February 2000  ---------------Volume 10, Issue 1


 Table of Contents

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UNHP Launches Housing Resource Fairs
UNHP has once again teamed up with Fannie Mae to provide valuable housing-related information and resources to Bronx residents through a series of Housing Resource Fairs. Cosponsored by Fordham Bedford Housing Corporation (FBHC), the resource fairs are designed to help homeowners, homebuyers and renters gain access to housing-related information, materials and actual assistance.

Each fair will also have a different theme, including the March 9 premier of Filing Your Taxes as a Homeowner/Making Sure You Receive the Earned Income Tax Credit.

Representatives from community organizations and the housing industry (including banks) will be on hand at each resource fair to discuss buying and/or renovating a home, tenant rights, lead hazards, programs for senior citizens, credit and other topics for both homeowners and renters.

These resource fairs come on the heels of a number of homebuyers workshops UNHP and Fannie Mae did last year along with Neighborhood Housing Services and Bank of New York. Over 110 Bronx residents benefited from the homebuyers workshops in 1999, including at least 5 of whom are already experiencing the benefits of homeownership.

Other upcoming themes include Buying a Newly Renovated Home Through Neighborhood Homes and HomeWorks on April 6, and Protecting Homeownership: Holding onto and Improving Your Home, Including Refinancing and Renovations on May 4. All of the fairs last from 5:30pm – 8:00pm and are at Concourse House: 2751 Grand Concourse (corner of 196th St.) in the Bronx. For more information, call (718) 933-3101 or email mail@unhp.org

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DEP Proposes New Water Regulations
At the December 1999 meeting of the Water Board, a proposal was presented by the Department of Environmental Protection (DEP) staff to the Water Board to address Conservation and Rate Affordability in Multiple Family Housing. The proposal offers a fixed per apartment charge to all multifamily buildings of 6 units or more in exchange for implementation of a number of water conserving steps. The charge per unit is estimated to be between $400 and $420 per year. If approved, the program will be available for the July 2001 billing period.

DEP acknowledges the concerns that have been presented regularly for the past 10 years by owners, bankers, managers and community organizations involved with multifamily affordable housing. A wide variety of such organizations have stated that the cost of water and metering has had and will continue to have a negative impact on that housing.

To address those concerns, the Water Board has established two remedial programs that have been utilized by many property owners: the transition program has allowed many metered buildings to be billed on a fixed charge basis (currently $409.93 per apartment per year) and others (considered ineligible for the transition program) to be charged under a bill cap program (approximately $520 per apartment per year). If enacted, this proposal would terminate these programs for buildings of 6 units or more; the bill cap program would be maintained for 1-5 unit buildings.

Under the proposal, which the Board hopes to consider during this spring’s hearings, buildings of six units or more may elect to be billed on a fixed annual rate per apartment. To be eligible, the building must be metered and must achieve certain mandatory conservation goals including 70% low flow toilets, low flow shower heads and faucets as wells as laundry room washers with 9.5 gallons/cubic foot water efficiency.

Eligible buildings would have three years (until 12/31/2003) to elect the fixed rate charge program. Buildings being billed on metered, transition or cap bases will have the opportunity to opt for this program. If the fixed charge option is taken the owner can switch back to metering at any time. However, the choice is irrevocable. The Board is trying to balance the demands of the affordable multifamily housing community while maintaining their metering commitments and their revenue requirements.

DEP staff and Water Board members met with representatives of the Affordable Housing Coalition for Water/Sewer Reform in January to present the proposal and get feedback. While questions about the price range of $400 to $420 per apartment were raised, there was general support for the direction in which the Board is heading. The Board was asked to consider reopening the Low Flow Toilet Program (which ended a couple of years ago) which would offer owners a capital source of funds to replace toilets, and to reconsider the irrevocable choice of metering.

A proposal from HPD for lower rates for certain types of housing does not appear to be on the agenda for the Board this year.

If the Board decides to proceed, it will be accepting comments on the proposal at its spring rate hearings.

