board of Estimate members differ in their views of the city's current ambiguous auction policy. Comptroller Harrison J. Goldin supports a program for disposing of city-owned properties that is "delib- erately flexible," that recommends "neither universal sales [of properties] nor land-banking," according to his press secretary, Richard Piperno. The most practical policy should prevail, the Comptroller believes, and each proposal should be "judged on its merits," Piperno said. Ronald Marino, special assistant to Manhattan Borough President Andrew Stein, favors "land-banking in those areas where there is a lot of abandonment. " Marino, who often represents Stein at Board sessions, explained, "The city really recoups very little at auction. And often after one of these sales has taken place, the city must repurchase the properties at inflated prices [as was barely forestalled recently in the South Bronx Development Area]. Or the city is selling to straw com- panies or the property is being milked for tax purposes or second mortgages .. But I think we've seen enough of that in the city. "Very little is gained from immediate auction sales," Members of the Ad Hoc Committee to Stop the Auctions provide street theatre for passers-by and potential bidders at the city's auction of tax-foreclosed properties. Marino went on. "I am hoping with HPD in charge of the In Rem properties that a holding policy will be developed for the vacant properties and that occupied buildings will be considered for the community management program," he concluded. Opposing this view, Bronx Borough President Robert Abrams "has said on a number of occasions that the city should not be in the landlord business and that the properties should be sold as soon as possible," asserted Robert Castellanete, Abram's assistant. According to Castellanete, Abrams supports the concept of 30 or 40 families living in a building incorporating as a not-for-profit housing company in an effort to form a cooperative that would qualify for re- habilitation loan programs through HUD or the City of New York. "But," he was quick to add, "it costs a lot of money to maintain these In Rem buildings no matter who is doing it. Quite frankly, if no one is interested in the building, then it should be put on the auction block and put back on the tax rolls." City Council President Carol Bellamy, questioning the entire auction process, said of the city's current policy, "At least they are looking at a bidder's back taxes and are making this person sign an affidavit. I would say that this means the city is beginning to deal with this problem. But the question is larger. We should be talking about how we can find more creative uses for the land." Cautioning that the city must worry about acting as a "land-banker for speculators," she added, "I am equally disturbed by planning boards making blanket decisions about releasing land. Just to declare a mora- torium on the release of this land bothers me. I think rather the issue here is that the city should try to get its house in order. " An HPD point of view was expressed by Charles Raymond, deputy commissioner for property manage- 3 ment. "I support putting a hold on sales of these prop- erties for at least a couple of months while we will be talking to the community boards to find out which of these buildings can be slated for our programs," Raymond said. "We will do this before we feed properties to DRP for auction ... I am not supporting the moratorium on auctions," Raymond declared. "When you have 6,000 occupied buildings to take care of, you can't keep them in the public domain." A City Council resolution calling for a moratorium on all auction sales until January, 1979, was introduced last April by Councilman Michels and co-sponsored by a number of Council members who also sit on the Task Force on City-Owned Property. Resolution 207 is still buried in committee in the Council. Michels has petitioned for the bill to come to the floor and has threatened to hold public hearings on the outside if the bill is ignored within the Council. A modification of the bill would set a fixed term of either nine months or until June 30, 1979, for observing the moratorium. In the absence of any better plan, the city will hold its monthly auction this month when 150 parcels in New York City, Nassau, Broome, and Delaware Counties will be sold off to the highest bidders, but the money to be raised from this auction and previous auctions this year will contribute only a small fraction to the city's enormous budget. Referring to the Department of General Services' August report that the auction sales would net less than $7 million this year (it has only about 100/0 of this amount in hand), the Manhattan Borough President's aide Marino asserted, "This is a marginal figure when you're talking in terms of a $14 billion budget for the city. It is a drop in the bucket, four-tenths of one per cent ... This figure alone is indicative of the need by the city to hold that land that is coming into its ownership and to develop some long-range, responsible plans for it." 0 GOMEZ RELOCATED: REPLACEMENT SET by Susan Baldwin Aramis Gomez, embattled assistant commissioner of relocation in the Department of Housing Preservation and Development (HPD), was dismissed this month from his post after almost five years of service scarred by bitter confrontations with community groups fighting the tide of urban "removal." During these years, tenant - advocate community groups have never missed an opportunity to seek the commissioner's removal from office whenever there has been a change of leadership at City Hall or at the city's housing agency. "There is nothing further to say about this," Gomez said, noting that "things are changing" and that "probably community pressure and political pressure" played some part in his dismissal. "I have no remorse, and I feel nothing against them," he was quick to add. "While 1 was here, I was only carrying out the policies for the mayor of the City of New York . . . I am very proud of the fact that I was the commissioner with the longest tenure in this office." The erratic quality of his administration evidenced by the unevenly applied rules, regulations, and rent policies for urban renewal site tenants drew frequent criticism from tenants and community groups alike, but Gomez appeared to thrive on controversy. Self-assured and straightforward in conversation, he nonetheless often appeared to hide behind subordinates when pressed for m e e ~ i n g s by community leaders seeking explanations for his actions. Although HPD officials could not officially confirm Gomez's successor at press time, City Limits has learned that Manuel Mirabal will assume the assistant commissioner post. A housing specialist with the city's Community Board Assistance Unit since March, Mirabal served as district manager of Community Board No. 9 in Manhattan for a year and was an aide t%rmer Congresswoman Bella S. Abzug from 1972 until his appointment to the com- munity board. Gomez, who served as one of the two appointed members of the New York City Housing Authority under former Chairman 'Simepn Golar, left the authority in 1973 for the post of commissioner of relocation at the then Housing and Development Ad- ministration (HDA) when Joseph J. Christian became the authority's chairman. "Anyone who has a political job has to understand that it is just that," Gomez said. "I was appointed com- missioner back in 1974, and I was appointed by the mayor, Mayor [Abraham D.] Beame, when HDA was 4 Aramis Gomez still HDA ... . Beame came in Jan 2, 1974,1 was sworn in the same day, and I stayed