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Cover Story: Drowning in Debt, crisis and change in low-income housing, by Andrew White, Lisa Glazer and Jonathan A. Lewis.
Other stories include Sasha Nyary on Sakhi for South Asian Women, a group that provides counseling and support for victims of domestic violence; Erika Mallin and Lisa Glazer on lessons to be gleaned from the successful but recently defunct Community Management Program; Lisa Glazer on various advocates’ criticism of the new Neighborhood Ownership Works initiative; Andrew White on discouraging affordable housing statistics; Bill Weinberg and Andrew White on the New York Power Authority and the unavailability of low-cost power in New York City; Tom Kamber on the city’s capital budget and what needs to change; Errol T. Louis’ book review of “Caribbean New York: Black Immigrants and the Politics of Race,” by Philip Kasinitz.
Cover Story: Drowning in Debt, crisis and change in low-income housing, by Andrew White, Lisa Glazer and Jonathan A. Lewis.
Other stories include Sasha Nyary on Sakhi for South Asian Women, a group that provides counseling and support for victims of domestic violence; Erika Mallin and Lisa Glazer on lessons to be gleaned from the successful but recently defunct Community Management Program; Lisa Glazer on various advocates’ criticism of the new Neighborhood Ownership Works initiative; Andrew White on discouraging affordable housing statistics; Bill Weinberg and Andrew White on the New York Power Authority and the unavailability of low-cost power in New York City; Tom Kamber on the city’s capital budget and what needs to change; Errol T. Louis’ book review of “Caribbean New York: Black Immigrants and the Politics of Race,” by Philip Kasinitz.
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Cover Story: Drowning in Debt, crisis and change in low-income housing, by Andrew White, Lisa Glazer and Jonathan A. Lewis.
Other stories include Sasha Nyary on Sakhi for South Asian Women, a group that provides counseling and support for victims of domestic violence; Erika Mallin and Lisa Glazer on lessons to be gleaned from the successful but recently defunct Community Management Program; Lisa Glazer on various advocates’ criticism of the new Neighborhood Ownership Works initiative; Andrew White on discouraging affordable housing statistics; Bill Weinberg and Andrew White on the New York Power Authority and the unavailability of low-cost power in New York City; Tom Kamber on the city’s capital budget and what needs to change; Errol T. Louis’ book review of “Caribbean New York: Black Immigrants and the Politics of Race,” by Philip Kasinitz.
Авторское право:
Attribution Non-Commercial (BY-NC)
Доступные форматы
Скачайте в формате PDF, TXT или читайте онлайн в Scribd
New yort's Community Affairs News Magazine $ 2 . 5 0
e 0 0 S A K H I F O R S O U T H A S I A N W O M E N E N E R G Y W A R S D N E W H O U S I N G A N D V A C A N C Y S T A T S Low I ncome H ousing D rowning in D ebt City Limits Volume XVII Number 8 City Limits is published ten times per year, monthly except bi-monthly issues in June/ July and August/September, by the City Limits Community Information Service, Inc., a non- profit organization devoted to disseminating information concerning neighborhood revitalization. Sponsors Association for Neighborhood and Housing Development, Inc. New York Urban Coalition Pratt Institute Center for Community and Environmental Development Urban Homesteading Assistance Board Board of Directors" Eddie Bautista, NYLPIICharter Rights Project Beverly Cheuvront,Former City Limits Editor Mary Martinez, Montefiore Hospital Rebecca Reich, Turf Companies Andrew Reicher, UHAB Tom Robbins, Journalist Jay Small, ANHD Walter Stafford, New York University Doug Turetsky, Former City Limits Editor Pete Williams, Center for Law and Social Justice "Affiliations for identification only. Subscription rates are: for individuals and community groups, $20/0ne Year, $30/Two Years; for businesses, foundations, banks, government agencies and libraries, $35/0ne Year, $50/Two Years. Low income, unemployed, $10/0ne Year. City Limits welcomes comments and article contributions. Please include a stamped, self- addressed envelope for return manuscripts. Material in City Limits does .not necessarily reflect the opinion of the sponsoring organiza- tions. Send correspondence to: City Limits, 40 Prince St., New York, NY 10012. Postmaster: Send address changes to City Limits, 40 Prince St. , NYC 1001z'. Second class postage paid New York, NY 10001 City Limits (ISSN 0199-0330) (212) 925-9820 FAX (212) 966-3407 Editor: Lisa Glazer Senior Editor: Andrew White Contributing Editors: Mary Keefe, Errol Louis, Peter Marcuse, Margaret Mittelbach Production: Chip Cliffe Advertising Representative: Faith Wiggins, (212) 226-4119. Office Assistant: Seymour Green Interns: Beth Greenfield, Donna Les'lie Photographers: Isa Brito, Andrew Lichtenstein, F.M. Kearney Copyright 1992. All Rights Reserved. No portion or portions of this journal may be reprinted without the express permission of the publishers. City Limits is indexed in the Alternative Press Index and the Avery Index to Architectural Periodicals and is available on microfilm from University Microfilms International, Ann Arbor, MI48106. 2/0CTOBER 1992/CITY UMITS The Privatization Gremlin L ike a gremlin that looks cute but turns into a monster, privatization is changing the way New York City works-often for the worse. In a city with an often ineffectual bureaucracy and a tight budget, the idea of" downsizing" government has obvious appeal, and may sometimes be necessary. But when budget officials and Wall Street bondholders push the city into swift privatization schemes, who looks out for .the long-term stability of the city, its neighborhoods and its residents? Without close oversight, privatization can become the Frankenstein of urban policy-making. Consider water and sewer taxes, the slimy beast attacking low income housing. Seven years ago the New York City Water Board was created to take rate-setting out of the hands of elected city officials. We're paying the price today, with a regressive new taxation system that hits hardest in poor, densely populated communities. The city has spent more than half a billion dollars repairing and then selling city-owned buildings to nonprofit neighborhood groups and tenants. But a study by City Limits shows that water and sewer taxes have put one out of four of these buildings on the verge of fiscal collapse, and they may return to city ownership. Describing this outcome as counterproductive is' to err on the side of politeness. Disastrous-even stupid-is probably more accurate. Privatization isn't always an evil creature. The housing department's Community Management Program uses nonprofit neighborhood groups to renovate, manage and sometimes purchase city-owned buildings. With extensive cooperation between the community group and the tenants, this process can yield amazing results. But this program is being phased out, and the first program to replace it ignores two decades of hard-earned lessons in favor of a quick-fix approach promoted by cost- cutters. It allows for-profit contractors to oversee renovation and tenant selection, and leaves community groups to clean up afterwards. These choices only make sense within the short-term framework of a city government whose vision is blurred by budget constraints and a desire for re-election. They make no sense whatsoever for the long-term health of a city that desperately needs more stable, affordable housing. Tame the beast! 0 Cover illustration by Eric Drooker. SPECIAL REPORT Introduction Crisis and change in low income housing. 9 Drowning in Debt One in four formerly city-owned buildings faces fiscal crisis-mostly because of unpaid water and sewer taxes. 10 The End of An Era The Community Management Program is on the way out. What lessons can be appliea to the future? 13 FEATURES Electric Shock Is the New York Power Authority robbing the city of cheap power? 22 A Capital Primer Budget bumblers take heart-a citizen's guide to the capital budget. 26 DEPARTMENTS Editorial The Privatization Gremlin ....................................... 2 Briefs Labor Protest ............. ...... ... .... .................................. 4 Parkhill Problems .... ...................................... .......... 4 7-A or Bust ............................................................... 5 Housing Cuts ............................................................ 5 Profile The Sakhi Sisterhood ........ ...................................... 6 Vital Statistics Overcrowded Masses ............................................. 20 Review Black in Brooklyn .................................................. 30 Letters ........................................................................ 31 Job Ads .................... ...... ................... .......................... 35 Sakhi/Page 6 Special Report/Page 9 Electric/Page 22 CITY UMITS/OCTOBER 1992/3 LABOR PROTEST More than 1 ,500 people marched to Foley Square in August to demand that workers from the nearby Chinatown community receive equal access to on a construction site for a federal courthouse and office building. 'We found that out of 169 workers at the courthouse project, only one was Chinese," says Peter Lin, an organizer with the Chinese Construction Association. "At the office building, there were over 1 00 workers and none of them was Chinese." Chinatown labor organiza- tions, business and community leaders are accusing the federal government of complicity in the exclusion of Chinese workers from jobs at the site. The issue is not simply whether or not Asians, African- Americans and Latinos are being employed. By all ac- counts, they are. BPT Properties, the courthouse developer, claims that its workforce is 52 percent women and racial and ethnic minorities. But members of the newly- formed Campaign for Economic Justice say the workforce at Foley Square should include community residents. They've gathered 8,000 signatures for a petition calling for 60 percent of the construction jobs for pe:ople of color, with 30 percent of those going to Chinatown workers, as well as input from community leaders in decision- making. Federal officials say this isn't necessary. "The different minor- ity groups are looking for seta- sides for each group. Federal law doesn't allow for that," explains Harold Busch from the Office of Federal Contract Compliance. "And there are no residency laws to provide for hiring from the communities housing the projects." Virgo Lee of the Mayor's Office on Asian-American Affoirs adds, ''With the high unemployment in the construc- tion industry, the building trades unions can meet minority hiring gools from within their own ranks, even though their own minority composition is low. There's no incentive for them to 4/0CTOBER 1992/CITY UMITS bring in workers from the community." But this doesn't mollify Chinatown leaders. "The question is not what is legal, but What is fair," says Stanley Mark, an attorney from the Asian American legal Defense Fund who is coordinating the eco- nomic justice campaign. "In this case, the law is inadequate and can't provide for a fair share of jobs fOr our community." The Campaign for Economic Justice includes members of other fair-hiring groups, includ- ing Harlem Fightback and the Chinese Staff and Workers Association. Although irs far from com- plete, the Foley Square project already has a considerable history of controversy. Federal legislation in 1989 allowed the construction job to go ahead without passing through New York City's Unirorm Land Use Review Procedure, which includes community residents in decision-making. Because of this, Chinatown leaders pro- tested that they lost an important opportunity to have input in the project. More African- American activists and politi- cians became involved in the site after they discovered that one of the buildings was being constructed on top of an 1 8th century African-American burial ground. Changes are now underway to ensure that the burial ground is saved. 0 Barb Fadden PARKHILL PROBLEMS Having fallen into a danger- ous state of disrepair during years of neglect, the federally- subsidized Parkhill Apartments complex on Staten Island finally has a new owner. But necessary repairs are still on hold until the federal Department of Housing and Urban Development (HUD) approves the sale of the six- building, 800-apartment project. Residents of the complex have been for years about lea plumbing, dra windows, roken fences, plaster, and abondoned CrumbIng Wall: Activist Joan Wheeler points to problems at the Parkhill housing complex on Staten Island. apartments that are strewn with rubble and infested with Reas. On July 27,without any notice to tenants, gas lines were shut off throughout the complex because of extensive leaks. To make matters worse, the meter rooms were so full of debris and insects that gas company personnel refused to enter until management did a two-day clean up. Gas wasn't restored until August 1 2. "I've rought since 1980 to straighten these buildings out," says Joan Wheeler, a tenant leader. "It's been very discour- aging." But she is hopeful that the new owners--and a rearganized tenant associa- tion--{;an pull the place together. "At least we have a working relationship" with management, she adds, which wasn't the case in the past. David Buchwalter, chief of the loan Management Branch at the federal Department of Housing and Urban Develop- ment (HUD) office in New York City, says that the previous management company, Higen Associates, handled things "inadequately." He adds that the new owner, Unithree Investment Corp., will soon submit a plan detailing how it plans to repair problems identified by HUD inspectors. But his agency has not yet approved a ''Transfer of Physical Assets" between the old owners and Unithree, which means no new federal money will go to the complex for several months. In the meantime, tenants are meeting with Unithree's president, Arlington H. Fuller. Since taking control of the property in May, the corpora- tion has painted and repaired some walls, replaced mailboxes, mowed lawns and removed abondoned cars. Tenant leaders note that the elevators are more reliable now and that bosic maintenance work is underway. Fuller says Unithree has invested $500,000 in the property. But he says he needs $2.5 million in government money to do major repairs on the roaf, windows and elevators, and predicts he won't have the cash for at least a year. Wheeler worries that if problems aren't fixed soon, some tenants-many of them on public assistance and fixed incomes-may have to be moved before repairs can be done. Fuller disa9rees. For now, Parkhill tenants are looking across the street at another Unithree property, St. George plaza. They are a lime wary of what they see. The corporation has managed St. George for a full year longer than Parkhill, Wheeler says, and "it's been slow over there, too." This month, tenants of the two developments plan to elect a united tenant association leadership to work with the landlord and HUD. 0 Brian Hanson-H .... lng 7A OR BUST An important legal dispute is set to decide whether or not j 'udges may use an anti-slumlord aw to seize control of city- owned apartment buildings. The case is a bottle of wills between the city's Department of Housing Preservation and Development (HPD), which is struggling to manage 3,200 occupied buildings, and some housing court judges, who describe HPD as an incompetent manager. The case centers around three South Bronx buildings on Creston Avenue and Elsmere place that were the subject of housing court suits long before the city took control of the properties. In 1989 and 1990, when the buildings were pri- vatelyowned, judges found the landlords liable for dangerous neglect. Housing court placed the buildings in the care of Dennis Henriques, a court- appainted manager known as a "7-A administrator". By tenants' accounts, Henriques completely turned the buildings around. He instolled new boilers, locks and doors, renovated the more dilapidated units, and, most strikingly, cleared the buildings ot crack dealers by coordinating the efforts of city authorities, tenant organizations and his own superintendents. But in the summer of 1990, the city took possession of the buildings beCause the owners had defaulted on taxes. As dictated by city tax laws, Henriques was dismissed and HPD prepared to manage the properties. Many tenants were fearful about having the city as their landlord. "As soon as the city takes over a building, the drugs come in," soys tenant associa- tion president Ann Carolyn Nunez. Refusing to accept city management, the tenants continued paying rent to Henriques. And about two months after the city acquired their buildings, they sued to have him reinstated as 7-A administrator. Housing court Judge Howard T russel not only reappointed Henriques, he also ordered Prot8st Tenants from the Queensbridge housing projects protested recently at Federal Plaza, demanding permiSSion for Nation of Islam members to guard their apartments. Henriques to with the city to get the buildings into the Tenant Interim Lease Program (TIL), which would enable the tenants to purchase their apart- ments as a low-income coop- erative and manage the build- ings themselves. The city is appealing both rulings. An HPD spakesperson insists that the tenants are not inter- ested in self-management, and therefore do not qualify for TIl. But Henriques and his lawyer, Michael Doyle, soy the city is misrepresenting the tenants' wishes. If the case goes to appeal, the lawyer representing the city, Janet Zalean, soys she expects to argue that the city was not given a foir chance to manage the properties. The 7-A statute can be invoked if dangerous conditions in a building persist for five days; but in the past 'judges have generally used the aw only in cases of persistent neglect. Only two city-owned build- ings, both in Manhattan, have ever been assigned 7-A admin- istrators. The city appealed these cases, but both were settled out of court. An HPD spokesperson acknowledges that the depart- ment needs all the help it can get in managing its buildings, but Zalean soys this case is a matter of principle: HPD must be given a fair chance to run its own buildings. The tenants aren't concerned with such legal niceties. Says Nunez: ''The city takes over, I leave." 