Author: Honey Berk

Social Distancing? Connecting with Us!

Posted on by Honey Berk

Dear Gateway Neighbors,

We know that this time is scary and difficult for all of us. This community, standing together, has shown it can meet and get through challenges. Though the circumstances have changed and the way we interact may change, our core belief in the strength of our community is unchanged.

The key is to be there for one another by reaching out to our neighbors who may need help.  We encourage people to check in with neighbors…by phone, email, WhatsApp, or text. As more and more of us are self-isolating, it is important that we stay in touch with one another in ways that are safe.

There is strength in community and, as in the past, Gateway is resilient.  We invite all tenants to connect with us at the Gateway Plaza Tenants Association (GPTA) via social media: 

Facebook: Gateway Plaza Tenants Association
To post on our FB page:

  1. Like our page (not simply a post or a picture on the page.)
  2. Click on “Post”. The “Post” option appears on the same row and to the right of “Home” and “About”.

Twitter: @GPTA_BPC
Email: gatewayplazata@gmail.com

In the meantime, we wish you good health during this challenging time.


Resources:
CDC Checklist for Individuals and Families
NY State Department of Health
NYC Department of Health
GPTA Local Resources

Additional Class Action Settlement Q&A

Posted on by Honey Berk

Following are additional questions that we received from tenants and answers from the class action settlement attorneys Norton and Safirstein:

14. The claim form includes a section after question 2 to identify which apartments (with space for up to 3 apartments) a tenant has lived in.  In context, it appears that this section is supposed to be completed only if the class member answers “yes” to question 2 (“Did you reside at Gateway Plaza for any period of time since April 1, 2008”), which question is only to be answered if the class member answers “no” to question 1 (“Do you currently reside at Gateway Plaza?”)  Does this mean that the apartment information after question 2 is only to be answered by former Gateway tenants, but not by current Gateway tenants?

Yes. Current tenants should not answer question 2.

15. It is not uncommon for Gateway tenants to move within the apartment complex over time.  Assuming the answer to question 14, above, is that only former tenants provide the apartment information in the space after question 2 on the claim form, how would a current tenant indicate his/her/their residency since 2008 in an apartment other than the tenant’s current apartment?  Should a current tenant who has lived in other apartments at Gateway since 2008 fill out a separate claim form for each apartment?

No. We have the information readily available for tenants regardless of the time they have been residents or the units occupied. The detail required by question 2 is merely for additional verification purposes for former tenants.

16. There are a number of Gateway tenants who have combined apartments, the most common combination being adjacent studio and 2-bedroom apartments, combined to create a 3-bedroom apartment.  These tenants have a separate lease for each apartment, which remains separately numbered/lettered, e.g., an A-line and B-line combined apartment.  Where a class member resides in more than one apartment, does the class member need to fill out a claim form for each apartment?  (Note that such tenants have paid separate rent for each apartment.)  Alternatively, should such a class member put both apartment numbers in the address section of the claim form?

Thank you for flagging this issue. We will identify all tenants this applies to and make sure the double lease/rent is accounted for. That said, if more than one lease applies to a combined unit, it would probably help with the administration process if those tenants indicated as much on a single claim form.

17. The settlement agreement defines “Class Member” as “all persons who . . . reside at Gateway Plaza . . .” as well as certain former residents.  Many residents of Gateway include dependents, roommates or family members of lease-signing tenants.  Such dependents, roommates or family members, although residents of Gateway, often have not themselves executed a lease.  Should such non-lease-signing residents also fill out a claim form?

No. Only tenants appearing on a lease should submit a claim form. There is only one amount calculated per unit based on the total rent. If roommates who appear on the lease each submit claim forms, the allocation will be split evenly among them.

Class Action Settlement Q&A

Posted on by Honey Berk

GPTA has received many questions from tenants regarding the recent tenants class action settlement. GPTA was not involved in that lawsuit, but we have followed developments in the lawsuit since it was filed. The best general source of information regarding the lawsuit can be found at:  https://www.gatewayplazasettlement.com, or by contacting the lawyers representing the tenants in the lawsuit, Jeffrey Norton (Newman Ferrara LLP) and Peter Safirstein (Safirstein Metcalf LLP).