here through the reor- ganization under [Administrator Thomas J.] Appleby and [Acting Commissioner Sander] Lehrer ... And I think Commissioner [Nathan] Leventhal has been fair with me." Asked to comment on his career at HDA and HPD, Gomez said, "I think we accomplished a lot, and this is why I am not mad. I think I did a very good job." He also asserted that while he supervised urban renewal site dwellings, not one boiler went unrepaired for more than 48 hours. -"This is a very long and difficult job," he added, "because you are a landlord and also a marshal at the same time. But, I think if you understand that you are in this position, it can be a very humane job." The former commissioner explained his comments by referring to past incidents that led to more or less happy endings. "I think we did a tremendous job for ERP [the city's Emergency Repair Program] by maintaining our shelters in the Bronx, Manhattan, and Brooklyn," he said. "We are especially very proud of our Regent Hotel [West 104th Street and BroadwaYl. This is not the greatest life when our people have to leave their housing and move into temporary space. But this is a clean place, and I am pleased to say that since we have been there, there has been no fighting reported from our tenants." He also cited his willingness to meet with tenants over r difficult housing matters and his ability within the two years of his service under Mayor Beame to raise more than $500,000 for the city's treasury from the collection of rents from the urban renewal sites. He emphasized that this was accomplished despite the loss of more than 50 per cent of his staff as a result of the city's financial crunch in 1975. Since Gomez came to the agency in 1974, the powers of the office of relocation have diminished consider- ably. . . When he first came to HDA, the city was stlll embarked on a program of new construction and development and, as a result, was very much involved in clearing sites for new construction. . . . It was during this phase that Gomez and hiS adrrums- tration first became embroiled in bitter arguments with tenacious tenants-and the community groups that support them-who were not about to be removed from their homes to make way for future housing plans that did not include them. One such community fighter is Frances Goldin of the Cooper Square Community Development and Businessmen's Association, a Lower East Side Project Area Committee (PAC) that monitor's several neighborhood urban renewal "holding" sites where about 150 title-vested tenants still remain. Earlier this year, when the community groups were pressuring Mayor Edward I. Koch for Gomez's removal, Goldin said of the self-professed landlord and marshal "Gomez and his policies have to be treated as a and the aim of this totality is to destroy nei.gh- borhoods. We fight and we continue to fight agamst him and all his ilk because if they had their way, these communities that we live in and call home would have been wiped out a long time ago. "I know Gomez 25 years, and I know what he and his allies have been doing . . . is fronting for the big real estate dealers .. . who are involved in the worst crime of all-making money off the backs of the poor, threaten- ing them with rent increases, and throwing them out on the street if they don't pay." Responding to news of Gomez's dismissal, she said, "I think it's great and long overdue. Too long have we had to live with a lot of policies that were stimulated out of idiocy and bad management and judgment.. Maybe now things can be reversed ... I consider this move to be a start." . Goldin and other Gomez foes were asked to outhne qualifications for the relocation position and found them not easy to define. "I think the citizens should have something to say about the position, especially groups that have had experience with relocation and all its side effects," Doris Rosenblum, president of the Stryckers Bay Neigh- borhood Council, the PAC that oversees sites that house about 50 title-vested tenants in Manhattans's West Side Urban Renewal Area. 5 Manuel Mirabal Commenting on Gomez's tenure as relocation com- missioner, Rosenblum said, "As you know we had many problems with him, and I can't say that I am unhappy about his going . .. But, I am also surprised. When I heard several months ago about hiS demotion and paycut, I thought it would be soon." During Leventhal's major reorganization of HPD last spring, Gomez was dropped from deputy of relocation to assistant commissioner, and orgamza- tional changes were made within that department, the most notable being the removal of management and maintenance responsibilities for city-owned buildings from the relocation division to the newly created Office of Property Management headed by Deputy Commissioner Charles Raymond. "A number of Gomez's problems became worse when he tried to raise the rents on the urban renewal sites up to $22.50 per month," Rosenblum explained. "People just thought that was too much and fought it hard but lost in court. What's strange is that we still haven't been billed for it [the rent increase], but I guess something will have to be done." According to Commissioner Raymond, an equitable arrangement for settling this lawsuit over rent increases must be worked out with the tenants. Commenting on Gomez's departure from office, he added, "I think he worked very hard. He is a very decent person." Speculation on Gomez's termination centered on the role that Deputy Mayor Herman Badillo may have played in it, perhaps by refusing to do anything to rescue his old friend from the ouster demanded of the new HPD regime by Gomez's persistent and finally persuasive critics. "I think the people have the right to complain and fight for the best they can get," he concluded. "I don't blame them, and I do know that one of the major problems I faced that made me unpopular was that I had to raise the rents .. . But, I still go out of here with my head very hIgh." A new grandfather, Gomez plans to return to private life at 689 Columbus Avenue. He has no other immedi- ate plans. 0 Preparing for the solar wall. On the scaffolding are Ted Finch of ETF, designer of the project, and Freddie Cadrera CUANDO supervisor. Photo by Jane Wholey. Solar Wall On the Lower East Side, a large pane of fiberglass is being bolted to the south wall of an abandoned building that has been taken over by a youth service organization called Cuando (Cultural Understanding and Neighbor- hood Development Organization). The "solar wall heater", combined with thermal shutters, will warm a third floor gymnasium, which hundreds of youths have used for the past four years without any heat. The building is at 9 Second Ave. The wall heater is a passive solar system which collects and radiates heat without the assistance of expensive plumbing and pumps which go into active systems. It was paid for by a $4,000 grant from the National Center for Appropriate Technology. ETF said the wall will generate the amount of heat that would be produced by $200 worth of fuel oil per year and will pay for itself in 15 years. Neighborhood teen-agers and CUANDO staff built the wall themselves. The grant is part of a larger sum awarded to a coalition of Lower East Side community groups for development of a recycling center, community gardens, greenhouses and aquaculture tanks to grow fish for local consumption. A 4O-kilowatt windmill will soon be installed on the shores of the East River at Hunts Point to provide alternative power for converting solid waste into rich soil for the South Bronx. New York City's first intermediate-sized windmill will belong to the Bronx Frontier