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Cover Stories: Four Housing Groups Unite in East Harlem for improved housing and economic development; Baroni Finds Resistance to Neighborhood Programs, HUD Assistant Secretary Msgr. Geno Baroni on skepticism in Washington by Bernard Cohen.
Other stories include Coverage of new regulations issued by HUD for Community Development Block Grant funds; Attempts to revitalize Sunset Park in Brooklyn by the Sunset Park Redevelopment Committee; John Gallagher on the burning of a Brooklyn building to create scenes in the film "Nunzio;" the decrepit conditions of the 1791 Lexington apartment building in East Harlem; A Q & A with Geno Baroni; Nonprofits form a coalition to resolve the issues of the city's CETA Title VI program.
Cover Stories: Four Housing Groups Unite in East Harlem for improved housing and economic development; Baroni Finds Resistance to Neighborhood Programs, HUD Assistant Secretary Msgr. Geno Baroni on skepticism in Washington by Bernard Cohen.
Other stories include Coverage of new regulations issued by HUD for Community Development Block Grant funds; Attempts to revitalize Sunset Park in Brooklyn by the Sunset Park Redevelopment Committee; John Gallagher on the burning of a Brooklyn building to create scenes in the film "Nunzio;" the decrepit conditions of the 1791 Lexington apartment building in East Harlem; A Q & A with Geno Baroni; Nonprofits form a coalition to resolve the issues of the city's CETA Title VI program.
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Cover Stories: Four Housing Groups Unite in East Harlem for improved housing and economic development; Baroni Finds Resistance to Neighborhood Programs, HUD Assistant Secretary Msgr. Geno Baroni on skepticism in Washington by Bernard Cohen.
Other stories include Coverage of new regulations issued by HUD for Community Development Block Grant funds; Attempts to revitalize Sunset Park in Brooklyn by the Sunset Park Redevelopment Committee; John Gallagher on the burning of a Brooklyn building to create scenes in the film "Nunzio;" the decrepit conditions of the 1791 Lexington apartment building in East Harlem; A Q & A with Geno Baroni; Nonprofits form a coalition to resolve the issues of the city's CETA Title VI program.
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DECEMBER 1977 VOL. 2 NO.7 BARONI FINDS RESISTANCE TO NEIGHBORHOOD PROGRAMS FOUR HOUSING GROUPS UNITE\ IN EAST HARLEM Elevated Penn Central tracks through East Harlem. Four community-based organizations in East Harlem, including Metro' North Association, Inc., have joined forces in an effort to improve housing and spur economic development in a l00-block area serving about 70,000 people. _ Thanks to a $500,000 grant from the Mott FQundation of Flint, Mich- igan, the four East Harlem groups have formed a new organization called the Association for Neighborhood Development. continued on page 8 By Bernard Cohen WASHINGTON - Efforts to create programs sensitive to neigh- borhoods and to provide com- munity-based groups with needed resources have to overcome skepti- cism and even ridicule by many government professionals, accord- ing to HUD Assistant Secretary Msgr. Geno Baroni. "I'm on the Urban and Regional Policy Group and head of the neighborhood task force," Baroni said, "and I hear the ridicule ' and the cynicism of the new profes- . sionals plus the old ones: 'You're going to give those people money? i Who's going to audit them?' " The word "neighborhood" is ' turning up more and more in , government policy statements, and there is a growing recognition of neighborhoods as important parts of the urban system, Baroni said. But, at the same time, there is a strong bias against neighborhood programs on the part of profes- sionals who associate them with the "bad taste" from the War on Poverty programs of the 1960s or who feel that priorities on spending should be left up to \he mayors. continued on page 14 HUD ISSUES NEW REGULATIONS FOR CD BLOCK GRANT PROGRAM New regulations that take some positive steps toward insuring that Community Development Block Grant funds are spent properly h ~ v e been issued by HUD. The proposed regulations to the Housing and Community Development Act of 1977, which will pro- vide more than $12 billion to local governments over the next three years, were issued on Oct. 25. A comment period will last through Nov. 25. The changes in the proposed CD regulations appear to include many improvements: clearer targeting of funds to low and moderate income families; stronger community participation; better Housing Assistance Plans and performance reports; direct funding of non- profit organizations and tighter restrictions on excep- tions to eligible activities. There is a new emphasis on concentrating CD funds in target areas of greatest need, specifying strategies for meeting neighborhood revitalization, housing and community facilities needs and holding cities accountable for the goals they have set. Community development plans, consisting of Ii summary of community development and housing needs, a comprehensive strategy and a summary of projects proposed to be carried out will be submitted every three years rather than annually. There is also a new category of funding, called Urban Development Action Grants, which is available for severely distressed cities and urban counties and is designed to spur investment by the private sector. While many of the changes are for the better, some of the amended regulations either do not go far enough or they open up new loopholes. Others that seem constructive are ambiguous enough that only time will determine their actual value. Probably the largest single issue has been, who is benefitting from CD funds? It is clear from the 1974 legislation creating the block grant program that Con- gress intended community development programs to directly benefit low and moderate income families. In the past, CD plans were to give "maximum feasible priority" to projects that principally benefit low and moderate income people. This was a vague equation that left communities open to charges that they were using the funds improperly to rehire police, build sewers or redevelop their business districts. Under pressure from neighborhood and anti- poverty legal organizations, HUD has now specified that at least 75 percent of CD grants must be spent on projects that principally benefit low and moderate income people. What the new regulations actually say is that 25 percent may be used on "exceptions" provided the project 1) helps prevent or eliminate slums and blight or 2) meets an urgent community development need. The regulations have tightened the language defin- ing urgency to mean a problem that has arisen in the past 18 months and cannot be financed out of local revenues. They also strengthen language on eligible activities related to slums and blight, except for "economically distressed cities" which can use funds for projects aimed at attracting middle and upper income residents tlirough economic development projects. The regulations re-emphasize the obligation to address the particular needs of low income people. While community-based groups have argued in favor of limiting exceptions to a fixed percentage, HUD's method of measuring who benefits is faulty. There is concern that cities will be able to spend signifi- cantly less than 75 percent of their CD funds on projects principally benefitting low and moderate income people. To make matters worse, the regulations also open up a sizable loophole by allowing the HUD Secretary . considerable leeway to waive the limit on exceptions. , 2 , The rules set no standards or procedures for such a waiver. Also on the negative side from the point of view of poorer neighborhoods, the regulations for the first time invite as eligible a range of economic development acti- vities, including acquisition of property and acquisition, construction or rehabilitation of public, commercial and industrial facilities. The regs do say that expansion of jobs for low and moderate income people should be a goal of economic development activites. In the past, many economic development projects were ruled ineligi- ble because they could not be shown to benefit low and moderate income people. Here at a glance are some of the other proposed major changes: CITIZEN PARTICIPATION - Better but still lacking. A written citizen participation plan is required for the first time. The plan must show how a community is encouraging submission by citizens of views and pro- posals and how it intends to make timely responses. 