CITY LIMITS

COMMUNITY-HOUSING NEWS
MAY,19n VOl.2NO.4
OFF THE PRESS!!
The Association of Neighborhood Housing
Developers' long-awaited study, The Neighborhood
Housing Movement, is finally off the presses and was
released on May 5, 1977 at a publication party at
Housing Conservation Coordinators in Manhattan. The
92-page report, a comprehensive survey of the origins,
development and most recent efforts of twenty-seven of
New York City's non-profit community-based housing
organizations, was written by Robert Schur and
Virginia Sherry.
The authors claim that the activities and accom-
plishments of New York's grass roots housing groups
represent "the most significant ongoing contribution to
neighborhood stabilization and preservation currently
underway in this city." A considerable amount of data
was collected and analyzed to support this contention,
and the quantitative findings are a centerpiece of the
report. For the first time, an attempt has been made to
begin summarizing the impact of the wide variety of
housing programs, projects and services-largely
locally-initiated and locally-adrninistered-that are
conducted in low- and moderate-income neighborhoods
by autonomous non-profit groups whose staffs are
overwhelmingly composed of neighborhood residents.
The report highlights, for example, that the twenty-
seven groups studied are responsible for a truly
impressive volume of effort, including
-the completed rehabilitation of 1,093 apartments in
continued on page 2
161 buildings
-rehabilitation underway on 546 units in 82 buildings
-rehabilitation planned for 2,458 units in 433 buildings
-the completion of 196 units of new construction
-construction in progress on 445 new units
-the planned construction of 2,041 units of new housing
-the partial or total management of 3,399 apartments
in 151 buildings
-within the twelve-month period from July 1975 to
August 1976,
assisting organized tenant groups in 229 buildings
containing over 4,748 apartments
managing 665 apartments in 28 buildings under
Article 7 A administration
assisting tenants with the "self-help" management
of 105 buildings with 2,138 apartments
working with homeowners and tenant groups to
develop rehabilitation or transfer of ownership
plans for 217 buildings containing 1,979 units
offering assistance on an individual basis to 19,791
tenants and homeowners with housing-related
problems.
The study also focuses on the major issues con-
fronted by neighborhood-based housirig groups and
discusses housing rehabilitation and new construction,
housing management and direct assistance services
within this framework. The structure of the groups
surveyed is examined, with particular emphasis on their
boards of directors and current staffs, and a major
section of the report is devoted to overviews of each
group's history and neighborhood.
The study, which began as an Association intern-
ship project in the Summer of 1976, was made possible
by generous grants from Morgan Guaranty Trust
Company. The printing, publication and distribution of
the report have been generously assisted by an additional
grant from Morgan Guaranty Trust Company, and a
grant .from the New York Urban Coalition. Special
thanks for transforming the report from manuscript to
book is due to Louis Fulgoni, the Association's talented
and patient Art Director. Copies of The Neighborhood
Housing Movement are in limited supply, and are avail-
able from the Association for $1.50 (to cover postage
and handling) by filling out the order form on page
RICHARDS & FENNIMAN, INC.
156 WILLIAM STREET INSURANCE NEW YORK, N.Y. 10038
212/ 267-8080
2.

LEGAL BRIEFS
Ed. Note: The Association's Counsel, Jim Harris, here
starts a monthly column to give announcements about
upcoming legal events and to share with readers answers
to legal questions which are asked from time to time.
Announcement: Jim is normally at the Association on
Wednesday afternoons. He wants to help Association
members with legal problems (stopping short of actually
acting as counsel for members). In particular, Jim has
offered to visit any member who wants to have its legal
status (by-laws; minutes, contracts, tax status, etc.)
checked over. He will do this and review his findings
with the member's staff. Please contact him if you wish
to take advantage of this service.
Case Note: We were asked whether a community can
sue a landlord who is abusing the neighborhood by
letting his building go down. We (with the assistance of
Doug Simmons, our law student from NYU) researched
this issue and came to the conclusion that the legal basis
for a suit exists if the building is so bad it qualifies as a
"nuisance." The case which gives us hope is Puritan
Holding Co. v. Holloschitz, decided in the Supreme
Court in Manhattan on September 4, 1975 (372 NYS 2d
5(0). In that case, the nuisance was an unsealed vacant
building on West 93rd Street in Manhattan, a block
which was otherwise showing signs of improvement.
The court said a nuisance is an unreasonable use of
property which produces a significant inconvenience,
discomfort or hurt to others. It said New York law gives
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any person who suffers real damage as a result of a
nuisance the right to sue for that damage. It gave as
examples people who sued a tire shop which smelled
bad, a business which sent up clouds of dust and the
City which was doing open landfill burning.
The plaintiff (the party who brought the suit -
Puritan) was the owner of a building across the street
from the vacant building. Plaintiff came to court with
experts who said plaintiff's building was worth $30,000
less than it would have been if the defendant (Hollo-
schitz) had not abandoned her building. The plaintiff
won - and got a judgment for $30,000 against the
defendant. (The defendant never appeared in court.)
The court specifically said that in a neighborhood
full of abandoned buildings one more might not consti-
tute a nuisance. We disagree. It might be harder to
prove that the one vacant building was what caused a
loss in value, or drug traffic, or what have you, in a
poorer neighborhood, but surely an unsealed building is
a nuisance, wherever it is.
We believe the Puritan case provides the basis for
many suits - especially in transitional neighborhoods
- against owners of buildings which are obviously
hurting their communities. Where loiterers, fires and
health hazards are brought onto a block by a "bad
building" other owners on that block would do well to
explore the possibility of suing the owner of the offend-
ing building.
by JIM HARRIS
ORGANIZED COMMUNITY GROUPS
HELP
Republican Majority in State Senate Bows to Tenant Pressure
In a surprise move, the Republican party
members who control the New York State Senate,
announced on April 25th that they would
introduce and vote for legislation extending, for
four years, the present Emergency Tenant Protec-
tion Act and laws which control rents on apart-
ments in Albany and several other upstate com-
munities. Earlier this year, the Democratic-
controlled Assembly passed a bill extending these
laws for three years, but an extremely lengthy and
difficult fight had been expected in the upper
house. The Republican bill, which is expected to
be introduced this week, has been assured of bi-
partisan support and is certain to pass in both
houses of legislature. Presumably, Governor
Carey will sign the bill, although the chief execu-
tive has been conspicuously silent on the entire
rent control issue.
What is significant about the Republicans'
action, in addition to assuring thousands of New
York City rent-stabilized and upstate rent-
controlled tenants of continued protection, is the
manner by wh!ch its was brought about.
As was reported by "a staff correspondent"
for the New York Post:
" ... intense picketing and pressure in the districts
represented by New York City' s seven GOP
Senators forced yesterday' s quick decision."
And the New York Times put it this way:
"The pressure was especially heavy on the seven
Republican Senators from New York City, several
of whom won reelection last year by only modest
margins. A statewide coalition of tenant organiza-
tions, the New York State and Neighborhood Coali-
tion, made two city Republican Senators, Frank
Padavan and Martin Knorr of Brooklyn, special
lobbying targets.
