Goldstein Hall PLLC - Attorneys at Law Specializing in Affordable Housing

Lowest-Income Renters Left Behind in Housing Crisis

goldsteinhall — Thu, 16 Feb 2012 21:10:09 +0000

The foreclosure crisis has been a four-year nightmare for many homeowners, more than 3 million of whom have lost their homes. Many of these ex-homeowners are middle class people with jobs and safety nets, and have become renters or traded down for more inexpensive homes after losing their primary residences.

But for the very poor, options are limited, and the situation is dire, according to a report out Wednesday from the National Low Income Housing Coalition.

Administration Revamps HAMP to Reach More Borrowers

goldsteinhall — Tue, 07 Feb 2012 21:04:03 +0000

On Friday January 27th 2012, the U.S. Department of the Treasury and the U.S. Housing and Urban Development Department announced key adjustments to the Home Affordable Modification Program (HAMP) in an effort to enhance relief to a larger share of homeowners and renters in need of assistance. The HAMP program encourages investors to agree to restructurings for homeowners who are struggling to make their payments by tripling incentives paid to banks that reduce principals on loans.

HAMP was designed to bring the debt ratio of mortgage borrowers down to 31% of their incomes. The new guidelines will allow for a more flexible approach for borrowers who previously were ineligible for a modification. In addition, under the new HAMP, the Treasury will pay the same incentives to Fannie Mae or Freddie Mac if they allow services to forgive principle amounts.

The administration hopes to improve its main foreclosure prevention program to support the overall housing market recovery. The changes in HAMP will take effect at the end of April.

By: Krista Zembsch, Law Clerk

[Source: DSNews]

$33.6 Million Awarded by the Federal Home Loan Bank of New York for Exactly 57 Affordable Housing Initiatives

goldsteinhall — Mon, 06 Feb 2012 14:53:38 +0000

The Federal Home Loan Bank of New York announced that it has awarded $33.6 million in subsidies to fund 57 affordable housing initiatives throughout New Jersey, New York, Maryland and Pennsylvania. These awards will result in the creation or rehabilitation of 2,837 affordable housing units, including more than 2,200 units dedicated to very low-income housing and nearly 2,700 units of affordable rental housing. Furthermore, the awards will improve community development by providing more than an estimated $486 million in development costs to be generated from these initiatives. Congress mandates that the Bank forego 10 percent of its earnings each year to support neighborhood housing and economic development initiatives. The Bank’s Affordable Housing Project financing is combined with other funding sources to create housing for moderate-, low- and very low-income families. Program awardees receive this funding through a competitive application process. The New Jersey communities that will benefit from the funds include: Allendale, Atlantic City, Bayonne, Brick, Camden, Jersey City, Millstone Township, Newark, Orange, Somerset, Trenton, Vineland, Weehawken and Woolwich. The New York communities include: Albany, Brooklyn, Buffalo, Canandaigua, Clarkson, East Patchogue, Henrietta, Kirkville, Ithaca, Mt. Vernon, New York, New Rochelle, Niagara Falls, North Tonawanda, Norwich, Ossining, Rochester, Rome, Seneca Falls, Syracuse and Webster. Baltimore, Maryland and Philadelphia Pennsylvania will benefit from these funds as well.

By: Chase Sandler, Law Clerk

[Source: Loan Safe]

New “Mega” Affordable Housing Development in Midtown West

goldsteinhall — Thu, 19 Jan 2012 16:42:39 +0000

The New York City block used as a parking lot and a place to board police horses for the past three decades is now the construction site for Gotham West, the largest-ever affordable housing project taken on by a private developer. A “U”-shaped brick building will take up almost the entire block from 44th to 45th streets and from 10th to11th avenues. Its construction began this past summer and Gotham West is expected to be complete by the summer of 2013.

The building reserves 682 of its units for affordable housing which makes up more than 50% of the total number of units. The anticipated design for the units includes stainless steel appliances, granite countertops and parquet floors. There will be three tiers of eligibility for the affordable housing units: only those families who make up to 50%, 135% and 165% of the area median income will qualify.

The city condemned and cleared the site in the 1970’s but no new building was ever built. Thanks to the development deal for the Hudson Yards project a few blocks south, the area was re-zoned for offices and homes which led to the approval of Gotham West.

Gotham Organization, the developer of Gotham West, funded the $520 million project with tax-exempt bonds and $200 million of its own money.

Gotham West will also include market rate units, 15,000 square feet of retail space and 25 condominiums.

By Dalila C. Castillo, Law Clerk

[Source: NY Times

Harlem Dowling Annual Board Meeting Highlights Agency’s Accomplishments

goldsteinhall — Tue, 17 Jan 2012 22:31:53 +0000

Manhattan Beep opposes mayor’s plan to sell three commercial buildings

goldsteinhall — Tue, 17 Jan 2012 22:14:03 +0000

Mayor Michael Bloomberg’s plan to sell three Lower Manhattan commercial buildings has been strongly opposed by Manhattan Borough President Scott Stringer. Stringer has stated that it is critical for New York City to explore every opportunity available to create new affordable housing for the middle class. Mr. Stringer estimates that as many as 653 units of housing could be provided by the city buildings Bloomberg wants to put on the block. Mayor Bloomberg is motivated to sell the three city buildings to private developers in order to solve budget shortfalls. The Mayor, in his State of the City address, stated that $100 million in private sector tax revenue and cost savings over the next 20 years could be generated by converting public buildings to private buildings while bringing new jobs and housing for the downtown community.