GPTA has taken some of the questions that we received from tenants and submitted them to Messrs. Norton and Safirstein.  Here are the questions and the attorneys’ answers:

  1. Will the rent abatements be credited all at once for a particular claimant, or will they be credited in increments over multiple rental periods?

    a. If someone’s rent abatement amount exceeds that person’s monthly rent, how will the abatement be handled?

    It is our understanding that the rent abatements will be credited within the least amount of rent cycles possible (likely one or two in most cases) as it will depend upon the amount of the abatement due. If the amount is such that it would be greater than the rent due in the first month, the remaining abatement would be credited against the following month’s rent, etc.
  2. Does a current tenant Class Member have the option of taking a cash payment from the settlement fund, or is the current tenant’s settlement fund benefit limited to a rent abatement?

    Current tenants are limited to rent abatements and cannot opt for cash payments.
  3. Will the settlement administrator provide a summary of how a Class Member’s
    abatement or payment was calculated? If that is not currently contemplated, could that be added to the administrator’s to-do list?

    No. That is not a common practice for a couple of reasons. First, adding that task (i.e., notifying Class Members of the proposed calculation before payments are made) would dramatically increase the amount presently allocated for notice and administration costs, reduce the overall amount payable to class members, and delay payment significantly (perhaps by years). Second, including that information with the payment (or abatement) to Class Members would also add cost without serving any meaningful purpose since there would be no mechanism to address perceived discrepancies once all the settlement funds are distributed.
  4. Will any rent abatements or cash payments be issued or distributed before the April 16 deadline for submitting claim forms? How long after claim submission or how long after the claim deadline will it be before rent abatements or cash payments are issued?

    Because the ultimate rent abatements/cash payments will be calculated on a pro-rata basis, no credits/payments will be issued until all claims have been submitted and allocation amounts have been calculated and verified. Even after all claims are submitted, there may be individual issues to sort out (e.g., claim forms conflict with rent records in some respect). Only after the claims process concludes will one be able to calculate how much each class member will be entitled to.
  5. Will cash payments or rent abatements from the settlement be subject to income taxation? If so, would they be taxed as regular income? Is the treatment different for rent abatements than for cash payments? Will 1099s be issued?

    For this question, I suggest class members speak with their tax professionals. We are not tax attorneys and cannot give tax advice or tax opinions. Often class action settlements are taxable but not always.
  6. Does a class member need to submit a claim form in order to have benefit of the 5% annual limitation on rent increases provided in the settlement?

    Yes. Although it may apply automatically, I wouldn’t suggest class members take that chance.
  7. If a tenant is covered under the 2009 QRS agreement, will protections under that
    agreement or any extension of that agreement be adversely affected by the tenant’s submission of a settlement claim form?

    No.
  8. If a tenant is not covered under the 2009 QRS agreement, will such tenant’s submission of a settlement claim form adversely affect the tenant’s prospects for being included in a new QRS agreement if such an agreement is reached between BPCA and the landlord?

    No.
  9. Will the rent abatement (or cash payment) be calculated based on rent paid only up to August 1, 2017 (by which time the capital improvements were largely completed), or will the abatements/payments be based on rent paid throughout the Class Period, which the settlement agreement defines as extending up to the Final Settlement Date? (Compare Settlement Notice para. 46 with para. 52.)

    a. If it’s the former, does that mean that Class Members who moved into Gateway on or after August 1, 2017 will receive no benefit from the $10 million settlement fund?

    No. Abatements/cash payments will be calculated through the end of the class period – regardless of when someone moved in to Gateway.
  10. Where there is more than one tenant named on a lease, and each tenant is a Class Member, will each co-tenant Class Member be entitled to a separate rent abatement or cash payment? If so, how is each co-tenant’s entitlement amount calculated?

    If the claims administrator receives more than one claim for the same unit over same time period (i.e., indicating more than one person on lease), the information will be checked against the rent data to confirm. Assuming it is determined that more than one Class Member was responsible for the rent on a unit (for a specified time), an assumption of joint responsibility will be applied such that each will be entitled to a separate cash payment. If there are two tenants, each gets half the allotment. If there are three, each gets one-third, etc. These scenarios have been flagged for the claims administrator so special attention is given.
  11. Can you clarify certification number 8 on the Claim Form (“I have not submitted any other Claim covering the same apartment during the Class Period and know of no other Person having done so on my behalf.”) This certification does not seem to reach an “other Claim” submitted on behalf of a co-tenant Class Member, since such an “other Claim” would not have been submitted on behalf of the Class Member signing the certification; it would instead have been submitted on behalf of a different Class Member.

    a. Another way of asking this question is whether or not certification number 8 should be read to mean: “I have not submitted any other Claim covering the same apartment during the Class Period and know of no other Person having done so on my behalf or on behalf of any co-tenant Class Member.”