0 Matt Siege. HOUSING CUTS Advocates for the homeless are decrying the city's decision to reduce the number of New York City Housing Authority (NYCHA) ap<:!rtments set aside for homeless families. This summer the housing authority's director, Solly Hernandez-Pinero, gained considerable attention when she refused to accept homeless families for empty apartments unless the city agreed to fund support services such as social workers. After negotiations with City Hall, she agreed to accept 1,670 homeless families this year, 355 less than originally planned. Social workers will now provide follow-up services for the families for six months after they move into their new apartment. Hernandez-Pinero's actions followed years of protests against "homeless dumping" by housing authority tenants. "It is not that we don't want homeless families," says Gerri Lamb, the president of the Castle Hill Tenant Association. But, she adds, ''They were promised a multitude of support services that they did not and do not . " receIve. NYCHA officials and the tenant leaders argue that a higher percentage of theft, drug abuse and other crimes are happening in apartments where formerly homeless families live-but they have not yet produced a study documenting their claims. The NYCHA protests underscore an ongoin.s debate about the character ot homeless families. While some city officials argue that all homeless families require social services, advocates tor the homeless soy across-the-board generaliza- tions are unfair and inaccurate. "A lot of damage is being done to the public's perception of the homeless with these slurs. They're being used as goots," says Ted Haughton from the Coalition for the Homeless. "Since when did homeless families have a monopoly on these problems?" "Cutting has already lead to large numbers being left to sleep in welfare offices and to stay in hotels. The decision will only exacerbate an already horrendous decision," adds Steve Banks, the director of the Homeless Family Rights Project. Marsha Martin, the director of the Mayor's Office on Homelessness and Housing, notes that the city intends to make up for the reduction in homeless housing with the support of the private sector. She mentions increases in the Emergency Assistance Rehousing Program (EARP), which SUbsidizes_private landlords who otter apartments to homeless families. However, the increase in the EARP program was announced months ago (See City Limits, June-July 1992) and does not make up for the lost housing authority apartments. Martin also mentions that federal Section Eight housing vouchers may help plug the gap. But Elizabeth Lynch, an advocate for homeless families at the Citizens Advice Bureau in the Bronx, counters that Section Eight vouchers rarely provide enough money to substantially offset the cost of a vacant apartment. 0 Lynne Johnson CITY UMITS/OCTOBER 1992/5 By Sasha Nyary The Sakhi Sisterhood A group of South Asian women provides counseling and support for victims of domestic violence. K itty Chachra was in an Indian grocery store two years ago when she happened to notice an article in a copy of India Abroad, one of the city's many news- papers for the South Asian commu- nity. "It was just a coincidence," she says, as she doesn't usu- ally read Indian papers. "It just caught my eye." The article happened to be about Sakhi for South Asian Women, a grassroots advocacy group for women in the Indian, Bangladeshi, Nepali, Pakistani and Sri Lankan communities in New York. Intrigued, Chachra started attending meetings. Today she vol- unteers 20 to 25 hours a week for the group. "With the passion that I put into it, it is like another job," Chachra says. "But it's very important to me that women in our com- munity have a voice within that community." Focus on Domestic Violence from the Asian Women's Center, the Victims Services Agency andManavi, a similar group in New Jersey. The founding members, most of them young professionals, including a lawyer, a computer scientist and a film editor, planned to spend an entire stand on street corners in Jackson Heights and Flushing in Queens, Coney Island Avenue in Brooklyn and Little India in Manhattan, handing out fliers written in English, Hindi, Urdu, Gujarati and Punjabi. "It's amazing how Sakhi came at a time when the need was so great," says Madhulika Khandelwal, a historian at the Queens College Asian- American Center. "Suddenly, rapidly, it grew into prominence." The tri-state area contains the country's largest concentration of South Asians, with a little more than 100,000 living in New York City, according to the 1990 census. South Asians started coming to this coun- try in large numbers when the immigration laws loosened in 1965, so the immigrant population is relatively young. First gen- eration Indian-Americans, for instance, are in their mid-20s now and Khan- delwal says this often leads to "an underlying inse- curity" about cultural iden- tity. "In the last 25 years there has been an increased effort to maintain what people see as Indian tradition," she adds. "There is a very con- scious struggle to maintain traditions in food, dress and marriage. Marriage is the most important institution through which tradition is carried out." "A voice within the community" says a lot about the purpose of the nonprofit organization that was formed in 1989. The members of Sakhi-the name means "woman friend" in Hindi and other South Asian languages- focus on the issue of domestic yiolence within the South Asian commu- nity. CommunIty Voices: Anannya Bhattacharjee (left) and Kitty Chachra from Sakhi. "Completely Isolated" With a cultural empha- sis on marriage, dealing with an abusive husband z can be especially difficult ~ for South Asian women. 8 And this difficulty is com- Q pounded by the vulnerabil- (!) ity and fears of newcomers in a strange country. "Think "Our aim was to create an agenda for women in the fast grow- ing South Asian community in the United States," says Anannya Bhattacharjee, Sakhi's only paid staffer. "We didn't want to become an academic group that simply talks about things. We knew that domestic violence was a problem, and we wanted a South Asian women's.orga- nization. The two came together." Sakhi was created with support a/OCTOBER 1992/CITY UMITS supuner educating themselves about the issues. But to their surprise, the calls came before they were even open. The quick response says something about the power of word of mouth in the South Asian community. Sakhi does not advertise, and they are not listed in the phone book. Mention gets out through community news- papers and Indian radio and television programs. And Sakhi members also of a woman who, some guy comes here, goes back, marries a woman in an arranged marriage, and brings the woman here," explains Radhika Balakrishnan of the Ford Foundation, who has counseled South Asian women. "She's all alone, com- pletely isolated." But that's not all. Many South Asian women, including those being abused by their husbands, are here on their husband's green cards. In the past couple of years, however, immigra- tion laws have become more flexible and it is easier for battered women to remain eligible for permanent resi- dency status. Providing free and confidential legal advice in delicate situations like this is just a part of what Sakhi does. The organization also has a core of women who volunteer as case work- ers, guiding South Asian women through New York's overwhelming maze of safe houses, shelters, apartments and social services. One of the women who calls on Sakhi for help is Mira (not her real name), an Asian Indian woman raised outside New York City. Years after she left her husband, who beat her regularly-even when she was pregnant-she read about Sakhi and decided to seek support. "Women who've been through these kinds of situations deal with them for years and years and years," Mira says, noting that Sakhi offered her contacts for emotional counseling as well, as advice about practical matters like job-seeking. Perhaps just as importantly, she adds, "They opened me up to a community of people you feel like you have some- thing in common with." Educating the Community Besides the one paid staffmember, Sakhi is run by about 30 South Asian women, all volunteers. The organ- ization's annual budget this year is just$85,000, funded in part with grants from organizations like the Ms. Foundation and the New York Foundation. The group plans to hire a second employee this fall. But Sakhi's goals go further. Members of the group want to extend their outreach beyond helping women leave abusive situations; they want to educate their community about violence against women so that it will take responsibility for that violence. "We want not only to prevent violence against women, but to challenge the system that allows that allows this to continue," says Geetanjali Misra, a board member of Sakhi. "Any violence," she empha- sizes. "We are trying to cause the rippling effect." 0 Sakhi for South Asian Women can be reached at 212-866-6591. Sasha Nyary is a reporter at LIFE magazine. Social Change Tool for the '90s ALTERNATIVE PRESS INDEX }.: ~ . : t ' . : ~ ' r. ~ ill' ! . ~ . , . -' . .. .. ' 1 .) ,- .... , . !""',- .... . 1 '1, . , This quarterly subject index to over 200 alternative, radical and progressive publications will be an invaluable tool in your study of social and political change. Ask the folks at your library to subscribe to the Alternative Press Index, a unique guide to the other side of today's news. Libraries $125; individuals, non-profits, and movement groups $30. AND NEW THIS YEAR: SPECIAL CUMULATIVE EDITION FOR VOL 23,1991 $50 (OFFER GOOD THROUGH DECEMBER, 1992) For more information, write: Alternative Press Center P.O. Box 33109 Baltimore, MD 21218 Competitively Priced Insurance We have been providing low-cost insurance programs and quality service for HDFCs, TENANTS, COMMUNITY MANAGEMENT and other NONPROFIT organizations for over a decade. Our Coverages Include: FIRE LIABILITY BONDS DIRECTORS' & OFFICERS' LIABILITY SPECIAL BUILDING PACKAGES ilLiberal Payment T erms" PSFS,lNc. LET US DO A FREE EVALUATION OF YOUR INSURANCE NEEDS 306 Fifth Avenue, New York, NY 1 0001 (212) 279-8300 Ask for: Bala Ramanathan CITY UMITS/ocrOBER 1992/7 a/OCTOBER 1992/CrrY UMITS --------------I 1 489,,"di4-);i'------------- Crisis and Change In Low-Income Housing A fter more than two decades of struggle and success, community-based groups in New York City's poor neighborhoods are at a crossroads. These groups are doing the undoable: turning crack dens into low income housing, transforming junk-strewn lots into community gardens, developing education, job training and youth programs. Even more importantly, they're a key resource for involvement and action by disenfranchised community residents. Side by side with the incredible gains of the past 20 years are harsh economic truths: poverty is increasing and one out of every four households spends more than half its income on rent, according to data from the new Housing and Vacancy Survey. Overcrowding in apartments has increased 144 percent since 1978. This situation has the potential to overwhelm and undermine attempts at change. But it's far from the only threat to the survival, growth and relevance of community-based organizations. A study by City Limits shows that right this minute one out of four community- controlled apartment buildings is on the verge of fiscal collapse, mostly because of new water and sewer tax increases imposed by the city. Abandoned by landlords, then neglected by the city, most of these buildings are now owned by neighborhoods groups and tenants. They're a precious source oflow income housing and it's plain craziness to allow regressive city-created tax hikes to force them back into city ownership. Another element threatening community-based groups is more insidious. A brand- new housing program known as Neighborhood Ownership Works has been touted as the newest way to help community groups improve their neighborhoods. Unfortunately, there's a huge gap between rhetoric and reality; so far, the program relegates community groups to little more than a standard landlord role. It seems like the final step in a long, slow institutionalization process that has sapped the last drop of activism from many of these organizations. If the city isn't careful, it could turn the local groups into the very creatures they were created to oppose: local slumlords. Times of crisis are also times of opportunity. It's not too late for the city and community groups to return to a participatory process that ensures stable, community-controlled low income housing that remains affordable. In the long run, the entire city benefits. CITY UMITSIOCTOBER 1992/9 ,,>jiU'IIilil"ill By Andrew White, Lisa Glazer and Jonathan A. Lewis Drowning in Debt O ne out of every four formerly city-owned buildings sold to community groups and low income, tenant-run coopera- tives is on the brink of fiscal collapse, and could be returned to city ownership in the near future, a study by City Limits reveals. The properties, which are a major bulwark of the city's afford- able housing strategy, are so deeply in debt and owe so much in back taxes that the city has placed them on a list of properties up for reclamation. The study found that the delinquency rate among these buildings is almost four times as high as that of privately-owned apartment buildings and cooperatives citywide. "The city is burying its own afford- able housing," says Andrew Reicher of the Urban Homesteading Assistance Board, which gives technical assistance to many low income coop- eratives. He and other advocates blame enormous, unexpected increases in city water and sewer taxes for com- pletely overwhelming the budgets of many low-income buildings. Water and sewer taxes account for two-thirds of the average building'S debt, according to the study, which examined the City Collector's records of a random sample of the 977 build- ings that were sold out of city owner- ship by the Department of Housing Preservation and Development (HPD). City officials are not oblivious to the problem. "We are very concerned," says Joan Wallstein, assistant commis- sioner for alternative management at HPD. "We've put hundreds of millions of dollars into renovating buildings, developing the capacity of nonprofit organizations, restructuring rents, getting subsidies for tenants so the operating budgets of these buildings ensure that they're viable. We very much would like to avoid having these buildings come back to city owner- ship." "We are very aware that [increases in water and sewer charges] have had very egregious consequences," adds Deputy Mayor Barbara Fife, who heads an inter-agency task force that has begun studying ways to ease the im- pact of rising charges on low-income housing. But she says an administra- tion plan to deal with the problem is still months away. The city's water tax rate has increased 182 percent since 1984, and 30 percent in just two years, because the city needs extra money for expanded sewage treatment, sludge disposal and a new water tunnel. The city is also installing water meters in apartment buildings as a way to encourage conservation, but the meters are having a disproportionate impact on low income buildings, where water taxes have jumped as much as 360 percent after meters were installed (see City Limits, May 1992). Officials and advocates agree that metering hits hardest in low income buildings because they tend to have older, leakier plumbing systems as well as more people crowded into each apartment, with more elderly, disabled, and unemployed residents who stay home all day-flushing toi- lets, running faucets, washing clothes. One In four at risk Tax delinquency rate four Ii .... hiIh One fourth of all community-controlled coopera- tives and rentals are in rem, meaning they could return to city ownerShip. An additional 35 percent are in debt to the city. Source: NYC Dept. of Finance 10jOCTOBER 1992/CITY UMITS t I c , ............. ......... More than 60 percent of fonnerly city-owned buildings are behind in tax payments. Source: NYC Dept. of Finance .