Development Corp., which has turned a three-acre junkyard into a compost- 6 ing center to transform 50 tons of waste per day into . humus. The enriched soil is given free to other community organizations for creation of gardens and parks. The windmill, expected to be operational in November, will generate enough electricity to empower eight blowers to aerate the compost piles, heat and cool a construction trailer and run drying ovens, typewriters and lights. Surplus electricity will be fed back to Consolidated Edison and credited to Bronx Frontier's account. The windmill was paid for by a $34,000 grant from the federal Community Services Administration. It is expected to achieve a first year savings of $4,500 and pay for itself in less than 10 years, according to the Energy Task Force. The two-year old Bronx Frontier Development Corp. was co-founded by Irma Fleck, an amateur gardener with 30 years of organizing experience in the community, and Jack Flanagan, who is on leave of absence from the New York City Police Department. ETF is a federally funded organization of architects, engineers and educators providing technical assistance to low income community groups with alternative energy projects. D Peoples Housing Network has announced the begin- ning of its Fall School for Organizers. For the first time, the School will be held in upstate New York as well as New York City. Ten classes will be offered weeknights at 6 pm in Manhattan, beginning Thursday, September 21. Five classes will be offered in Albany and Schenectady on Saturdays and Thursday evenings; the first of these will be October 14. The School for Organizers is designed to train staff and volunteer members of housing groups in the process of community organizing and in the specifics of housing programs and issues such as redlining, rent control and sweat equity homesteading. Instructors include PHN staff and experienced specialists from other organiza- tions. For information about schedule, content and fees: New York City Capital District Roger Hayes/Michael McKee Laurie Holland Peoples Housing Network Peoples Housing Network 115 East 23rd Street 401 Craig Street New York, N.Y. 10010 Schenectady, N.Y. 12307 212/533-5650 518/370-1880 D ANHD's 13-week seminar series on neighborhood planning and government and private housing and loan programs begins September 20. The sessions will be held from 10 a.m. to 1 p.m. at the YMCA. McBurney Branch, 215 West 23rd St., Room 202, in Manhattan. The space has been donated by the YMCA . . For further information call Anne Hartwell at 674- 7610. D UHAB SET TO TEACH IN REM MANAGEMENT HPD recently launched the Tenant Interim Lease (TIL) program in an effort to create a legal management option .. for the tenants living in tax-foreclosed, city- owned (In Rem) buildings around the city. With the expectation that many tenant groups applying for an interim lease will have little or no prior self-management experience, HPD is requiring that each interested group take a management training course during the first month of the lease. Under a $141,000 contract with the city, the Urban Homesteading Assistance Board will offer the first course early in October, covering building management, record keeping and accounting. The accounting manuals for the course will be available to any tenant organization. The course will be followed up with visits to tenant- managed projects to provide further training and technical assistance. With the completion of the first round of vesting of between 8,000 and 10,000 In Rem buildings in Manhattan and the Bronx, the city expects the Brooklyn vesting will most likely contribute an additional 10,000 properties to the ever growing list by the end of the year. Up to 250 city-o.wned, tenant-occupied buildings will be admitted into the TIL during the program year which began September 1. After a period of proven management capability, tenant groups can enter into negotiations with HPD to obtain a long term lease agreement with an option to purchase t h ~ building. In the event that the residents of a building have not organized as a tenant association or are not sure if their building is eligible for admission into the TIL program, what follows are a few pre-application procedures that the potential self-management group should pursue. Find out the In Rem status of the building in question by visiting the tax collector's office in the local borough. The tenant representative should be aware of the Block and Lot number of the building. Ask to see the current ledger which will provide the following essential information (ask the clerk to assist you if you have any trouble locating this information): (1) Check for the amount of back taxes owed on your building and also check to see if it is listed INREM ACTION NO.--------. If this is the case, your building may soon be city- owned; (2) Check for an indication of a 15B agreement between the landlord and the city and the date of said agreement; (3) Check to see if the property is listed as "title-vested" (foreclosed) and the date vested. If this is the case, your building is city-owned. Once a building becomes listed In Rem, the landlord has eleven months to reach a 15B agreement with the city. The 15B agreement allows the landlord to pay 15 per cent of the tax debt while the remainder is spread 7 out in a series of payments over a period of up to six years. This particular arrangement offers the landlord the opportunity to redeem the property if he is so inclined. During this ll-month period, it is crucial that the tenant group or its representatives monitor all information recorded about the building so as to find out as soon as possible if a 15B agreement has been signed. If your information search reveals that the building in question is In Rem or title-vested, inform the tenant body in your building and move to organize as a tenant organization. (By this point your landlord has obviously lost interest in the building and your organization will be crucial to a return of vital services in the building). Each building provides its own unique problems. Once the tenant body is organized, get in touch with your neighborhood tenant association to get assistance in forming a unified building strategy. A minimum of 60 per cent of all tenants in your building must sign a petition expressing the desire to enter into the TIL program. If tenant groups are interested in the TIL program, they should telephone William Smith, head of HPD's Direct Sales program, at 566-6975, or write to him at HPD, Room 8160, 100 Gold St., New York, N.Y. 10038. D NEIGHBORHOOD JOBS FOR EX-OFFENDERS A $1.5 million program to provide part-time employ- ment for 400 ex-offenders in neighborhood service projects is expected to begin in October. The goal of the jobs program, sponsored by the Vera Insitute of Justice, is to provide an immediate source of income to recently released prisoners while they seek secure, permanent employment. Participants will earn $3.50 per hour for up to 75 days of work over six months, or an average of three days a week. They will work in supervised teams of eight to ten on neighborhood improvement projects. Work will be available on a first come, first served basis to anyone over 18 years of age returning to New York City from a city, state or federal prison. There will be no restrictions on criminal record, but each work site will be carefully monitored. Vera Institute is working with many community organizations to develop suitable projects. Suggested activities include lot clearing and planting, housing renovation, cleaning and painting of community centers, demolition, building