1 Participation at the neighborhood level as well as city- wide will be required for all stages: planning, imple- mentation, monitoring and evaluating CD programs. Technical assistance to help neighborhood organiza- tions and others participate effectively will have to be available. The new regs do not require ongoing citizen committees nor do they require that local governments work with or through neighborhood organizations. HOUSING ASSISTANCE PLAN - Tougher requirements. Through HAP, to be submitted every three years, and an annual "action program" applicants will have to address not only the identified needs for housing assistance but also those needs listed in prior plans that were not fulfilled. Included are new propor- tionality rules to insure that the needs of different household types such as renters or small-home owners are met. For the suburbs, a change in the method for calculating the "expected to reside" formula is aimed at increasing housing opportunities for low income families. PERFORMANCE REPORTS - Better timing. Requiring grantees to issue their performance reports in the eighth month of the CD year will give HUD and the community adequate time to judge how effectively the money is being used. DIRECT FUNDING OF NON-PROFITS - A breakthrough. Legislative amendments now make it possible for non-profit groups such as neighborhood- based organizations to qualify for block grants for all activities normally eligible for CD funds plus planning and administrative costs. DISPLACEMENT - Applicants must specify in their community development plans how they will assist low and moderate income people to remain in their existing locations and to mitigate adverse effects on them as a result of neighborhood revitalization activi- ties. COMPREHENSIVE NEIGHBORHOOD REVI- T ALIZATION AREAS - A major shift toward greater impact. Local governments will- be encouraged J to designate target areas for concentrated funding in coordination with other resources and programs. Grantees will have to describe a strategy for neighbor- hood revitalization, housing, community facilities and economic development. UDAG - $400 million for each of the next three years. Separate from the rest of CD. Urban Develop- ment Action Grants are for cities and urban counties that qualify under a special formula as suffering from physical and economic distress. Activities ruled out under the CD block grant program are eligible for UDAG. The grants are for projects which are already planned and can be implemented swiftly. PUBLIC AND SOCIAL SERVICES - Improved. Service expenditures will be further limited to those relating directly to physical or economic projects funded with block grants and not for regular city police hiring or social services. Hopefully, the new regulations will make it hearder for New York City and other localities to misspend CD funds. Community groups have been waging a long- standing battle over New York City's performance with CD. Last September, HUD approved New York City's CD 3 application for $150 million after knocking out citywide street repairs and "conditionally approving" several other items for a total of $10 million in question- able projects. To date, according to the New York City Housing and Community Development Coalition, the city has been able to spend only 47.9 percent of its CD funds through the first two years of the program and commit- ted a high 22 percent to administration. In addition, the coalition has criticized the city for setting high income limits for determining low and moderate income families, failing to comply with equal opportunity requirements of the law and using CD funds to undertake capital budget projects outside low and moderate income areas. For a copy of the proposed regulations and a more detailed analysis of them contact City Limits. Doing the 'Do-able' In Sunset Park Three Sunset Park kids whose street between the Gowanus Expressway and the waterfront is lined with abandoned buildings and empty lots. They ~ o o k a cheerful tack, saying that the space was good for playing. Sunset Park in BrooKlyn is on the threshold of its second major attempt in five years to rehabilitate its stock of old frame houses and reverse the abandonment that dots some blocks and virtually blots out others. In its first try, the neighborhood saved 15 buildings and set a precedent for rehabilitation of one and two- family abandoned homes. Unhappily, the cost was so high, due in large part to financial hardships wrought by the government, that the project drew to a close on a somber note of disappointment. "I would guess it was the broken promises kind of thing," said John Gallagher, an architect and last sur- viving staff member of the Sunset Park Redevelopment Committee. Once again, the success of the effort to turn this struggling neighborhood around depends in a large way on government. And while there are already some indi- 4 cations that it is hatching new obstacles, Gallagher remains optimistic. "Essentially, our second chance hasn't started yet. But things haven't looked this good in quite a while." What looks good is that SPRC (pronounced SP ARK) has signed a contract with the city to rehabili- tate 21 buildings, including lion three of its worst blocks, under the Small Home Improvement Program (SHIP). Two of the buildings will be fitted for solar energy. In addition, SPRC has applied for $600,000 in Section 8 funds for substantial rehabilitation of 28 units in three more buildings. SPRC also expects to add four new staff people-a bookkeeper, marketer, draftsman and handyman-hired under the CET A program. "SHIP should be able to do all of the abandoned buildings that are do-able in this neighborhood," Gallagher said, looking to the future. "And it opens up the possibility of other federal programs." Gallagher works out of a bright but cramped office in the gleaming 500-bed Lutheran Medical Center, which opened last July in a converted city-owned factory building. Set one block from the waterfront in Sunset Park's most rundown neighborhood, the hospital looks like a beached white whale surrounded by aging industrial buildings, warehouses, Bush Terminal piers, crumbling housing, overgrown lots and a few junked and rusting autos. In selecting this site for its relocation, Lutheran expects to spearhead a broad revitalization of the area, which extends from 39th to 59th Streets and from the waterfront to Seventh Avenue. SPRC was formed as a result of a coalition between the hospital and the community. Once a stable, even thriving neighborhood of some 70,000 Scandinavian, Irish, Italian and Polish immi- grants, Sunset Park has suffered from a number of depressing influences, including the sharp decline in merchant shipping through the Port of New York. In 1941, the residential and commercial heart of the community was impaled by the Gowanus Parkway, which Robert Moses constructed atop pillars of the old BMT elevated line along Third A venue. Many homes along both sides of Third Avenue were demolished to make room for the Gowanus. The ", myriad stores, restaurants and threaters that made the area alive began to disappear. People began to shop elsewhere and the once-bustling street became more and more deserted. The blight spread in both directions, though far more brutally along the side streets toward waterfront. East of the Gowanus, most of the frame houses and occasional brownstones are in pretty good condition today with some spots of abandonment. West of the Gowanus to the piers is badly deteriorated with aban- donment widespread. Thanks to blockbusting and subsequent forclosures of one to four-family homes with federally insured (FHA) mortgages, Sunset Park was left with a scandal- ous inventory of abandoned buildings in the early 1970s. SPRC, formed in 1965 as a volunteer, non-funded organization, developed a plan in 1972 to buy the vacant, often dilapidated buildings, rehabilitate them and resell them to moderate income community residents. Close to the Gowanus Expressway. this house at 317 55th St. was rehabilitated and sold to an electrician who provided the electrical work as part of his equity investment. 