    No, it should not be read to mean anything other than what it says. Each Class Member should submit their own claim. See Response to Question 10.
  12. Can you clarify whether the abatement/cash payment calculation examples given in the settlement notice include the effects of allocating approximately $3.6 million to legal fees and costs? It looks like the examples in the notice assumed that the full $10 million settlement fund would be distributed to the class. Is that correct? If so, would it be more accurate to estimate the rebate or cash payment amounts as being roughly 64% of the numbers given in the notice? (I.e., to assume that only $6.4 million of settlement funds would be distributed to Class members.)

    The numbers in the notice are for illustration purposes only and not based on any particular tenant or rent paid. The ultimate calculation, using the formula provided in the notice, will be based on the amount available for distribution after payment of attorneys’ fees and expenses which have not yet been set.
  13. Assuming a Class Member tenant has not opted out of the Class, is the scope of the Release applicable to such Class Member affected in any way by whether the Class Member submits a Claim or accepts a rent abatement or cash payment from the settlement fund?

    No, if a class member fails to opt out or submit a claim, they will be subject to the same release as those who did submit a claim as outlined in the notice and settlement agreement.

Changes to GPTA Bylaws

Posted on by Honey Berk

At its December 2, 2019 Board meeting, the GPTA approved the following changes to the GPTA Bylaws:

a.         Reduction of the maximum number of Directors from 15 to 13, effective as of the election next held after the February 2020 Annual Meeting. (That is, 15 Directors will be elected at the February 7, 2020  Annual Meeting, but 13 will be elected at all subsequent Annual Meetings.)

b.         Instituting a Board meeting attendance requirement for Directors as follows:  a Director may be removed by a vote of the Board if a Director has 3 consecutive unexcused absences from Board meetings, or 4 unexcused absences within a calendar year.  Among factors to be taken into account in any such removal vote would be the Director’s attendance and participation in other GPTA events or meetings apart from Board meetings.  Absences can be excused for personal or family medical issues, attendance to other GPTA business, or other issues in the discretion of the President.  In general, work commitments will not be a basis for excused absence, the thinking being that if a person is too busy with work to attend to GPTA matters, the person should not be a Director.

c.         Changing the Board meeting quorum from 1/3 to 1/2.

d.         Imposing a limit of one Director per household.

e.         Deleting the following language from Article III, Section 2: “If a household contains more than one (1) person, the votes allocable to such household may be divided in any manner as the persons comprising the household shall determine.”  The concept here is that fractional votes, which were permitted under the previous version of the By-Laws, had never actually occurred; and the Board believes that if a household did want to cast fractional votes, they would be difficult to administer and would be likely to cause confusion.

f.          Change in timing of Annual Meeting to the 4th quarter of the calendar year.  This means the next Annual Meeting after the February Annual Meeting will likely be less than a year after the February Meeting.

g.         Clarification of the nomination process for election of Directors:  any Member in good standing may nominate himself, herself, or another Member in good standing (measured as of the date and time of the annual meeting).  Candidates whose nominations are conveyed to the Board 14 days or more before the Annual Meeting will have their names reflected on the ballot, with the names of candidates presented in alphabetical order.  Nominations for write-in candidates will also be accepted at the annual meeting.

Read the full text of the newly adopted bylaws.

Class Action Settlement Agreement Update

Posted on by Honey Berk

Dear Gateway Tenants,

Notices of a class action settlement agreement were distributed to apartments on Tuesday.  If you did not receive a notice, you can download one at: https://www.nfllp.com/documents/Cases/Gateway-Plaza-Long-Form-Notice_2.pdf or call the settlement Claims Administrator at 1-855-648-7655.