facade painting, curb cuts for the handicapped and park redevelopment. For further information, call Joseph Stillman at 986- 6910. D CETAJOBSPROGRAMFACES MAJOR GOVERNMENT REVAMPING by ~ r n a r d Cohen The wheels are turning for a new round of public non-profits had opposed. service employment jobs in New York City amid strong Although the entire CET A program came under criti- signals from Congress that sharp limits may be placed cism, the sharpest arrows were aimed at Title VI public on the size and nature of this valuable but not-so-popu- service employment, designed originally as a counter- lar and politically vulnerable program. cyclical measure to rapidly absorb those people who Legal notice soliciting proposals for CET A (Com pre- were thrown out of work temporarily during a down- hensive Employment and Training Act) Title VI swing in the economy, and to phase down once the projects in 1979 appeared on Sept. 7. The deadline for unemployment level dropped. submitting applications to the city's Department of Many believe that growing resistance to government Employment was set for Sept. 29. spending-the so-called "Proposition 13" mentality- With existing contracts expiring between December is fueling the opposition to the program. CET A was and March, New York City was expecting approxi- initiated in 1973 when national unemployment was at mately 11,000 CET A VI public service employment jobs 4.5 per cent. As the economy slid into a recession and for next year. Of these, 3,700 to 4,000 would go to unemployment nearly doubled, CETA was greatly community-based organizations and other non-profit expanded in 1976 to meet the demand for a larger sponsors whose programs in housing, health, human government role in the creation of jobs. The federal services and other fields serve needs beyond what the budget for CETA has risen from $1.5 billion in 1974 to city is financially capable of providing for. $10 billion in 1978, and $11 billion was proposed for However, turmoil in Washington over renewal of the 1979. A major contributor to the expansion was the rise CET A program for four more years has made it impos- in public service employment (PSE) jobs from 200,000 sible to be certain about projections. While Congress is ($440 million) to 725,000 ($6.2 billion) over that not yet finished with the CET A legislation, the House of period. Representatives has already acted to cut tens of thous- "There is a feeling that the [Title VI] program ought ands of jobs from Title VI, lower the wage levels and to be wound down, that projects that are not efficacious limit the length of time individuals can stay in the should be dropped," an aide to Sen. Jacob Javits who program. has followed the CET A debate closely said. "It was Criticism of CET A was so strong during debate in the intended to be a temporary employment program." House last August that sponsors of the legislation took The tenor of the debate in the House indicated hostil- the unusual step of pulling the bill off the floor to avoid ity toward public service employment on the part of any further erosion of the program. many members. In the Senate, the authorizing committee was less "The history of the program is replete with evidence hostile, but the budget committee knocked $1 billion that public service employment is the least effective, out of CET A, half of it from public service employment most costly and most abused program of CET A," Rep. (Titles II and VI). Joe Moakley, D-Mass., said. "Both [House and Senate] budget committees are Another House critic quoted 1977 U.S. Department assuming a phase-down in enrollment" because of a of Labor figures that 80 per cent of CET A VI workers more conservative mood in Congress toward expensive were found to have a high school education or better, government social programs, a staff member of one of two-thirds were male and only 20 per cent were non- the committees said. white-all to say that the more employable, rather than "The delay in and of itself is obviously an impedi- the less employable, are benefitting from the program. ment to sound planning," DOE Commissioner Stanley Rep. James M. Jeffords, R-Vt., who offered the Brezenoff said, warning that the proposed changes successful amendment to scale down the program from co.uld have a serious impact on New York City's 725,000 to 660,000, said, "It is wasteful. It is infla- economy. Brezenoff told City Limits that the city faces tionary. It directs money away from those who are most the loss of 5,000 CET A VI jobs if current efforts to in need of employment." scale down the program are successful. He cited the The charges leveled against PSE were that it has been strict time limit on participation as a particular blow to marred by overspending through mismanagement and New York's program. fraud; it has failed to reach those most in need, espe- On another front, DOE has placed new size limits on cially the youth; it has not moved participants into CET A proposal packages submitted by groups of non- unsubsidized private sector jobs; it lacks training and it profit sponsors and has given other city agencies new has been used as a slush fund for local governments to review authority over their projects, a step which the subsidize their existing payrolls rather than to create 8 new jobs, a glorified revenue sharing process known as substitution. New York City, for example, used CETA VI funds to rehire 3,076 municipal workers in 1977-78, according to the Employment and Training Planning Council, a city advisory body. Defenders of PSE say it is a very important tool for meeting the nation's commitment to full employment and that many areas of the country are still reeling from the loss of large numbers of jobs (New York City had 10 per cent unemployment in 1977 and 8.8 per cent last July); that publicity over a relatively few abuses far exceeded their r ~ a l significance; that the program has been reformed to better target jobs to those most in need and to curtail misuse, and that further restrictions will only cripple it. Some supporters say that Congress itself is largely to blame for the abuses that have occurred (the one most often cited was the use of CET A funds for a nude sculpting program in Miami) by pushing through a rapid buildup of the young jobs program without also instituting the necessary management controls. "While PSE has been the most abused area in CET A, it has provided thousands of Americans with work experience and job history, while at the same time providing valuable services to many communities," said Rep. Harold C. Hollenbeck, R-N.J., said during the House debate. More recently, an aide to Rep. Ted Weiss, D-N.Y., who argued that reducing CET A salary levels would have the effect of disqualifying all but the most menial jobs from the program, pointed out that New York City lost hundreds of thousands of manufacturing jobs since 1970 and added, "This program has to operate in the real world." By the time the CET A re-authorization bill was with- drawn on August 9, the House had approved the follow- ing changes: -a $1 billion cut in budget authority for CET A VI. Sources said the resultant job decrease from 725,000 to 660,000 will be less drastic than sponsors of the budget cut intended because of some confusion over figures. -a $10,000 ceiling on the federal contribution to CET A wages and a reduction in average salary from $7,800 to $7,000. -elimination of automatic upward adjustments for high-wage areas such as New York City or for increases in the cost of living. -limit of 20 per cent on wage supplementation by the local sponsor. -limit of 18 months for