- "It's just a mess," says Carol Lamberg of the Settlement Housing Fund, which owns and manages sev- erallow-income buildings. "We used to figure about $150 a unit per year [for water taxes]. Now there's a range of $300 to $1,200 per year. It's craziness." And Bill Frey of the Enter- prise Foundation, another source of financing for low income buildings, says the water bills for some of his projects have turned out to be 500 percent higher than budgeted. Ripple Effect Experts across the city say the cri- sis could well have a ripple effect throughout low income housing. "Pri- vate, public and nonprofit groups are starting to come together and [they're 1 realizing that this is going to be a major nightmare," says Kathleen Parisi of Neighborhood Housing Services, a national nonprofit that provides fi- nancing for small homeowners. She says that building owners from Bedford-Stuyvesant, Harlem and the Lower East Side who come to her group for help can't cope. "I work with these clients daily," she says. "They're barely making it now. If you double their costs it puts them right under." "We are quite concerned about the impact of these price hikes on the affordable housing stock," adds John McCarthy, an executive vice presi- dent at the Community Preservation Corporation, a nonprofit lender backed by many of the city's largest banks. "Our main concern is, will rent cover operating expenses? The dra- matic increase in water and sewer taxes has made that question harder c.. "The city is burying its own affordable housing." to answer." McCarthy explains that this growing uncertainty is discour- aging lending institutions from mak- ing loans for low-income housing. The buildings in the City Limits study all participated in programs administered by HPD during the 1980s. In the cooperatives, the city partially renovated the properties and organized tenants into associations, which went on to buy the buildings out of city ownership for a nominal price. If a shareholder moves out, he or she cannot profit from the sale of their stake in the property; instead, shares are transferred to a new tenant. Maintenance fees in the buildings are supposed to remain very low-just enough to cover costs-so that the homes remain permanent! y affordable to people in the lowest income brack- ets. Apartment buildings owned by community organizations and, in some cases, private landlords that par- ticipated in the city's alternative man- agement programs, were also pur- chased for a minimal fee and are de- signed to remain as permanently af- fordable housing. But in many cases the budgets worked out by the city housing de- partment at the time the buildings were sold have proven inadequate. Tenants bought a 24-unit Brooklyn building in December, 1985, and bud- geted $5,750 for annual water and sewer taxes based on a city estimate. But in 1991, the water bill came to $12,308. Watching Things Go An oasis of affordable, tenant- owned housing stands at 1187 Clay Avenue in the Morrisania section of The biggest problem is water and sewer debt Low-income co-ops' costs rise faster than inflation Two-thirds of the average building's debt of $16,858 is water and sewer taxes. Source: NYC Dept. of Rnance UHAB's co-op index shows the cost of running a low-income co-op increased faster than inflation, primarily because of increases in taxes and water and sewer charges. Source: UrlJan Homesteading Ass/stance Board. US Bureau of Labor StatistiCS CITY UMITS/OCTOBER 1992/11 the Bronx, on a wide boulevard of beat-up six-story tenements. But the building has hit hard times. Monthly maintenance fees in the 12-unit coop- erative are now $300 for a four-room apartment, and a rental on the ground floor is bringing in $410 a month. Yet the fees and rents are nowhere near high enough to cover the $24,614 debt the building owes to the city-$15,816 of it in water and sewer taxes. As a result, the building has had to drop its insurance, put off paying $2,500 in bills owed to a local hardware store, Con Edison and a roofing contractor, and delay necessary repairs. "We've put our hearts into making it work," says Marion Marti, the secre- tary of the cooperative. "Now the city can come in and say our work doesn't amount to anything. The idea of it makes my toes weak." The residents include elderly and disabled men on fixed incomes, a kitchen porter, a self- employed day care worker and. an unemployed nurse's aide. There are several children and doubled-ur fami- lies in the building. Many 0 them would have trouble remaining in the community if fees continue to soar. Even though they live in a troubled, working-class district with drug deal- ers and shootings, rents in neighbor- ing buildings run as high as $800 for a large apartment, according to residents on the street. Jon Lukomnik of the city's Depart- ment of Finance says that "the vast majority" of the buildings in the study, including 1187 Clay Avenue, can avoid being taken by the city if they set up a debt payment agreement with his agency. Marti says her group al- ready tried that, and couldn't keep up with the payments. Now, she and her neighbors fear they may soon have a new landlord named the City of New York. "Little by little we're watching things go," Marti says. "All the plans we made simply went down the drain." Deputy Mayor Fife says she is not sure whether anything can be done immediately to prevent buildings like 1187 Clay from being repossessed while a citywide mitigation plan is still on the drawing board. "I would have to talk to HPD to see if they can try to hold on," she says. Lukomnik says the same thing. But an HPD spokesperson bounces City Limits back to Fife's inter-agency task force. Several Thousand Families The City Limits study analyzed a 12/0CTOBER 1992/CITY UMITS random sample of 109 buildings out of the 977 that have been sold out of the city housing department's Division of Alternative Management Programs. Of the 109, the Department of Finance has listed 27 as in rem, meaning they are likely to be turned over to city ownership if their debt is more than one year old and they have not worked "All the plans we made simply went down the drain." out a payment agreement. Extrapolat- ing the results, the study concludes that between 162 and 321 of the build- ings-which are home to several thou- sand families-are at risk of returning to city ownership. The study also found that a total of 60 percent of the buildings were in arrears on their tax payments to the city, almost four times the 16 percent delinquency rate for all apartment buildings, cooperatives and condo- miniums reported by the Department of Finance for fiscal year 1991. In addition, the study found that buildings in the Bronx tend to be in far worse debt than those in Brooklyn or Manhattan. In response to the crisis, a number of community-based groups have begun organizing efforts to change city policy on taxes and water charges. Staffers at the Urban Homestead- ing Assistance Board have joined with low income cooperative shareholders in a "Tax Justice Campaign", holding meetings with officials, politicians and advocates around the city. The New York Housing Confer- ence, chaired by Clara Fox of the Settle- ment Housing Fund and Rev. Don Sakano from Catholic Charities, has written to regulators and elected officials to explain the crisis and push for a resolution. The Northwest Bronx Commu- nity and Clergy Coalition is organiz- ing low income cooperatives, small homeowners and community groups to fight future rate increases at the city Water Board, which sets rates and devises tax guidelines. They held a protest at City Hall, extracted promises of relief from Fife and other officials, and are planning meetings with City Council members. Fife, who serves on the Water Board, says she is meeting with banks and others in the private sector to work out a plan for easing the burden of water charges on low income buildings. She does not outline any detailed proposals, however. Some possibilities, she says, include subsidizing the cost of installing low- flow toilets and shower heads in the buildings to cut water use, and altering the formula by which water charges are distributed. The Rent Stabilization Association, which represents private landlords, is demanding that the city alter regulations so that landlords can charge tenants directly for water use in addition to rent. But tenant advocates point out that old, leaking plumbing systems are one of the most common problems in private, low income buildings; they say renters should not be asked to pay for their landlord's failure to do necessary repairs. They also say that the extra charge could push thousands of poor households who are already spend- ing more than half their income on rent into homelessness. Some community groups are pro- posing actions the city could take to ease the pressure on low income hous- ing and soften the tax burden on low income cooperatives. Jim Buckley of University Neighborhood Houses in the Bronx recently proposed a $200 per-apartment cap on water and sewer taxes for low income, community- owned housing. Others propose a lower water tax rate scale for low income buildings, so that incentives to conserve remain in place but heavy usage will not bust the buildings' budgets. Still others call for across- the-board tax abatements for the former city-owned buildings. One point of agreement is the need for quick action. "No one will argue with the notion that water needs to be conserved," says Marc Jahr of the Lo- cal Initiatives Support Corporation (LISC), which helps finance low-in- come housing development. "But the question is, how equitable is that pro- cess? Who pays the price?" 0 ---------------I1Qi9h"di4);il.r------------- Miledis Arias (farthest left) and her neighbors in their low income cooperative at 658 Grand Street in Williamsburg. The End of an Era After 19 years, a city program promoting community-based management of low income housing is being killed. What lessons can be carried to the future? BY ERIKA MALLIN AND LISA GLAZER L ike the dusky pink-tinted glasses she wears, Olivia Jones' newly-renovated apartment in the Brownsville section of Brooklyn is decorated in soft, pastel colors and filled with overstuffed couches and starched curtains. Smoothing one hand over the newly-painted wall of her kitchen, she says, "In this building, we try to make a difference. You can see the hallways are quiet and if we hear something we stick our heads out." Jones is obviously pleased with the results of the city's Community Management Program (CMP), which funded the total renovation of her 23-unit limestone building by a local community group, the Oceanhill Brownsville Tenants Association. After watching her building milked for profit and abandoned by a landlord, then neglected by the city, she says that the community group's involvement helps her feel "a little closer to what goes on." But not quite close enough. After lauding the overall improvements in her building, Jones says the Oceanhill Brownsville Tenants Association is slow to make routine repairs and sometimes withholds important information from the tenants. In her opinion, many tenants have become too dependent on the community organization- like a child leaning on its mother-which she feels is one reason the tenants turned down the opportunity to buy and manage the building on their own. "That's all true," responds Abdur Rahman Farrahkan, the executive director from the Oceanhill Brownsville Tenants Association. "The communication does need to be better, but it's not always the fault of Oceanhill Brownsville. Sometimes we call a meeting and only two or three people come. Also, there are many times when tenants want to be an equal partner in what we do, but we have the legal responsibility and sometimes we make arbitrary and capricious decisions. It's nota perfect world." Rabble-Rousers to Landlords The ambivalent feelings expressed by Jones and Farrahkan are repeated by many housing advocates and tenants familiar with the 19-year-old Community Man- CITY UMITS/OCfOBER 1992/13 agement Program, which is now being phased out by the city's housing department. The ambivalence is largely because CMP, more than any other city effort, has changed neighborhood groups from local rabble-rousers into construction supervisors, developers, property managers and even landlords. It's an evolution that's led to very mixed results. Community leaders and residents alike agree that the program has achieved what many considered impossible: turning around some of the most decrepit, drug-infested buildings in the city and forming strong tenant associations that have sometimes gone on to purchase and manage their own buildings. But there are also serious criticisms, including instances of bad management, slow repairs that are sometimes poorly done, and the disillusionment and tension that can emerge when tenants decide not to buy their building and the community group becomes the owner, with the potential of either being a benevolent landlord-or a local slumlord. But now the city has decided to phase out the Community Management Program in favor of the new Neighborhood Ownership Works (NOW) initiative. While CMP relies primarily on nonprofit neighborhood groups, the first NOW program will use for-profit contractors to restore buildings and then sell the property to community-based nonprofit groups (see Sidebar, page 18). Why is the city cutting off funding for CMP after 1994 and establishing a new program? "We're just trying to find ways to treat more buildings, to get more buildings out of the system," says Joan Wallstein, an assis- tant commissioner at the housing depart- ment. "Right now groups in CMP are renovating two to three buildings a year. Even if we could double that to six buildings a year, we would not be able to produce as much as we need." to find a way to reclaim tumble-down buildings that had been abandoned by their landlords-and the Community Management Program was born. Relying on the growing strength and commitment of nonprofit neighborhood groups, CMP has expanded enormously in the past two decades, from an early annual budget of about $6 million to a peak of $36 million in fiscal year 1992. From the South Bronx to Harlem to Central Brooklyn to Lower Manhattan, there are about 30 groups taking part in the program this year. In theory, the Community Management Program is relatively straightforward. The city provides funding for the renovation ofrun-down, abandoned buildings, a com- munity group oversees the renovation, and once the build- ing is done the tenants are meant to become the owners, assuming responsibility for taxes and maintenance. If the tenants don't become the owners, then the community group takes over from the city and becomes the landlord. In reality, this process has proven complicated, time- consuming and costly. The city has spent more than $321 million on the program and sold just 228 buildings with 4,286 apartments-132 buildings were bought by the tenants and 96 were purchased by community groups. Another 131 buildings are still in the process of being renovated. The "hard" construction costs for the CMP program are estimated as $35,000 to $55,000 per unit, but when "soft" costs such as tenant organizing are added, the per unit cost can climb to between $60,000 and $75,000 per unit. This com- pares poorly with the Tenant Interim Lease program, which relies solely on tenants to oversee rehab in their buildings, and the Private Ownership Management pro- gram, which brought in for-profit contrac- tors to renovate and eventually purchase buildings. Construc- tion costs in those programs are esti- G mated as between ca $20,000 and $30,000, ~ according to city ~ officials. So far, many hous- ing advocates are ex- pressing dismay that the Community Man- agement Program is being replaced. To _-:-=-____ ----'''----"--'ca Despite these bleak Mixed Feelinp: Olivia Jones questions whether her neighbors have become too statistics, CMP sup- dependent on the Oceanhill Brownsville Tenants Association. their minds, the new program ignores some of the key lessons learned from CMP: the harsh fiscal realities of doing business as a city contractor and landlord in seriously troubled buildings, and the tenant organizing ground- work that's necessary throughout the rehabilitation process to create community-controlled, low income housing that withstands the test of time. Reclaiming Abandoned Buildings Back in the early 1970s, housing department officials negotiated with fledgling community groups in poor areas 14jOCTOBER 1992jCITY UMITS porters say it's impos- sible to judge the program by the bottom line and misleading to compare it to other programs because CMP ends up with some of the city's most physically and socially run-down buildings. "CMP buildings were in the toughest neighborhoods, needed the most repairs, and usually had some pivotal place in the community," says Harold DeRienzo, the director of the Consumer-Farmer Foundation, which supports low income housing. Because many of the CMP buildings are in such terrible shape, they require almost complete rehabilitation and sometimes the tenants have to remain in the building, swapping apartments in a process known as checkerboarding. This re- quires intense diplomacy and close cooperation and trust between the commu- nity group, the contractors and the tenants, which also explains some of the costs in time and money. "In one of our buildings we had to rehab half the building because the apart- ments were being used as shooting galleries and the other half of the tenants were scared to walk out," says Mark Alexander from Hope Community, Inc. in East Harlem. He says the renova- tion process was slow and expensive-but ultimately worthwhile. Clearing out the shooting gallery and fixing up the building was a cata- lyst for larger changes. "We cleaned that block up," he says. brings out the documents- in Spanish and English- explaining the ownership process. "They hold meet- ings, give us papers, they treat us right," she says. And her personal stake in her building has changed her at- titude, she says. "When you were renting, if things got messed up in the building you knew you could move out. But now that it's our property we have to take care of it." The staff at St. Nicholas NPC also gives the program strong support. "Community management really helped to re-fabricate neighbor- hoods," says Virginia Ver Ecke, who until recently served as the group's direc- tor of housing. In the Williamsburg neighborhood where St. Nick's operates, CMP has helped restore al- most all of the run-down buildings in the area. Ver Ecke says that CMP has also ~ helped build St. Nick's into ~ a strong, professional orga- ~ nization with a large staff ~ that's most! y from the neigh- _ ..... --O' ......... o....::.:l""""" .... ~ borhood, including some Nonetheless, there are many instances where the Community Management Program's major investment of capital has led to less than laudable results. "I really have mixed views about the Community Management Program," says Bernard Alston, the project director for the Union of City Ten- On tile SInet: Tenants of buildings run by West Harlem Group who come from CMP build- Assistance recently held a protest to highlight complaints about the ings. community management organization. A number of housing ad- ants. "There are a few groups that act like a responsible landlord, but it's a mixed bag." How does he grade the community groups in general on their landlording skills? Barely passing-a C minus. Ripple Effects-Positive and Negative When the Community Management Program works well, the benefits have a ripple effect from individual tenants to their apartments, the block and the entire neighborhood. But when the program backfires, the ripple effect is equally powerful-and negative. One building in Williamsburg is an example of how the program can work. The first thing a visitor notices about 658 Grand Street, a small w a l k - ~ p on a bustling Williamsburg thoroughfare, is the spiffy new renovation job: the bright white tiles and fresh paint in the hallways and the shiny new fixtures. But tenants who live in the building say the transformation that's taken place there goes far beyond physical details. "You care more about the building now because it's yours," explains Demetrius Renne, 21. The building was recently purchased by the tenants after it was renovated by the St. Nicholas Neighborhood Preservation Corporation. The tenants give St. Nick's high marks for making speedy repairs and informing them about their rights. Miledis Arias, who has lived in the building for 22 years, vocates across the city echo this support of the Community Management Program. "From our experience