We have received questions from many tenants about the settlement notice.  Here is a summary of key points:

1. GPTA is not directly involved in the lawsuit that is being settled, In re Gateway Plaza Residents Litigation (the “Gateway Lawsuit”).  The information in this note comes from speaking with people who were involved in the Lawsuit and from reading the information on the public court docket.  The most authoritative information about the settlement is what’s contained in the settlement notice and in the related court file.  Please don’t consider anything in this note to be legal advice.

2. The Gateway Lawsuit and its settlement have nothing to do with the on-going rent stabilization negotiations.  However, one of the settlement terms includes  an agreement by Lefrak that rent increases from 2020 to 2022 will be no more than 5% annually for ALL Gateway tenants.  This limit on rent increases will apply even if rent stabilization is not extended. If stabilization is extended, tenants covered by the extended agreement would have their renewals governed by the rent stabilization agreement. 

3.  Participating in the Gateway Lawsuit settlement will have no effect on your coverage under the rent stabilization agreement.

4. The settlement also provides for a rent rebate for any current tenant who has lived in Gateway since April 2008 (and for cash payments to tenants who lived in Gateway since April 2008, but who are no longer tenants).   How much a particular tenant gets will be based on the gross amount of rent that tenant has paid since April 2008.  The settlement notice estimates that the rebate for current tenants will be equal to 1.66% of the aggregate rent paid over that period – which could come to anywhere from a few hundred to a few thousand dollars.  The settlement notice doesn’t contain enough information to calculate any particular tenant’s actual rebate or refund with any accuracy.

5. In order to take advantage of the settlement, you will need to submit the claim form included with the settlement notice by April 16, 2020.  You also have the  option of excluding yourself from the settlement, if you do so by January 31, 2020.   There will be a court hearing on March 2, 2020, at which time the court will either approve or reject the settlement, based on fairness considerations.  Any class member who wishes to appear at the hearing and voice objections must submit a written objection to the court by January 31, 2020.

Updates!

Posted on by Honey Berk

IT’S HOLIDAY TIME….Please join us on Tuesday, December 10th as we raise a glass to toast the holiday season at Le Pain Quotidien. Festivities will be from 6 pm to 8 pm . This event is open to all Gateway Plaza residents. Wine, soft drinks and light fare will be served.

SAVE THE DATE
The Gateway Plaza Tenants Association Annual Meeting will be held on Thursday, Jan. 16th. More information to follow.

UPDATE ON RENT STABILIZATION
We continue to work closely with our elected officials and Battery Park City Authority on the extension of Gateway’s rent stabilization program. Though GPTA does not have “a seat at the negotiating table,” we can report that we have an active and continuing dialogue with our elected officials who are advocating with both BPCA and the landlord towards our desired goal.We will keep you advised of all developments.

JOIN OR RENEW MEMBERSHIP TO GPTA
As we approach the end of 2019, this is a good time to join GPTA or renew your membership for 2020.  

Press Release: Gateway Plaza Tenants Association, Elected Officials and Community Leaders Rally to Demand Rent Stabilization for All Gateway Plaza Tenants

Posted on by Honey Berk

Downloads: Press Release, Fact Sheet

NEW YORK, NY (Jun. 2, 2019) — The Gateway Plaza Tenants Association, along with residents and community leaders, rallied with Congressman Jerrold Nadler, NYC Comptroller Scott Stringer, Manhattan Borough President Gale Brewer, NYS Assembly Member Yuh-Line Niou and NYC Council Member Margaret Chin, to demand the extension of rent stabilization protections for all Gateway Plaza tenants,

In advance of the June 2020 pending expiration of rent protections at Gateway Plaza, the Gateway Plaza Tenants Association has been mobilizing tenants to urge the LeFrak Organization to complete its negotiations with Battery Park City Authority to renew the contractual rent protection agreement in place since 1987.

Gateway Plaza was the first residential building in Battery Park City. Completed in1983, Gateway was originally envisioned as affordable housing for all tenants in the six-building, 1,700-unit development. In exchange, Gateway ownership has received a substantial discount on its annual ground lease payments for more than 30 years.

Gateway Plaza has always served as a haven for the middle-class families, young people and seniors who chose to make Battery Park City their home. In the aftermath of the terror attacks of 9/11, an overwhelming majority of Gateway Plaza residents returned to rebuild their community, spurring on the wildly successful revival of Battery Park City.