participation in the program and tighter eligibility criteria. The House action means that the maximum salary for a CETA VI job for the next four years will be $12,000, and there will have to be a great many jobs in the $6,000 range in order to satisfy the $7,000 average. The danger is that the CET A wage will be comparable to the minimum wage by 1981, said Ronnie Kweller, 9 head of the CET A Project at the Center for Community Change in Washington. "It will be a farce to talk about creating meaningful jobs that will lead to jobs in the private sector," she said. "It is unrealistic to think you will have a quality program." The Senate has approved a CET A re- authorization bill that would allow a $15,000 maximum salary through upward adjustment and supplementation and would set the average at $7,800. However, the bill would limit participation to one year. The final shape of the program awaits further action by the House, followed by a conference committee to work out differences in the bills. Final approval before the September 30 expiration of CET A is considered doubtful. The alternatives appear to be a continuing esolution that would fund programs at the current evels or a supplemental appropriation. New York City has been told to submit a three-month plan to DOL to carry through the first quarter of the federal fiscal year. Laurel Eisner, a spokeswoman for the city's coalition of CET A VI non-profit sponsors, said a drop in avail- able jobs "would have a terrible impact on the volun- tary sector," adding that "we could effectively use 10,000 jobs." According to the Employment and Training Planning Council, non-profit organizations applied for 27,672 CET A VI positions on 1,632 projects in 1977. Of these, approximately 4,900 jobs were funded. In addition to the possible loss of jobs, non-profit sponsors are very concerned about DOE's decision to give outside city agencies veto power over proposed projects. The coalition is worried that outside review may lead to delays, particularly for projects that touch several city agencies; may open the door to politicking, and may limit the kinds of projects that will qualify, depending on the criteria used by the city agency. "Some agencies might not approve an innovative proposal," one non-profit sponsor said. "They may prefer to see an expansion of what they are already funding." At City Limits press time, a meeting was scheduled between the Housing Preservation and Development Department and representatives of community-based housing organizations to work out an agreement on guidelines. DOE has also set a minimum of 100 jobs and a maximum of 300 jobs for packages submitted by non- profit sponsors grouped together under one umbrella. The new limits are likely to reduce the size of many projects and raise a number of other policy questions for groups that do not currently fit the new parameters. Expected new federal limits on length of participation may cause transition problems for many organizations. o NPA DELEGATION, HUD CHIEF CONFER It took National People's Action a year and several months to get a meeting with HUD Secretary Patricia Roberts Harris. When the encounter finally took place on August 16, the most powerful government housing official in the nation made a number of concessions which left NPA leaders mildly hopeful. Specific agreements were reached, after hours of discussion, regarding the Community Development block grant program, Urban Development Action Grants and other HUD programs. The meeting resulted from a June 5 sit-in by 200 housing activists who occupied the Secretary's Washing- ton D.C. office. NP A is an alliance of neighborhood groups primarily from the Midwest and Eastern seaboard states and is based in Chicago. At this first meeting, Harris agreed to establish a task force comprising HUD officials, NPA representatives and local government officials to evaluate HUD's monitoring of the community development program. This concession came after Harris insisted that her regional and area staff members are doing a good job of monitoring, with neighborhood leaders from 12 eastern and midwestern cities countering with examples of laxity and malfeasance by these offices. "She kept saying that Congress had not given her the authority to do what the groups wanted her to do," said Dave Duncan of Binghamton, who attended the meeting as a representative of the New York State Tenant and Neighborhood Coalition. "She kept saying that she wanted the same things that we did but she didn't have the staff to do the monitoring." Ed Gorman of Binghamton's West Side Neighbor- hood Organization said of the encounter, "We're not interested in what she says or thinks. It's what she does that's important. This money could do for the urban community what the Marshall Plan did for Europe after the War, and it's a crime what the city is using it for." The Secretary also agreed to provide technical assist- ance to neighborhood organizations seeking help with developing UDAG proposals and to negotiate the defi- nition of "neighborhood projects." NP A and others have criticized HUD for spending too much UDAG money on industrial development and commercial revitalization at the expense of projects to benefit neighborhoods. In addition,Harris agreed to reopen more than 50,000 claims from persons who bought defective FHA- insured homes between 1968 and 1976. HUD will work with NPA to develop a plan to aid these homeowners who face foreclosure on their FHA-insured properties. NPA anticipates additional meetings with Harris. Peoples Housing Network of New York State is coordi- nating the upcoming meeting which will deal with such tenant issues as public housing, subsidized housing, and HUD's pre-emption of local rent controls. For more information, write to Peoples Housing Network, 115 East 23rd Street, New York, N.Y. 10010, or telephone 212-533-5650. 0 . Alberto Fuentes, left. and Francisco Cameron, both 16, show the colorful mural at 251 East 119th St. which ten East Harlem students designed and painted this summer under a special program for youth. The mural is the final artistic touch for the complete sweat equity rehabilitation of the 23-unit building. 10 7-ALAWGIVESTENANTSA WAY TO SEIZE A BUILDING-LEGALLY by Margaret Gillerman Part II of a two-part series Gathered in the doorway of 92 St. Nicholas Ave. are: front, left to right, Alex Franklin, Elizabeth Lemon (STRESS), Florence Fauntleroy, Enid Gobern, Laura Batey, Ken Ferrin (STRESS); rear, Lillie Wright, unidentified, George Morgan. Photo by Margaret GiILerman The saga of a group of elderly tenants who seized control of their apartment building from the landlord began two years ago under familiar circumstances for Harlem. The tenants had no heat or hot water. Their home at 92 st. Nicholas Ave. was in dangerous disre- pair. The landlord had threatened to abandon. In September, 1976, Leopold Altman, agent for the Gerjo Realty Co., owed $65,000 in back taxes on the building. The tenants owed him, he said, $13,600 in back and current rents. At first, tenant Laura Batey worried about what would happen if the landlord walked away. "What worried me most was what would happen to all the good, paying tenants-most of us senior citizens on Social Security," she said. "We didn't want to have to go out in the cold and find new places to live." Another tenant, Enid Gobem, said she was angry "that those who were paying had to suffer because of those who weren't. 11 "But I can understand why they didn't pay," she said. "That Altman, he wouldn't do nothing for us. He wouldn't paint. He wouldn't plaster up holes in the ceilings or walls or fix floors