"Several weeks ago; the group slipped 20,000 leaf-
lets under apartment doors in Senator Padavan' s
district, warning of the possibility that rent stabil
ization might expire and informing residents that
' Frank Padavan is an important player i n this
drama.'"
So here was a dramatic example of what
organized community action can do. The Republi-
can Party holds a majority of 36 seats in the State
Senate to 24 for the Democrats. Assuming the
Democrats would hold firm for ext ension of the
rent laws, the Republicans would have to induce
at least two of their seven New York City members
4.
to vote against rent control in order to prevent the
bill already passed by the Assembly from passage
in the Senate.
The obvious strategy for the pro-rent control
forces was to put as much heat as possible on
New York City Republican Senators - especially
those like Padavan and Knorr whose districts
contain a good number of tenants. For a change,
the tenants organizations worked together. Many
Queens groups, along with the New York State
Tenant and Neighborhood Coalition and the
Metropolitan Tenants Council, a city-wide organi-
zation, joined in leafleting Queens residents. Met
Council also conducted a parade and demonstra-
tion in Senator Conklin's home district in the Bay
Ridge section of Brooklyn.
From all appearances, the City Republicans
felt the pressure and, before it built up to an even
higher pitch, they called on their upstate com-
patriots to overcome their normal hostility to rent
control and announce their support of an
extension of the present laws. Without a well-
planned, coordinated and executed action
program by the organized tenant groups, the turn-
about would not have happened.
The laws which will be kept alive are due to
expire on June 30th of this year. The Emergency
Tenant Protection Act, which was adopted in 1974
and given only a one-year extension last year,
affects some 500,000 apartments in New York City
and 65,000 more in Nassau and Westchester
County communities. It protects tenants against
evictions and limits rent increases on apartments
under rent control or rent stabilization which
become vacant or which become vacant after
July 1, 1971 when the state vacancy decontrol law
went into effect. Upstate, some 70,000 apartments
are under state rent control laws.
Apartments under rent control in New York
City, numbering about 525,000, are not directly
affected, since the City Rent Law is not scheduled
to expire until 1979 and is subject to renewal by
the City Council rather than the State legislature.
The Senators' agreement also calls for the
appOintment of an 11-member commission, the
members of which are to be appOinted by the
Governor, the majority and minority leaders of the
Senate and the speaker and the minority leader of
the Assembly, to make a study of the whole
subject of rent regulation and to issue a report by
next March 1.
NYC COMMISSION ON HUMAN RIGHTS
RELEASES REPORT ON REDLINING
Calling the report "the most systematic
analysis to date of an issue that has received little
if any attention of a comprehensive nature, con-
Sidering the enormous consequence of its
impact," Eleanor Holmes Norton, chairperson of
the New York City Commission on Human Rights,
has released a 103-page report on redlining by
banks and other lending institutions in New York
City.
The report, entitled "Economic Investment
and the Future of Neighborhoods," is the result of
a series of public hearings held by the Commis-
sion in November, 1976.
Over 100 witnesses testified on the degree to
which redlining is practiced and what measures
ought to be taken to stop the problem. Represen-
tatives of financial institutions, elected represen-
tatives, housing and real estate experts, and
neighborhood leaders participated in the
hearings.
Among the recommendations of the report
are:
Federal agencies responsible for regulating
banks and savings and loans should both collect
and analyze the data required by them under dis-
closure regulations in a manner that makes such
information useful to the public.
State legislation which has been
introduced by Assemblyman George Cincotta
should be enacted to require lending institutions
to provide mortgage loan applications to all
persons who request them, and to state, in
writing, the reasons for denying any applications.
Legislation or regulations should be
enacted to require lending institutions to maintain
and make available to the public a record by
census tract of all applications filed as well as all
requests, either by mail, telephone or in person,
for mortgage or improvement loans on residential
property.
The Department of Housing and Urban
Development should promulgate disclosure
regulations for all mortgage companies (other
than banks) approved as FHA and VA lenders.
The New York State Insurance Department
should promulgate disclosure regulations for all
institutions writing real property insurance in New
York State.
Formal mechanisms through which the
ideas and recommendations of community
groups and housing organizations can be acknow-
ledged and incorporated must be developed.
Public officials responsible for appointing
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members and staff to the regulatory bodies which
govern financial institutions should make certain
that such appointees are committed to the needs
of neighborhoods.
The Board of Directors of the New York
Property Insurance Underwriting Association
which administers the State's Fair Plan should be
reconstituted to include a better balance of public
- members, including consumers and
neighborhood leaders.
To address in a comprehensive manner the
critical housing needs of low- and moderate-
income families, the State should establish a
housing finance program to provide mortgages
and rehabilitation loans at below market interest.
The Urban Reinvestment Task Force should
institute a program to secure Federal Housing
Administration (FHA) insurance for many neigh-
borhoods and blocks which are presently denied
governmental mortgage backing.
An effective mechanism at the federal level
should be developed to expand significantly the
Neighborhood Housing Services Program (NHS)
currently in operation in only 27 neighborhoods in
the country.
Any legislation which would permit an
increase in the State's usury ceiling for mortgages
on residential property should be accompanied by
. a prohibition on any future investment in out-of-
state mortgages.
The New York City Banking Commission
and the Finance Department should develop
improved mechanisms for monitoring and enforc-
ing the existing policy of depositing City funds
only in financial institutions which meet City-
designated criteria for urban improvement.
Religious institutions, corporations, non-
profit organizations and foundations should place
their funds in financial institutions with a view to
combatting redlining.
Insurance rates for properties insured
through the New York State Fair Plan should be
based on the rates established by the Insurance
Services Office (I.S.O.).
Community-based, non-profit housing and
tenant groups which have demonstrated a capa-
city to reclaim and restore existing housing
should be funded by the federal government as
part of the government's national neighborhoods
poli cy.
To obtain a copy of the report, write to New
York City Commission on Human Rights, 52 Duane
Street, New York, N.Y. 10007 or call 566-5587.
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5.
SOUNDS FAMILIAR DEPARTMENT
Louisville_ Three archit .
why their city's Neighborhood askec:' to find out
HUD often can't onservatlon Office and
spent to repair how much money should be
C , Y reasons are:
ltV runs up rehab Costs b .
everything in the house that . h Y tryIng to replace
program's 20- mIg t wear out before the
year mortgage was paid off
HU.D appraisers take a view
erty value In the marginal neighborh d . of prop-
Sound familiar? 00 s most Involved.
(from "c .
ommunlty Development Digest," March 8, 19n)
STARR TO DEBATE SAVING
OF NEW YORK CITY
most interesting and
What shapes for Thursday,
informative debate 1S
t
P blic School41, 116West
May 19th at 7:30 p.m. a u hen Roger Starr takes
11th Street in Manhattan, v: t of "How New York
Paul deBrui on the subJec
on" .