5 That plan resulted in the completion and sale of 15 buildings, but not before a revolving loan fund financed by a $150,000 grant from the Ford Foundation had been exhausted. "I saw it coming," said Gallagher. SPRC was losing money on each building. Becaust of consistently low FHA appraisals of the homes, SPRC was having to sink its own money into the rehabilitation in order to cover the full cost. Furthermore, since SPRC could not recoup its investment until the sale contract was signed, its capital was continually tied up by FHA sluggishness in approv- ing the completed work. "By the eleventh or twelfth building we found out that by the fifteenth we would be out of money-our revolving loan would be down to zero," Gallagher said. The loan dried up in July, 1976. By that time, SPRC's board had already been forced to layoff the organization'S executive director, assistant director and full-time secretary, leaving only Gallagher. He has had his hands full as the sole staff member. "You become a jack of all trades: drawing up plans; running the program; attending meetings with the city and FHA; being a real estate salesman; making minor repairs, running out to seal up a building. "I've also gotten very good at typing," he added. Sunset Park's hopes for a better housing future now lie with the city's SHIP program, which is fitting since SHIP was modeled on SPRC's experience in rehabilitating the FHA-foreclosed homes. (Not one has suffered a default, although new buyers replaced two original owners after they ran into financial problems. Under SHIP, SPRC will buy the 21 homes, prepare the rehab plans and hire contractors to do the construc- tion. The city, using Community Development funds, will pay part of the cost of rehabilitating the house, easing the financial burden on the new o w n e ~ . 6 The sealed up buildings are 331 and 333 54th St. which will be rehabilitated under the SHIP program. Both frame houses will be equipped for solar energy through a HUD grant. Work is expected to begin in January. For example, a bank might grant a $29,000 mort- gage based on an FHA appraisal of the house. The total cost of rehabilitation might be $44,000, however. Sub- tracting a $1,500 downpayment by the owner, the city's contribution would be $13,500. A hitch in the plans developed when FHA declared flatly that it would not insure any mortgages in the run- down blocks between the Gowanus and the piers. After some negotiations and a personal visit by a HUD offi- cial, FHA designated 55th, 56th and 57th Streets as pilot blocks eligible for FHA insurance. SPRC expects to generate income from SHIP by providing architectural and marketing services. While SHIP appears to hold great promise for Sun- set Park, city inefficiency is hampering startup of the program. The SHIP contract, signed last October, must be approved by the Emergency Financial Control Board, the state overseer of New York City's fmances since the fiscal crisis hit. The contract has now missed two EFCB meetings. City housing officials say they have not been able to complete the necessary support paperwork. In addition, the blueprints drawn up by city archi- tects for seven Sunset Park homes are inappropriate, based apparently on the plans being used for very differ- ent buildings in East New York's SHIP program. For example, the Sunset Park blueprints are for masonry buildings with overhead utility connections while the homes in Sunset Park are mostly frame with under- ground connections. Room layouts in the city plans are also more expen- sive than necessary, Gallagher said, adding that "I am still reviewing the plans. " Gallagher said city housing officials have been cooperative and supportive. "But in terms of getting them to produce anything, they are inefficient. " by John Gallagher New York City is again vying for the title of "Movie Capital of the World." After some fifty years of making movies in California, the major studios are choosing to come back to New York for the sets of new movies. A small piece of Tinseltown, where every- thing is pretend, came to Brooklyn this summer when Universal Pictures began shooting "Nunzio" in the Sunset Park-Boro Park area. The final scenes called for a burning building and Universal's production manager, John Nico- lelia, spotted 558 50th Street as an ideal location. His search for the ownerof the vandalized building brought him to the Sunset Park Redevelopment Committee, which had just acquired the building for inclusion in its 28-unit Section 8 rental subsidy rehab project. Shortly after hearing of approval of its Sec- tion 8 preliminary proposal, SPRC was approached by Universal with the idea of using the building as a set for "Nunzio." "After reassurance that there would be no damage to the building or to neighboring proper- ties, we gave the go-ahead," said Kathy Wylde, Board Secretary of the Redevelopment Commit- tee, "and Universal reimbursed us for staff time and for the hiring of a dozen neighborhood teen- agers to do some initial cleaning out of debris and garbage." The budget for "Nunzio" was set at $1.2 million. Although impressive in housing group terms, it was small compared with the industry average of $10 million-12 million. There was room in the tight budget, however, to hire several local people as actors, extras, and production help. The story was written by James Andronica, a former neighborhood resident, who also co-stars, and based 100se,ly on an actual character and events. "Nunzio" is a retarded 31-year old who is trying to cope in an antagonistic world lacking in modern heroes. The story climaxes with Nunzio in a dramatic rescue of the residents of a burning building, which is where SPRC helped out. Universal sent in a special effects crew to prepare and protect the building by installing sheet metal hoods and building a sheetrock and asbestos "box" at each window in which bottled 7 Another Brooklyn building in flames? Not really . . . just a visit from Hollywood movie makers to Sunset Park. gas could safely be ignited. Fire extinguishers, hoses, and a group of New York City firemen standing by added to the precautions. When preparations were completed, by window sash, glazing, curtains, blinds, etc., the building looked from the exterior as though it were fully occupied by satisfied tenants served by a benevolent land- lord. As shooting progressed throughout 10 all- o night sessions, the "fire" spread through the building until, according to the script, Nunzio, this time played by a stunt man, not by star David Proval, was forced to jump from the roof of the "burning" building to the roof of the adjacent P.S. 94 mini-school about 35 feet below, in order to escape flames with a small Child, really a doll; in his arms. 0 About a month after the movie-makers left and reality began to return to the lives of neighbor- hood residents, and while local teenagers were again engaged in cleanup work, an unexplained fire, this time for real, broke out in a top floor apartment, burning through parts of the roof and causing about $6,000 damage. SPRC is continuing with its plans despite the setback. East Harlem continued The Mott grant is $l00,OOO-a-year for five years with AND to provide an equal match to cover an annual budget of $200,000. In addition, Mott provided a $40,000 grant to the Pratt Institute Center for Commu- nity and Environmental Development and a $100,000 grant to the Association of Neighborhood Housing Developers, Inc., three quarters of it for ANHD members. The East Harlem groups, in addition to Metro north, are Concerned Citizens of East Harlem, Inc., Lexington Planning Coalition, Inc. and Lexington Avenue Neighborhood Association. Their target area is bounded by East 96th Street and East II6th Street, Fifth and Park Avenues and the East River. "Nobody has been doing anything of any con- sequence," in that area, said Ralph Cassetta, former chairman of Metro North and director-planner of AND. "What I would like to see is arresting the deterio- ration with new programs and start moving toward upgrading of neighborhoods." . First priority of the AND agenda is housing. Between 1940 and 1970, public housing projects were built for nearly 53,000 residents, making East Harlem probably the site of more public housing than any other place of comparable size. Still, 60 percent of the popula- tion is said to be crowded into severly substandard tenements. Abandonment of decaying buildings is rampant and living conditions in many are abominable (see related article). Unlike its neighbor to the west, East Harlem has never had periods of prestige. It has been a slum since its real development began in the second half of the 19th century. Most of its earliest inhabitants were European immigrants who spilled out of the crowded Lower East Side. First there were the Germans and Irish, followed by Jews and Italians from 1880 to 1910. By World War I, East Harlem was horne to the largest colony of Italian-Americans outside Italy. Blacks and Puerto Ricans formed the next wave. EI Barrio, the largest concentration of Puerto Ricans out- side the Commonwealth, has now become the core of East Harlem. Since 1960 there has been a 25 percent decline in East Harlem's population, which is estimated at not more than 140,000 today. Unemployment is high and many Puerto Rican and black families earn less than $5,000 per year. Although the East Harlem area is well served by mass transit, the elevated tracks of the Penn Central Railroad along Park Avenue offer almost no service to the area and act as a noisy, polluting and hazardous barrier shutting off