Stringer has declared, however, that there must be a clear definition of public benefit from the Bloomberg Administration in order for the sale to go through. As head of the borough board, a body whose approval is required for sale of assets through the Economic Development Corporation, Stringer said he can and will avoid a vote on the sale of the buildings in order to retain the buildings for the City to develop affordable housing and public schools.

State Senator Daniel Squadron and Assemblywoman Deborah Glick also support Stringer’s stance on the issue. Locations for schools and affordable housing in Lower Manhattan have dwindled as the area has experienced substantial growth. Stringer hopes to provide additional growth for this thriving neighborhood by creating additional housing for the middle class.

By Chase Sandler, Law Clerk

[Source: The Real Deal]

Help for Homeless Veterans

goldsteinhall — Tue, 20 Dec 2011 16:44:00 +0000

The Department of Veterans Affairs and Housing and Urban Development have announced modest but real progress in the effort to house homeless veterans. A count of people living in shelters and on the street in 400 communities on one night in January found 12 percent fewer veterans than at the same time last year — 67,495, compared with 76,329 in 2010. The percentage of homeless veterans living in shelters and transitional housing was also slightly better, up by 2 percent.

Regaining Possession of Apartments from Resident Custodians, Porters other Employees: The Labor and Employment, Landlord & Tenant Implications of Severing Ties.

goldsteinhall — Thu, 08 Dec 2011 17:57:31 +0000

Arrangements whereby custodians, porters and other types of employees occupy apartments at buildings where they perform services are legal, indeed common. Buildings and management must take heed that appropriate tax filings are performed, particularly in case in which occupancy comprises all or part of the compensation package afforded to employees who perform services for the building. What happens, however, when the services cease because, for example, the employees is terminated, resigns or passes away? Can you evict the former employee?

The answer to the question above depends in large part upon the nature of the relationship between the occupancy and the employment. If the occupancy is incidental to the employment, then there is no landlord-tenant relationship and the occupancy ends upon termination of employment. In this case, the owner or managing agent may pursue eviction if the former employee does not vacate voluntarily. In contrast, if a landlord-tenant relationship exists independently of employment, then absent other causes, the employee is entitled to remain in possession despite termination of employment.

How does an owner or managing agent know whether the former employee must vacate or not? Courts have looked to the following factors, among others:

Did the employee occupy the apartment before his or her employment commenced?

Does the occupancy constitute part of the employee’s compensation package, or is rent deducted from the employee’s payroll?

Did the parties agree that occupancy ends upon the termination of employment?

In addition, many who serve and reside in buildings are employees of the managing agents. If such employees may they nevertheless retain their apartments at the building itself? The answer is not so clear given mixed conflicting precedent from the Courts.

Regaining possession of the apartment is also subject to whether termination of the employee is legal. A discharged employee may pursue a grievance with his or her union, or commence litigation based upon allegations of employment discrimination or other types of wrongful discharge. Such proceedings will suspend efforts to evict the employee. An employee who is ultimately found to have been wrongfully terminated will likely be able to retain employment and retain possession of his or her apartment.

The foregoing presents just the basic questions management and boards of directors must consider in treating building employees. With over twenty years in landlord and tenant, employment and labor and various other types of commercial litigation, attorneys at Goldstein Hall PLLC are fully equipped to provide you advice and counsel and, if need be, representation in litigation should the need arise. We invite you to call upon us.

Written by: Philip J. Onorato, Member

‘Zero-Energy’ Construction Crosses the Ocean

goldsteinhall — Fri, 02 Dec 2011 22:22:56 +0000

With green building as one of the most important current trends in housing construction, developers have begun experimenting with the concept of a zero-energy dwelling, known as a “passive house.” The passive house concept originated in Europe and has only recently begun to be used in the United States. Houses designed to be passive houses utilize a system of interior and exterior air exchange, an airtight building envelope and energy-saving appliances to reduce energy needs to one quarter of the amount of energy needed for traditional houses. The passive house design uses an energy recovery ventilator or, ERV, a ventilation system that takes warm air from inside, traps its heat on special membranes, and then uses this heat to warm air from the outside. Passive houses are designed with thicker walls and triple paned windows to prevent the escape of hot air in the winter and cool air in the summer.

While currently passive house construction is estimated to be 10-15% more expensive than equivalent, traditional construction, that cost is offset by the sharply reduced energy costs. Additionally, the cost of passive house construction is expected to fall as building techniques become more efficient and components begin to be manufactured in the United States.

By Matthew Pisciotta, Law Clerk

[Click to read Article from NY Times]

Pact’s Benefits in Limbo

goldsteinhall — Tue, 29 Nov 2011 22:21:20 +0000

A community benefits agreement between the residents of Harlem and Columbia University was supposed to be a major asset for the community; instead, it has served to highlight the all-too-common problems that arise in agreements between developers and neighborhood coalitions. The CBA, agreed to as part of Columbia’s recent expansion, contained a benefit package valued at $150 million, including a $76 million “benefits fund” to be distributed over 16 years. However, the nonprofit corporation set up to administer the bulk of the benefits still has no office, website, or staff, resulting in nearly $3 million in Columbia donated funds left unspent. Columbia has directed funds to pay for an agreement compliance officer and a tenants attorney to advise residents on evictions, but these positions remain unfilled nearly 2 ½ years after the agreement.

Matthew Schommer, Law Clerk