Can Be Saved. t of "Planned Nelgh-
Starr, leading er Administrator of
. k "IS orm
borhood Shnn age, . and Development
k
City HOUSIng
the New Yor he occupies the Henry
Administration. Professor of Urban
Luce Chair as and is on the
Values at New Yo ew York Times.
editorial board of t,he.N. by several years and
deBrul, Starr s Juntor t e lesS than his
. veral son
weighing tn at. se ner a former Assistant to
opponent, is a CIty Robert Abrams and the
Bronx Borough Presl f Id of a forthcoming book
author, with Jack New Ie . The Permanent Govern-
entitled" Abuse of poweNr. York" He is also a
h Fall of ew .
ment and t e. the Village Voice.
frequent contnbutor ght to clarify some of
The debate, ou the city in its time of
the key issues besetttng s being sponsored by
fiscal and Committee.
the DemocratIc SocIa IS
6.
ADOPTABUILDING WINS CITY
SEALUP CONTRACT
Another BreakThrough For
Community Groups
After more than a year of persistent, and at
times very frustrating negotiations, Adopt-a-
Building, a leading community housing group on
Manhattan's Lower East Side, has finally secured
approval for an $85,000 contract which will enable
the group to seal approximately 10 multiple
dwellings in its neighborhood. This marks the first
time the city will contract with a community group
for the sealing of unsafe buildings. Heretofore, all
sealing as well as demolition of buildings has
been done by private contractors who bid for
individual building contracts.
According to Roberto Nazario of Adopt-a-
Building, work under the contract will begin very
soon. Operating the program, which will be run
over the next year, will enable the hiring of approx-
imately ten community residents. "All of the
personnel for this program will be drawn from
enrollees in our CETA job-training programs," all of
whom live on the Lower East Side, and who will be
paid full prevailing wages," Nazario added.
Both ANHD and a citywide task force of com-
munity groups have been urging HDA to negotiate
contracts for sealing and demolition with non-
profit community groups. We congratulate Adopt-
a-Building on securing a "first" in this area. But as
a wise old bureaucrat once told us, "When you do
one project, it's only a demonstration; when you
do two "(or more) it's a program."
" Hard negotiating with the city and HDA to
move community group operations of sealing and
demolition work to the "program" stage will
proceed with renewed vigor.
,...
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EDITORIAL
We've hsd s modicum of good news to report
Istely. In our Isst issue, CITY LIMITS noted the
closing of s city contrsct with Morris Heights
Neighborhood Improvement Associstion which
will give it s $98,000 budget for s vsriety of com-
munity housing services sctivitiBS. Previously,
Flstbush Development Corporstion wss swsrded
s contrsct for plsnning snd implementing s neigh-
borhood stBbilizstion progrsm in its sres.
This month, we report on the first unssfe
building contrsct to win spprovsl for s community
housing group - Adopt-s-Bui/ding on the Lower
Esst Side. We slso proclsim the closing of the first
SHIP contrsct with Esst New York Development
Corporstion.
We sre indeed "bresking the ice" of city
hostility snd immobility to community groups'
demsnds thst they should become full psrtners in
the delivery of housing services to their neighbor-
hoods. But this is still only s smsll beginning. We
sll hsve to work even hsrder snd stick even more
'Closely together to secure these, snd other,
benefits for sll locsl housing groups thst csn snd
desire to conduct progrsms to preserve snd
improve the communities.
While we congrstulste these successful
orgsnizstions, none of us should rest on their
Isurels. Let us redouble our efforts to secure the
funds we need to bring better housing snd neigh-
borhoods to our constituencies - sll over the city.
tCITY LIMITS
. published monthly by tbe Association of Neighborhood Housing
Developers, Inc., 29 East 22nd Street, New York, New York 10010.
(212) 674-7610
Executive Director . . .. .. . .. ............. . ... . . .. . . Robert Schur
Editor. .. ... ..... . ...................... .. '.' .... Kathy Sanders
Design and Layout. . .. ... . . ....... . . .. ..... ... ... Louis Fulgoni
Production Assistant. ... .. . ..................... Alex Hernandez
Production . ....... .. . .. ... . .. .. ... .......... Marianne Czernin
Copyright 1977. All rights reserved. No portion or portions of this
Newsletter may be reprinted without the express written permission
of the Association of Neighborhood Housing Developers, Inc.
7.
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To the Editor:
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Enclosed please find a $4 check for a subscription
to CITY LIMITS. I work as an assistant to a State
Senator in a Brooklyn district office, where I became
familiar with your periodical, and with the many hous-
ing and tenant problems facing the City's communities.
I find CITY LIMITS most informative and especially
enjoy your articles regarding the efforts and programs
of community groups to rehabilitate their neighborhood.
I will look forward to receiving CITY LIMITS, to
keep informed of the newest developments with City
tenant groups and the housing situation in New York.
Sincerely,
Barbara Przybylska
To the Editor:
In response to the article in the April issue of CITY
LIMITS, I agree that there is another story to Manhat-
tan Plaza. It is a hopeful, optimistic story-one that
demonstrates New York's traditional ability to turn
potential disasters into victories (as opposed to New
York's other tradition that espouses Hwhen in doubt -
criticize to death. ")
Manhattan Plaza is now renting 1200 of its apart-
ments to low and moderate income performing artists,
and 500 to Chelsea-Clinton residents, elderly and non-
elderly, who now have the opportunity to live in decent
housing at modest costs. The commercial space is also
being rented and the development seems to have every
sign of turning into something of enduring benefit to the
city.
Mr. Schur's description of Section 8 subsidy for
new housing as the most expensive to date is super-
ficially correct. However, when taking into account
8.
income levels reached, piggyback subsidies, and 10ss
from default, other federal subsidy programs are pretty
much on a par with Section 8, with the possible excep-
tion of public housing, which benefits from guarantees
and irrevocable annual contributions contracts from the
federal government.
These are technical and financial issues that have
been and will continue to be debated and, as such, will
contribute to our knowledge and responsibility in policy
making. We do not object to such debate.
However, the attack on the Settlement Housing
Fund (the organization you refer to) is highly objection-
able and must be answflred. Here, then are tM facts.
In December, 1975, we were asked by Manhattan
Plaza Associates and H.D.A. to undertake a ninety-day
affirmative marketing study for the use of Section 8 in
Manhattan Plaza. For more than three months, our
Board hesitated to get involved in the controversial
. situation but finally we were convinced to lend our
assistance because of the serious financial issues
involvedfor the city.
We decided to undertake the study only after the
city and the developer agreed that we were free to
publish our conclusions independently and that we
could disavow ourselves from supporting the policies of
either the city or the developer. We chose Professor
David Muchnick to direct the study, in turn Professor
Muchnick insisted on his right to disagree with the city,
the developer, and the Settlement Housing Fund.
We formed a policy committee, chaired by Lynda
Simmons, which met many times and deliberated the
recommendations.
