To the Editor:

Last week the Division of Housing and Community Renewal (DHCR) determined that the rents at Westview would increase by 4.5% in 2001 and an additional 4.5% in 2002 (total 9%).  This rent hike is a result of an unexplained urgency on the part of DHCR officials to please the Housing Company instead of looking at the facts and doing their jobs.  Indeed, the present 9% rent increase is completely unnecessary, as was the prior 8.5% increase from 1999.

The Budget Rent Determination process allows Roosevelt Island Housing Management Corporation (RIHMC) to project expenses and income for the following two years and ask for a rent adjustment if their income projections do not meet their expense projections.  DHCR must carefully review such projections and make sure that they are properly substantiated.  DHCR accountants and engineers approve every single contract over $5,000.  The role of DHCR is extremely important as RIHMC has had a history of providing unsubstantiated and at times misleading projections.

During the 1998/9 Rent Determination Process, for example, RIHMC projected a total of $2,324,000 needed for repairs and replacements and asked for a significant rent increase.  DHCR eventually approved $911,190, which was paid in.  But RIHMC used only a total of $546,918 in two years for actual repairs and replacements.  The balance of the paid-in monies, about $365,000 was not used to improve the condition of the building, but was rather transferred directly to the reserve fund and parked there.

When we first received the new Budget from DHCR, we immediately noticed that we were required to pay about $1.3 million in two years for unspecified repairs and replacements.  The Task Force retained two construction engineers, an energy conservation expert, and two accountants to review RIHMC expense records and to inspect the building.  What we have found shocked everyone.

The original lowest bidder on the roof, BBR Contracting, suddenly became the highest bidder.  The current price that RIHMC agreed to pay is about 40% higher than the original bid, and almost double the market price.  In terms of dollars, Westview tenants are required to pay about $400,000 in added cost.

Worse yet.  Instead of financing the roof replacement over 15-18 years as legally required, RIHMC  boldly requires that Westview tenants will front all the money through a huge permanent rent increase.

There is a $230,000 surplus in the Reserve Replacement Fund (over the mandatory level), but instead of either using this surplus to improve the condition of the building or return the money to the tenants, RIHMC plans to increase this surplus, using our rents, to over $400,000.

Westview tenants pay on average $220 per month for energy, precisely 231% more than the average monthly electricity bill in NYC, only because RIHMC has failed to perform the legally required Energy Audit Report and thus failed to realize significant cost savings.  Just a simple retrofitting of the hallways lighting would save $73,554 annually.

If DHCR had listened to our comments and forced RIHMC to pay the market price for the roof replacement, we could have saved 6% of our rents.  If DHCR had listened to our comments and forced RIHMC to finance the roof replacement over 15-18 years as legally required, we could have saved an additional 5% of our rents.  If DHCR had listened to our comments and forced RIHMC to use the $230,000 Reserve Surplus, we could have saved an additional 4% of our rents.  If DHCR had listened to our comments and forced RIHM to substantiate all expenses, we could have ended up with a 15% rent reduction instead of a 9% rent increase.  These are the facts and they are undisputed.

This Rent Determination process is not over.  Luckily, the very same laws that provide government with power to determine our rents, provide the tenants with protection against incompetent government, waste and mismanagement.

Finally, I call upon the leaderships of Island House and Eastwood to take a hard look at the realities of your own buildings as they relate to the issues raised by Westview.  You'd probably find a very similar situation: waste, overpriced contracts, fronting of major capital expenditures, overfunded cash reserve, unsubstantiated expenses, and inadequate maintenance.  It's time we join forces.

Opher Pail
Chair, Westview Task Force

Robert Ryan, President
RIOC
591 Main Street

Dear Mr. Ryan:

On a recent Wednesday evening as I was circling the sixth floor of Motorgate looking for a place to park, I noticed quite a few new and near-new Ford Focus cars parked on the west side of the facility.  In fact, there were 26.  Curious, I then counted an additional 32 on the up-ramp.  About half had the same unusual license plate - the other half had no license plate.  I am writing to ask if Motorgate has become a car dealership?  Or were they stolen and harbored in Motorgate until they could be unloaded elsewhere?  You have recently authorized an increase in parking fees for Roosevelt Island residents, from $170 to $180 a month, which I paid for the first time this month.  Is Motorgate charging the same monthly rate for these vehicles?  Regardless of the fee, is it right that a commercial car operation interfere with residents' ability to find places to park in Motorgate?

To the Editor:

The letter from Judith Berdy in the March 10 issue of The WIRE complaining about the stores on the Island was uncalled-for and inappropriate.  At a time when the merchants are hurting, and need more business to survive, her caustic comments were tantamount to financial ruin for them.

I have lived on the Island for only a year and a half, and in that time have shopped frequently in the stores mentioned.  To me, it is more important to be greeted by a smile and a "hello" rather than clean windows and a new paint job.  In addition, the twine handle on the freezer door at the M&D Deli has never been a problem for me.

The owner and the help in the Grog Shop are courteous and helpful no matter if you buy a ten-dollar bottle of wine, or a case of Canadian Club.  The video store serves a purpose on the Island as both a place to rent movies and get that item you need for your kitchen.  The owner of the stationery store is one of the finest people I have met on the Island, and I shall continue to shop there, "filthy windows" not withstanding.  The new owner of the vegetable store is trying very hard to provide us with fresh fruits and vegetables at competitive prices.  I have yet to find limes and avocados as fine as he has.

I would have been more pleased had she complained about our "Megastore" on the Island, and the amount of outdated merchandise they have on their shelves.

Donna Bell

To the Editor:

Thank you for your outstanding coverage of the Roosevelt Island St. Patrick's Day Parade.  That was a wonderful picture of me on the front page.  Who's the guy with the bagpipe?

However, on the same page there was an article about a robbery at the Post Office.  The suspect was identified as having an "Irish accent."

I realize you are not to blame but I have been "interviewed" by, among others, the FBI, the Secret Service, the Postal Police, the NYPD, and the St. Patrick's Day Watchdog Committee of the Archdiocese of New York.

I wish your readers to know that I had nothing to do with the Post Office matter and I have no intention of appearing on 60 Minutes to discuss the issue.

I hope this letter will put an end to the accusations.

Jim Whalen
Founder, RI St. Patrick's Day Parade