MSCC, Sharon Jasprizza, May 28, 2024

SUMMARY

Jodie Leidecker, Cooper Square Committee: opposes S6352/A6772 Local Regulated Housing Restoration Adjustments at an Individual Apartment Improvement rate or a taxpayer-supported repair fund for landlord-neglected buildings. Layla Law-Gisiko, DL75/A: Open New York market themselves as housing proponents, but this may not be true. The NEW YORK STATE MULTIPLE DWELLING LAW (page 16) states Floor area ratio (FAR). The floor area ratio (FAR) of any dwelling or dwellings on a lot shall not exceed 12.0. There is a battle to lift the Cap at the state level CB1 and CB5. The speculative market thus hyperinflates itself. Vittoria Fariello, Founding Member of the Coalition for 5WTC: NYS is subsidizing, via the 421A program, developers to build minuscule amounts of affordability. Mark Natanawan, Tenant organizer: the 7A process needs to be sped up, and there needs to be more money put into the program; Marc Kessler, long-term resident of rent-controlled building: it’s essential to know which elected officials want to stop 7A. Receivership has taken away the management from Ohebshalom, one of the worst landlord abuse cases, who purposely allowed his building to dilapidate. Our governments attempt to demolish and end public housing.

CHAIR: John Mudd

POLICY MEETING UPDATES

There were no Policy meeting updates.

MARCH HIGHLIGHTS

• The last of the four Greater Good Series was held Tuesday, March 5, 2024, at the People’s Forum on 37th Street. It was an overwhelming success and set the direction for the next steps. The actions and outcomes are reported at our meetings, newsletters, and YouTube channel.
• The MSCC Urban Farm Program is up and running. We need volunteers to garden, harvest, package, transport, and distribute the fresh food to our neighbors in shelters, food deficit spaces, and kitchen cupboards. The harvests will include greens such as arugula, kale, lettuce, spinach, baby greens, cucumbers, tomatoes, peppers (excluding hot peppers), potatoes, eggplant, and squash. The chefs use turnip greens, radishes, and okra to create soups and other dishes that are distributed to create dishes that suit everyone’s taste buds, ensuring no food goes to waste. The distribution goes to pantries, individuals, low-income housing, and Hell’s Kitchen Cabinet, where people can grab what they need. The pantries are happy to receive all produce, even if it may not suit the average taste buds. The potatoes are a hit; although they seem to occupy space, deer leaves them alone.

WHY OPPOSE S6352/A6772 LOCAL REGULATED HOUSING RESTORATION ADJUSTMENT (please note there are few notes for this item at the meeting; This is a summary only)

Jodie Leidecker, Cooper Square Committee, jodiel@coopersquare.org or 212-228-8210

• Memorandum of Opposition to S6352/A6772 The Local Regulated Housing Restoration Act
• We staunchly oppose S6352/A6772, any increases in the Individual Apartment
  Improvement rate, or a taxpayer-supported repair fund for landlord-neglected
  buildings
• The bill would encourage harassment of long-term tenants. Reward bad-acting
  landlords with taxpayer money. Revive landlord fraud and abuse of the IAI
  system—prevented by the 2019 Housing Stability and Tenant Protection Act.
  Rely on landlord self-reporting on actual costs of repairs.
  Give money to all landlords, big and small, regardless of actual need, without
  requiring repairs disadvantage tenants by “agreeing” to a new rent over
  which they have no actual control. Increase the burden on people with low incomes and working
  Class tenants. Aggravate the worsening wealth inequality plaguing our city.
  Decrease the affordability of rent-stabilized housing. Landlords are ignoring
  available city and state aid. We strongly oppose these bills and programs and
  urge you to block them before the imminent end of the 2024 legislative
  Session. For more information, please contact Cooper Square Committee: Jodie.
  Leidecker, jodiel@coopersquare.org or 212-228-8210
• The Regulated Housing Restoration Adjustment bill S6352/A6772 encourages harassment of long-term tenants, rewards bad landlords with taxpayer money, revives landlord fraud and abuse of the IAI system—prevented by the 2019 Housing Stability and Tenant Protection Act, aggravates the worsening wealth inequality gap, decrease the affordability of rent-stabilized housing. For more information, please contact: Cooper Square Committee, Jodie Leidecker, jodiel@coopersquare.org or 212-228-8210
• This bill does not have traction just now, but concerned about the alternatives. The IAI increases are a concern. We need people to sign on and be involved