Professor Muchnick and his research associate
studied very carefully the economic and social implica-
tions of several alternative subsidy approaches. The
study was far from a real estate promotional piece. It
asked for and obtained data on potential residents,
family size and income that are often very hard to
obtain. The market was carefully analysed. Thefindings
convinced Professor Muchnick and our committee that
indeed there was an enormous market of performing
artists who were eligible for and in need of Section 8
subsidy. Furthermore, the performing artists had a
strong, vested interest in living near their major area or
work - the theatre district. The result of the study was
to recommend the priority for performing artists which
has won overwhelming support from almost all who are
concerned with low and moderate income housing, with
the cleanup and upgrading of Times Square, 'and with
the preservation of the theatre industry and the Clinton
community.
Indeed this support mounted during the city review
process, in spite of the fact that Seymour Durst hired
highly qualified lawyers, retained Anthony Downs, one
of the country's leading real estate economists and
researchers, engaged public relations specialists, all in an
attempt to attack the technical and policy aspects of our
proposals. Each of these experts was rebutted by the
irrefutable facts in Dr. Muchnick's study and by the
strong public sentiment for establishing a performing
artists complex at Manhattan Plaza.
Mr. Schur has the right to his opinion and the right
J
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to disagree with our proposals regarding Manhattan
Plaza; however, he does not have the right to attack our
integrity by describing us as "a long time friend of the
city administration ". SHF's record as a leading
. advocate for decent housing for low and moderate
income New Yorkers is well known and easily docu-
mented and Mr. Schur's characterization is totally
unwarranted and unprofessional.
We havefought vigorously in every way to promote
low income housing goals and we achieved some notable
successes even in the dark years of the federal Mora-
torium. We attribute our success and the respect we
have obtained to our tactics and strategies which are
based on constructive criticism, professional integrity,
and cooperative action.
I would like to conclude by pointing out some
technical errors in the article:
1) Section 8 is available under special circum-
stancesfor single non-elderly individuals.
2) The regular Section 8 limit is $14,500 for a
family of four. It was originally in 1974 $11,450, but
was adjusted upwards at the request of community
The Author Replies:
It seems that Ms. Clara Fox chooses to equate a
reference to the Settlement Housing Fund, the organiza-
tion which she heads, as "a long-time friend of the City
Administration" as "an attack on our integrity." We
really didn't intend to imply that friendship with the
present City Hall incumbents necessarily, or even prob-
ably, indicates a lack of integrity. The sensitivity to such
"guilt by association" must be Ms. Fox's; it certainly is
not ours. Indeed we could probably think of a number
of individuals and groups whose integrity is beyond
i, question who pride themselves on their friendly associa-
tions at City Hall- we even admit to having a "friend"
or two over there ourselves. As an aside, we would add
that we didn't even name Ms. Fox's organization,
although we concede we had the Settlement Housing
Fund in mind. And while we are at it, we might also add
that the Manhattan Plaza survey was not the first
"consultant contract" which SHF obtained and without
competitive bidding or such petty procedural complica-
tions, from the present city administration.
As for the study itself, we haven't seen the full
written report, but we have seen the letters which were
sent to entertainment industry union members asking if
they were interested in a Manhattan Plaza apartment.
We presume that Professor Muchnik (a former HDA
consultant and some-time lobbyist in his own right)
drew some conclusions about the level of interest from
the responses to these letters. We stand one hundred
percent on our characterization of the letters as pure
real estate-promoter come-on 's, distortions and puffery.
9.
groups, civic organizations and state and local officials
to permit economic integration.
3) At least 30 per cent of Section 8 assistance
must be for very low income families, with incomes for
afamily of four, under $8,000 annually .
Finally, the statement that the city will peddle the
$90 million mortgage for about 35 cents on the dollar is
just not true.
In fact, the city will realize almost the full value of
its mortgage investment on Manhattan Plaza through
the 223F program precisely because of the Section 8
subsidy. For those who don't care about performing
artists or the preservation of Clinton and the theatre
industry, the impact of the mortgage savings on the
city's budget should make a powerfUl case for Section 8
subsidy in Manhattan Plaza.
Yes, as I said in the beginning, there is another
story to be told about Manhattan Plaza and we, at SHF,
are proud about the role we played in the conversion of
this development from an affluen1t Mitchell Lama to a
subsidized performing arts community, with a fair share
of the apartments occupied by local residents.
Clara Fox,
Executive Director
SETTLEMENT HOUSING FUND
As for the alleged "technical errors" to which Ms.
Fox refers:
1. We agree that Section 8 is available for single
non-elderly individuals "under special circumstances. "
We didn't state the contrary. But playing in a band or
acting in a play is NOT one of the special circumstances
that make a single-person, non-elderly household
eligible.
2. The City of New York obtained a higher-than-
usual income limit for Section 8 assistance because
Roger Starr, in one of the few occasions that he
bestirred himself to do anything while HDA Admini-
strator, fought hard for it. While raising income limits
may possibly promote "economic integration, " it also
reduces the chances of the 1.5 million truly low-income
(and mostly minority) residents of New York City of
getting any subsidized housing at all. Even before the
income limits were raised from $11,450 to $14,500 for a
family of four, there was only enough Section 8 money
available for New York City to assist two percent of the
below-$11,450 incomefamilies.
3. The requirement that 30 percent of Section 8
subsidies must be for very low-income "Ie is
subject to being waived by HUD at the city's request.
We are not at all sure that this won't happen at Man-
hattan Plaza.
Finally, the city has not yet sold the Manhattan
Plaza mortgage. Our estimate of 35 cents on the dollar
was therefore a guess. Ms. Fox may be proved to be
correct that the city will get a higher percentage of the
face amount, but we shall have to wait and see.
R.S.
NEJWS
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a non-profit
The Energy Task Force, servation measures In
hich is promoting energby has just issued twO
w . . . n of older UI '
the rehabllitStlo h' h
documents. _ . eral piece, W IC
excellent h ublications IS a gen 'es on the
One of t e P newspaper stOri s
includes at 5'9
energy con . I which showS how you to make hot
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228-S044.
... v
DISCLOSURE, WORKSHOP PLANNED
On Friday, May 13th, the New York City Commis-
sion on Human Rights' Neighborhood Stabilization Pro-
gram will sponsor a "Disclosure Workshop."
A no-nonsense agenda that offers participants an
opportunity to learn how to collect and analyze data
now available from banks on their lending practices is
planned. In addition, a workshop on community action
will offer some ideas as to how best to use the informa-
tion.
Participating groups include ANHD, New York
Public Interest Research Group, Pratt Center, Operation
Open City, Peoples Housing Network, St. Nicholas
Housing Corporation, Neighbors of Greenpoint and
Williamsburg, Bronx Borough President Abram's office
and the Northwest Bronx Community and Clergy
Coalition.
The workshop will be held at Pratt Institute's
Memorial Hall, located on the Pratt Campus on Ryerson
Street and will run from 9:00 a.m. to 3:30 p.m. For more
information, call 233-3984.
