Category: Rent Stabilization

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.

###

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

Rent Stabilization Agreement FAQ

Posted on by Honey Berk

Q:        I’ve heard that the Gateway Plaza rent stabilization agreement expires in 2020 – what does that mean?

A:        The rent stabilization agreement, which covers all Gateway residents who lived here as f June 30, 2009, expires June 30, 2020. GPTA is working closely with the Battery Park City Authority and our elected officials to negotiate an extension of the rent stabilization agreement. However, if the agreement expires without extension, here is how it works: for any rent stabilized leases expiring between July 1, 2018 and June 30, 2020, the tenant is entitled to a 1-year renewal with rent increases determined by the rent stabilization guidelines (currently 1.5%). So, for example, if your lease expired October 31, 2018, you were given a 1-year renewal, with a 1.5% increase in rent; your renewed lease will expire October 31, 2019. At that time, you’ll be entitled to another 1-year renewal to October 31, 2020. At that point, unless the rent stabilization agreement is extended, any renewal would be determined by whatever the landlord requires – it could be 1.50%; it could be 20% or more. Notice that, even though the rent stabilization agreement expires on June 30, 2020, that doesn’t mean that your lease will expire on that date – your lease will expire one year from the date of your last renewal.

Sample Letter to Officials for Rent Stabilization

Posted on by Honey Berk

Below is the text of a sample letter that can be used to email or mail our elected officials to help motivate them to make rent stabilization at Gateway Plaza a real priority. You can also download a copy of the rent stabilization letter as an MS Word document.

[Date]

[Your name]
Gateway Plaza
[Your building] South End Avenue
Apartment [Your apartment]
New York, NY 10280

[Elected Official]
[Address]
New York, NY [Zip code]

Dear [Elected Official]:

I have been a resident of Gateway Plaza for [number] years and am concerned about maintaining affordable rents in Lower Manhattan. As such, I am writing to ask for your support in securing a rent stabilization agreement for all Gateway Plaza residents. For the past 10 years, rents in lower Manhattan have far exceeded the rate of inflation and many residents are feeling the pressure, so we need your support!

Completed in 1981, Gateway Plaza was the first residential building constructed in Battery Park City and was originally built as affordable housing. In exchange, Gateway Plaza was given a substantial discount on its ground rent payment. In 2009, the Battery Park City Authority and our elected officials were successful in securing rent stabilization through 2020 for tenants who were already living in the complex. Tenants who moved in after that date that did so at market-rate rents and without the protections afforded under the 2009 agreement. These market rate tenants have reported significant annual rent increases since 2009.

As the current trend is unsustainable for many residents of New York City, we are seeking rent stabilization for ALL Gateway residents, not just those covered under the previous agreement.

On the heels of the recent Citizens’ Budget Commission study documenting the severity of New York City’s rent burden, along with the priority that the De Blasio administration has made of the preservation of affordable housing, we kindly ask for your active support and advocacy on this matter.

Sincerely,

[Your name]

Annual Meeting Announcement: Keep Gateway Plaza Affordable!

Posted on by Honey Berk

Join Gateway Plaza Tenants Association in Keeping Gateway Plaza Affordable for All Tenants!

Here’s How to Get Involved:

COME TO THE GPTA ANNUAL MEMBERSHIP MEETING
Wednesday, October 17th
P.S. 276
55 Battery Place – ONLY A 5-MINUTE WALK!
6pm Doors Open – Meeting ends promptly at 8pm

The meeting is open to ALL GATEWAY RESIDENTS and will provide an update by the GPTA Board.

  • Come meet our elected representatives.
  • There will be a community discussion with a Q&A to let your elected officials know what matters to us.
  • Nominations and Elections of Board Members (if you are interested in placing your name on the ballot send an email to GatewayPlazaTA@gmail.com. Only tenants who are current paid GPTA members may vote. JOIN the Gateway Plaza Tenants Association (GPTA)
  • Membership in GPTA is $25 per household
  • Join or renew online at http://gpta.org/join
  • Payable at the door by cash, check or credit card.

CONTACT OUR ELECTED OFFICIALS!
GPTA is seeking rent stabilization for ALL Gateway residents, NOT JUST THOSE COVERED PREVIOUSLY……….. but we need your help. PLEASE SEND AN EMAIL to your elected officials to ensure that Gateway Plaza is affordable for the entire Gateway community!

Either use the sample letter we have written, or feel free to compose your own. (Clicking on the link will download a MS Word document that you can customize, then copy into an email.) The text of the letter can also be found in the post below this one.

Reps can be contacted here:

SIGN OUR ONLINE PETITION
To help our elected officials understand how important their support is to us, we have created on online petition that is quick and easy to sign. Please take a minute to click on the link and add your name: Gateway Plaza Rent Stabilization Petition

EVEN IF YOU CANNOT ATTEND THE ANNUAL MEETING, PLEASE SEND THE EMAILS AND SIGN THE PETITION!

Rent Stabilization for ALL Gateway Residents

Posted on by Honey Berk

What you can do to support the Gateway Plaza Tenants Association’s campaign for Rent Stabilization for ALL

  • As you probably know, the rent stabilization guidelines that are in place for many Gateway Plaza tenants are set to expire in June 2020.These guidelines provide protections to tenants by limiting the amount rents can be increased. These limits follow the same percentage guidelines established annually by the Rent Controls Board.
  • With the help of our elected officials and support of Battery Park City Authority, the GATEWAY PLAZA TENANTS ASSOCIATION (GPTA) has played an important role in assuring renewals of the guidelines in 1987, 1995, 2005, 2009.
  • With the prospect of the guidelines expiring, GPTA is looking to each Gateway tenant to reach out to our elected officials and BPCA to urge them to continue to protect us.
  • GPTA is seeking rent stabilization for ALL Gateway residents, not just those covered previously.
  • The term of the last agreement was 10 years; we are requesting a term of 20 years for this new agreement.
  • GPTA urges everyone to participate in this effort, by signing a petition, making phone calls and/or writing letters.
  • Very soon we will be providing information to you about how you as an individual can support our goals. Watch for our email, which will include a sample letter you can use, or feel free to write your own. Contact information for our representatives will be attached.