DISCUSSION

• Alex Yong, West Side Neighborhood Alliance: Memorandum of Opposition S6352/A6772 sign-on form is at:

https://docs.google.com/forms/d/1aKeDpwO__srIlLRmNSBidKvl0iEBWmGJ8vAUHjWbgHs/edit?ts=65f89105

• Harvey Montague, Architecture Urban Design: What is the DOB policy? There is a need for a tenant organization in buildings to receive complaints and act upon them
• Alex Yong, West Side Neighborhood Alliance: DOB, created the Office of the Tenant Advocate, maybe around 10 years ago. It was created to help tenants with construction issues and to contact them with related issues. Sarah Desmond is the Executive Director of this office. Sarah worked with Alex at HCC.
• John Mudd, MSCC: asked Alex if Sarah Desmond would speak at the next meeting
• Jodie Leidecker, Cooper Square Committee: spoke about a landlord building another apartment under the apartment block. There is a need to report things like this
• Layla Law-Gisiko, District leader and advocate, recently spoke about the impacts of the Signature Bank and the New York Community Bank crisis. Layla talked about a developer whose goal is to short the multifamily rent-regulated market and is working with the hedge funds to do this
• Jodie Leidecker, Cooper Square Committee: tenants need to take control so that they are not always in this fight 
• Alex Yong, West Side Neighborhood Alliance: spoke about neighborhoods being targeted and being aware of this Bill passes
• John Mudd, MSCC:read the CHATBOX note: “Dina Myers from Mayor’s office of public engagement unit NYC HRA home support unit. I work with landlords. Real estate brokers and shelter staff to assist clients with NYC housing vouchers to find affordable housing. I can be reached by cell5169675096 or email myersd@hra.nyc.gov”
• Marni Halasa, MSCC:asked about the Birkenstock law and good cause conviction and noted that public housing needs to be discussed. Where do policy groups get their direction from? 

CHATBOX

• Charisma White, MSCC: Office of the Tenant Advocate (a subdivision of D.O.B. — https://www.nyc.gov/site/buildings/tenant/ota.page

ACTIONS

• John Mudd, MSCC: asked Alex Yong if Sarah would speak at the next meeting

OPEN NEW YORK

Layla Law-Gisiko, District leader and advocate: Open New York proclaims to be a proponent of housing

• Worked with CB5 for the last 20 years but resigned three weeks ago, because of infiltration of leadership by people who are not community-focused but somewhat self-interested. The only way to sound the alarm as to what was happening was to resign, as it was not possible while inside CB5. The Chair of the Board also stepped down earlier this year when she realized this was happening. The people stepping up are members of 501 (c4). Some are registered lobbyists and are not disclosing their affiliations. They state they are pro-housing but do not say what type of housing  
• Through insider information, Layla found that their MOU is to infiltrate Community Boards. Eg CB2, CB1, CB3, CB4, CB7. The same is being done in Queues, Brooklyn, and the Bronx. The President of the organization is a member of CB3 
• They recruit young people through social events, and their stance is that they are a pro-housing organization. They do not say what they mean by pro-housing
• Layla needed to resign from CB5 as she knew she could not sound the alarm on the inside as the organization was taking over CB5. 5 leaders of CB5 resigned. 
• Layla has learned more since resigning, including the organization is reaching out to all levels of government and being hired
• Abundant New York, an Open New York Super Pac, has been formed to elect pro-housing candidates elected and defeating anti-housing incumbents. Anti-housing advocates are those who promote anything that is not market rate. The super Pac advocates for excess supply to get prices down and does not yet appear on the Board of Election database so we don’t know what funding has been afforded to it yet
• Dustin Aaron Moskovitz, co-founder of Facebook, is worth $8 -19 Billion; he is funding Open New York through his charity, Open Philanthropy, a philanthropic funder. Moskovitz contributed $3.5 million in 3 years. The super Pac has been announced in Press Releases and endorsed candidates (two assembly members, one is Micah Lasher, who is likely running for an Assembly seat on Manhattan’s Upper West Side