"
CITIZEN PARTICIPATION CONFERENCE
PLANNED BY ENACT
The Ethnic Neighborhood Action Center (ENACT) will sponsor a city-wide conference On citizen
participation on Wednesday, May 18th, from 9:00 a.m. to 5:00 p.m., at,the CUNY Graduate Center, 33 West
42nd Street, in Manhattan.
Midge Costanza, a close advisor to President Carter, will deliver the keynote address at 10:00 a.m.
and most of the mayoral candidates will be in attendance.
Workshops on the citizen participation aspects of Day Care, Health Service Planning, Community
Action Programs, CET A Title VI , Community Development Block Grant Program, School boards, and
LEAA-Criminal Justice funding are planned.
ENACT will prepare a report based on the workshops for broad circulation among federal, state
and local officials as well as community representatives.
For more information, contact ENACT, 330 Leonard Street, Brooklyn, N.Y. 11211 (383 8300) .
A
. A
10.
t
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/
)
NYC HOUSING AND COMMUNITY
DEVELOPMENT COALITION PRIES
FAVORABLE C.D. LEGAL OPINION
FROM CORPORATION COUNSEL
Climaxing a two-year campaign, the New
York City Housing and Community Development
Coalition has finally obtained an authoritative
opinion from the New York City Corporation
Counsel that federal community development
block grants paid to New York City are NOT
subject to State Constitutional restrictions. In a
single two-sentence letter, the city's chief lawyer
says that these grant funds may, in effect, be used
to provide loans and even grants to one- and two-
family homeowners.
The tale of wasted time and energy and of
how the ruling was finally obtained is both bizarre
and depressing. Shortly after the 1974 Housing
and Community Development Act was passed by
Congress, HDA raised the question as to whether
Article XVIII of the New York State Constitution
which prohibits the state or any municipalities
from using public monies for "gifts or loans" to
any private persons or corporations, applied to
federal community development block grants. The
question was important, because while a limited
exception to the prohibition exists, it does not
affect one- and two-family dwellings. That is why,
for example, the city's municipal loan program,
authorized by Article 8 of the State Private
Housing Finance Law, and the "mini-rehab" loan
program under Article 8A of that Law, allow
rehiabilitation loans to made only to owners of
multiple dwellings. But what about loans where
the funds emanated from the federal government,
as under the CDBG program?
HDA answered its own question with a flat
"no"-the federal funds could not be used for
rehab loans to one- or two-family homeowners. On
what authority? Presumably its own legal
counsel's, although no written statement or
memorandum to that effect was ever publicly
released.
As early as the first Community Development
Program Year, the New York City Housing and
Community Development Coalition (known in
those days as the Pratt Conference Coalition)
challenged HDA's interpretation. It pointed to a
widely-circulated written opinion by the State
Comptroller in the form of a letter to the City of
Cohoes, New York, which said flatly that CDBG
funds were what they seemed to be-federal
funds and therefore not subject to prohibitions of
the State Constitution-which applied only to
state or local city funds. The Coalition also noted
11.
- ".. - ~ I
a similar letter with the same conclusion from the
Secretary of State to the Town at Islip, Long ~
Island. And it called attention to ' the fact that
dozens of municipalities around the State were
creating loan and grant programs using CDBG
funds for the rehabilitation of small homes.
Our fair city persisted in its own opinion, or
rather in an alleged opinion by someone in HDA.
So, it said that the only way the federal funds
could be used for one- and two-family homes was
if the homes were situated in an urban renewal
area. This view contributed to the two-year delay
in getting East New York's Small Home Improve-
ment Program (SHIP) started since the city had to
go through the whole process of revamping the
boundary lines of the East New York Urban
Renewal Area before any funds could be released.
It also permitted the city to refuse to allocate any
funds to rehabilitate houses under its urban home-
steading program.
The Coalition, time and again, pleaded with
the city to ask for an official opinion-either from
the State Attorney-General or at least from its own
Corporation Counsel, but to no avail. Small
wonder that more than a few people began to
suspect that the city would rather not inaugurate
any new housing programs to help low-income
homeowners and was using HDA's homegrown
"opinion" as an excuse for non-action.
It took a combination of luck and inventive-
ness, by Ron Shiffman, Director of the Pratt
Institute Center for Community and
Environmental Development, to break the
impasse. Shiffman approached James Cavanaugh,
the ex-Deputy Mayor who is' a consultant with the
Fund for the City of New York. Mr. Cavanaugh, in
turn, contacted an old colleague, Bernard Rich-
land, the City's Corporation Counsel. The result
was a "Dear Jim" letter from Richland in which he
states that he finds "no problem." Federal funds
are indeed federal (as we somehow also tholJght)
and being federal could not at the same time be
city or state funds and therefore the State Consti-
tution was irrelevant.
. Shiffman quickly forwarded the letter to HDA
Administrator Thomas Appleby who, we are
informed, intends to ask his counsel to ask Mr.
Richland to verify his opinion, whereupon the
official HDA pOSition will be officially reversed.
The story might be subtitled, "How to Get
Things Done in New York City." At any rate, our
sincere appreciation and admiration to Ron Shiff-
man and our thanks, also, to Thomas Appleby for
promptly acknowledging the "previous error" of
his agency, made during the Roger Starr days.
Finally, thanks to James Cavanaugh and the Fund
for the City of New York.
CITY COUNCIL TO CONSIDER
RESOLUTION ON CD3
MOVE TO STOP "THEFT"
OF FUNDS
Councilwoman Miriam Friedlander has
introduced a resolution in the City Council which
calls on the Board of Estimate to eliminate any
expense budget items from the Third Year
Community Development Block Grant
Application. The resolution has been applauded
by the New York City Community Development
Coalition, whIch has been opposing attempts by
the City to utilize C.D. funds for regular city
expenses. The resolution reads as follows:

. '.
Federal Housing and Development Act of 1974 defines the primary objective of the Community
Development block grants program as "the development of viable urban communities by providing decent housing
and a suitable living environment and expanding economic opportunities, principally for persons of low- and
moderate-income"; and
The Act further provides that no grant may be made unless an application is submitted to the Secretary of
Housing and Urban Development describing a program designed to "eliminate or prevent slums, blight and
deterioration where such conditions or needs exist, and provide improved community facilities and public
improvements"; and
The Mayor has proposed in his Third Year Community Development Plan and Program (CD3) to allocate
$21 million for Expense Budget items such as police, fire and sanitation services; and
This allocation would deprive the low- and moderate-income residents of the City of New York of
approximately 14 % of the $150, 835, 000 available in CD3 funds for their housing and neighborhood needs; and
j
j
Community Boards, Borough Boards, organizations and individual citizens have spent many hours in j
hearings and discussions on their priority projects, and this allocation would deny them the full use of CD3 funds; and
Continuing this discredited practice of burying Expense Budget items unrelated to housing and community
development purposes in other budgets violates both the letter and the spirit of the Federal law; and
The Board of Estimate must approve New York City's application for the Federal grant of Third Year
Community Development funds ; now, therefore, be it
That the Council of The City of New York calls upon the Board of Estimate to eliminate all items of
Expense Budget nature such as police, fire and sanitation from the Third Year Community Development block grant
application to be submitted to the Secretary of Housing and Urban Development and to assign all such funds to
urgently needed housing and community development programs.
