Independence Plaza North Tenant Association

Hundreds Rally to Save Our Homes at IPN

Nov 05, 2002

In what may have been the largest turnout in IPN's history, hundreds of tenants arrived at the BMCC auditorium on October 16 to hear IPNTA's strategy to thwart evictions under a looming "buyout" of the buildings.

Members of the tenant organization's board, including President Neil Fabricant, detailed our extensive efforts to secure political and governmental support for tenants' right to remain in their homes.

Under a buyout of a Mitchell-Lama complex like IPN, the owners-or anyone with whom they contract-can pay off the remaining mortgage, and then, with government approval, charge market rentals. In our neighborhood, such rentals would undoubtedly soar to unaffordable levels for most tenants. More than 50 other Mitchell-Lama complexes in the city and state have already been turned into market rentals or coops. Many former tenants have been forced out.

At IPN, real estate giant Laurence Gluck is reportedly under contract to buy the complex from the current owners. Gluck has informed the IPNTA board of his intention to exit the Mitchell-Lama program.

At IPNTA, a possible strategy is to transform the buildings into a non-eviction, "limited equity" cooperative. That would enable tenants to purchase apartments with a limited down payment, but prevents them from selling their apartments at market rates. In other words, it's designed to preserve affordable housing, not to enrich anyone.

Political Support Crucial

Fabricant and other board members stressed, however, that any such strategy requires garnering a lot of political support, which in turn depends on tenants registering to vote. Board members said repeatedly that elected officials are motivated to act seriously on our behalf only when they face a bloc of thousands of voters.

They also pleaded with tenants to contribute much more to the tenant fund, necessary to secure the services of legal, financial and perhaps lobbying professionals.

Board members noted "deals" agreed to by tenants in some other Mitchell-Lama buildings, such as Waterside. To stay in their apartments, those tenants agreed to pay a yearly increase of 9 percent the first two years, and 7.5 percent every year thereafter. That means forever.

Because the increases are compounded, a tenant now paying, say, $1000 a month would face a rent of more than $1700 a month in five years. That is a 70 percent increase in only five years! And this will occur precisely when our economy is in recession and mass layoffs are commonplace.

To develop a plan to help tenants rather than penalize them, IPNTA has secured the services on various legal and financial professionals. Among them is Engel & Partners, whose president, Judy Engel, is a former official of the state's housing administration. The firm is developing a realistic financial model for tenant ownership. More information on their progress will be forthcoming.