it's been a good program," says John Reilly, the director of the Fordham-Bedford Housing Cor- poration in the Bronx. "The neighborhoods have seen buildings that they'd given up on turned around." And Ana Bonano, the director of housing management at the Los Sures housing group in Brooklyn, adds, "I love the program. When I started working here with the program in 1984, we had so many buildings in bad ,condition. With CMP, we've fixed all these buildings. Now the tenants all own and manage the buildings." Tenants Rush to Air Grievances But these glowing references aren't universal, and not every CMP building ends up being owned by the tenants. Four tenements that stretch from 220-226 West 116th Street were among the very first buildings in the program and a ceremony commemorating their $2.5 million rehab in 1980 was attended by then-Mayor Edward Koch and written up in The New York Times. Today the front doors swing wide open, graffiti is festooned in the hallways and tenants rush to speak to a reporter about their grievances with the West Harlem Community Organization, which has owned and managed the building for a decade. "West Harlem, they don't do shit," curses one man on his way to the group's office, which is on the same block, CITY UMITS/OCTOBER 1992115 to complain about a broken boiler. Sinclair Montoute, who lives in 222 West 116th Street, adds, "When they first started, it was okay. But problems developed because everything was buddy-buddy. There was a lot ofmisman- agement." Others refuse to lay all the blame on the West Harlem Community Organization. "West Harlem does a good job. The problem is the tenants," says Missie Moye, who lives in an immaculate apartment on the fourth floor of 220 West 116th Street. Moye and a few of her neighbors paid $250 to own their apartment, but there weren't enough tenants regularly taking part in a tenant association to form a low income cooperative so they had to get their money back. "I started here April 1st and when I saw those buildings I was horrified," notes Ruth Brown, a long-time West Harlem Community Organization board member who is now working part-time for the group. She explains the early renovation money was a "mere pittance" that didn't cover essential expenses like new wiring. "The city says [the money they give you for repairs] will be sufficient, but 10 years down the line we live with the problems." (In the early days of CMP, the city provided about $15,000 per apartment for renovations. Today that allocation has in- creased to about $38,000 per unit.) Brown adds that West Harlem's director, Margaret McNeill, recently died and that during her lengthy illness, she" didn't have the right people around her." She denies allegations of fiscal mismanagement, partment standards and fixing the sewage pipe was not the responsibility of her group. Yearly Threat of Extinction Despite some of the ambivalence about CMP that cur- rently exists, there was an enormous amount of excite- ment and hopefulness in its early days. Photographs and articles from early issues of City Limits show tenants standing proudly in the homes they helred renovate and describe boisterous protests at City Hal , where placards were waved and voices raised to save the program from a yearly threat of extinction. Started in 1973 as a pilot effort, CMP is widely acknowl- edged as the brainchild of Robert Schur, a city housing official who went on to establish a coalition of community groups, the Association for Neighborhood and Housing Development-and City Limits magazine. "The whole thrust of CMP at the beginning, when community groups fought for it, was that this was going to be this real partnership" between tenants, the community group and the neighborhood, recalls Jay Small, the cur- rent director of the Association for Neighborhood and Housing Development. In the early days, he says, the program had a clear mission: "I hate the word, but it was about empowering the residents of the neighborhood, about having people engage in some sort of self-determin- ing process, to be stakeholders in their neighborhood." But behind these idealistic dreams were the pragmatic needs of city government. The pilot program that Schur started was ex- explaining that "the building started to fall apart, people stopped paying rent, we wound up owing vendors, oil wasn't being delivered, we're owing thousands of dollars in taxes. At least we've man- aged to stay alive. A lot of organiza- tions have fallen by the wayside." In fact, several of West Harlem's proper- ties are on the verge of fiscal collapse. The city has begun in rem proceedings against at least three of the buildings- one owes more than $70,000 in unpaid "Ten years down the line we Ii ve with the panded in 1978, when New York was in the throes of a severe recession and new laws had accelerated the city's takeover of tax-delinquent buildings, leading to an unwanted windfall of properties. And the city also had a surplus of unspent federal Commu- nity Development Block Grant funds. problems. " "It was a case of use it or lose it," recalls Philip St. Georges, whom the housing department recruited from the Urban Homesteading Assistance Board to quickly set up the Division of Alternative Management Programs, taxes. More problems are evident 30 blocks north, where another community group, West Harlem Group Assistance (WHGA), runs a number of community management buildings. "They don't want us to be successful, because they want to keep the buildings to themselves," says Ethel Branch, a resident of 424 West 146th Street. Branch complains that the group sends out unwar- ranted eviction notices and took a year to fix an odor- spewing sewage pipe in their building. She says she's afraid to move out of her apartment to allow renovation. "With West Harlem's track record, if you move out, that's it," she says. She and her neighbors recently held a rally to highlight 20 complaints about the group, ranging from shabby bookkeeping to a failure to organize a tenant association-a practice mandated by CMP. Shelly Callendar, the director of West Harlem Group Assistance, responds that she has signed an agreement with the tenants promising that they will be able to return to their apartments. She disputes the other complaints, explaining that the building has always had a tenant association and that WHGA meets with them each month. She adds that WHGA's bookkeeping meets housing de- 18/0CTOBER 1992/CITY UMITS which aimed to sell city-owned buildings to tenants, community groups or private owners. "We didn't know what was the best way to do this, so we said let's try everything," he recalls. "It was a real challenge." Besides CMP, St. Georges also helped set up the Tenant Interim Lease Program and other efforts, but problems with the pace and quality of the renovation within CMP started early on. In a letter to City Limits in 1980, St. Georges wrote: "Last year an $18 million Community Management Program actually spent only $9 million of its available funds .... Most of the unspent funding was for rehabilitation projects the groups could not get under- way." Even harsher, he added, "After eight years of exist- ence and over $30 million of federal funding, the Commu- nity Management Program has not resulted in the sale of a single building to date." But a research paper written by a coalition of neighbor- hood groups participating in CMP presents another side of the story. Although the buildings were not completed for sale, members of the Community Management Coalition argued that their work transformed 3,044 apartments from shabby shells to livable homes. The coalition members also noted intangible rewards: of the Urban Home- steading Assistance Board, which assists tenants learning to own and manage their buildings, says that if the city was really serious about tenant ownership, tenants would be the major decision-makers in the Community Man- agement Program, with the ability to fire community groups serving as their manager. "Another by-product of the program is something which can not be purchased else- where: a cadre of dedicated commu- nity persons working close by the buildings that they manage and providing training and consciousness- raising to the tenants. This enables tenants to develop from for- gotten, disadvantaged persons into proud homeowners. " After 1980, the city pressured commu- Shattered Hopes: Three tenements on West 116th Street were among the first buildings in the Community Management Program. Today the doors swing open and graffiti festoon the walls. "The most positive role for community groups is for them to serve as a resource for tenants and not as landlords," he nity groups to complete rehabilitation and sell the prop- erty; if tenants didn't choose to purchase a building the community group became the owner. By 1983, a total of 63 buildings had been sold. The most important recent change in the Community Management Program involved switching the payment method to a fee-for-service system where community groups get paid after work is done. This was meant to ensure speedier renovation, repairs and sales, and some say this was long overdue. "There were plenty of carrots to munch on, but no stick," says Alexander from Hope Community, Inc. "There was no incentive or penalty for leaving a building in the program for six or eight years and a lot of buildings stayed in the program a long, long time." Lost Partnership Others counter that the new structure undermines the basic principal of forging a partnership between the com- munity group and the tenants. In its earlier incarnation, the program had flexible funding that made it easier to pay for "soft costs" such as administrative staff and tenant organizers. "We don't even call them organizers any- more," says Barbara Schliff, the housing director of the Los Sures group in Brooklyn, referring to field staff once called tenant organizers, then tenant liaisons and then managers. Susan Saegert, a professor of environmental psychol- ogy at the City University of New York, and the author of "From Abandonment to Hope: Community-Households in Harlem," says her research shows that in successful tenant-owned buildings, the importance of extensive tenant organizing cannot be underestimated. "Tenants have to learn a lot to be technically and socially prepared for ownership," she says. "If they don't learn it during the renovation period, it's difficult to learn. After that, they start to feel they've bought into something that someone else controls." She adds, "My impression of the Commu- nity Management Program is that the rewards and punish- ments the city used did not really support a tenant coop- erative form of development." Others echo her opinion. Andrew Reicher, the director says. "The tenant- controlled buildings tend to provide better housing and the tenants feel more satisfied with their housing because they control it." But others question whether it's realistic to assume that all buildings can become tenant-owned. "Let's tell the truth," says Farrahkan from the Oceanhill Brownsville Tenants Association. " Every [building] is not prepared to be a co-op the same way not everyone is prepared to be a nuclear physicist." "What we found in larger buildings is that co-ops are tougher," adds Getz Obstfeld, the former director of the Banana Kelly Community Improvement Association in the South Bronx. "Every group has differences in terms of their philosophy and experience. Some said we believe in the co-op model but it isn't working out. Others had the opposite experience. At Banana Kelly we've found it to be a mixed bag." Obstfeld says that because of this, he and many other housing advocates are exploring the Mutual Housing Association model, which allows community groups and tenants to jointly own clusters of buildings. "We're trying to blend the best of both approaches," he says. "Everyone's still struggling with the questions. They're not going to go away." Future Lessons For the future, advocates say, three lessons from CMP are clear: the need for adequate resources to fully rehabili- tate buildings, the importance of competent community managers, and the necessity of support from the city for tenant organizing and education. The final lesson may be the most important-and the most difficult to apply in a city where funding that doesn't quickly lead to tangible achievements has always been in short supply. In a rather startling acknowledgement, st. Georges says, "One of our real failings was not addressing the long-term aspects of these buildings, how you have stability in the buildings and the neighborhoods over time. It's one of the problems of working in HPD and government in general. You're thinking about today, tomorrow and the next election." 0 CITY UMITS/OCTOBER 1992/17
Advocates Blast New Program T he regulations for a new plan to sell city-owned apartment buildings to community- based nonprofit groups are being finalized and Mayor David Dinkins' avowed beneficiaries-the community groups-are not very happy about the results. In a nod to entrepreneurship and the private construction and management industries, the first program within the Neighborhood Ownership Works (NOW) initiative relies heavily on the for-profit sector in the early stages of the program. F or-profit contractors and construc- tion managers will have primary responsibility for overseeing reno- vations and choosing new tenants for empty apartments. Only then will nonprofit community groups be brought in to buy and manage the buildings. Undermining Empowerment Tenant leaders and housing ad- vocates say the new program ig- nores many of the key lessons learned from the past two decades of community-based housing work. They say the NOW regulations don't give tenants a significant voice in renovation, management or own- ership, and relegate the commu- nity groups to a standard landlord role, undermining their larger mis- sion of local empowerment. "The NOW program takes the worst aspects of the various housing programs and puts them into one," says Jay Small, the executive director of the Association for Neighborhood Housing and Devel- opment (ANHD), a coalition of about 30 community-based housing groups. "When you don't involve people in the process, you have a situation where people say, 'It's not my problem, '" explains Bernard Alston from the Union of City Tenants. "Then small problems end up being big problems. Tenants are very concerned about security, but when they're not involved in the building's process then they lose interest and outsiders can get involved in the buildings," which 18/OCTOBER 1992/CITY UMITS often leads to drug-dealing activity. Alston and many other advocates argue that the city should reassess its plans for the future of city-owned buildings. Most of these buildings are in extremely poor shape but they provide the housing of last resort for families with no other alternative; the median income of tenants in city- owned buildings is less than $7,000, according to the 1987 Housing and Vacancy Report. In the past five years, more than 12,000 homeless families have moved into city-owned build- ings, which the city acquired when landlords failed to pay taxes. The purpose of the new initiative is privatization-selling off city-owned buildings. The draft regulations spell out a process where for-profit con- tractors would oversee the renovation of run-down, occupied buildings and choose tenants for apartments that have been vacant. Once this process is complete, the city would sell the building to a community-based orga- nization in the neighborhood. If there aren't qualified nonprofits, the city could then sell the building to for- profit developer. The city plans to spend more than $300 million in the next four years to renovate and sell off9,300 city-owned apartments. This comes to about $32,000 per unit. Lack of Experienced Groups Housing department officials say the new program is necessary because the city can no longer afford to man- age tens of thousands of apartments- and there aren't enough experienced community-based housing groups to oversee management and renovation of buildings being sold. "If you have the same groups involved in every aspect of every building, you just can't deal with the need," says Joan W allstein, an assistant commissioner at the Department of Housing Preservation and Develop- ment. She adds, "The key thing that people have to remember is there are thousands of buildings. It's not fair to say a building has to sit and wait several years before a local community group can get around to renovating it." Wallstein adds that one aim of the new program is expanding the universe of community groups taking over city property. "Some groups only have the ability to do management-if we can widen the sphere of groups that can manage and own city property then we won't overburden the groups we have now." Involved-Up To A Point The assistant commissioner has no qualms about including for- profit contractors in renovation work. "Some of the very best man- agement and construction manage- ment firms come from the private sector," she says. And she argues that the NOW regulations include adequate pro- visions for the input of tenants and community groups. "We do intend to have both groups involved-up to a point," she says. "But I don't think you have to have everybody in lockstep through the process to have a good product that lasts." Many tenant leaders and housing advocates beg to differ. They say that if tenants and the community group don't form a partnership in the early days of renovation, it's. very easy for a hostile landlord- tenant relationship to develop, and . for the building to eventually deteri- orate. "It's a scenario for disaster. Groups will become slumlords," says Joe Center, the director of the Ecumenical Center for Community Development in Harlem. Besides questioning the process leading up to the sale of buildings, housing advocates are also raising serious questions about how build- ings will be able to provide afford- able housing for very low income tenants-and also be economically viable in the long run without oper- ating subsidies. Others say the pro- gram is deficient because it doesn't create paths for buildings to even- tually be owned by the tenants or a collective land trust known as a Mutual Housing Association, in which both tenants and commu- nity groups share the responsibili- ties of ownership. 0 Lisa Glazer ,
CITY LIMITS ____ 0 __ am ........... ...