12.
NS WORKSHOP ON

.
MA
7 nse given to an
Due to the enthUSiastiC re. po 8 Rehabilitation
n the Section HD '11
ANHD workshop 0 Id last month, AN WI.
Demonstration Program h\ hops devoted to a partl-
begin hosting monthly wor s
cular housing program. 'th AN H D staff, will not only
Guest experts, along WI do . but also hoW
explain what these programs
f
them, what the typical
can best take advantage 0
problems are, etc. . 312 rehabilitation loan program
The federal Section a 26th at 3:00 p.m. at ANHD
'11 be discussed on M y and Howard
WI PhT St Georges - I
headquarters. liP d' Ramon Rueda of as
Burchman of U-HAB ?n will share their expenences
Development materials on the program
ith the 312 program. n
:iII also be available. . of future workshops will be
Suggestions for tOPICS de either at the 312
. t d and may be ma
greatly apprecla e 26th or by calling ANHD.
workshop on May C"'"1'" :::::J
JOB OPENING
Rehabilitation Specialist/ Building
Evaluator
. for individual with experience in
the physIcal condition and rehabilitation
reqUlre':"8
nts
of War" multi-unit residential
pr<.>pertles, pnmarlly situated in low-income
neIghborhoods throughout New York City E I
with priv t . . mp oyment
d . a e, non-profIt housing organization entails
ren technical assistance to non-profit rou
seekmg to .determine feasibility of preserving
orated housIng perf . en-
rehabilitation of appropriate
reh b Tt . eSlgnmg comprehensive
tiona I I atlo!'l progra,!,s for specific buildings. In addi-
I ' to traIn other individuals in the abo
areas IS necessary. ve
with direct experience in re-
constructIon. and housing maintenance.
background m architecturel engineering is
. geous, but not determinative of suitability' for
POSitIon.
Salary dependent upon experience
Contact Jirri Yasser or Kathlee S
Association of Neighborhood e':! the
East 22 Street, New York, N. Y. 10010, , 29
SCHUR TESTIFIES AT
SENATE C.D. HEARINGS
On April 21st the ANHD's Executive Director, Bob
Schur, testified before the U. S. Senate Committee on
Banking, Currency and Urban Affairs in Washington,
D.C. Bob was invited by the Committee Chairperson,
Senator Ashley (Oem. Wisconsin) to give his views, as
a representative of the New York State Tenant and
Neighborhood Coalition, of whose Executive Committee
Bob is a member. The Senate Committee is looking into
the extension and possible alterations of the federal
housing and community development programs.
Bob stressed three major points in his testimony:
the need for more effective and meaningful citizen
participation in the formulation and monitoring of com-
munity development programs; the need for cities to
coordinate their C. D. programs with other federal
programs such as public works, CET A and the cate-
gorical housing programs and with the cities' own
capital and expense' budgets; and for an end to the use
of section 8 housing assistance allowance funds to bail-
out federal, state and city-assisted housing projects.
In his testimony, Bob pointed out that citizens not
only ought to have a voice in deciding how local govern-
ments should allocate federal grants, but that real citizen
participation will improve the effectiveness and effi-
ciency of local programs. He called for a four-point
policy of mandating the election or appointment of
community group representatives and community
leaders to a Citizen C. D. Task Force which would
review and comment on all C. D. proposals and which
would hold periodic reviews of government perform-
ance.
13.
Speaking of the need for better coordination, Bob
proposed changing the rules which now forbid local
governments from switching public improvements out
of C.D. plans in order to utilize Public Works Act funds
and which put unreasonable constraints on the use of
CETA job training funds in conjunction with C. D.
projects because of the Housing and Community
Development Act's inclusion of Davis-Bacon prevailing
wage requirements.
Finally, Bpb urged that Congress put an end to the
practice of using section 8 funds to rescue government-
assisted housing projects in trouble. "We need every bit
of available housing assistance allowance funds to help
needed new construction and rehabilitation," Bob
stated. He noted New York City's intent to use $11.5
million, or forty percent of its total section 8 allotment,
to bail-out the lEi9S-unit Manhattan Plaza development.
"If .this practice continues, there will be no section 8
funds available for anything else." The government
should develop separate programs to help those
housing projects which are in financial trouble and
should support and encourage tenant and hon-profit
community management as well as stretch-outs and
write-downs of mortgages to put them back on an even
keel.
Bob's testimony was presented on the last day of
four days of Senate Committee hearings, following
which the Committee is to consider and vote on
pending housing legislation and perhaps write changes
into the present Housing and Community Development
Act.
JUNE 12-13.1971
HOWARD UNIVERSITY
WASHINGTON, D.C. 20001
Community activists from across the country will
meet again this June to assess the state of our neigh-
borhoods and to develop a winning strategy on all the
issues critical to our communities. As always, this
Chicago-based organization promises some fireworks
for national housing officials who are responsible for
implementing the programs enacted by Congress.
Many workshops and seminars are being scheduled to
provide participants with up-to-date information on a
variety of topics. such as the Community Development
14.
Act. Redlining and Disclosure. as well as new proposals
from the Carter administration. We encourage you to
attend and promise that you won't be bored.
Registration is $8.00 for individuals and $3 to $5 for
groups. Lodging at Howard University is $6.00 per night
per person.
For more information and registration forms
contact Gini Sherry at ANHD or write to National
Peoples Action. 121 West Superior Street, Chicago,
Illinois 60610.
- -- - - --- ---
ASSEMBLY HOUSING
COMMITTEE TO HOLD
HEARING ON CD-3 PROGRAM
-
The New York State Assembly's Standing
Committee on Housing, chaired by
'11 hold a public hearing on
Edward Lehner, WI '00 A M at 270 Broadway
Friday May 6, at 10. .'
. 'R f - 6th floor) in Manhattan. .
(Hearing oom of the hearing is to elicit testl-
The purpose
mony on the following issues: d Y Community !
1 Do the proposed Thlr ear .
Plans and .pro?grams provIde
maximum assistance for housing. 't
2 Do the proposed Third Year Y
Plans and Programs
proposals which should more proper Y e
as Development funds
available for housing in the first and years
f the program been spent as expedItIously as
If not, has the housing stock of the
State suffered as a result? .' h' h
4 Proposals for State legIslatIon w
would hell> maximize the use of Com",:,unlty
Development funds for purposes In the
most expeditious manner .
l' If you are interested in testlfymg m person or
1 in writing contact Mr. William R. Howel.I,
Analyst, Standing Committee on HOUSing,
lative Office Building, Room 716, Albany, ew
L
YOrk
12248 (518-472-2760).