or bad plumbing. He wouldn't put glass in the front door. All he wanted was that rent." Late in September, Altman sent the tenants a letter asking for rents: "I am very sorry that you're not receiv- ing elevator or hot water service. In order to get these things fixed, it will cost me approximately $4,000. If I were to get a better part of the rents owed me, I would be able to make the repairs immediately. If I don't receive the money, I'll be compelled to layoff the help and call it a day." Mary Scott, who manages Altman's books, said 92 was a money-losing building and would have been so even if all the tenants had paid rent. She blamed rent control, a 300 per cent increase in fuel costs that year and a doubling of fire insurance rates. The rent roll would not bring in enough income to cover upkeep or emergencies, she said. But the tenants would later prove her wrong by providing basic maintenance with signifi- cantly less than the complete rent roll. By the time Altman's letter arrived, Mrs. Batey and some of the other tenants already were considering a rent strike. They didn't think they should be paying for services they were not receiving. Mrs. Batey said the tenants could run the building better themselves. But as soon as Altman notified the tenants he was leaving, problems began. The tenants in 4B were so angry they dismantled water pipes, turned faucets on full blast, and flooded the building from the fourth floor to the first. A second problem came from Consolidated Edison in the form of a letter in early October: "Your landlord has not paid Consolidated Edison. We will have to turn off service unless payment of $9,549 for utility service and a deposit of $420 is received." The next day Mrs. Batey and three friends marched down to Con Edison with $1,000 they had collected from tenants and managed to win a temporary delay. But, the lights went out one night anyway, and in a candlelight session the tenants decided to seek help for their many problems. They went to STRESS Compre- hensive Housing Service, a HARYOU-ACT delegate Agency on West 116th Street in Harlem. STRESS workers searched through city records for building violations at 92 and inspected each apartment. They found exposed electric wires, raw sewage, rats, a broken boiler and gaping holes in the floors of ten apartments. The findings were conclusive: 92 st. Nicholas Ave. was in an illegal, life-threatening state of disrepair. The estimated cost of bringing the building up to code standards exceeded $36,000. By the end of October, 1976, 22 of the 32 tenants were paying rents to the Tenants Committee escrow account and Chester Wright had been elected chairman of the organization. The rent strike continued for seven months without any action taken by the landlord. The tenants used their collective rents to make repairs and maintain basic services-managing the building in the way a court- ordered 7-A administrator would have. They contracted with plumbers, carpenters, electricians, plasterers, painters, locksmiths and glass installers. Elizabeth Lemon and Marian Hansen of STRESS maintained detailed banking and accounting records on all activities and set up a complaint and repair schedule. The tenants avoided some of the common problems of self-management-lack of technical and business exper- tise-because they were guided by STRESS. Volunteers from around the neighborhood did heavy odd jobs for the tenants. The Tenants Committee met every week through the winter. Mrs. Batey said the worse conditions got out- side, the more people started coming to the meetings. 12 Between October and March, expenses totaled $6,548. During those months the Tenants Committee collected $9,460 in rents. Rental income should have been $4,492 each month. Rent in arrears by March totaled $25,437, including what was owed to Altman. "A lot of tenants wouldn't pay at first because they said it was illegal, which it was in a way, and that we weren't bonded to collect the rents, which we weren't," Mrs. Batey said. "Some would say, 'You're not the landlord. What gives you the right to take my money?' "So I say, 'To be real frank, you're not paying rent because you never pay rent to nobody.' ... we just took what we could get and spent it wherever it was needed." Of the 30 to 32 tenants, an average of 16 or 17 paid rents each month. Florence Fauntleroy, another longtime tenant, said she "figured we could put all our rents together and use that for repairs and everything would be just fine. But it wasn't that way. It was one of them very cold, cold winters." And winter came early. Pipes burst, the roof leaked and icy water flooded the building. Inside, water pressure was so low that water hardly ever reached the upper floors. Some days tenants had to bundle up and walk to a nearby fire hydrant to collect water in pails. Heat was off and on from September through November. Finally, the tenants went to the city's Emergency Repair Program for assistance. To insure continuous heating after that, the Tenants Committee signed a contract with the city for oil deliveries. Blit the contract gave no assurances the boiler would continue working-and it didn't. Mrs. Batey remembered. "Oh, there would be those nights, and we'd hear the wind and see the icicles hanging off the roofs across the street, and then the boiler would break. And I was always afraid the older ones, the sick ones, wouldn't last 'til morning." One bitter night Mrs. Batey had to knock on every door and collect money to pay a boilerman. Some tenants refused to pay; but others pitched in the Social Security checks and the boilerman agreed to come. In January, a working crew from Operation Open City repaired the roof at 92 and insulated the windows, doors and boiler. The tenants knew then they could survive the worst-the winter-without a landlord. In mid-January, the tenants voted to take action to make their self-management legal. Attorney Harold Kaplan, working with Community Legal Offices, suggested they initiate a 7-A proceeding to strip Altman and Gerjo Realty of any claims to rents. Under Article 7-A, the court replaces the landlord with an adminis- trator approved by the tenants. This administrator then collects rents and uses the funds for repairs, fuel, utili- ties and maintenance. A successful 7-A action would give the tenants of 92 legal backing to take three important steps: evict non- paying tenants, rent the 34 vacant apartments in the continued on page 15 HOLMES continued "All we're interested in doing is getting this building functioning. You are the victims of this man's greed because you have given this man your money, and your children are falling out of windows or freezing in winter. Your money will bring safety and heat in the winter, and right now it's not. "We can do anything we want to as long as we're together as far as this building and getting things done are concerned." Oliver Wendell Holmes is a housing organizer. He was named for the 19th Century physician and writer and father of the famous Supreme Court justice because of his mother's interest in literature. At age 53, after many years as an insurance salesman and a hospital therapist, Holmes has found a new profession, and he has immersed himself in it. He spends his days and many of his nights talking like this to tenants who are so despairing about their living conditions that they think they are ready to bypass their landlords and begin their own action to improve their surroundings. That, of course, is a major decision. Most residents of poor neighborhoods know little about their rights as tenants and have well-founded fears about being evicted. They