_llmllO __ ---- Ciq Starting Small Fighting Incineration from the School, and PubUc Houaing Pro)ects of Fort Greene, Brooklyn Winner of the
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BURIED ALIVE: New York's Garbage Quagmire 1992 New York City Audubon Society Media Award for Distinguished Service to the Environmental Cause CITY LIMITS covers the urban environment like no other New York magazine because in this town the environment is more than parks, birds and trees. It is illegal garbage dumping, lead paint poisoning, overburdened emergency rooms and crack vials in the street. We uncover the hazards, and we spotlight grassroots groups turning their neigh, borhoods around. We've won six journalism awards for our reporting. Isn't it time you subscribed? ,----------------------------, YES! Start my subscription to CITY LIMITS. o $20/one year (10 issues) o $30/two years Business/Govemment/Libraries o $35/one year 0 $50/two years o Payment enclosed. Add one issue to my subscription-free! Name ____________________________________________ __ Address __________________________________________ _ City State Zip __ L ____________________________ CITY LIMITS, 40 Prince Street, New York, NY 10012 ern UMITS/OCTOBER 199211. Overcrowded Masses causes of the city's chronic homeless crisis. There are currently one million New Yorkers on welfare, and welfare only provides a housing allowance of $286 for a family of three. New data offer a grim picture of a worsening housing crisis. Meanwhile, the median rent of New York's occupied apartments rose sub- stantially in the 1980s and early 1990s, from $265 in 1981 to $509 in 1991. In inflation-adjusted 1991 dollars, that's an increase of about 20 percent, and comes at a time when the earnings of the average renting household in- creased only 10 percent. H igh rents, low wages, and no cheap place to live: it's possi- bly the most dependable New York story. And by at least one measure, it's more common now than ever. According to the federal Bureau of the Census' still-unpublished 1991 Housing and Vacancy Survey, one in four tenant households in the city spends more than half its income on rent. Ten years ago, the figure was closer to one in five. That's only one of the stunning pieces of information found in the comprehensive, triennial survey of more than 18,000 city apartments and houses. Much of the data confirms estimates and anecdotal reports about the state of housing in New York dur- ing a year of recession, declining prop- erty values, and increasing immigra- tion-and marked, as ever, by a chronic shortage of affordable housing. The data show a ballistic increase in the number of New York house- holds crammed into overcrowded apartments. According to the survey, crowding has become far worse than it's been in more than two decades. The number of "severely crowded" households city-wide shot up 69 per- cent in four years and 144 percent since 1978. The figures represent the years when foreign immigration to New York soared and the human den- sity of compact neighborhoods like Washington Heights, Chinatown, Crown Heights and Flushing became steadily more apparent. The survey's data on vacancies has already caused a stir among deregula- tion advocates. For the first time since the mid 1960s, the overall vacancy rate for the city topped 3.5 percent. Rent regulation remains in force so long as the vacancy rate stays below five percent. But the overall vacancy rate is mis- leading. The vacancy rate for apart- ments with rents less than $500 is only 1.9 percent, and the number of affordable rentals has continued to diminish. The number of vacant apart- ments available for less than $300 a month has dropped off drastically, by 66 percent since 1984. Meanwhile the number of vacant luxury units costing $1,000 a month or more has skyrock- eted 210 fercent since 1987-in part a result 0 unsold, high-cost coopera- tive apartments shifting into the rental market. This data helps explain the The survey provides fuel to counter the claims of deregulation advocates who argue that rent control unfairly benefits wealthy tenants. In fact, the average occupant of a rent controlled apartment is very poor: their median annual household income is just $12,075 and has failed to keep pace with inflation in the last decade. Still, rent controlled housing is becoming less of a factor as the number of con- trolled apartments declines rapidly. Rent stabilized apartments became less affordable during the last decade, when the median rent of occupied, rent-stabilized apartments increased from $288 in 1981 to $522 in 1991. That's an increase 13 percent greater than the rate of inflation. Three separate reports based on the 1991 survey are scheduled for release during the next year or two. But all of the reports have been delayed by tie- ups at the census bureau. 0 Andrew White Affordable housing is disappearing fast ... Low rent vacancies decline ... 15,000 -r------------------, 12,000 9,000 6,000 3,000 o 1984 1987 1991 Vacant units available for rent at less than $300/month 20jOCTOBER 1992jCITY UMITS I ! "' 1:; ~ I: 'S 0- J! E ~ z . .. high rent vacancies increase 15,000 .,...-----------------, 12,000 -+-----------------,,1 9,000-+-------------, 6,000 -+----------: 3,000 -+------= o 1984 1987 1991 Vacant units available for rent at more than $l,OOO/month ... and rent control is on the wane.
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o 1981 1984 1987 1991 Chart shows the rapid decline in the total number of rent controlled apartments in New York City. The median annual household income of rent controlled tenants is only $12,075. 11
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0 1975 Meanwhile, severe crowding soars. 1978 1981 1984 1987 Crowding in New York apartments is far worse than it's been in two decades, and rising fast. Chart shows the number of rental apartments with more than 1.5 persons per room. Median rents and stabilized rents are on the rise- even after they're adjusted for inflation. $600 .....,.....---------------, 400 1970 1978 1984 1991 Median rent adjusted for inflation, 1991 dollars.
$522 400 Median stabilized rent adjusted for inflation, 1991 dollars. Source: Bureau of the Census. 1991 Housing and Vacancy Survey for New York City 1991 CITY UMITS/OCTOBER 1992/21 Electric Shock Is the New York Power Authority robbing the city of low-cost power? BY BILL WEINBERG AND ANDREW WHITE N ew York's subways are nuclear powered. Really. So are the city's street lights and housing projects. Much of the electricity that runs them comes from the Indian Point Three reactor near Peekskill on the Hudson River, and the Fitzpatrick nuclear plant in Scriba, near Syracuse-and it isn't cheap. This electricity flow is supplied by the New York Power Authority, a quasi -state agency that also generates some of the cheapest hydro-electricity in the country-but city residents, businesses and government are cut out of the deal. This cheap power is generated at two massive dam complexes near the Canadian border, and it goes directly to homes and factories that use waste- ful electric heat and other out-of-date technology in the northern and west- can't build or maintain their factories in New York City, in large part because electric rates here are among the highest in the nation. Redirecting some of upstate's cheap, clean hydro-power to the city would help ensure an affordable future for city industry without building massive new power production plants, environmentalists and city officials argue. Others add that the current debate offers an opportunity to question who should have access to cheap power: big, multi-national corporations, or small urban manufacturers? Straddling the St. Lawrence In rapids four miles below Niagara Falls, built into the walls of the gorge, lies NYPA's Robert Moses Niagara Power Plant, its 13 turbines charged by water flowing down from the top of the falls through underground channels. NYPA engi- neers can actually control the flow ern sections of New York State. Mean- while, New York City pays more than four times as much for nuclear-gener- ated power, because the power author- ity decided years ago that taking any cheap power away from upstate would "devastate" the region's economy. "We want some of that power and we're entitled to it over the top of the famous falls by increasing or decreasing the flow through the underground channels. NYPA's second hydro facility is the Franklin D. Roosevelt Power Plant, which straddles the St. Lawrence River, harnessing its power to turn 16 turbines as it flows from Lake Ontario to the sea. City officials say the upstate mo- nopoly on hydro-power is against the law, and they're waging a battle in the under the law." courts to get some of the bargain elec- tricity sent downstate. "We want some of that power and we're entitled to it under the law," says Margaret King, an attorney with the city's Corporation Counsel. The suit is now before the state Supreme Court's appel- late division after a long tour around federal and state courts. Local energy experts give the case little chance of succeeding on appeal, but they say the legal wrangle underscores the need for a new state energy policy that promotes energy efficiency and conservation for the factories and homes in northern and western New York- so the cheap power can be shared between New York City and upstate. "There's no good reason it can't happen, other than historical enmity and political laziness," says New York- based energy analyst Charles Komanoff, arguing that if the upstate factory and home owners had a strong incentive to use their power more efficiently, the city, the state and local utility customers would all benefit from power sharing. "There are a lot of win-win ideas out there that the political system doesn't seem able to put into place, and so far this is one of them," he says. For years, manufacturers have complained that they 22/0CTOBER 199Z/CITY UMITS The collective output from these two NYP A facilities is more than 1,000 megawatts. It is resold to upstate private utilities like Niagara-Mohawk, Rochester Gas & Electric, and New York State Energy & Gas, helping to keep their consumer rates among the lowest in the country. Much of the power is also made available to the energy-intensive giants of the St. Lawrence River Valley, including Reynolds Alumi- num, the Aluminum Company of America (ALCOA), and General Motors-at a rate as low as under 1.7 cents per kilowatt-hour. Downstate energy consumers typically pay up to 15 cents per kilowatt-hour, and the city government pays about 8.5 cents per kilowatt-hour for NYP A's nuclear- generated power. The Niagara and St. Lawrence power plants were con- ceived, along with NYP A itself, in the New Deal era, when massive public power projects were used to help pull the country out of the Great Depression, and the federal government commissioned Woody Guthrie to sing the praises of hydro-dams. NYPA's founding legislation, the State Power Authority Act of1931, reads that the agency's power will be "for the benefit of the people of the state as a whole." There is similar wording in the federal Niagara Development Act, which mandated the construction of the FDR plant. developed energy efficient motors. Then the city could buy the cheap hy- dro-power that is freed up. He mod- els his proposal on a West Coast pro- gram, where Cali- fornian utility cus- tomers cover the cost of efficiency ~ projects in Mon- o tana, then buy the ~ left-over, cheaper ~ Montana power. ~ Energy effi- lr ciency is central to g the argument for ~ redirecting hydro- ~ power downstate. In 1989, New YorkCityatlorneys seized upon this wording to launch litigation aimed at sending some of the hydro-power flowing south, bringing suit under the Niagara Devel- opment Act before the Federal Energy Regulatory Com- mission, and under the Power Author- ity Act in state court. The city ar- gued that by with- holding its least ex- pensive power from downstate consumers, NYPA fails to live up to its own founding flowing U.-.-n: The Robert Moses Niagara Power Plant generates some 0/ the cheapest power in the country-and almost all a/it stays in upstate New York. Already, Con Edison, along with many other utili- mandate-and NYP A's contracts with the upstate utilities and industries are therefore illegal. "There's absolutely no way you can conceivably square what the power authority is doing with what the law says," argues King. NYPA lawyers, however, found a way to do just that. They argued that the law only says the authority in general must act in the interests of the state as a whole, but each contract needn't be put to that standard. Thus far, the courts have agreed. The case was dismissed by a federal appellate court, and the Supreme Court refused to hear it in 1990. With federal remedies exhausted, the city is concentrating its efforts at the state level. In 1990, the city's case was dismissed by state Supreme Court Judge Harold Baer, who agreed with NYPA lawyers that the wording of the Power Authority Act was vague. In July 1992, the city filed an appeal with the New York State Supreme Court Appellate Division. But many energy experts and even city officials who support the suit say it has little chance of success. "The judicial standard is arbitrary," says Chris Ward, assistant commissioner of energy policy for the city. "The judge says, 'I'm not an energy economist. NYP A's a state agency, so let them deal with it. '" Political Decision Ward and others say the fight must instead be decided politically, in Albany. That will take some creative work on the part of the city, says Ashok Gupta, energy point- man with the Natural Resources Defense Council. "It's big politics in the governor's office and the legislature, and the city doesn't have much leverage there," he says. "People don't always listen no matter how much you're right on the facts. It will take more than that." Komanoff argues that the city should stop relying on the lawsuits and focus instead on a productive proposal to put before the regulators and legislators. He points out that metropolitan New Yorkers could save money by subsidiz- ing the installation of non-electric heat in homes upstate, helping offices put in new high-tech lighting and cooling systems, and paying for factories to switch over to newly- ties around the country, is marketing and profiting from the sale of energy efficient technology. State regulators allow some pri- vately-owned utilities to increase rates to cover the cost of subsidies for installing efficient technology in homes and businesses, plus a profit margin. Energy saved through efficiency becomes a new resource, and the utilities thus avoid having to build new power generating plants. But, critics argue, so long as upstate consumers have ready access to very cheap power, they have little reason to adopt energy efficiency. That means the state isn't using power as efficiently as it should and may have to find other resources for power generation, according to Gupta. But efficiency proposals for upstate have met with a stubborn state administration and an often unresponsive power authority. NYPA is controlled by five trustees chosen by Governor Mario Cuomo-only one of them from New York City-and approved by the Republican- controlled state Senate. "NYP A is not accountable to anybody but the governor," says Warren Leibold, former head of the New York State Environmental Planning Lobby. Gupta agrees. "It basically comes down to a politi- cal decision on the part of Governor Cuomo," he says. Cuomo and his men at the power authority decided several years ago not to redirect any of the cheap hydro- power downstate, and have held firm ever since. "It was a tradition for over 30 years that that power had gone upstate," explains NYP A spokesman Stephen Shoenholz. "It was determined that the economic devastation that would have been wrought on upstate would have vastly outweighed any benefits downstate." Asked if the deci- sion had been reassessed now that energy efficient tech- nology has become much cheaper, Shoenholz will only say that the decision "was very carefully considered" when it was made. Electric Heaters Meanwhile, in northwestern New York State, where the winters are cold and the snow gets deep, many homes are heated with extremely inefficient electric heaters because power is so