Comment on the Cost of Water Issue:
UNHP has been working on the water issue for more than 10 years. Our initial loans were underwritten with city and bank lenders at $85 per apartment per year and the buildings were on a frontage billing system. The City’s decision to make the water system self-supporting and the environmental mandates at the federal and state levels caused the cost of water to soar.

Metering in some ways disguised that point. First, people began to focus on metering as the problem as opposed to the cost of water; and second, the property owners who benefited from metering enjoyed a decrease in expenses. This created a perception of a pro-metering constituency that the City does not want to incite.

The decade long battle to get protection for affordable housing has been a wearing one. Participants in the meetings have 1) dealt with and overcome the official DEP position of the early 1990s that water protection and conservation took precedence over the impact on affordable housing; 2) dealt with alternative rating system proposals that sought to combine a fixed rate and metering formula; and 3) advocated for the creation and preservation of several programs to provide relief for affordable housing. As a result, an increase in water charges of approximately 500% (from $85 per unit in the late 1980s to between $400 and $420 in 2001) in a 10-12 year period starts to look good because at least there would be a firm, albeit high, number in the water budget line in buildings.

As the proposal moves forward, a capital program to provide financial assistance to building owners to accomplish the replacement of toilets and plumbing repair/replacement should be a part of the new program. A program to provide additional relief to certain types of affordable housing should also be developed.

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New Federal Lead Regulations Begin This September
Long awaited HUD regulations regarding control of lead based paint (lbp) in publicly supported housing are scheduled to take effect on September 15, 2000. The rule was printed in the Federal Register in September 1999 to allow a full year to prepare for implementation of the regulations. However, there appears to be little attention being given to the new HUD regulations while the EPA renovation regulations (effective June 1999) and the City regulations (effective November 1999)--both of which were discussed in the November issue of Notes--are being implemented.

What housing is affected?
The HUD regulations affect housing built before 1978 that is financially assisted or sold by the Federal government; financially assisted housing includes housing receiving project based rental assistance, tenant-based rental assistance, multifamily housing for which mortgage insurance is sought, and housing receiving federal assistance for rehabilitation, reducing homelessness and other special needs.

The following housing is excluded from the new rule: housing exclusively for the elderly or people with disabilities (unless a child under 6 is expected to reside there); zero bedroom dwellings including efficiencies, SROs and dormitories; property found to be free of lead based paint by a certified lbp paint inspector; property where all lbp has been removed; unoccupied housing that will be vacant until demolished; nonresidential property; and any rehabilitation or improvement that does not disturb a painted surface.

The new regulation consolidates all of HUD’s Lead Based Paint regulations into one part of the Code of Federal Regulation: 24CFR Part 35. A major focus of the new regulation is the clearance requirement in the regulation, which involves testing dust for lead contamination after hazard control work.

What must be done as part of the new regulation?
The requirements vary somewhat based on the nature of federal involvement and whether the unit is rental or owner occupied and go beyond our ability to summarize here. The regulations and guides can be obtained from HUD by going to www.hud.gov/lea on the web or calling HUD at (202) 755-1785 ext.104.

We can note that the regulations will impact the multifamily housing that has been and is being renovated in the Bronx with low-interest City loans. There will be a significant impact on ongoing maintenance in these buildings. A change in regular maintenance practices will be required. Clearance tests will be required in all repair jobs except for small jobs. Clearance tests include dust testing and must be done by trained people.

A small job is described in the following way in HUD’s accompanying question and answer guide: “...when the deterioration is limited to hairline cracks or small nicks, scratches or nail holes.” In addition, “safe work practices” (i.e., occupant protection, worksite preparation and specialized cleaning) must be used during stabilization or abatement only when the area of paint being disturbed is greater than:

  • 20 sq.ft. on exterior surfaces, or
  • 2 sq.ft. in an interior room; or
  • 10% of a building component with a small surface area (such as a painted window frame)

Clearance examinations must be done by someone other than the person who did the hazard control work and who is certified to perform lbp paint inspections, risk assessments or clearance exams in the state in which the housing is located. The exam involves a visual assessment to assure that there are not any deteriorated paint surfaces or visible amounts of dust or debris remaining on the property as well as dust testing to assure that the standards for lead in dust have been complied with. Dust testing cannot occur until after passage of the visual assessment. If the dust tests fail, there should be another cleaning of the spaces represented by the failing dust samples.