don't understand their own power to demand services from their landlord. They don't know they can collect the rent themselves and open a bank account. They don't know they can pay to have the roof repaired or an intercom installed. They don't know much about going to court. Holmes is attending the meeting at 1239 Boston Road at the request of the tenants. Seven of the building'S 18 occupied apartments are represented. The tenant in an eighth sends word that she supports the others but cannot attend this meeting. "If we can get 10, we can go," Holmes tells t h ~ group. "Every name I'm taking down I expect to see at the next meeting. Speak to your neighbors and tell them what it's about. See if you can get the super and his wife on your side. We don't want to alienate anyone. I will be with you every step of the way, no matter what time of the day or night." In meeting with the tenants of this and other buildings, Holmes adopts a number of roles and carefully avoids others. He stirs them up, needling them about their living conditions. "I begin to agitate them. If they don't show any anger, I make them angry. If they don't get mad, they are not going to move, and the next thing you know they have a social club." He explains how to prepare for a rent strike, including making one last effort to negotiate with the landlord; how to keep records, determine repair priorities and contract for services. He explains about available city programs and legal procedures. And he scolds them when internal squabbling hampers the or- 13 ganization or tenants fail to carry out agreed upon plans. "We will not go to court until all the back rents are paid," he told one group of tenants recently. Holmes says his job is to capture the frustration that infects all the tenants as individuals and convert it into a constructive mass energy that can be used to restore badly deteriorated housing into habitable shelter. At the same time, he stresses, it is essential that he maintain his identity as an organizer. His objective is to help tenants develop their own leadership so they do not become dependent on him. It is a somewhat shadowy role, more akin perhaps to a steering wheel than to a motor. "I'm not there to hold their hands. I make them do everything that needs to be done. I stand back and let them carry the ball. If they don't do what is needed, it won't get done. I can help them get essential services, but primarily it has to come from them." One of the things Holmes says when he goes into a building is, "I don't have to be here. If I am madder than you, I have no right to be here at all." Holmes is one of three housing organizers with the Alpha Housing Corp. in the Melrose - Morrisania section of the South Bronx. They were hired last March under the Comprehensive Employment and Training Act (CET A) program and work from an office in St. Augustine Church. Most of Holmes's days are taken up with visiting buildings, contacting city agencies about problems, receiving tenants who come into the office and filling out paperwork. Most of his evenings are spent meeting with tenant groups in various stages of development. Tenant leaders frequently call him at home at night to ask his advice on pressing matters. Typical of the buildings he is working in are 615 East 168th St. and 1239 Boston Road. The apartment house at 615 East 168th St. is a 6O-unit building with courtyard entrance. The tenants were without heat and hot water last winter because of a broken boiler. Rain and snow leaked into top floor apartments through the broken roof. The plumbing needed repairs. Many of the tenants have been paying excessive electricity bills, and they suspect someone is tapping into their meters. In June, plaster from the ceiling collapsed onto a bed where a child was sleeping. Problem tenants moved into the building by the landlord have been causing problems. And the owner, a Molly Kosheff, told tenants she had given the building to the superintendent. About 20 tenants formed an association and began pooling their rent last April. They took photographs to document code violations. In June, they paid $1,125 to repair the boiler. A short time later, a city water main broke and the basement of the building was flooded, costing the tenants another $500 to repair the boiler motor. They later had the roof repaired. Holmes said he received a report in August that the building had been taken over by the city for nonpay- ment of $44,000 in real estate taxes over four years. He said the tenants have been able to make some improvements but that internal dissension over such things as paying rent to their association and repair priorities interferes with their effectiveness. "They are a good group, but not as good as they could be," he said. At 1239 Boston Road, tenants are still in the formative stages of organizing. Here too there was very little heat last winter and the roof leaks. There is no front door or intercom. There has been a series of burglaries in the building and tenants are very worried about security. The window frames in many apartments are rotting and the fuse box in Mrs. Cousins's apartment is a fire hazard. A number of mailboxes are broken. The superintendent has another job and is not available during the day. The owner, Aron Taylor, is rarely seen, except when the rent is due. "He has an uncanny way of remember- ing rent dates," says Genevieve Scott, a longtime tenant on the first floor. Holmes reminds the tenants that cold weather is on its way and that they must sign up as many of their neighbors as they can for the association. He tells them they must select a leader, and they choose Mrs. Cousins. They schedule another meeting for the following week. Alpha Housing Corp.'s three housing organizers are working in about 15 buildings in a 35-block area of rundown housing in the South Bronx. To get started, they distributed leaflets to apartment buildings and local organizations. As a result, Alpha received many inquiries,and tenants began coming to the office to find out more. Often their stories were similar, said Holmes, quoting the tenants: "I have a problem. My landlord is ruining the building. The roof leaks. The whole place is rundown." Holmes sends them back to their buildings armed with complaint sheets and tells them to call a meeting. At that meeting, he asks tenants what kinds of problems they have and begins talking to them about forming an association. "You listen to what they say and take the lead from there," he says. In general, women are more active than men, he adds. "The men come at first to hear what others have to say, then they send their wives." Holmes lets the tenants know that a rent strike is legal as long as they follow prescribed rules, such as setting up a bank account, collecting the rent themselves and keeping receipts for all expenses paid for out of the strike fund. It is also important to pay back rent into the strike fund, he says, so that there are no arrears when it comes time to go to court. "The law says you must be able to account for every dime because it is the land- lord's. We've got to be straight. In order to point the finger at anyone, you've got to be straight." Election of officers should take place quickly and tenants should draw up a list of needed repairs. All transactions with the landlord should be confirmed in writing. Sometimes a landlord will steer clear of the tenants association, but sometimes he or she will try to sabotage it with a number of devices, according to Holmes. One other problem is how to maintain the enthusiasm and the momentum of the tenants association after some critical problems are