East Harlem from the rest of the city. On the plus side, 13 new schools have been built in East Harlem since World War II and 10 others modern- ized; health facilities are expanding significantly; there is good potential for commercial growth and the city recently completed a new combined police and fire station, although the fiscal crisis blocked a second new police station. AND has designated four sites for development of new housing construction: l00th to WIst Streets between First and Sj!cond Third A v e n u ~ between IOOth and WIst Streets and Lexington Avenue between WIst and 102nd Streets; 107th to 108th Streets between Lexington and Park Avenues; 1 10th to Illth Streets, First to Second Avenues. . Although plans for these areas are still in the works, they call for several hundred units of new construction, possibly incorporating innovative energy conservation technology in some. Much of the land on these sites has already been cleared. Housing rehabilitation projects are being planned for three other sites, including one between l04th and 105th Streets, First to Second Avenues, that will involve Left to right: George Rodriguez, Lexington Planning Coalition; Bob Lowe, Metro North Association; Willie Soto, Concerned Citizens of East Harlem; Christine BarseIla, Lexington Avenue Neighborhood Association; Ralph Cassetta, Association for Neighborhood Develop- ment. 8 conversion of a 75-year old structurally sound public school to a cultural and multi-service center. Devising community management programs and economic development projects (hardware, building supply and equipment businesses) is also on the agenda along with formation of a seal-up, demolition and building construction and repair company. AND will have a staff of 11: a director-planner, an architect-researcher, a director from each of the four groups and five secretaries. Pratt and ANHD will provide technical assistance. Underlying the new group is the belief that preserv- ation and redevelopment of East Harlem can best be accomplished by its own people through locally-based, community-controlled non-profit organizations with access to technical expertise. 1791 LEXINGTON: The written proposal for AND notes that "the massive infusion of public and publicly-assisted housing and other infrastructure improvements and facilities since the end of World War II has failed either to stern the tide of increasing poverty, unemployment and personal despair or to prevent the steady depopulation of the area." What makes AND different is that the people of , East Harlem will be guiding its redevelopment insteao of outside "experts" who don' t know East Harlem and lack personal stake in it. "Those of us who have worked closely in this area," said Bob Lowe, chairman of Metro North, "feel that the people who live here should have a major voice in what happens to the future of this community." THE EAST HARLEM HOUSING NIGHTMARE Francisca and Domingo Santos's apartment was deceptively warm for an early November day. Outside their broken living room window the temperature was 55 degrees, three degrees higher than normal. The steam rising from the large pots of boiling water on the kitchen stove made the place fairly comfortable. Francisca Santos is 62. Her 47-year-old brother Domingo is blind. Together, they are trapped in an East Harlem building where heat and hot water have not existed for months but cold water drips plentifully through the ceiling onto their stove and few pieces of furniture. ' Only four of the 24 apartments at 1791 Lexington A venue are occupied. The graffiti is peeling with the paint from the walls in the dimly lit halls of the six-story building. The front door has no lock so the tenement is open to anyo,ne. There is a large puddle of water in the downstairs hall from leaking pipes. The boiler is inoperable. The building is infested with cockroaches and rats who thrive on the garbage mounting in a side alley. Maximina Sanchez, a tenant, has swollen fmgers from rat bites. For security another tenant has smashed a ragged hole in his wall to thread a chain through it and a hole in his front door where the knob should be. Inside the Santos's bleak four-room apartment, two windows are broken, one supposedly from a gunshot; a half-hearted patch covers exposed wood la!hs . in the bathroom ceiling where the old plaster has 9 fallen. The bare walls throughout are smudged with grime. Mrs. Santos hates her living conditions. She is . angry for herself and fearful for the safety of her sight- less brother. They do not pay their $70 a month rent but, of course, that does not make living at 1791 Lexing- ; ton Avenue any easier. East Harlem has a lot of public housing but a lot more people who want it. Santos says she applied to the city but was told she would have to wait. The list of names ahead of hers is long. So she is trapped. Mrs. Santos's building was acquired by the city through in rem tax foreclosure last April from the owner, identified in city records as Maria Hernandez, for failure to pay $22,665 in real estate and other taxes dating back to 1972. With the city as landlord, the tenants at 1971 Lexington Avenue have fared no better. They claim to have had no heat or hot water for six months. Ralph Rodriguez, a bousing aide to East Harlem Assembly- man Angelo Del Toro, said he has been trying for months to get the Department of Real Estate to correct conditions in 1791 and many other buildings in the area. He has made no headway, he said. . City Limits reached Milton Markowitz, deputy commissioner of the Department of Real Estate, on November 10th. Markowitz said a work order had been placed that very morning for repairs to restore heat and hot water at 1791. said the city is unable to cope with the volume of work necessary to provide even minimally essential services to the residential buildings it owns. He cited three particular problems. - By the time the city forecloses, private landlords have already milked the buildings to the point where they are often in very bad condition and require exten- sive work. - The City is having a hard time finding contrac- tors willing to put up with the long delays in getting paid. It takes the city six to nine months to pay up for work completed. - A recent law requiring the city to begin foreclo- sure for nonpayment of real estate taxes after one year instead of three years has increased the Real Estate Department's workload from about 3,500 parcels annually to 15,000 to 20,000. At the same time, the number of city employees to do the work has shrunk. Markowitz said he could not account, however, for why the families of 1791 Lexington Avenue have gone so long without hot water. "They (the city managing agent for the building) should have checked the boiler," he said. "I can't understand why they didn't try to restore immediately the essential services." Nevertheless, from what Rodriguez says, 1791 is no exception. Other nearby buildings with no heat or hot water, he said, include 212 E. l06th Street; 166 E. 118th Street; 433 E. 119th Street; 161 E. 108th Street; 63 East l1lth Street; 122 E. l1lth Street; 57 E. lllth Street; and, 118 E. 117th Street. City Limits will be following the progress of 1791 Lexington Avenue. _ Domingo and Francisca Santos in their kitchen at 1791 Lexington Ave. Through the open door behind them is the hallway. 10 j LINGO By ROBERT SCHUR and RICHARD ZEITLIN Letter M (Continued) MISFEASANCE - A failure to do an otherwise lawful act in a proper manner; that is, performing an act which one has the right to do, but otherwise than in the way that it should be done. (See defs. "Malfeasance" and "Nonfeasance.") MISREPRESENTATION - Any untrue state- ment of fact,.or statement which, even if literally true, is intended to mislead or deceive or to lead another to believe that a condition is otherwise than actually exists. MISTAKE - An unintentional act, omission or error which arises from ignorance, forgetfulness, surprise, misapprehension or misplaced confidence. The concept of "Mistake" is impor- tant in connection with real estate transactions, where one or perhaps both parties are in error about some fact or legal consequence relating to the property (for example: its size or location, or what may be done with the property under exist- ing zoning laws). In some, but by no means all cases, the law allows a party to a real estate contract, deed, lease, mortgage, etc. to retract or withdraw from the transaction if a "Mistake" is discovered. MOIETY - A half-share of anything. In real estate, the term is used to deinote the undivided one-half interest in a piece of property owned by one of two joint tenants, tenants in common or lessees. MORATORIUM - A term designating a period during which the normal legal rights of a creditor, such