cheap. And the two aluminum smelt- CITY UMITS/OCTOBER 1992/23 ing plants in Massena, New York, which consume more than one-third of the power generated at the two upstate hydro plants, are among the oldest aluminum smelters in the country. They use about 15 to 20 percent more power than their newer counterparts elsewhere, says David Moison of Resource Strategies Inc., a consulting firm that works with industrial metal manufacturers. The metal smelting industry is among the most energy- intensive on earth-as well as the most polluting. The St. Lawrence region has already been severely contaminated by the numerous aluminum and chemical plants fueled by cheap hydro on both the New York and Canadian sides of the river. In 1988, Greenpeace commandos hung a giant banner reading "ST. LAWRENCE POLLUTERS" from a Reynolds Aluminum plant overlooking the river. But the plants employ about 1,000 upstate residents, and few officials are eager to drive the aluminum compa- nies out. In fact, as it is, the smelters are so old that the aluminum companies have little reason to invest in up- grading their technology. "You have to figure your plant will last long enough to recoup the investment," says Moison. The downstate litigants insist that they are not challenging upstate housing projects and government offices, and it's not nearly as cheap as the hydro-electricity generated upstate. A small amount of upstate hydro-power is available to NYCPUS only as "interruptible" power. That is, the agency sends it downstate only when there is a surplus upstate. This is the cheaper, but comparatively minimal rower that goes to the 5,000 area manufacturers, most 0 them relatively small operations. Margaret King calls this a "pittance. " Some critics say the city should be subsidizing the small manufacturers first, and the big companies later. "It is fundamentally wrong that the biggest subsidy goes to the biggest blusterer-like Shearson Lehman blustering about moving out of the city," says Komanoff. "A Grumman or a Shearson can get the attention and therefore get the subsidy." Others say the hydro-power should all go to- ward cutting the city's energy bill across the board. James Bay Redux? Still, the question of where the power goes is moot until there's some change of heart in Albany. That happened once before this year, in a related case. The struggle over New York State's power grid made headlines in March industry's access to cheap power. "The city has never opposed the industrial allocations of hydro-power to meet job needs," says Ward. "But to sell it to general consumers is wasteful. Resi- dential customers in the Niagara- Mohawk service area use three times as much power and pay a third of what people pay in New York City. They don't even bother to put in storm win- dows. General rate payers should be weaned off of this subsidy. It should go to economic development." "It is fundamentally wrong that the biggest subsidy goes to the biggest blusterer-like when Cuomo announced that NYP A had pulled out of a deal to purchase 1,000 megawatts of power for $12 bil- lion from the Canadian utility Hydro- Quebec. Much of the Quebec hydro- power had been slated for the metro- politan area, and NYP A officials had long argued that the power purchase was the best way to supply the region's power needs without building new, expensive, polluting power plants in the state. Cuomo cited economic reasons for the change in plans. But he was under heavy pressure from environmental- ists who oppose the state's complicity in the construction of Hydro-Quebec's James Bay II dam comflex, which Preferred Beneficiaries Shearson What constitutes "economic devel- opment," however, is in the eye of the policy maker. Lehman." The city and its co-litigants, Westchester, Nassau and Suffolk coun- ties, want most of the NYPA power not for Con Edison or retail consumers, but to provide cut-rate electricity for their preferred beneficiaries of "economic development", mostly big area employers. According to Ward, this is the best way for the city to get the most "bang for its buck." Ward is co-director of the New York City Public Utili- ties Service (NYCPUS), which provides NYPA power at discount rates for local employers like the Chase Manhat- tan Bank, Morgan Guaranty Trust, ABC and NBC, the Hunts Point Meat Market, ilie New York Post, and-when it's available-to over 5,000 mostly small manufacturers. The counties which have joined the case have similar agencies, such as the Nassau County Public Utility Agency and the Suffolk C O ~ ~ b Electrical Agency. Other firms, such as the giant M attan investment firm Shears on Lehman and the Long Island defense contractor Grumman Aerospace, receive NYP A power under separate discount deals they have worked out independently with Albany. Most of the cut-rate "economic development" power is the same nuclear power the city buys for the subways, 24/0CTOBER 1992/CITY UMITS would flood vast areas 0 tundra and sub-arctic forest along with the home- land of many Native Americans. Op- ponents of the Quebec contract convinced the public- and the governor-that the deal was not only too expen- sive, but unnecessary mainly because ofrapid advances in energy efficient technology. But, experts say, the Hydro-Quebec contract could always be renegotiated if the state doesn't pursue energy efficiency quickly enough and finds itself in need of new energy supplies. They say that as long as upstate consum- ers have exclusive access to NYPA's cheap hydro-power, the utilities and factories there have little reason to pursue energy efficiency, and the state's power won't be used as effectively as it should be-giving the governor an excuse to go back to Hydro-Quebec. During the 1980s, NYPA built massive power lines connecting New York City with the ~ t . Lawrence region- ostensibly to carry James Bay II power downstate. Instead of carrying power from James Bay II, there's a chance these power lines could be used for a very different purpose: sharing cleaner, cheaper hydro-power between upstate and New York City. 0 THE CITY LIMITS RESOURCES CLEARINGHOUSE "ENVIRONMENT AND HEALTH" City Limits is expanding the scope of the clearinghouse- as well as pamphlets, handbooks and guides, we're also listing reports and publications. Because of the volume of infonnation available, we'll be publishing listings by topic: Housing and Development, Environment and Health, Economic Development and Community Banking, and Community Organizing. To list your resource with the clearinghouse, call 925-9820. "Hazardous Neighbors? Living Next Door to Industry in Greenpoint and Williamsburg" and "Right to Breathe, Right to Know: Industrial Air Pollution in Greenpoint and Williamsburg." Reports on toxic pollution and air pollution. Community Environmental Health Center. Free for residents of Greenpoint and Williamsburg. $15 for others. "Harlem Environmental Action." Brochure on how to advocate on environmental issues in Harlem. West Harlem Environmental Action. Free. "Longwood Letter. " A quarterly newsletter focusing on toxic waste and other issues in Hunt's Point and Longwood in the Bronx. Sent out to members of the Longwood Historic District Community Associa- tion. Membership is $10. ''1breshold.'' Annual newsletter on home improvement, quality of life and environmental issues. Neighborhood Housing Services of East Flatbush. Free. "City Cyclist" and "Auto Free Press." Bi-monthly magazine and newsletter. Sent to members of Transportation Alternatives. Member- ship is $20. "The Environmental Cost of Electricity." Volume of studies about environmental damage of generating electricity. Pace University Cen- ter for Environmental Legal Studies. $38.50. "The Newspoint." Quarterly newsletter on planning, development, land use and community issues in Hunters Point, Queens. Hunters Point Community Development Corporation. Free. "Household Conservation Tips," a short English-Spanish guide to conserving water in the home. Department of Environmental Protec- tion. Free. "Dripnet." Nine-minute videotape on water waste in and around the home. Department of Environmental Protection. Free for two-week loan. $10 for purchase. "To Plant a Tree: A Citizens Guide to Urban Reforestation." Brochure. New York State Releaf. Send stamped, self enclosed envelope. Free. "Environmental Tips for Your Office." Environmental Action Coali- tion. $3. "Recycling Action Guide." A how-to guide on office paper recycling. Environmental Action Coalition. $5. "Recycled Paper Sources." Fact sheet on where small vendors can buy small amounts of recycled paper. Environmental Action Coalition. $1 . "Be a Water Watcher: A Resource Guide for Water Conservation." NYC Department of Environmental Protection. Free. "Cycle," a quarterly about local environmental issues that is sent to members of the Environmental Action Coalition. Membership is $20. "Smart Moves." Quarterly newsletter about transportation innova- tions underway by the city's transportation office. Department of Transportation. Free. "Uptown Eco Blues: Environmental Woes in Harlem." Special 24- page report from the summer of 1991. The City Sun. $3. "Spring and Summer Guide." Lists programs on environmental sci- ence, urban gardening, workshops on lead poisoning. Magnolia Tree Earth Center of Bedford-Stuyvesant. Free. "Lightwheels News." Bi-annual newsletter concerning solar, electric and hand-powered vehicles. Lightwheels, Inc. Free. ' 'Tackling Toxics in Everyday Products." Directory of organizations with infonnation on toxics. INFORM. $19.95. "Amicus Journal," a quarterly magazine covering national and inter- national environmental issues. Natural Resources Defense Council. $10. "Worldwatch Magazine," bi-monthly publication dealing with envi- ronmental issues. Worldwatch Institute. $15. "Alternatives to the Automobile: Transporting Livable Cities." Report by the Worldwatch Institute. $5. "Lower East Side Ecology Newsletter. " Newsletter that comes with membership to Outstanding Renewal Enterprises, a recycling group. Membership is $25. "Pregnancy Rights." Pamphlet covers health care and patient rights. Medgar Evers Center for Law and Social Justice. Send self-addressed envelope with stamp. Free. TO ORDER Please include check(s} or money order(s} payable to the publisher of the resource or resources you request. Remember, if you are ordering multiple publications, you will probably have to write a number of checks. Checks should not be made out to City Limits. Please circle the reports and guides you want and send this form to City Limits, 40 Prince Street, New York, NY, 10012. Allow 3-4 weeks for delivery. Name ____________________________________ ___ Address __________________________________ ___ City, state, zip ______________________________ _ Telephone __________________________________ _ The Resources Clearinghouse is supported by the Joyce Foundation. CITY UMITS/OCTOBER 199212& A Capital Primer Everything you ever wanted to know about the city's capital budget ... and how to change it. BY TOM KAMBER l\T ew Yorkers are known for their strong, often loudly expressed opinions on every topic under the sun. Go to any gathering and you can find them holding forth confidently on the bullpen woes of the Yankees, the peace prospects in Sri Lanka, or the mating habits of the milodon sloth. But there is one topic that is guaranteed to draw blank stares from even the most opinionated: the capital budget. What is the capital budget? It's the document that outlines how the mayor intends to spend the money the city borrows on Wall Street by selling bonds. This money can only be spent on large-scale projects that develop the city's infrastructure. During the last decade, the number and cost of these projects has grown, and grown, and grown. Since 1980, capital spending commitments have more than tripled, surging from $1.2 billion to $4.5 billion annually, and 10-year projections have climbed from $35 billion to $67 billion. Because of the huge amounts of money invol ved, capital spending is very controversial, with strong supporters and vehement opponents engaging in a debate that is being echoed at every level of government. It boils down to this: should the government borrow billions of dollars to support projects that are meant to spur economic growth? Or will borrowing drag the government-and the taxpayers-into a swamp of unnecessary and unwieldy debt? In New York, some capital budget watchers are worried that overspending and short-sighted priorities are pushing the city toward a debt crisis. But other prominent leaders say significant capital spending is necessary for the city to 26/0CTOBER 1992/CITY UMRS keep up basic maintenance and move forward with important public works projects. So far, much ofthe debate has been confined to a small but passionate coterie of policy wonks, intellectuals and politicians. While this is understandable given the complexity of the issues, it is also unfortunate, since the capital budget has a profound impact on all New York communities. What follows is a primer on the capital spending debate and an introduction to the capital budget process. Al'ewBints Wresting any meaning from the jumble oftechnocratic terms, financing arrangements and revenue projections that frame the debate on the capital budget is a daunting task-especially if, like me, you decisively failed high school math. A few hints, however, can hel p those without finance degrees not only understand the capital budget, but begin to take an active role in its shaping. Unlike the federal government, cities cannot borrow to meet day-to-day operating costs-they have to balance their budgets, making revenues equal expenses. All cities are required by law to pay short-term operating costs out of the expense budget, which is about $30 billion for New York this year and is funded mostly by taxes and federal and state aid. The capital budget, where borrowing is allowed, is used only for projects that are expected to be useful for at least five years and have a price tag of at least $15,000, like bridge and highway construction, or incin- erators, or construction subsidies for new low-income housing. To fund projects in the capital budget, the city sells bonds that will be paid back-with interest-over a period of five to 20 years. There is a certain logic to this practice since those that actually benefit from a project-tomorrow's taxpayers-end up paying for it. Unfortunately, they also end up paying more, since interest rates and underwriting fees (paid to the investment banks that sell the city's bonds) add on a sizeable cost. Also, tomorrow's voters have no control over the capital priorities of today's policy-makers. Bow Big is Too Big? All this adds up to a double responsibility: the govern- ment needs to invest enough to ensure a future of sound bridges, adequate schools and effective environmental protection, but the government has to be very careful not to overestimate the capacity of future taxpayers to pay back the debt. Some observers say New York City'S capital budget is on the right track. Manhattan Borough President Ruth Messinger, for instance, supports maintaining a substan- tial capital program, arguing that capital expenditures represent an important tool for reinvigorating our stalled economy. As an example, she cites President Jimmy Carter's extensive federal spending in the cities as the precursor to urban economic growth in the 1980s, and "Anything that can be delayed should be delayed," he counsels. Many others agree that the spending should be cur- tailed. They argue that the current spending plan was based on rosy 1980s projections of economic expansion- an expansion that could have boosted tax revenues and made debt payments affordable. But the projections were unfounded, and critics say that by 1998 the city will be spending 201ercent of its tax revenues on interest pay- ments relate to the capital debt. StraDge AnteDee Leading the pack among those who want maximum downsizing in the capital budget have been the mayor's Office of Management and the Budget (OMB) and the pro- business Citizens Budget Commission (CBC). This year, OMB tried to scale back capital spending by 30 percent, but, after an uproar within city agencies and the City Council, settled for a cut of about 10 percent. "We're just trying to take a fairly conservative view in general," explains Amy Laskey, head of OMB's Capital Planning Unit. "It's hard to know when things are going to turn around or to what extent." Dean Mead from CBC, whose organization called for a 20 percent reduction in the subsequent cuts as the preamble to the current decline. "Right now, we should be looking for ways not to cut the capital budget," she says. Former Mayor Edward Koch also supports an aggressive capital spend- ing program. "You can get a lot of things done at much cheaper interest rates because of the recession," Koch argues. "It's too great a bargain to pass up." Theeapita! budget has tripled from $1.2 billion to $4.8 billion capital plan in a 1990 report, describes even the newly trimmed plan as "enor- mous" and says that the amount of New Yorkers' personal income needed to pay debt service by the year 2000 is "a staggering figure." Many left-wing commentators, in a strange conjuncture of ideologies fast becoming characteristic of the 1990s, have taken a view of capital spending that equals the caution of the conser- vatives. Some leftists complain that the financing arrangements for selling bonds result in huge profits for invest- Messinger's argument recalls the activist fiscal technique promoted by followers of the liberal British econo- mist John Maynard Keynes since the an Dually. 