The clearance examiner must prepare and sign a report documenting that the housing passed clearance. A clearance test can be done by a person trained but not certified as a clearance technician provided a certified lbp paint inspector or risk assessor approves the work of the clearance technician and signs the report.

Interim controls must be done by a trained person who is either supervised by a certified abatement supervisor or has completed one of several training courses that explain how to conduct work safely so as not to contaminate the environment or expose occupants to lead.

HUD’s Estimated Costs:
HUD estimates that the average cost will be approximately $200 per HUD assisted unit. Nationwide HUD anticipates the costs associated with the new regulation to be about $564 million while the benefits are anticipated to hit $2.65 billion. These benefits include the improved lifetime earnings of children saved from lead poisoning, reduced medical and special education, reduced juvenile delinquency and related costs on the education system and reduced personal injury claims.

The real costs per apartment will vary. We encourage managers and contractors to let us know what they expect costs to be.

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Daycare Providers Tackle Taxes

Raul Martinez leads a tax workshop for daycare providers

For the past year and a half University Neighborhood Housing Program has been working with Providers United, a group of family daycare providers in the Northwest Bronx, to improve the economic viability of their businesses and enhance the quality of childcare offered by its members. Since coming together as a group, 33 of the 35 providers have either begun to care for children or increased the number of children in their care. Many providers are earning income from their businesses for the first time and have identified the need for tax filing assistance. On February 3, the group held its first tax assistance workshop. Thirty four providers congregated at Concourse House to hear tax consultant Raul Martinez (pictured above) explain how to file their taxes as independent businesses and how to access the Earned Income Credit (EIC). Providers United will follow up with Martinez in late February with another workshop to address additional concerns.

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Update on HPD’s Lead Regulations Since November
HPD’s regulations implementing Local Law 38 went into effect in November subsequent to the last edition of Notes. Additionally, the required Department of Health pamphlet has been released since our last publication.

Detailed information can be obtained from HPD and the Department of Health via their websites: www.nyclink.org/hpd for HPD and www.nyclink.org/health for DOH.

The Department of Health Lead Poisoning Prevention hotline is (212) 226-5323.

The HPD regulations state that the required notice to tenants to determine the presence of children under 6 should be given annually in English and Spanish between January 1st and January 15th. Both current and new occupants are to be given a notice in both languages when signing a lease asking if children under six live in the apartment. At that time, occupants are to be given the lead paint pamphlet that has been recently designed by the Department of Health.

For more information on the regulations, read our November issue of Notes.

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Nonprofits to Sell and Renovate Bronx Homes
In an effort to transform a number of New York City homes whose owners have defaulted on their property tax payments, the City’s Department of Housing Preservation and Development (HPD) is giving a number of nonprofits funds to renovate and sell these homes to qualified homebuyers. In the Bronx, HPD is collaborating with two different community groups to rehab these often dilapidated and neglected properties and get them into the hands of community residents.

Fordham Bedford Housing Corporation (FBHC) and Neighborhood Housing Services of the South Bronx (NHS) are both working with HPD in the Bronx under two similar programs. Both programs require an approved buyer to be secured before the renovations can commence.

FBHC’s homes are being renovated and sold through the Neighborhood Homes program which has both minimum and maximum income limits. NHS is working within the HomeWorks program which only requires that a buyer qualifies for the mortgage and has no maximum income limits. NHS is partnering with Fleet Bank on the project while FBHC is open to any bank.

The buildings range from single family to four family homes, located in different parts of the Northwest and South Bronx. Both programs require the buildings to be owner-occupied.

To learn more about the programs, attend UNHP’s second Housing Resource Fair April 6 or contact UNHP (718) 933-3101, FBHC (718) 367-3200, or NHS (718) 992-5979.

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