as a mortgagee, are suspended and such person is not permitted to enforce his or her usual rights. Thus, during the economic depression of the 1930s, a number of states passed laws declar- ing a "Moratorium" on the rights of mortgagees to foreclose on properties used by the mort9agors as their homes, even when the mortgagors failed to pay the interest or principal on the mortgage. Similarly, the fe.deral government during World War II and many states even today, have laws which forbid creditors to enforce claims against persons who are in military service. The term "Moratorium" is also sometimes used to denote a voluntary agreement by a mortgagee or other creditor not to demand or take legal action to collect the payment of the debt when due (see def. "Forbearance.") MORE OR LESS - A phrase frequently found in deeds and other documents pertaining to real lJ estate, especially in rural areas, where the exact dimensions or area of a parcel of land are un- known and can only be approximated. In such documents, the property will be described by location, metes and bounds (see def.) or area, followed by the qualifying words, "more or less." MORTGAGE - A debt which is secured by a pledge of real property, which is legally owned by the borrower-debtor (called the "Mortgagor"), whereby, if the debt is not paid as and when due, the lendor-creditor (called the "Mortgagee") has the right to bring a legal action for a court judgment directing that the property be sold and the proceeds used to pay the debt. This action is called a "Foreclosure" (see def.). Depending upon the law of the particular state in which the land is situated, a mortgage is deemed to be either a conveyance (deed) of the land from the mortgagor to the mortgagee on condition that if the mortgagor pays the debt, the conveyance will be void and of no effect and that so long as the mortgagor makes the payments as they become due, the mortgagor will be entitled to possession of the property; or, as merely creating a lien in favor of the mortgagee with legal title always remaining in the mortgagee. New York State has, by statute, adopted the latter definition of a "Mortgage." There are several distinct types of mortgages, depending upon the particular purposes for which they are issued, the nature of their repayment provisions and the nature of the property which stands as the security. Among the common types of mortgages are: -FIRST MORTGAGE: A mortgage which is a first or prior lien on the property described and, which is ahead of any and all other mortgages which may exist on the same property. In the event of a foreclosure, the holder of a first mortgage is entitled to payment in full ahead of the holders of any other mortgages. -SUBORDINATED (or Junior) MORTGAGE: A mortgage whose lien is inferior to and is entitled to payment only after the full payment of one or more mortg_ages on the same property. -PURCHASE MONEY MORTGAGE: A mort- gage given by the purchaser of the property to the seller or to a third party as a means of financing all or part of the cost of purchasing the property covered by the mortgage. A Purchase Money Mort- gage may be a First Mortgage or a Subordinated Mortgage. . -BALLOON MORTGAGE: A mortgage which does not provide for payment of all of the principal sum over or during its term, and which will there- fore require the payment of a substantial sum on its final due date. -STANDING MORTGAGE: A mortgage which does not require that any part of the principal sum be paid prior to the due date, the whole amount therefore becoming due at one time. -CONVENTIONAL MORTGAGE: A mortgage which is ' taken by a regular lending institution such as a bank or insurance company, without being insured by a government agency (Le. the Federal Housing Administration or the Veterans Administration or the New York City Mortgage Insurance Corporation). -SELF LIQUIDATING MORTGAGE: A mort- gage which provides for payments of the entire principal sum during its term such that it is fully repaid on or before its final due date. -BLANKET MORTGAGE: A mortgage which covers two or more separate parcels of land, each parcel standing as security for the mortgage so long as it is unpaid in any amount. Note: that in a situation where a developer purchases a number of properties and gives a Blanket Mortgage to ' finance these purchases, if lie then sells the parcels to separate owners, each such owner will be liable to lose his/her parcel if any of the .other separate owners should default. The way to avoid this consequence is for the individual buyers to demand a release of the parcels they are purchas- ing from the mortgage. -CONSOLIDATED MORTGAGE: A mortgage ' which replaces and substitutes for two or more separate mortgages covering the same property. -INSURED MORTGAGE: A mortgage, pay- ment of which is guaranteed by a government agency (such as the Federal Housing Administra- tion or the Veterans Administration). In return for the payment by the mortgagor of an insurance premium (usually computed as a fraction of one percent per year of the mortgage principal), the government agency agrees that, if the mortgagor defaults, it will pay the mortgagee all or part of any balance outstanding on the mortgage. -OPEN END MORTGAGE: A mortgage which, but its terms, allows the mortgagee to borrow additional money on the security given for the existing mortgage. -PARTICIPATING MORTGAGE: A mortgage held by two or more mortgagees, each of which h ~ s loaned part of the money borrowed by the mortgagor. -MORTGAGE EXTENSION (or extension agreement) - An agreement whereby the mort- gagee extends or enlarges or postpones the period of time within which the debt secured by the mortgage must be paid. MORTGAGE BANKER - An individual or organization in the business of lending money on the security of mortgages. MORTGAGE BROKER - One who acts as an intermediary between a mortgagor and a mort- gagee or as agent for a mortgagor in locating a lender and arranging for the loan and mortgage transaction. MORTGAGEE IN POSSESSION - By the terms of some mortgages, once a default in making payment of the debt secured by the mort- gage or of any other specified act required of the mortgagor (such as paying the real estate taxes, properly maintaining or operating the property, etc.) occurs, the mortgagee is entitled to take possession of the property and oust the owner (mortgagor), even before a legal foreclosure occurs. In other cases, a mortgagor in default may agree to allow the mortgagee to take possession. In either event, the status of the mortgagee who obtains possession of the mortgaged property, is known as a "Mortgagee in Possession." MORTMAIN - From the French, meaning literally "dead hand." The term is used to denote the transfer, by deed or will, of lands to a religious organization. During the middle ages, in England, the Catholic Church and the King engaged in a lengthy struggle for power. Since land was then the chief source of wealth and under the feudal system ownership of land brought with it may "political" as well as economic powers, it became the practice of the church to encourage gifts and bequests, as well as sales of land to it by indivi- duals. It was observed that church officials frequently "bargained" with landowners guarante- eing them absolution from sins and a place in heaven if the owner showed his true religious faith by giving his land to the church. To counter this practice, the King had parliament adopt laws which forbade or at least restricted the convey- ance of land by lay persons to the church. These laws are called MORTMAIN ACTS and are in effect today, both in England and in many states of the United States, including New York - where a deceased person may not, by will, give more than fifty percent- of his estate to religious or certain other eleemosynary institutions. MOVABLES - ~ term used to denote personal property which, literally, is capable of being moved or carried from piace to place, as opposed /2 , to property which is permanently affixed to land. MULTIPLE DWELLING - Under New York law, any building which contains three or more separate and self-contained dwelling accom- modations is classified as a "Multiple Dwelling." (Actually, the term is limited to buildings in New York City; upstate they are termed "Multiple Residences," because a different set of laws applies in those areas.) The term is more generally used as being synonymous with "Multi-Family Dwelling" or "Multi-Family Residence" and may denote any building containing more than one dwelling unit (under some federal housing programs, the term is used to denote only buildings with five or more dwelling units). MUNICIPAL - Relating to a city, town or village. Thus, a Municipal Corporation is a public corporation, created by an act of the state legis- lature for the purpose of and to enable the citizens of the locality described in the act creating the corporation to conduct its local civil government, which in turn has only such powers of government as are granted by the state act creating the corpo- ration or by general laws enacted by the state. MUNIMENTS - Documents, such as deeds, wills, etc. which are evidence of title to property and by means of which an owner can show the extent and nature of the interest in the property which is claimed. MUTUAL SAVINGS BANK - A bank usually created by state charter, which is owned by its depositors, who are entitled to share in the earn- ings of the bank, in proportion of the size of their respective deposits by receiving dividends or interest. The bank is operated by its officers and directors, who invest the funds deposited by the owner-depositors, mostly in first mortgages on real property. Mutual Savings Banks are an important source of capital for real estate invest- ment. In New York State most savings banks are Mutual Savings Banks. There are approximately 118 such banks in the state and their aggregate deposits are over $70 bi II ion. 