CODE ENFORCEMENT FUNDS --
V
RESTORED TO STATE BUDGET
In a last-minute m .
19n-78 New York JUst it adoPted th'e
restore the full $8 m'W the legIslature voted to
eliminated for state w Ich Governor Carey had
code enforcement ex to York City for
reprieve was due in This eleventh-hour
on the legislative leadersh' b e heavy put
organizations, including York CIty housing
and Neighborhood Co rr ew ork Tenant
Society and the Citizens I lo.n, CommunIty Service
Many community-based ouslng and Planning Council.
their'own Senators and AssgroubPS, hMelped by contacting
Th em Y embers
e restoration of this it .
means that New York Ci . em the state budget
state for every dollar it ty get fIfty cents from the
activities during the fisca,spen s Code Enforcement
The city now has no excuyea;w Ich began on April 1st.
sive Emergency Repair pse or not pushing an aggres-
roster of housing and for bringing its
Between state reimbursemeC:;: a back to fu!, strength.
ment funds, the city should nd communIty develop-
emasculating its code enf no longer plead poverty for
is back in Mayor Beame The ball
court. n mlnlstrator Appleby's
-
--
'HOUSING FOR PEOPLE DA y. MA Y 24th
Thousands of people from across the state will converge on Albany, on Tuesday May 24th for a mobiliza-
tion co-sponsored by the New York State Tenant and Neighborhood Coalition, of which the Association of
Neighborhood Housing Developers is a member. Many bills considered critical to the tenant and
neighborhood movement are progressing slowly in the Legislature. The mobilization will serve to remind
our elected officials of these bills, so that they don't get lost or bargained away in the late June rush.
Two of the issues at stake are neighborhood preservation and redlining. The Neighborhood
Preservation Act will fund non-profit housing organizations, so they don't have to scramble around each
year for administrative salaries. Bills dealing with redlining will also be considered during the session.
Plans calls for demonstrators to circle the Capitol with a mile-long red ribbon to symbolize the need for
stronger laws in this area.
State public housing projects that were built during the war are in desperate need of moderniza-
tion. Other issues that will be addressed on May 24th are rent control, extension of the Cooperativel
Condominium Fair Practices Code, mortgage interest stabilization for Mitchell-Lamas, and an outcry
against the improper use of Community Development funds.
Buses will depart from New York City between 6:00 and 6:30 a.m. Activities are planned for the
entire day, so please take your own lunch. The cost if $7.50, but arrangements can be made for those who
cannot afford the full fare. Reservations must be paid in advance. You will be assigned to a bus as close to
your home as possible.
For more information, or to make your reservation call: Bill Rowen 533-4430.
15.
TENANTS FIGHTING
RENT HIKES
A group of tenant org'anizations has engaged
counsel to obtain an injunction against the
decision by Rent Commissioner Daniel Joy to
grant landlords up to 7V2 % rent increases this
year. This rent increase constitutes a labor pass-a-
long won by building employees in the recent
Local 32B strike.
The groups include Metropolitan Council on
Housing, Tudor City Tenant Association, West-
side Tenants Union, New York State Tenant and
Neighborhood Coalition, and the West 79th Street
Block Association. Other tenant organizations are
expected to join in support of this action. A
number of city, state, and congressional
legislators have also announced their support of
the tenants' assertion that Commissioner Joy
deprived them of due process in granting land-
lords a labor pass-a-Iong.
At a recent meeting between rent
commissioners and tenant representatives, Mr.
Joy stated that he had been placed under pressure
from landlord groups to sign a consent decree
instead of allowing the court to decide the issue
on the basis of specific provisions in the MBR
Law, both in its language and intent.
Characterizing Mr. Joy's decision as both
high-handed and discriminatory on the part of an
appointed official, tenants pOinted out that the
MBR Law was conceived as a building-by-building
system, and was deSigned specifically to protect
tenants from arbitrary blanket increases in their
rent because of rising cost, on an across-the-board
basis. They cited assurances by previous rent
commissioners, Altman and Leventhal, to tenants
that their rent would never rise above 7V2 % in any
one year, unless individual landlords could show'
need, on an individual basis, under the hardship
provision of the MBR Law.
A meeting has been sought by tenant groups
and legislators with Mayor Beame, to demand that
the mayor rescind Commissioner Joy's admini-
strative decision. As yet, such a meeting has not
,been granted.
Affected by Mr. Joy's decision are about one-
half million apartment units still under the MBR
system. These tenants have been paying an
annual 7V2 % rent increase since 1970. The pass-a-
long would require tenants to pay rent increases
of up to 15% this year.
Tenants, many of whom live on fixed or
falling incomes, find that they have to make larger
and larger inroads on their disposable incomes to
pay rent, at the expense of other necessities, such
as food and clothing, and denounce Mr. Joy's
action as one that will create extreme hardship, in
addition to being illegal.
__________
16,
,
r
(
LINGO
LETTER K
By ROBERT SCHUR and RICHARD ZEITLER
KEY MONEY - A phrase used to designate a
lump sum payment made to a landlord or agent, aside
from or in addition to the rent and security deposit, as
consideration for entering into a lease. Also used to
describe money paid to a tenant as consideration for an
assignment of an existing lease or for a sub-lease.
Statutes, such as the New York City Rent Law and the
Rent Stabilization Law, forbid the giving of "Key
Money" in connection with leases of residential property
subject to those rent regulation laws.
KEEPER - ; Any custodian, manager or
superintendent; one who is charged with the care,
custody or management of a place or thing.
KNOCK-DOWN PRICE - ' The price at which a
specific property is sold as the result of competitive
bidding, usually at a public auction; thus, the highest
price bid and for which the property is sold.
LETTER L
LACHES - A Latin word used in modern legal par-
lance to denote a delay by one who has a legally
enforceable claim against another of such an unreason-
able length of time as to make it inequitable for a court
to allow the claim to be prosecuted. Usually, the mere
delay in time is not sufficient; the party against whom
the claim or right is sought to be enforced must show
that some circumstance has changed during the period
of delay as to make it unfair or unjust to allow the claim
to be enforced.
LAISSEZ FAIRE - From the French "Iet alone" or
"Iet one go one's own way." A policy of government
which holds that the least possible interference or regu-
lation, especially in economic and business affairs, will
lead to the greatest over-all benefit of the population,
that is: that the free interplay of competition will
produce the greatest prosperity for the greatest number.
Sometimes the term is equated with "pure" or "unregu-
lated capitalism."
LAME DUCK - A phrase used in politics to describe
an elected official or body of officials whose term of
office cannot be renewed. Thus, a United States Presi-
dent who loses a contest for re-election is considered to
be a "Iame duck" between election day and the follow-
ing January 20th when, according to the Constitution,
the winner of the election will officially take offi ce. So,
also, a body such as the United Stat es House of Repre-
sentatives when it is in session between the election day
on which its entire membership is elected and the dat e
when the newly-elected Representatives are sworn into
17.
office is considered to be a "Iame duck" legislative body.