1930s. "Keynesians" advocate bor- rowing, to jump-start a sluggish economy by stimulating business with government money. Because the spending is intended to counter the extremes of the economic cycle, it is called counter-cyclical spend- ing. The root question remains whether the city's capital spending can generate enough long-lasting economic activity to make the city's economy expand steadily; if it doesn't, then the debt incurred in financing the capital spending can become a severe burden, undermining basic services. It's the same debate occurring now at the national level between Democratic Party leaders who promote federal investment in infrastructure projects and cities, and Republicans and other Democrats who advocate cut- ting the deficit as quickly as possible by curtailing borrow- ing. . New York University Professor of Economics Emanuel Tobier is skeptical of the potential for a single city to turn its economy around through capital spending. "Cities shouldn't be in the counter-cyclical business," he says. "That's something only the federal government can do." Tobier believes that high capital expenditures during a recession will cause bond buyers to become nervous, driving up interest rates and costing the city money. ment bankers and give undue political leverage to the financial community- particularly the bond rating agencies that analyze the investment risk for city bonds. There is a rich history of wariness in progressive circles with respect to municipal debt. James O'Connor, in his 1973 classic The Fiscal Crisis of the State, argues that banks make tremendouslrofits off municipal bonds "not only by demanding (an getting) high interest rates but also by influencing or controlling how borrowed funds are expended." Doug Henwood of the Left Business Observer says that municipal debt "involves a terrible kind of income transfer from the poor to the rich," since wealthy investors profit from the financing, and taxpayers eventu- ally eat the costs. Henwood, along with economist Bob Fitch, has been critical of the city's relationship to its bond underwriters, many of whom are major campaign contributors. Munici- pal debt, he says, "leads to a very creepy form of campaign financing." Indeed, in mid-summer, Crain's New York Business reported that Ron Gault, managing director at First Boston Corp., raised more than $106,000 for the 1989 Dinkins campaign, becoming the mayor's single biggest fundraiser. Soon after, Gault's bank landed between $6 million and $7 million in underwriting fees on the sale of $7.2 billion in city bonds-despite First Boston's parent CITY UMITS/OCTOBER 1992/27 company's financial ties to South Africa. No bit? What are the alternatives to the mammoth capital program? How can we stimulate the economy and rebuild our infrastructure, but not turn control of the city over to the bond raters and underwriters? Economists propose a number of options. Henwood and Fitch both believe we should explore "pay as you go" financing, which means phasing out borrowing over several years and paying all ex- penses, large and small, out of tax revenues. This would save the city large sums in interest rates and underwrit- ing fees and would certainly eliminate any influence that bond raters and investment bankers have over city policy. However, "pay as you go" translates quickly into a very unpopular ne- cessity: higher taxes. Another possible solu- tion involves the use of union pension funds to cre- ate locally-owned "public purpose" banks. Marty Leary of the Southern Fi- nance Project in North Caro- lina proposes such a pro- gram on a national scale in which the federal govern- ment, taking advantage of the Savings & Loan crisis, could "recharter banks as public purpose systems." The banks could accept capital from state pension funds, and the money could be lent to municipalities without having to resort to Wall Street financing. This approach allows the city to borrow when it needs to, and reduces the underwriting cost, but does little to reduce long-term interest costs that inevitably result from capital financing. Still another alternative is to allow the city to act more like a corporation when it issues debt. At present, municipal debt is subject to a wide array of restrictions, some of which cost taxpayers money by driving up inter- est rates. OMB and members of the financial community have proposed changes that would make city debt more competitive. They recommend issuing bonds with vari- able interest rates and dividing city borrowing among quasi-public authorities. But authorities are not subject to the same rules of public oversight and disclosure as government agencies, and the New York Public Interest Research Group (NYPIRG) and ALTERBUDGET, along with Borough. President Messinger and other good-gov- ernment groups, oppose expanding the public corpora- tions' power and influence. The Bard. Choices Still, most would-be reformers acknowledge that sub- stantive changes are not an immediate prospect. Right now, local activists are working to make sure the priorities set forth in the capital budget reflect their concerns about 28jOCTOBER 1992jCITY UMITS New York's long-term needs. Of course, determining these priorities is a highly subjective game. You may recall the judgement of Paris, when he was charged with giving a golden apple to the goddess he liked best. Forced to choose between Hera, Aphrodite, and Athena, he must have lamented the scarcity of apples. With advocates for bridges, hospitals, housing, economic development, parks and school construction all vying for a greater share of the capital budget pie, you too may feel like Paris: no matter how carefully you set your priorities, someone is going to be very unhappy. Many of the priorities for the city's capital spending have already been set by the courts. Legally mandated expenditures on education and environmental protec- tion take up a sizeable por- tion of the budget. Another large percentage is gobbled up by basic infrastructure costs that can't be avoided in a city that has such an active public sector (did you know New York's subways carry 60 percent of the sub- way ridership of the entire country?). But there is still plenty of room for wrangling between agencies and advocacy groups. For example, every year the liberal budget ad- vocacy coalition AL TER- BUDGET calls for scaling back jail building to free up more money for social services. And every year, the mayor and the City Council, eager to show they are tough on crime, devote a big chunk of the capital budget to the corrections department for more jail construction. Another focus of activity is the incinerator program. Activists including NYPIRG' s Arthur Kell have been fight- ing for years to secure cuts in the incinerator program and devote more money to recycling. Unfortunately, Kell says, there is a "huge bias against recycling" demonstrated in fiscal year 1993's capital commitment plan. The next four years are currently slated to bring $720 million in funds for incinerators, versus $91 million in money for recy- cling. Kell believes this disparity is made possible by a com- bination of public ignorance of carital budget spending and private greed on the part a those financing the projects. The construction of an incinerator, he points out, will require the city to spend millions of dollars on fees for Wall Street bankers who sell bonds, while the develop- ment of recycling centers and the rest of the recycling infrastructure would require much less borrowed money. "It's hard for me to believe," he says, "that there isn't some degree of influence that results from the fact that there are higher commissions [for financiers] on capitally intensive facilities like incinerators." City Limits readers may be the only ones who know it, but one important area where the city has made some headway is housing. Faced with the rising crisis of home- lessness in the wake of the virtual elimination of federal housing construction funds, the Koch administration proposed a 10-year, $5.2 billion hous- ing program, financed out of the capi- tal budget. The thousands of newly- focus carefully on the capital budget, the impact of each group that gets involved is magnified. The City Charter revisions adopted in 1989 clearly outline how and when renovated apartments produced by the plan are a clear example of what the capital budget can do. Of course, while activists are push- ing their agendas, the business com- munity is lobbying just as hard for capital investment that serves its in- terests. Mayor Dinkins' high-profile Committee on Incentives and Tax Policy, chaired by Arthur Levitt, the former head of the American Stock Exchange, criticized the city for iinvesting too little capital in major economic development projects and "If you're not in the capital budget over a the public can get involved in the budget process. It's very important to get a handle on the process if you want to have input. For information, you can call or write for City Limits' fact sheet on the budget process (40 Prince Street, New York City, 10012). One point to remember: Be very careful when politicians throw capital budget figures around. "Commit- ments" are contracts that the city signs for work. "Expenditures" are payments made on these contracts. A huge amount of capital activity is planned each year but never happens, so be period of years, it's a death sentence." tncentives to business. The committee complained that capital spending that is "directly related to expanding our economic base and particularly our primary growth sectors has virtually ground to a halt." ATlmeToAct For those who want to see capital spending directed toward the needs of a diverse community of New Yorkers, the time to focus on the capital budget is now. The capital budget is currently at the center of government policy debates on all kinds of issues, and the push for and against cuts could have a profound, lasting impact on communi- ties. Also, since a relatively small number of organizations sure to judge policy makers not on their projections, but on their signed commitments and completed projects. The importance of the capital budget cannot be under- estimated. "If your project exists in the capital budget now, you're alive," says Esmerelda Simmons of the Medgar Evers College Institute for Law and Social Justice, calling for members of communities that have suffered from under-investment to make their needs known. She explains what's at stake: "If you're not in the capital budget over a period of years, it's a death sentence." 0 Tom Kamber is a community organizer and freelance writer from New York City. Bankers1rustCompany Community Development Group A resource for the non ... profit development community Gary Hattem, Vice President 280 Park Avenue, 19 West New York, New York 10017 Tel: 212A54,3487 FAX 454,2380 CITY UMITS/ocrOBER 1992/29 By Errol T. Louis Black in Brooklyn "Caribbean New York: Black Immi- grants and the Politics of Race," by Philip Kasinitz. Cornell University Press, 1992. $13.95. A walk down Franklin Avenue in Crown Heights provides one of those dizzying, sensory- overload experiences unique to New York. At the corner of Eastern Parkway is Haitian territory; during times of unrest in that country, hun- dreds or even thousands of Haitians and Haitian-Americans gather there for spontaneous political activity, complete with impromptu speeches, caucuses, gossip and debates (all in Creole, of course). Six blocks north is "Little Panama," an Afro-Panamanian strip where social clubs like Siempre Amigos ("Friends Forever") blare salsa and merengue late into the night on week- ends. A couple of blocks east is a long string ofJamaican shops on Nostrand Avenue with everything from beef patties and jerk chicken to posters of Marcus Garvey and newspapers from Kingston carrying the latest word from home. And all this is just the fringe of New York's fast-growing Caribbean com- munity, which is concentrated south of Eastern Parkway in southern Crown Heights, Flatbush, East Flatbush and Prospect-Leffert Gardens. Throughout the 1980s, about 25,000 legal immigrants from Haiti and the English-speaking Caribbean came to New York City every year, and un- documented immigrants may have numbered tens of thousands more. Official numbers show at least half a million non-Hispanic Caribbean immigrants were probably living in New York in the late 1980s, although anybody living in Central Brooklyn will tell you that the true number is much higher. Politicians Drawn Like Bees to Honey When those kinds of numbers cluster in a city like New York, it's only a matter of time before politicians are drawn as well, like bees to honey. In the time-honored tradition of ethnic machine politics, ambitious politi- cians have been seeking to cultivate the newly arriving Caribbean immigrants into a voting block. Enter Philip Kasinitz, a sociology 3O/0CTOBER 1992/CITY UMrrs professor at Williams College who has been studying the difficulty of creating a generic "Caribbean" iden- tity among immigrants from two dozen islands who speak several different languages and have widely differing customs and histories. Kasinitz fo- cuses on the Anglophone Caribbean (along with Haitians, Guyanese and English-speaking Afro-Panamanians) because they tend to live and work together, much more so than with New Yorkers hailing from Hispanic islands like Cuba, Puerto Rico and the Dominican Republic. Culti vating Caribbean immigrants into a voting block. In addition to performing an ex- haustive demographic analysis of New York's Caribbean population, Kasinitz draws on an unscientific survey of Brooklyn's "ethnic entrepreneurs." This group of mostly men includes businessmen, civil servants, and others who-for a mix of selfish and unselfish reasons-have tried to create a community-wide Caribbean con- sciousness and convert it into jobs, city services and political power for the community. Unique American Irony As Kasinitz shows, this is an ex- traordinarily difficult task. Caribbeans have always found themselves caught in a painful, uniquely American irony; the United States that allows them to achieve a higher social standing eco- nomically simultaneously devalues them socially. This happens because in America, all people of African de- scent are grouped together as black, with all the centuries of hostility, ha- tred and institutionalized racism at- tached to the term. For those arriving from Caribbean countries where virtually everyone- from the president to the street- sweeper-is "black" by American standards, it is often difficult to make sense of American racial realities. Traditionally, aspiring Caribbean politicians responding to the situation took the easiest (and most American) route to shaping West Indian immi- grants into a voting block: they appealed to race. Thus, Barbados native Shirley Chisholm, who represented Central Brooklyn in Congress in the 1970s, built a following by speaking for the whole black community. The same strategy was used for decades by numerous other prominent Caribbean- born political figures. But Kasinitz documents how a few far-sighted community leaders, recog- nizing the changing demographics of the late 1980s, delicately worked to create political forums and news- papers like the Carib that consciously attempted to fashion a generic "West Indian" identity based on common immigrant experiences without frag- menting into old inter-island rivalries. The Ultimate Success Strategy Last year's election of Una Clarke to the New York City Council marked the ultimate success of this strategy. Clarke ran a campaign based on the many island-based social and civic clubs that dot the Central Brooklyn landscape. These organizations were shaped into a political apparatus that triumphed over an African-American candidate backed by Brooklyn's estab- lished black political leadership. As the first ever Caribbean-Ameri- canmemberoftheCityCouncil,Clarke r ~ h ~ ~ s e n t s a transition from race to e . city as the basis for political action for the immigrant community; she has opened the door to a new style of politics that Brooklyn's African- American leaders will need to under- stand if they intend to stay in office. Years ago, the famous German scholar Max Weber observed that "it is primarily the political community, no matter how artificially organized, that inspires the belief in common ethnicity." In New York, as Kasinitz shows, Caribbean ethnic identity is indeed something created by politi- cians. Some might call it manipula- tion, but in Central Brooklyn these days, the process goes by a different name: empowerment. 