Vittoria Fariello, Founding Member of the Coalition for 5WTC

• Encountered Open New York in 2019-20 when there was So-Ho, No-Ho, China Town rezoning. 
• At the public hearings for 5WTC, public members from Open New York kept the secret of who they were when testifying.  They argued against the 5WTC coalition’s 100% affordability position by saying that the community was getting a community space and some affordable housing units 
• When Victoria ran for State Senate 2 years ago, one of the founders of Open New York questioned Vitoria at one of the forums about Victoria not supporting affordability in the rezoning for So-Ho, No-Ho. This is not what Victoria didn’t support; the planner reported that Victoria did not support it.  The person continued, “Yet you want to spend millions of dollars of public funds to create affordable buildings in lower Manhattan.” But yet, we are subsidizing via the 421A program for developers to build minuscule amounts of affordability
• 5WTC will be permanent one-third of affordable units, still pushing for more. The 421A program has an expiration date. Affordable housing is not the goal of Open New York. New York does not have the space to build enough housing units that would bring the prices down, thus the real solution is through regulation, like good-cause eviction where landlords have limits on rent raises.
• Open New York is another way for the real estate industry to take over and dictate what is happening in NY

DISCUSSION

• Alex Yong, WSNA/HCC: Kathy Hochul’s 2023 Housing Compact was written by Open New York. It was focused on new construction
• Layla Law-Gisiko, DL75/A: many elected officials use the same lingo from Open New York materials. The same rhetoric is being used on the West Coast, in the Bay area, and funded by the same funder. They are directing their work at the Governor, the State legislators, and the City Council in a systematic manner with financial ability.  “Initially naming itself “More New York,” Open New York was “started in a basement in Murray Hill in 2016” by “Quantitative Real Estate Investor” Ben Thypin, and grew into an incorporated nonprofit in January 2020, making it eligible for tax-exempt status with New York State (although no 990 filing appears to be currently publicly available regarding the group’s not-for-profit viability).”  In an interview with Bloomberg, Ben Thyin, a young developer from Queens, declared he wants to short the rent-regulated multi-family sub-market. In February 2024, on a Bloomberg podcast, he explained he had realized that shorting this market requires a lot of money and, therefore, has teamed up with hedge funds. He advised the hedge funds to short New York Community Banks, which we know dropped 60% in one day. He is receiving compensation from the hedge funds for advice. If you are saying you are for affordable housing, how can you short community banks that back the mortgages of one million units in NYC? This is the only affordable housing strategy in the city. 421A is not delivering affordable housing. When these financial institutions go bust, legislators will say we have no choice and must do away with rent-regulated markets because we can not afford them. The backing at Signature Bank was from Related Companies. This means that this organization now owns the mortgages of most of the rent-regulated buildings in NYC. Hedge Funds and Venture Capital have set their sights on NYC as they have on other submarkets throughout the country to become the landlord. This would see the end of rent stabilization and regulation in NYC, ie, one million units. 

https://www.bloomberg.com/news/articles/2024-02-08/multi-family-residential-problems-at-new-york-community-bancorp-nycb