The term is one of derision to signify the relative
lack of power or public respect which an official or body
has when it is certain to, leave office in a short period of
time.
LAND - In the most general sense, the ground or soil
on the surface of the earth and everything attached to it.
In real estate verbiage, the word sometimes signifies
only the natural surface of the earth (as when, for tax
assessment purposes, a distinction is made between
"Iand". and "improvements"); at other times, it signifies
everything attached to the soil, whether placed there by
nature (as in the case of trees, herbage and water) or by
man (as buildings, fences, etc.). "Land" often also
signifies everything under the surface, such as minerals,
and the air immediately above it, although in a more
technical sense, things below and above the surface are
sometimes said to be incidents of the ownership of land
rather than "Land" itself, as suggested by the old legal
maxim, "Cujus est solum ejus usque ad coelum"
("whoever owns land owns everything below to the
center of the earth and above it to the heavens").
LANDLORD - In the most general sense, anyone
who holds or owns an estate in land and who grants a
smaller or lesser estate, either of the land or a part there-
of or an improvement thereon, which includes a right of
possession. As generally and most often used today, it
describes an owner of an interest in land who has leased
it or a portion of it to another (called the "Tenant") for a
term of years, on condition that the latter pay rent.
LANDLORD AND TENANT - A phrase used to
describe the legal relations between the owner (lessor)
and lessee of real estate.
LANDLORD AND TENANT COURT (some-
times called "Housing Court") - A court created by
statute to hear and decide legal disputes arising out of
the relations between landlords and tenants and as a
result of the ownership of real estate (such as multiple
dwellings) usually held for rental purposes.
LAST OWNER - The individual who appears, from
the official public records of conveyance, to be the
present holder of title to the fee of a given parcel of real
estate.
In some types of legal actions with respect to real
property (such as actions to foreclose a mortgage or
other lien), it is required that the party commencing the
action submit proof to the court of the identity of the
present "owner of record" of the property. This is
normally done by having someone (usually a profes-
sional title abstractor or searcher) make an actual
inspection of the records of the official land recording
office for the locality and prepare a written statement
under oath as to what the records show. This docu-
ment is frequently referred to as a "Last Owner Search."
LATERAL SUPPORT - The legal right of an
owner of land to have such land supported by adjoining
land. Thus, where A and B own adjoining parcels of
land, if B decides to excavate (say for the purpose of
laying a foundation for a building which B plans to
erect), B must take all necessary precautions to prevent
any loss of support to A's land and all buildings on A's
land which may result from the removal of soil on B's
land.
LAW - In its most usual sense, a rule or enactment
promulgated by the legislative authority, or a long-
established custom which has the force of such an
enactment (the latter is often called "common law").
LAW MERCHANT - The body of jl.lJicially pro-
nounced rules, adopted by the English courts during the
17th and 18th Centures, governing the relations
between merchants and their business practices. Much
of the present legal rules governing modern commercial
transactions, such as the laws of sales of goods, chattel
mortgages, negotiable instruments, creditors' rights,
etc. had their origins in the "Law Merchant."
LA WFU L - Anything which is legal, allowed,
permitted, authorized or sanctioned by law; not contrary
to or forbidden by any law.
LA WFU L ENTRY - In real estate, any entry by one
person onto land in the possession of another, which
entry is made under a claim or color of right and without
force or fraud. An example is where a landlord of an
apartment, having reserved the right to do so in a written
lease, or exercising the right given by the emergency
rent control law, enters the apartment leased to a tenant
for the pu rpose of showing the property to a prospective
purchaser of the building or a mortgagee.
LEASE - A conveyance or transfer of lands or of an
improvement (such as an apartment in a building) to a
person for life, or for a period of time (usually a term of
years) or at will, in consideration of payment of rent or
other compensation. Properly speaking, the
conveyance must be either for a lesser time than the
lessor has in the property or it must be of a portion less
than the entire property; otherwise the transaction is
technically an" Assignment" rather than a "lease."
LEASE-BACK (also called "Sale and Lease-Back) -
A transaction whereby an owner of real estate sells the
property to another and immediately thereafter enters
into a lease with the new owner who is now the landlord
of the property. Usually the lease "back" to the former
owner is for a long term or contains renewal provisions
and will be of a type known as a "net lease" (see def.
18.
"Net Lease").
The purpose and effect of most "Lease-Backs" is
to convert an owner of a fee interest in real estate into a
tenant without disturbing or changing possession of the
property. It is frequently utilized by such an owner as a
means of producing cash (which may be needed in the
owner's business) as well as tax benefits (as where an
owner of business or income-producing property has
"used-up" the amortization allowed by the income tax
law but, as a lessee, can deduct the rental payments).
On the other side, purchasing a parcel of real estate and
immediately leasing it back to a secure tenant under a
long-term lease may be attractive to a financial institu-
tion or other investor or investment intermediary such
as a trust or pension fund.
One of the early large "Lease-Backs" occurred
shortly after World War II, when R. H. Macy & Co. sold
its main store at Herald Square in New York City to a
group of insurance companies and leased it back for
ninety-nine years. Macy's thereby raised millions of
dollars of immediate cash which it used to build and
equip new suburban stores and the insurance
companies made a very seCure and high-yielding invest-
ment of their surplus funds.
LEASEHOLD - An estate in land held under a lease
(i.e. the interest in the real estate which passes to a
lessee or tenant); any estate in land for a fixed term of
years.
LEDGER - A book of accounts in which a business
entity or individual can summarize owner's dealings
with other businesses or individuals. For each account,
two parallel columns are maintained, one for entries
debits to the person' or account charged, the other for
credits. The items are posted into this book from the
Journal or daybook. By totalling each of the parallel
columns (debits and credits) it is possible to determine,
at any time, whether money is owed to or is due from an
account.
LEGACY - A gift or bequest of personal property
made by will.
LEGATEE - The recipient of a Legacy.
LEGISLATION - The act of giving or making laws.
In democratic countries, such as the United States, the
power to make new laws and to remove or change
existing ones is almost exclusively given to a body of
elected officials known as a "LEGISLATURE."
LEND - To part with anything of value to another for
a fixed or indefinite period of time (provided the period
will have an ending at some time), the other (called the
"Borrower") to have the use and enjoyment of the thing
loaned in the meantime and the obligation to return
either the thing itself or something equivalent at the
time fixed or when lawfully asked for. The Borrower
mayor may not be required to compensate the Lender
for the use of the thing loaned.
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"THE NEIGHBORHOOD
HOUSING MOVEMENT"
Please send me __ copies of "The Neighborhood Housing Movement" at 51.50 per copy for
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IN THIS ISSUE
"The Neighborhood Housing Movement" Published
State Budget Cuts Restored
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POO4Joq4D!9N JO UO!lB!OOSSV
, Conferences Planned on Red-Lining and Citizen Participation
Action in Albany on Rent Regulation and Neighborhood Preservation
LINGO LEGAL BRIEFS NEWS
ANNOUNCEMENTS