addressed and a certain contentment sets in. "It has to be continual, not here today and gone tomorrow," Holmes says. A landlord who makes a few selective repairs is only "handing them a crumb and taking it back." A common question for Holmes is how a tenants association made up of one-third to one-half of the tenants can shoulder the responsibility for running the building. Asked that question by the tenants at 615 recently, Holmes replied that while they should be recruiting more members, they had little choice but to stick together and persevere. "You are not going to move downtown to 59th Street. If you've lived here for 30 years, you've paid for the damn building by now." As an organizer, Holmes is frequently a sounding board for the anger of tenants who intensely dislike how they have to live. It is nothing personal, as the representative view of one tenant at 615 will attest. "He is helping us an awful lot," said Betty Young, who has lived in the building for 35 years. "He is very interested in us.He comes to our meetings and gives us information and advice. Other than that" we wouldn't know which way to go." Holmes says he loves his job. Beyond his interest in meeting people, Holmes takes special pleasure from serving this particular constituency. "I've had many jobs, but I've never had anything with my own people. I've never known the feeling of teaching my own, and it's one hell of a feeling." D .CITY LIMITS. published monthly by tho: Association of Neighborhood Housing Developers Inc., Peoples Housing Network, Pratt Center for Com- munity and Environmental Development, and the Urban Home- steading Assistance Board. Editorial Office: 115 East 23rd Street, New York, New York 10010 14 (212) 674-7610 Editor ............................ .. ........ Bernard Cohen Assistant Editor .... . ........... . ............... Susan Baldwin Contributors ............................... Michael McKee George Brzozowski Design and Layout .............................. Louis Fulgoni Copyright 1978. AU rights reserved. No portion or portions of this journal may be reprointed without the express written permission of the publishers. This issue was funded partly by Chemical Bank. HUD QUESTIONS IN REM CD FUNDS' HUD has given conditional approval to the city's $41.1 million plan to manage and repair tax-foreclosed buildings despite questions over whether this use of Community Development funds met federal guidelines. HPD officials were fearful that the centerpiece of their plan to treat the growing number of In Rem build- ings would be upset by a negative ruling, but on August 30 HUD approved it as a special, emergency use of CD funds. Under the special regulations of the interim assistance or emergency category of the CD regulations, however, the city must comply with the following conditions: (1) The city must submit a draft plan no later than six months from the grant approval date specifying its plans for assuming the maintenance and management of these city-owned properties without the help of CD funds within a 12-month period. HUD also requires that the city submit a draft plan for the disposition of these In Rem buildings" over a reasonable period of time. " (2) The city must use non-CD funds to "reduce the Community Development-funded portion of mainten- ance and management costs this year. " (3) The Mayor must submit a letter to HUD within 45 days of the grant approval date confirming that an emergency housing condition exists in New York City. There can be no expenditure of CD funds until HUD receives this letter. According to Frank Torres, program manager at HUD's area office, CD monies would not normally be available to fund this emergency maintenance and repair program because it does not qualify as rehabilita- tion under the federal regulations. Approval of the $30.5 million housing, rehabilitation, and maintenance CD block grant, which includes funding for such programs as Community Manage- ment, Participation Loan, Article 8A, and Sweat Equity, was granted on the condition that the city submit a plan and time schedule for placing each Community Management building currently in the program on a "self-operating basis within a reasonable period of time." Community Management is scheduled to receive $14 million of this block grant. 0 7-A Continued building and draw up leases. Mrs. Lemon wanted a 7-A for another reason: fire insurance. Eighteen of the 32 tenants in the building-more than the one-third required by law-signed the court peti- tion. On March 15, the tenants had their day in court. The judge named Mrs. Batey administrator, effective March 25, and she asked to serve at no fee. She told the other tenants that the Tenants Committee should be the final authority in all decisions. More tenants listened to the TenantS Committee after 15 self-management was legal. More came to meetings and more started paying rent. Rental income in April reached a record high of $5,371, including some back rents. Expenditures were nearly $4,000. The tenants placed a $13,500 bond to assure the court of Mrs. Batey's integrity and took out fire and liability insurance. Then, they began their court-ordered tasks of making repairs listed in the 7-A petition. "We started fixing things faster than ever," Mrs. Fauntleroy remembered. "We cleaned apartments and rented them out, painted, plastered, got plumbing fixed in our apartments. We had more confidence." Unlike most tenant groups, the tenants of 92 had a surplus that month. One month and two days after the 7-A went into effect, and seven months after the tenants first started to repair their deplorably run-down apartment building, their 7-A suddenly ended. A man rang Mrs. Batey's doorbell to tell her the city was taking title for non- payment of real estate taxes and the Division of Real Property (DRP) would henceforth manage the building. The Tenants Committee called an emergency late night session to decide what action to take. Wright drafted a letter to the housing commissioner, telling him: "We protest the recent [ATTEMPTED!] takeover of our building. We have witnessed the deterioration of city-owned buildings in our neighborhood, and the city's poor management. We refuse to condone any- thing less than what we ourselves have provided in this building for the last seven months. We will not fall victim. We will hold our rents in escrow and continue as in the past." In effect, the tenants decided to wage a rent strike against DRP because, as Wright said, "Everybody knows the city is the worst landlord in the world." Today the rent strike is more than a year old. For more than a year, the tenants have searched for a way to prevent outside buyers or managers from taking over their home. Last July, the tenants submitted Articles of Associa- tion to the city as the first step toward acquiring an interim management lease. The lease would make self- management legal again and would allow them to receive technical assistance from the city. Morale at 92 St. Nicholas Ave. is high. The grand old granite building stands now on a block busy with new construction. The story of the tenants of 92 st. Nicholas Ave. is not unique. Around the city, tenants such as Mrs. Batey are saving buildings that a Civil Court judge once described as "uninhabitable in accordance with civilized standards of decency." 0 Adapted from a research article written by Margaret Gillerman while she was a student at the Columbia University Graduate School of Journalism in 1977-78. City Limits 115 East 23rd Street New York, N.Y. 10010 IN THIS ISSUE Auction Policy Oliver Holmes Aramis Gomez CETAVI Article 7-A Have You Sent Us Your Subscription?