Update on Gateway Rent Payment

Renters and COVID-19

Many of you have asked whether rent need still be paid during the COVID crisis.  Our understanding for now, appears to be “yes.” However, late fees cannot be imposed for non-payment or late payment and you cannot be evicted for non-payment at least until June 20, 2020.

The commercial and legal landscape for renters in NYC, including in Gateway, is changing almost daily.  The major federal COVID relief legislation that became law on Friday, March 27 (the CARES Act) provides some relief.  The CARES act prohibits the commencement of non-payment eviction proceedings for a period of 120 days and prohibits the imposition of late fees or penalties for non-payment during that same period.  These protections apply to tenants in buildings that have federally backed mortgages, which include mortgages that are insured by HUD. We have confirmed today (April 1) with Greg Tumminia (Gateway’s General Manager) that Gateway does indeed have a federally insured mortgage.  Greg went on to say:

The landlord will adhere to all applicable laws and regulations. We are responding to all resident inquiries as we still have some staff on-site daily (seven days per week). We also have phones forwarded to staff members that are working remotely.

General Operations Update will be released later today to all residents in a form of an e-mail.  We are well stocked with masks( N-95), gloves, other PPE equipment in addition to sanitizer and hospital grade disinfectants.   Our building staff is holding up okay.

Best to you and your families during these difficult times.

In addition to these federal protections, New York State has imposed a prohibition against evictions for any reason, at least until June 20, 2020.

Other Resources:

https://www.washingtonpost.com/business/2020/04/01/april-1st-rent-mortgage-payment-due-faq

https://blog.augrented.com/renting-during-the-novel-coronavirus-outbreak/

Social Distancing? Connecting with Us!

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

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.

Changes to GPTA Bylaws

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

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!

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

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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