'Open City Offers Free Weatherization Free housing weatherization to save fuel and keep apartments warm this winter is available through Operation Open City. Eileen G. Lee, executive director 0.1 Operation Open City, has appealed to low income residents throughout New York City to apply for housing weatherization repairs. To date, Operation Open City has winterized almost 8,000 units of low income one and two- family homes and multiple dwellings in the nation's first inner-city weatherization and energy conservation program. Fuel savings resulting from the weatheriza- tion program averaged 26 percent to 60 percent or nearly $3,000 for a typical multiple dwelling's winter heating bill, according to the organization. "Deteriorating low income housing has received desperately needed repairs, and the dollar savings from lowered fuel bills-which should be well over $400,000 by this winter's end-is being put to use for additional housing 13 repair work or to purchase food and other necessi- ties for the poor," said Ms. Lee. tn addition, the program has enabled Opera- tion Open City to hire and train 200 poverty area residents. Eligible for the program are: non-profit commlJnity-owned and managed multiple dwellings, low income co-ops, landlord- abandoned buildings managed by tenants, city receivership or 7-A housing and one and two- family homes owned by low income senior citizens or families. Open City accepts requests for this free housing weatherization service at each of its borough offices: 509 Willis Ave., Bronx 10455 (993-3250) 1059 Nostrand Ave., Brooklyn 11225 (778-8616) 103 East 125 St., Manhattan 10035 (348-7122) 161-10 Jamaica Ave., Queens 11432 (658-4304) 472 Jersey St., Staten Island 10301 (727-7940) Baroni continued Baroni, who was born into a Pennsylvania coal mining family, worked for many years in inner cities. In 1970 he founded the Center for Urban Ethnic Affairs in Washington. He has been with the U.S. Catholic Con- ference Urban Task Force on Poverty. As assistant secretary for neighborhoods, voluntary associations and consumer protection, Baroni is the head of a new office at HUD and one that is regarded as an important beachhead for the neighbor- hood movement. "We're still in the first period of excitement that we have a little ' section of the government," said Milton Kotler, head of the National Association of Neighbor- hoods. "Our main energy now is to expand that section with more money, more access and more influence." Most observors say it is premature to judge the effectiveness of Baroni's office. He is said, however, to have pushed hard for changes in the Community Development Block Grant program that improved citizen participation and targeted 75 percent of the funds to low-and moderate-income people. "Baroni is getting good," one knowledgeable observor said. "In the first six months be was afraid his ideas were too radical, but he is starting to take the gloves off. " Another person who has been close to Baroni said he is frustrated when policy or program recommenda- tions that look good when they leave his office get watered down as they make the rounds at HUD. "I think he will be effective, but it will take support from outside groups," she said. "Unless (HUD Secretary Patricia) Harris sees that groups are putting pressure on Geno to get things done, the people at HUD won't believe him. They're skeptical. They're not so ready to believe that they will just accept his word. " Baroni said in a two-hour interview at his Washing- ton apartment recently that he has observed a steady increase of activity in the past eight years by neighbor- hood groups around the country. He cited the Home Mortgage Disclosure Act of 1975 and the new National Neighborhood Commission as two examples of Washington reacting to the demands of organized neighborhoods. Baroni said he gets angry at the professionals who dismiss neighborhood-oriented programs as unwork- able but that he lacks the statistical evidence to show that small programs run by community-based groups do succeed. "The budget types who sit in on meetings, see, they've got all these numbers; 'it takes x dollars to create x CETA jobs for x public service.' And I say, 'Yea, but there's something in there that dollars can't buy. There's networks, there's status, peers, culture.'So I'm saying, how do you study that money out to just make-work programs costs more and gets less than 14 finding the Rabbits -(Roberto Nazario of Interfaith Adopt-a-Building) and fmding the groups and putting something together that relates to their mother or grandmother or themselves. ' "That's what I'm trying to sell. But the people in here haven't been there. They haven't been out there with someone scratching $1,500 who has leveraged $6 million. " Baroni said he wants to support efforts to develop the capacity of neighborhood groups to deal with other institutions like the mayors and the banks. "I really think that's why I went to HUD - maybe I should have stayed out, but - to raise this agenda, to raise this issue. It's got to be broad based. There's no one single answer. Federal, state and local. There's a bottom up as well as trickle down. "I'd like to see the New York people take that concern to their state reps, Congressmen and Senators and hope they bring the neighborhood message and the neighborhood agenda to Washington. I think that's the way we're going to get something done." Geno Baroni The January issue of CitY Limits will contain a survey of federal programs of interest to neigbborbood bousing Included will be opinions from the Wasbiogton penpective on the emerging role of neigb- borlaoods .. important links in tile urban system. Here are excerpts from an interview with Geno Baroni, Hun assistant secretary for neighborhoods, voluntary associations and consumer protection, conducted Nov. 17. Q. Do you see a new neighborhood consciousness at the federal level. A. I think there is a new consciousness of neighbor- hoods. I think that in the last eight years there has been an increase of activity around the country by neighbor- hoods and neighborhood associations. There were two dimensions of neighborhood activity that got to Washington in those eight years that I think were unique in terms of federal activity that was not initated by any- body in Washington. Those two issues were: one, the federal Home Mortgage Disclosure Act, which came out of the community groups, principally Chicago and others, ,who raised the question that money was being taken out of their neighborhoods-disinvested. I think it's important because out of that concern came some- thing that usually doesn't happen. The neighborhood issue was raised up to a public policy question. The second kind of similar activity that came out of community groups was the issue of the National Neighborhood Commission, and that again was pro- moted and sponsored by local groups bringing it to Congress. Now there's a third factor. I think it's symbolically important that Carter went from Warm Springs, Georgia on the opening day of his campaign to Brooklyn and gave his neighborhood speech. Q. That's a brief historical look at a couple of factors that brought the neighborhood issue to the attention of the federal government. Would you say the neighborhood issue now has the ear of the federal government. A. The neighborhood issue is part of an overall look at the economy. It has to be put in context: energy, inflation, jobs, cities, neighborhoods, welfare. At the professional levels, there's a hangover in Washington about neighborhoods and community groups, which has kind of surprised me