0 Errol T. Louis is a contributing editor of City Limits. Love Note (Send More!) To the Editor: I love your magazine! Please send me one year's subscription. Many thanks. James Bradley Brooklyn More Fan Mail! To the Editor: Thanks for a superb August- September issue. The cover story and the articles about the Gowanus Expressway and the new federal transport funds were very well done. In regards to the Gowanus re- building, the state and city Department of Transportation (DOT) apparently views the reconstruction as a golden opportunity to permanently increase capacity on many western Brooklyn streets, to accommodate even more cars after the Gowanus is finished (if ever). Fourth Avenue is seen as an alternate route to Manhattan. If you study the reconstruction that has occurred at the intersection of Atlantic, Flatbush and Fourth avenues in downtown Brooklyn, the roads have been widened, the sidewalks have been narrowed, subway entrances have not only been closed but removed and the median strip down Fourth Avenue has also been narrowed. All of this reconstruction has taken place at the very foot of the Atlantic A venue Long Island Railroad terminal, which sees heavy pedestrian traffic every weekday. Walking around or through this intersection was very hazardous even before the recon- struction. This is all being done rather quickly to prevent neighborhood groups from organizing to stop it. The years of planning and the half billion dollars to be squandered on the cars-only Gowanus rebuild instead could have installed a two-track cross-Staten Island light rail line that would travel across the Verrazano Bridge, up the G o ~ a n u s and through the Brooklyn Battery Tunnel to Manhattan. Charles Andreski, DOT Project engineer, summarily dismissed this solution to automobile congestion and pollution as "too far in the future." Wayne Fields Editor, Auto-Free Press Mobilize for Mass Transit Jerrold Nadler's district. How can I help in lobbying for a wise use of these transit funds? By the way, how does the New York Metropolitan Transit Council relate to the Metro- politan Transit Authority? And is Peter Stangl the disaster I think he is? To the Editor: I was interested to read Samme Chittum's article, "Rough Traveling" in the August-September issue. I was especially interested in the pot of money for mass transit. I've always been a supporter of the Straphangers Campaign and live in Assemblyman I haven't got much time to give (and zero money) but would like to be mobilized in efforts to get some federal GURIAN & HOUGH Attorneys at Law Representing victims of all forms of discrimination in housing, employment, and public accommodations. 27 West 24th Street, Suite 504 New York, New York 10010 (212) 924-0347 Now we meet more insurance needs than ever for groups like yours. For nearly 20 years we've insured lenant and community groups all over New York City. Now, in our new, larger headquarlers we can offer more programs and quicker service than ever before. Courteously. Efficiently. And profes- sionally. Richards and Fenniman, Inc. has always provided extremely competitive insurance programs based on a careful evalua- tion of the special needs of our customers. And because of the volume of business we handle, we can often couple these programs with low-cost financing, if required. 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To the Editor: I wish to commend you on a thoughtful article documenting the New York Law School Nonprofit Organization Employee Scholarship Program. Employees of nonprofit organiza- tions in areas such as social services, arts, education, health care, public advocacy, religion or philanthropy are eligible to apply. As with all candidates for admission to the Law School, those who wish to be considered for the Nonprofit Organization Scholarship Program must have a bachelor's degree and take the Law School Admission Test (LSAT). For additional information and to obtain application materials, please contact New York Law School's Admissions Office at (212) 431-2888. positive role youth and youth centers can play in potentially explosive situations such as the recent events in Washington Heights. By and large, I believe that your article, "Stop the Violence," by Andrew White (August- September 1992) presented an accurate picture of youth services and correctly recognized the vast potential uncovered by the unique role of government under Mayor David N. Dinkins, who has emphasized his priorities for youth development through the funding of youth leader- ship, community organizations and multi-service youth centers. However, I wish to question the quote which the article attributed to me on page 12. Although I am under- standingly indignant about the fact thatthe state, following the governor's recommendation, has cut the scarce youth development dollars 38 percent, the specific language quoted is not mine. If I were to employ such pro- fanity, it would be against the federal government, which has never ever funded youth development programs. I certainly hope that your pub- lication continues to follow and evaluate these and other Safe Streets, Safe City initiatives of the mayor as they have impact in all geographic Announcing the Biography Of John Henrik Clarke: The Early Years by' Barbara Eleanor Adams T his biography of Dr. Clarke, Emeritus Professor of African History at Hunter College, historian and writer, is the first book written about this African,American educator. T he son of sharecroppers, "The Early Years" covers his childhood in Alabama and Georgia, migration to New York City (Harlem), meeting and association with Arthur Schomburg and his budding career as a writer, together with selected speeches. T he story told in his own words is recorded by Ms. Adams, who is a former student. She is also the Manhattan Borough Director of the New York Urban League. Publisher: United Brothers and Sisters Communications, Hampton, Virginia. Paperback: $15. Hardcover: $25. (Allow six weeks.) For information call 212,926,8661. 32/0CTOBER 1992/Cnv UMrTS areas of the city-not just those areas that capture the media's attention. Richard L. Murphy Commissioner Department of Youth Services Andrew White responds: I marked down in my notes the mischievous smile Commissioner Murphy had on his face when he referred to policy decisions made by Governor Cuomo and his staff with a profanity. "I'll get it for that, " added the commissioner, but he didn't retract the statement. The commissioner expressed the feelings of just about everyone I inter- viewed who works with city youth. There's no reason to let the governor off the hook for budget priorities that fail to live up to his rhetoric. No rea- son but politics. And no state budget for youth services next year without politics, either, I suppose. ADVERTISE YOUR JOB OPENING IN CITY LIMITS Reach thousands in the nonprofit community! 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Caribbean New York shows how Caribbean immigrants are reshaping American race relations and explores the factors that underlie some of New York City'S explosive racial confrontations. $39.95 cloth, $13.95 paper Cornell University Press 124 Roberts Place, Ithaca NY 14850 At bookstores, or call 607-277-2211 CITY UMITS/OCTOBER 1992133 PROFESSIONAL DIRECTORY Barry K. Mallin Attorney At Law A decade of service representing community development organizations and low income cooperatives. 72 Spring Street, Suite 1201 New York, N.Y. 10012 Telephone 212/334-9393 DEBRA BECHTEL - Attorney Concentnting in Real Estate & Non-Profit Law Title and loan closings 0 All city housing programs Mutual housing associations 0 Cooperative conversions Advice to low income co-op boards of directors 100 Remsen Street, Brooklyn, NY 11201, (718) 624-6850 *GET SOMETHING FOR NOTHING* We print mailing lables for free by charging you at most what we save you with postal discounts. UPSS CASS FORM PROVIDED Interested? Call us. Talk is not only cheap but free. 212-741-2365 LAWRENCE H. McGAUGHEY Attorney at Law Meeting the challenges of affordable housing for 20 years. Providing legal services in the areas of General Real Estate, Business, Trust & Estates, and Elder Law. 21 7 Broadway, Suite 610 New York, NY 10007 (212) 513.0981 WILLIAM JACOBS CERTIFIED PUBLIC ACCOUNTANT Over 20 years experience. SpeCializing In nonprofit housing & community development organizations. 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"Before your non-profit organiZlllion ends an employment relationship with a senior staff member, let me talk to you about your rights and responsibilities, the legal consequences of your decision, the steps you should take to protect your organization and the risks of litigation exposure." 295 Madision Avenue, NY, NY 10017212-986-7468 ASHOKMENON Attorney at Law Specializing in representation of co-op boards co-op, condo & house closings commercial leases purchase & sale of business & professional practices wills & probates business immigrant visas 875 Avenue of the Americas, Suite 800 New York, NY (212) 695-2929 COMMUtlITY OR6AJlIZER. Northwest Bronx Community & Clergy Coalition seeks organizers to staff tenant and neighborhood efforts for safe, decent and affordable communities in diverse, multi-ethnic area. Lots of evenings, hours, and commitment required. Modest pay and benefits. Spanish a +. Salary 18 to 20K to start, negotiable w/exp. Send resume:NWBCCC, c/o Brien O'Toole, 103 E. 196th St., Bronx NY 10468. (718) 584-0515. DEPUTY DIRECTOR OF PROGRAMS. Supervise senior level program directors, oversee development of client services with residential programs, act as key member of senior managemenUeam. Require- ments: MSW or related degree, minimum 8 years senior level experience, background in residential programs and AIDS or similar services; proven record in program and budget development. Salary: Low to mid 50s depending on experience. Comprehensive benefits. GROTS WRITER/MAIIAGER. Requires a minimum three years grant writing experience in related social service field, famil- iarity with public funding applications a plus. Salary: To mid 30s, depending on experience. Comprehensive benefits. Resumes and salary history to: Donna L. Roberts, Human Resource Manager, AIDS Resource Center, Inc., 275 Seventh Avenue, 12th Floor, New York, NY 10001 . FAX 212-633-2932. Women and men of color, lesbians and gay men and people living with HIV infection encour- aged to apply. EOE. PROPERTY MAUGER. The Brooklyn Neighborhood Improvement Association seeks an experienced Property Manager. Responsibilities: Property management of 190 units of low income housing in Crown Heights. Supervision of personnel, maintenance, rent receipts and disbursement journals. Produce reports as necessary. Requirements: Strong background in building manage- ment and supervisory skills. Salary negotiable. Resumes to Dr. Salu, Executive Director, Brooklyn Neighborhood Improvement Association, 648 Washington Avenue, Brooklyn, NY 11238. lElAIIT RELATIOIS SPECIAUST/TElm OR6AJlIZER. The Cooper Square Mutual Housing Association, an innovative project commit- ted to preserve affordable, racially and ethnically integrated housing in Manhattan's Lower East Side, is looking for an organizer. Requirements: willingness to attend night meetings, bilingual written and spoken English and Spanish, 2 to 3 years similar experience. Salary: High teens to low 20s, plus benefits. Call 212-477-5340. SOCiAl WORKERS. Community organization seeks two MSWs to work with formerly homeless tenants and students ages 14-18 in special in-school health-care curriculum program. Resumes to Judy Turnock, NOI, 1650 Selwyn Avenue #8B, Bronx, NY 10457. PROGRAM MUAGER, lEW YORK OFFICE. Maintain New York office for San Francisco-based nonprofit low income housing financial intermediary. Position requires loan packaging, working with nonprofit developers to structure financing, fundraising, adminis- tration. Salary range: mid 40's to mid 50's. Send resumes to: UHF/ CF, 605 Market Street, Suite 200, San FranCiSCO, CA, 941 05. EOE. No calls please. EXECUTIVE DIRECTOR. Local not for profit seeks individual with "affordable housing" background to assume the position of Executive Director. Salary commensurate with degree of experience. Resumes to P.O. Box 732, White Plains, NY 10602-0732. EOE m/t. CASE MAUGER. Not-for-profit seeks case manager to provide supportive services to formerly-homeless individuals and families in the Clinton/Chelsea area. Requirements: BSW degree or higher and/or previous experience. Spanish speaking is helpful. Resumes to Sr. Georgette Lawton, The Partnership for the Homeless, 110 West 32nd Street, 8th floor, New York, NY 10001-3274. FAX 212- 477-4663. PROGRAM DIRECTOR. The Funding Exchange, a public foundation supporting progressive social change activism, seeks director for national grants program. Responsibilities include: management of grantmaking process, grants analysis and annual grants planning, developing new grants initiatives, staff supervision, coordination with other program areas including fund raising, development and oversight of new projects for political education. Qualifications include: 3-5 years experience with community-based social change efforts, strong writing skills; experience with program planning, implementation, evaluation and staff supervision; ability to work with differences of class, race, sexual orientation, gender. Competitive salary with good benefits. Send resume, writing sample and 3 references to: Funding Exchange, Attn. GTS, 666 Broadway, Suite 500, NY, NY 10012. EOE/AA. Advertise in CITY LIMITS!
The Magazine about affordable housing- for people who are part of the solution. News Analysis Practical solutions. SHEL TERFORCE covers it all. D $18 for one year (six issues): Individuals. D $28 for one year: Organizations, Law Offices & Libraries. D Sample Issue: $3.00 Name __________________________________ _ Organization ______________________________ _ Address ________________________________ _ City __________________ State ___ Zip __ Make checks payable to: SHEL TERFORCE, 439 Main Street, Orange, NJ 07050, (201) 678-3110 CITY UMITS/OCTOBER 1992/35 Southside United Housing Development Fund Corporation Invites YouTo Celebrate "20 YEARS OF REBUILDING" Commemorating the 20th Anniversary of LOSSURES The Oldest Latino Operated and Owned Housing Organization In New York City FRIDAY, OCTOBER 23, 1992 7. P.M., 12 A.M. At the Polonaise Terrace 150 Greenpoint Avenue, Brooklyn $100 Per Person (Discounted rates for community-based organizations, local residents and other nonprofit organizations.) Includes dinner and refreshments. Call Iris Cintron or Laura Hernandez at 718,387,3600 to obtain additional information. Corporate sponsors: Bankers Trust, Brooklyn Union Gas, Chemical Banking Corporation, Atlantic Flintlock Joint Venture, Sparrow Construction