• And what exactly is Yimby? YIMBY is the pro-gentrification movement and clap back to its older Nimby opposition, composed of what used to be the 1960s/1970s “not in my backyard” racist Archie Bunker stalwarts opposing any potential real estate development in their area. The Yimby movement, not just in NYC but nationally, claims to be about housing equity; thus, the potential insidiousness lies in its promoters flying under the radar as well-meaning “housing activists” who portray themselves as cute, fun, and accessible. Twitter usernames include avocado emojis (“hey! healthiness!”) and bike emojis (“hey! small carbon footprint! awesomeness!”) to enhance this manipulated semblance of niceness and normalcy
• Julian Morales, Community Member: spoke about the bait and switch happening in the last few years
• Luana Green, MSCC: is concerned about the support of candidates running for the demolition of the Chelsea-Fulton area by the Chelsea Reform Democratic Club (CRDC). 
• Layla Law-Gisiko, DL75/A: The CRDC’s membership votes, not the executive. However, during the endorsement meeting, the candidates were questioned on these issues and said they supported demolition. The majority voted to support the incumbents. Layla is opposed to the demolition of NYCHA and continues to fight against demolition
• John Mudd, MSCC: noted that there needed to be more debate about the demotion at the CRDC
• Layla Law-Gisiko, DL75/A: It’s not up to Layla to determine this; it’s a democratic club, and thus, this needs to be respected
• Layla Law-Gisiko, DL75/A: CB5 is holding an emergency meeting tomorrow to discuss the issues of transparency about members. The new chair is a paid member of Open New York
• John Mudd, MSCC: noted there is a need to merge to progress solutions
• Mark Natanawan, Tenant organizer: we have focused on tenants’ rights. The zoning battle is another dimension needing attention
• Vittoria Fariello, Founding Member of the Coalition for 5WTC, is not sure of the position in the suburbs, but luxury housing and displacement are the trends in the city. 
• Layla Law-Gisiko, DL75/A: The NEW YORK STATE MULTIPLE DWELLING LAW (page 16) states Floor area ratio (FAR). The floor area ratio (FAR) of any dwelling or dwellings on a lot shall not exceed 12.0. The only areas in NYC where a 12 FAR is currently permitted are parts of CB1 and some midtown. Areas that want to lift the cap would only be in these areas as other areas are well below the Cap and thus would apply for rezoning. Therefore, it’s for this reason that there is a battle to lift the Cap at the state level in these areas in CB1 and CB5. CB5 is already the most highly valued land in the country. Thus, if the cap is increased, then the value of the land increases. The speculative market thus hyperinflates itself. This means that if the cap is increased, then the value of the land follows and has a hyper-inflating effect on the value of the housing and commercial spaces. This proves challenging to produce supportive and affordable housing for most New Yorkers
• Luana Green, MSCC: this is also relevant to Chelsea and Fulton, as the rezoning will lead to this issue to

ACTIONS

• People need to know who and what Open New York is, its plan, and its strategies. Need to challenge their premises, their affordable housing definitions

CHATBOX

• Julian Morales, Community Member: Meta parent company of Facebook has also funded a similar group in the Bay area as well
• Layla Law-Gisiko DL75/A: CB5 emergency meeting. April 3, 8 pm.

https://www.cb5.org/cb5m/calendar/2024-april/#emergency-meeting-of-cb5-full-bo

• Marni Halasa, MSCC: Here’s a great article from 2021 about Open NY nonprofits like CHPC, Jessica Katz and all the effed-up relationships between them to take over NYC:

Nonprofits behind Soho/Noho rezoning are packed with power players

• Dina Myers, Community Member:

‘s NYC website has many vital contacts for NYC agencies. It is the official directory of the City of New York and an indispensable reference guide for anyone living or working in New York City.

• Layla Law-Gisiko DL75/A:

https://www.bloomberg.com/news/articles/2024-02-08/multi-family-residential-problems-at-new-york-community-bancorp-nycb

• Marni Halasa, MSCC:Of course, none of this goes on without the support of the elected officials — CM Erik Bottcher is a public supporter of Open NY. He and the other elected officials on the west side support demolishing all public housing in Chelsea for ‘mixed-use’, aka luxury housing. Chelsea Reform Dem Club should come out with a statement that they do not support electeds that support Open NY and real estate interests. 
• Luana Green, MSCC: They petitioned for them to be on the ballot so they do support them
• Harvey Montague, Architecture Urban Design: can only build where you have the infrastructure, wastewater, and power, and we have a crumbling infrastructure in NYC
• Marni Halasa, MSCC:Yes, and that is unfortunate; this is a good conversation but means nothing without real pressure. In all those political clubs set up by Christine Quinn and Corey Johnson, members are going to ‘fall in line’ and support electeds

7A RECEIVERSHIP PROGRESS 

Marc Kessler, long-term resident of a rent-controlled building, and tenant organizer at an Ohebshalom-owned building