from the more traditi",nal, liberal professionals, careerists even, who survived and the new ones coming in. And that has been the bad taste around the 1960s, Model Cities, OEO. And there's kind of a throwaway lihe, 'Oh, we did 'that before and it didn't work.' Of course, nobody said there was a Vietnam agenda that took resources or that what the heck's going on for eight years people have been doing by their toenails, nickel and diming, pieces and parts. I can point to some groups in New York City that probably do more rehabilitation than the whole city. I try to argue that we cooked up the menu in Washington and sent the menu with the money to the groups whether they were ready or not. And they took it whether they liked it or not because the menu and the money came together. Another thing that is very important is that Nixon shifted domestic policy drastically by revenue sharing. And then you have a whole constituency, 15 mayors, League of Cities and others who say, 'You want to cut red tape? It's easier to send money out there with a computer.' So there's a federal mentality in the system that's in place and has a lot of support because it probably is more efficient and it probably cuts down bureaucracy. But if you're talking about neighborhoods and if you're talking about low and moderate income people then they're not the beneficiaries. Q. Where have you seen this anti-neighborhood bias. A. I'm on the Urban and Regional Policy Group and head of the neighborhood task force, and I hear the ridicule and the cynicism of the the new professionals plus the old career ones: 'You're going to give those people money? Who's going to audit them?' I guess I'm reflecting my own feelings that I expected that there was a drastic shift and change; yea, neighborhoods are right up front. Now, they use the word neighborhood all the time now. 'Urban policy should focus on neighborhood revitalization.' But it still says mayors ought to do it, the cities ought to do it. Q. What is the political significance of the new Community Development regulations that target 75 percent of the money to low and moderate income people and improve citizen participation. A. I think the department (HUD) did make a major policy shift in the targeting. That was an affirmative action. It think it was a great plUS. There was a battle but they did take it and they knew the mayors were going to come. I hope it holds. The Secretary is for it. The second major issue is citizen participation. The guidelines are tighter but a lot of people don't think they're good enough and the mayors don't even want what we've got, so its all relative. I prefer structured citizen participation and a plan. We don't have all that. Q. Many people have criticized the first draft of the report of the Urban and Regional Policy Group, which will be the foundation of President Carter's domestic policy. What is your assessment. A. The present draft of the report is unfortunately seriously incomplete. Unless neighborhoods are prominent in the statement the policy will be in serious jeopardy. We will be abandoning the constituency that ' can provide the critical support needed for a national urban policy to succeed. What we don't have is evidence of the economy of groups. See, what I'm saying is that we can create jobs at the neighborhood level probably more efficiently and better than through building factories and a lot of new stuff. But who documents that? I think it's very hard to bring that kind of concept to technicians, to budget people, people who are look- ing for bigger answers. And this stuff sounds so small. 'What do you mean, 78 units?' Displacement is . completely ignored. We're looking now at the National Relocation Act to see whether it's adequate to cover relocation costs. But that's still'a/mitigating mentality, rather than a pluralistic approach that would say, not how do you mitigate somebody getting moved out but I'm saying how do you legitimize people staying? Q. What kinds of programs are you working on now. A. I've asked the Department of Labor for some money, $8, million, to give to eight or ten groups. I'm working on that right now. I want to tie in housing. I'm going to say, 'HUD has some houses here and here is a group that wants to deal with that. Can we get them some Section 8?' It's really a mini-demonstration. I'd like to go back to Labor and get some more. I'd also like to have $20 million to $25 million to do the capacity building, give the groups some money to hire some one to come up with some plans . in terms of neighborhood revitalization. Q. Is that a possibility. A. If we can get into the budget. The budget people so far think that's starting something new. See, that's going back to categoricals. That's. against revenue sharing. The budget types who sit in on meetings, see, they've got all these numbers; 'it takes x dollars to create x CET A jobs for x public service.' And I say, 'Yea, but there's something in there that dollars can't buy. There's networks, there's status, peers, culture.' So, I'm saying, how do you study that money out to just make-work programs costs more and gets less than finding the Rabbits (Roberto Nazario of Interfaith Adopt-a-Building) and finding the groups and putting something together that relates to their mother or grandmother or themselves?' That's what I'm trying to sell. But the people in here haven't been there. They haven't been out there with someone scratching $1,500 who has leveraged $6 million. Q. Are mayors and neighborhoods doomed to be antagonists. A. They shouldn't be. If I was mayor, I would plug /6 in. I'd be unhappy if 25 percent of the damn people were voting. In Birmingham, Ala., where they have an extensive neighborhood kind of mentality, a $66 million bond issue went through because they cut the neighbor- hood people into it, whereas in many cities those kind of bond issues go down the drain. At first, a strong community organization was bitterly opposed to the city, which was going to buy a golf course from some- body out of CD money. The community group stopped it. And the community group got involved with that city about what the CD money could be used for-so involved in the CD issue that three years later com- munity groups there are saying the city has done such a good job that we endorse money going to the city to do these kinds of things. So the city now has a broader constitutency. I think that's the reverse of the profes- sionals, the mayors and so on seeing the groups and people as the enemy. I really think that's wrong. It's said derisively so often, it's said in scorn, I t ~ s crazy. If people can go from reacting to creating they become part of the process. Q. Do you see a process of constituency building. A. We have to do it and we're very weak at it. What happens is the mayors and the builders, they have lobbyists and they take the time and they know the Congressional staff guy. They're constantly at it. We just go down and raise hell at meetings, scream and then go away. Nobody comes back and writes sentences about displacement, redlining. Nobody goes to the Hill and puts it in the bill. We don't have that kind of resources. I really think that's why I went to HUD- maybe I should have stayed out, but - to raise this agenda, to raise this issue. It's got to be broad based. There's no one single answer. Federal, state and local. there's a bottom up as well as trickle down. I'd like to see the New York people take that concern to their state reps, Congressmen and Senators and hope they bring the neighborhood message and the neighborhood agenda to Washington. I think that's the way we're going to get something done. And not from Washington. _ CETA VI FIGHT CONTINUES: NONPROFITS FORM COALITION Nov. 21 - The Association of Neighborhood Housing Developers has joined forces with a coalition of over 40 other nonprofit organizations to pursue the resolution of issues surrounding the city's design of the CET A Title VI program. . On September 28, 1977, at a meeting organized by the Community Council of Greater New York, the non- profits came together for the first time to articulate their frustration and dissatisfaction with the Department of Employment's plans for implementing and operating the current round of Title VI programs. A wide range of issues and problems were raised by nonprofit agency representatives, including: -the proposed method of recruitment of Title VI enrollees, particularly the lack of provision for agencies to directly reCruit qualified neighborhood residents for Title VI slots; -the city' s intention to hold nonprofits liable for wages of enrollees referred from Neighborhood Manpower Service Centers (NMSCs) and found to not meet CET A eligibility criteria; -the imposition of a limit on the number of