The rent stabilization agreement in effect from 1987 to mid-2009 covered all Gateway Plaza tenants. The current agreement, negotiated by the Battery Park City Authority and elected officials in 2009, secured rent stabilization through 2020 only for then-current residents.

Tenants who moved in after the date of the 2009 agreement, pay market-rate rents and are not covered by the stabilization protections afforded under the agreement. Since the current agreement was signed, rents in lower Manhattan have far exceeded the rate of inflation, and these tenants have reported significant annual rent increases that quickly render their homes unaffordable.

Gateway residents are demanding that the new rent stabilization agreement cover all tenants and that renewal rent increases be in accordance the NYC Rent Guideline Board guidelines.  Further, the term of the new agreement should be extended through 2040 when the Gateway Plaza ground lease agreement with Battery Park City expires.  If the term of the ground lease is extended, the rent protections should be extended for the same term.

“Our city is in a housing crisis,” said Congressman Jerrold Nadler.  “Affordability is an issue that affects many middle-class New Yorkers, and the issue at Gateway Plaza is a prime example of middle-class families in New York City getting squeezed out of their neighborhoods.  As the Battery Park City Authority and Gateway’s owner, the LeFrak Organization enter into discussions to renew their agreement, our priority must be the extension of rent stabilization protections to every current tenant at Gateway, not just to legacy tenants who have lived here in 2009.  I am committed to working with my colleagues in government in the City and State level to ensure that Gateway Plaza remains an affordable community where residents can continue to live and bring up their families.”

“New Yorkers are increasingly feeling the squeeze on rents that keep going nowhere but up,” said NYC Comptroller Scott Stringer. “That’s why I’m proud to stand alongside the residents of the Gateway Plaza Tenants Association in Battery Park City to echo their demands for fair rental agreements for all of the development’s residents. We must build communities where working New Yorkers can find a place to call home and can make it in New York.”

“Gateway Plaza has long been a beacon of hope for middle-class residents in an increasingly unaffordable city, said Manhattan Borough President Gale A. Brewer. “New Yorkers deserve to live free of worry that their rent will suddenly increase and become impossible to pay. I support the Gateway Plaza Tenants Association’s request for LeFrak Organization to work with the Battery Park City Authority to renew and expand rent stabilization protection to all Gateway Plaza residents.”

“Battery Park City is as vibrant and successful as it is today largely due to the residents at Gateway Plaza,” said Assemblymember Yuh-Line Niou. “The tenants at Gateway Plaza helped build our community and revitalized our neighborhood that was once a landfill. Even after September 11th, these tenants came back to rebuild and reestablish our community. Their dedication cannot go unrecognized. There should be no question that the residents at Gateway Plaza deserve to stay in the community they helped to develop. The current arbitrary rent increases are unacceptable. Not only do they eliminate the last remaining affordable housing stock we have in Battery Park City, these increases push out community members and especially destabilize the many senior residents who live on a fixed income at Gateway Plaza. I urge LeFrak and the Battery Park City Authority to resolve their negotiations immediately and include provisions to preserve and expand affordability in Gateway Plaza. Going forward, we must also continue to fight to expand the affordable housing stock in Battery Park City which remains as one of the most expensive places to live in New York.”

“As the Council Member representing Battery Park City, I have stood shoulder to shoulder with the Gateway Plaza Tenants Association to ensure their building remains a haven for the middle-class families, young people and seniors who choose to make this neighborhood their home,” said Council Member Margaret S. Chin. “For more than 30 years, the rent protection agreement between the LeFrak Organization and the Battery Park City Authority has been a vital tool in the effort to keep the neighborhood’s first residential building affordable. Today I am joining the Gateway Plaza Tenants Association to demand that the building be made affordable for all residents.”

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Gateway Plaza Rent Stabilization History

Posted on by Honey Berk

As most of you know, if you’ve lived in Gateway Plaza since June 2009, you are protected by a rent stabilization agreement. That agreement expires in June 2020. What you may not know is that before 2009 – going all the way back to 1987 – EVERYONE at Gateway was protected by a rent stabilization agreement.

The Gateway Plaza Tenants Association (GPTA) is working with the Battery Park City Authority (BPCA) and our elected officials to secure a renewal AND expansion of the rent stabilization agreement: We want the agreement expanded to cover ALL Gateway residents and we want the agreement extended until at least 2040.