• Tenants are living in apartments that suffer demolition by neglect by slumlords such as Ohebshalom, who is currently in prison. Neglect and poor conditions usually result in people moving out of their rent-controlled buildings. Marc and his roommate chose to stay and fight harassment.  It seems elected officials are part of this corruption as no one supports or checks on the progress. Officials are meeting to stop 7A. 
• The court appointed new management for Daniel Ohebshalom’s 410 W 46th Street tenement building through a 7A process. He was neglecting his property and abusing the tenants that lived there
• The progress of the 7A receivership that stepped in to manage Ohebshalom’s 410
  W 46th Street tenement building. This is one of the worst landlord abuse
  cases: Ohebshalom has purposely allowed his building to dilapidate

Mark Natanawan, Tenant organizer

• Acknowledged the fight tenants, such as Mark Kessler, continued to ensure his building was taken over by 7A. If Mark Kessler, had not done this the building would have been demolished now
• the reason why Daniel Ohebshalom is in jail is because
• there are other buildings in Manhattan and Queens, but the City does not give tenants many tools or provide oversight to protect tenants from “broken buildings”

DISCUSSION

• Alex Yong, WSNA/HCC: What would you say if Judge Jennings was here today?
• Marc Kessler, long-term resident of a rent-controlled building, responded that immediate action is needed as the building becomes quickly unlivable without intervention. Marc is afraid to be in his apartment at the moment due to the tactics of the landlord
• John Mudd, MSCC: where are the flaws in 7A?
• Mark Natanawan, Tenant organizer: the process needs to be sped up e.g., it took months to appoint a 7A contractor, and there needs to be more money put into the program, even though Marc Kessler fought hard for months, and it was Marc who made this happen. If there were more money to take over broken buildings from landlords and the City carried out oversight, there would be change as there would be many organized tenants and NFPs ready to work on these buildings
• Mark Natanawan, Tenant organizer: A series of proposed reforms have been made to disseminate the process in NYS, e.g., what kinds of buildings are eligible, to make it easier for tenants to win in courts, the process needs to be sped up to stop the landlord from stopping the 7A process
• Marc Kessler, long-term resident of rent-controlled building: it’s essential to know which elected officials want to stop 7A. Marc begged Senator Brad Hoylman-Sigal to intervene in the sale of 45^th Street at a press conference. These are beautiful buildings from the 1800s, and these people are not working for us as they are stopping 7A. They need to be held accountable. HPA must be alert when a building is considered for 7A. Erik Boettcher’s office did not inform Marc Kessler that the building was successful at 7A; Marc only found this out later. 311 complaints need to be acted upon, and this process needs to be worked on, or there needs to be another way. Buildings are there, but nothing happens
• Alex Yong, WSNA/HCC: We started this discussion at these meetings in August 2023. On March 21, 2024, Alex recently met with the city council chair, who was enthusiastic about 7A reform because of its many loopholes. One of the most significant loopholes is that judges give landlords chances. Alex has organized a compendium for officials who asked him to compile it. Email alex.yong.nyc@gmail.com for your copy

ACTIONS

• Alex Yong, WSNA/HCC: will focus on two members of Congress for the next guests to discuss the 7A reform

CHATBOX

• Mark Natanawan, Tenant organizer: https://www.fox5ny.com/news/who-is-daniel-ohebshalom. Infor for anyone who hasn’t heard of Daniel Ohebshalom, Marc Kessler’s landlord
• Alex Yong, WSNA/HCC:  met with two legislative specialists who work for Councilmember Pierian Sanchez – they are interested in ***7A reform/overhauling***

please get in touch with Alex to be involved: alex.yong.nyc@gmail.com

• Alex Yong, WSNA/HCC: if anyone wants to see the Pierina Sanchez 7A compendium, email alex.yong.nyc@gmail.com. The press release about Marc’s building is at:

https://www.nyc.gov/site/hpd/news/021-41/hpd-s-housing-litigation-yields-responsible-administrator-distressed-hell-s-kitchen-building.

• Vivian Sonnenfeld, Free Homeless Outreach Project

NEXT Meeting Homeless and Housing Meeting: 9:30 AM Tuesday, May 7, 2024

Always the 1^st Tuesday of every month. Contact hello@localhost or john.mudd@usa.net for more information and Zoom invitations.