prospective enrollees the nonprofits can interview arid reject for Title VI slots; -the prohibition of replacement of enrollees fired by the agencies; -the lack of clear guidelines from the city on which administrative costs are allowable under the program; -the city's refusal to provide funds in advance for agencies' administrative staffs; and -the city's intention to grant Title VI umbrella agencies a "floating" administrative budget, which would fluctuate over the one-year contract period, depend- ing on each agency's overall enrollee retention rate. It was the consensus of the agencies at the meeting that these issues ,were of mutual critical concern and, if unresolved, would seriously hamper the successful implementation and operation of the nonprofit Title VI projects. To press the city into a resolution of these issues, the nonprofits organized into an Ad Hoc Committee of CET A Title VI Nonprofit Umbrella Agencies. The urgency of these concerns prompted Deputy Mayor Lucille Rose to hastily convene a meeting on October 6th of all nonprofit agencies serving as umbrella organizations administering CET A Title VI contracts and representatives of the city's Department of Employment and the Department of Labor's regional office. The nonprofits articulated their fears that the entire CET A Title VI program was jeopardized by . unreasonable city regulations and procedures. Lengthy, 17 often impassioned discussion between agency spokes- persons and government officials marked the three-hour session. Two important policy decisions were made by the Deputy Mayor during the meeting: allowing non-profits to draw cash advances for administrative costs and exempting agencies from financial liability for non- eligible enrollees referred from NMSCs. The issue of replacement of terminated enrollees was referred to the Regional Office of the Department of Labor, which subsequently ruled in an October 7th letter that agencies would be permitted to refill vacancies as they occur, regardless of the type of termination. To clarify the issue of allowable administrative costs, the Deputy Mayor indicated that written guidelines would be forwarded to the nonprofits. To date, these guidelines have not been received by the agencies. To deal with the controversial issue of the recruit- ment procedure for the program, the Deputy Mayor assigned Department of Employment Assistant Com- missioner Thomas McEnery to work with a committee of CET A Title VI Project Sponsors to develop a mutually satisfactory plan for selection of Title VI enrollees. After three lengthy working meetings during the month of October with McEnery, no visible progress has been made. The non profits proposed an additional . source of referral for potential Title VI applicants, described as the "agency pool." Under the plan, the four standard sources of referral - New York State Employment Service, NMSCs, New York City Depart- ment of Labor WIN Program - would be supple- mented by a fifth source. The agency pool would be formed by locally-based outreach and recruitment campaigns for eligible, qualified enrollees who might otherwise be excluded from the recruitment process of the established bureaucracies. To date, the city has neither put forth any revised selection guidelines nor even indicated to the nonprofits which aspects of their proposal would be acceptable. In an issue that ANHD has pursued separately, some progress has been made. ANHD has sought to funnel a portion of its CET A Title VI administrative funds to the neighborhood-based organizations which will be operating CET A VI projects. The funds are targeted for use for the partial defrayal of other-than- personnel-services (OTPS) costs expected to be generated by the operation of these projects. This budget request for OTPS costs on behalf of ANHD sub- contractor worksites has been contested by the city. CET A continued DOE claims that certain OTPS cost categories- particularly rent, utilities and office equipment - are prohibited under the federal CET A regulations. Association staff, however, interprets the regulation as specifically allowing such costs. The matter was sub- mitted to the regional office of DOL for interpretation, and is still officially pending. However, in a November 9, 1977 letter to the city from Thomas Hill , Associate Regional Administrator, the DOL position was stated as follows: "The approval of such costs is not prohibited by the regulations .... " and referred to the regulation ANHD had cited as part of the enumeration of categories of allowable costs. Manual on How to Start . A Nonprofit Business From March, 1975 until March 1977, East Harl em Interfaith, Inc. operated a boiler repair shop. In t wo years, the business was responsible for f ixing 223 boilers for nonprofit housing groups, tenant associations, churches, private landlords and the city. While East Harlem Interfaith was forced to close down the boiler repair shop for financial reasons, the experience from those two years has been summarized in a helpful manual called "How t o Start and to Run a Non-profit Business - Do's and Don'ts for Beginners. " The 25-page booklet provides practical infor- mation and describes a range of problems that . have to be surmounted from obtaining credit to scrounging up equipment and supplies. "The most tragic and unnecessary flaw in many small programs and businesses is the lack of a competent, honest bookkeeper and of a simple, fool-proof bookkeeping system," the manual states. It also lists people who provided helpful advice on a variety of questions and takes up such problems as advertiSing, estimating and pricing, insurance, getting people with proper skills and much more. "How to ... " is a candid manual that admits the mistakes made by East Harlem Interfaith. But in this case, the lessons learned from the errors are just as valuable as the knowledge gained from successes. The manual is available from: . East Harlem Interfaith, Inc. 2050 Second Av. N.Y., N.Y. 10029 427-1500 /8 Rehabilitation Coordinator The Lower East Side Coalition for Human Housing is seeking a rehabilitation coordinator for 254 units of Section 8 housing. Previous housing experience desired. Duties include acting as liaison with the developer, builder, architect and government agencies; review of all submissions and corre- o spondence between the developer and govern- ment agencies; working with the Coalition board to produce plans for management, rent-up and tenant selection; help develop proposals for future projects. ' y Salary is $12,000-a-year. Send resumes to Ruth Santiago Coalition for Human Housing 210 Stanton St. New York, N.Y. 10002 If You're BUG-ged, PEST-er Us!
Prospect Pest Control Service .. "':00. I<I , Bill Sayegh 294-9100 I 1'1
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;, , f-1 ... /\) -.. ) .: . , EXPRESS ---.d----.=:J Moving & Trucking Day or Night Reasonable Rates All Boroughs Phone: 493-2926 or 772-0927 Recommended by Bathgate Community Housing Development Corp. Have You Sent Us YourSubscription? If you haven't, don't feel guilty-send us your subscription today. You'll feel better and we"l1 reduce our mounting deficit. Just fill in the form below and send it along with a check or money order made payable to: "ANHD - City Limits" for the appropriate amount. THANKS! 1. Private businesses, foundations, banks, government agencies & officials, city-wide groups-$10. oo 2. Individuals and non-profit, community-based organizations-$4. oo 3. Volunteers, students, unemployed-$2. oo To subscribe to CITY LIMITS, please fill outland return the form below with your check to the order of ANHD - CITY LIMITS Name Organization CITY LIMITS SUBSCRIPTION Address _________________________ ZIP Code ___ _ Telephone No. Status (No.1, 2, or 3) ___ _ Amount Enclosed ____ or, Send Bill to: ____________________ _ Return form to Editor, CITY LIMITS, ANHD, 29 East 22nd Street, New York, New York 10010 ------------------------ _CITY LIMITSt pubUaIied mOBtllly by tile AssoclatiOB of Nelabbtirbood Housmg Developen, 11K., 19 East lll1d Street, New Y orlt, New Y orlt 10010 (1I1) 674-7610 Editor .................. . .. . . .... . . .... . . . . . .. .. Bernard Cohen Design and Layout ..................... . ... . ....... Louis Fulgoni , .. Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Marianne Czernin Copyright 1977. All rights reserved. No portion or portions 0/ this Newsletter may be reprinted without the express written permission 0/ the Association 0/ Neighborhood Housing Developers, Inc. 19 U ON l!WJ9d A oN '>tJO A M9N Pled 39V1SOdoson 91:101I:l0I:ld-NON IN THIS ISSUE Baroni and federal neighborhood policies New assault on East Harlem blight 1791 Lexington New CD regs Sunset Park AoN ''IJOA MeN leeJIS 1183 6Z OUI 6u!Sf1OH ,p<>04Joqllf5!aN jO