The rent stabilization agreement is the result of the settlement of a lawsuit brought by GPTA in the mid-1980s against BPCA and the LeFrak Organization. The tenants alleged in that lawsuit that because Gateway was developed and constructed with public funds under the New York State Mitchell Lama program, BPCA was under an obligation to regulate the rents and to maintain Gateway as affordable housing. LeFrak acknowledged that Gateway’s rents should be regulated by a governmental authority, but claimed that the proper regulator was HUD, the federal housing agency. This was back during the Reagan Administration, when HUD took a hands-off approach to regulation. 

GPTA, BPCA and LeFrak settled the lawsuit in 1987 by making an agreement that required all rent increases to be governed by the NYC Rent Stabilization Guidelines, while permitting the initial rents for a lease to be whatever the market would allow. This meant that if you could afford to live in Gateway when you moved in, you could probably afford to stay in Gateway for many years. The 1987 agreement covered all Gateway residents, no matter when they moved in.

The 1987 agreement had an original expiration date of 1993, but was extended several times until 2009. In 2009, however, the agreement was limited to cover only tenants who lived here as of the effective date of the agreement, which was June 20, 2009. 

As the 2009 agreement is coming up on its 2020 expiration date, GPTA is working on another renewal: We want an extension to at least 2040, which is the current end date for LeFrak’s ground lease – and we want the agreement to once again cover ALL Gateway residents, no matter when they move in.

Media Advisory: Gateway Plaza Tenants Association, Elected Officials and Community Leaders to Hold Rally to Demand Rent Stabilization for All Gateway Plaza Tenants

Posted on by Honey Berk

WHO:            NYS Congressman Jerry Nadler, NYC Comptroller Scott Stringer, Manhattan Borough President Gale Brewer, NYS Assemblymember Yuh-Line Niou, NYC Council Member Margaret Chin

WHAT:         Rally for Rent Stabilization at Gateway Plaza, Battery Park City

WHEN:         June 2, 2019; 5:00pm

WHERE:       Volleyball Court, Esplanade Plaza, Battery Park City (south of North Cove)

In advance of the June 2020 impending expiration of rent protections at Gateway Plaza, the Gateway Plaza Tenants Association is mobilizing tenants to urge the LeFrak Organization to complete its negotiations with Battery Park City Authority to renew the contractual rent protection agreement in place since 1987.

The first residential building in Battery Park City, completed in 1983, Gateway Plaza was originally envisioned as affordable housing for all tenants in the 6-building, 1,700-unit development. In exchange, Gateway Plaza has received a substantial discount on its annual ground lease payments.

Gateway Plaza has always served as a haven for the middle-class families, young people and seniors who choose to make Battery Park City their home. In the aftermath of the terror attacks of 9/11, an overwhelming majority of Gateway Plaza residents returned to rebuild their community, spurring on the wildly successful revival of Battery Park City.

The rent stabilization agreement in effect from 1987 to mid-2009 covered all Gateway Plaza tenants. The current expiring agreement, negotiated by the Battery Park City Authority and elected officials in 2009, secured rent stabilization through 2020 only for then-current residents.

Tenants who moved in after the date of the 2009 agreement pay market-rate rents and are not covered by the stabilization protections afforded under the agreement. Since the expiring agreement was signed, rents in lower Manhattan have far exceeded the rate of inflation, and these tenants have reported significant annual rent increases that quickly render their homes unaffordable.

GATEWAY TENANTS DEMAND

New rent stabilization agreement that covers all Gateway Plaza Tenants,
to ensure continuation of a stable community

Term of the new agreement to extend through 2040, when the Gateway Plaza ground lease agreement with Battery Park City Authority expires.

Renewal rent increases in accordance with NYC Rent Guidelines Board rates,
based upon rent actually paid by the tenant in prior lease.

About Gateway Plaza Tenants Association: The Gateway Plaza Tenants Association was created in 1984 to respond to tenant-related issues at Gateway Plaza, the largest residential complex in Battery Park City. Over the last three decades, GPTA has accomplished a variety of goals, including negotiating long-term rent-stabilization agreements with the landlord, thereby preserving Gateway as a family-friendly residential community for people with diverse incomes.

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For more information, please email honeyberk [at] gmail.com.