WPCNR FOR THE RECORD. By John F. Bailey. October 5, 2006: The details of the new lease approved Tuesday evening by the Common Council contracting the city to rent the Senior Center from Armory Plaza Preservation Housing Development Fund, Inc. (a newly formed subsidiary of the present owners of the property, Related  Apartment Preservation of Manhattan) for the next twenty years with an option for thirty were made public in the City Clerk Office today.

The city, as reported by WPCNR previously will pay $264,000 a year  (up from $126,000 the city has been paying the last twenty years annually), for ten years to rent the the senior center. After 10 years there will be a 2% increase in year 11 (to $269,280) running through year 20, or to year 30 if the 10 year extension is agreed upon. The document dated August 30, 2006, was not included in the back-up material provided the media Monday October 2.

The document describes the increase as follows: "The recommended rent for the new lease brings the rent on the leased premises to market rate..." and notes "Although this represents an initial significant increase in the (city's) rent for the leased premises, this increased rent is necessary to preserve the low income senior citizen housing on the premises and represents the first increase in 20 years."

The city was told by Related Preservation Companies in August that a recent Housing and Urban Development survey had determined that Related Preservation had been charging too much for the senior apartments and told the company to reduce their rents. The reduction as reported by Andrew Glantz, press spokesperson for HUD's Manhattan office told WPCNR

What has happened as stated in the work session when this lease was discussed is that Related Apartment Preservation has been charging rents over and above guidelines HUD has established and the Housing and Urban Development department has told Related Apartment Preservation to reduce their rents which the company did.  Related Apartment Preservation asked the city to make up the rent loss difference dictated by HUD surveys of typical rents,  in the September work session.

HUD Explains: Rents too High.

Andrew Glantz, spokesman for HUD of Manhattan,  told WPCNR last week that Related Apartment Preservation had been charging $1,087 a month for its 13 efficiences (of which the elderly tenants pay one-third), and HUD demanded Related lower that rent to $925. Glantz said the average decrease was $146 a month, which cost Related Apartment Preservation $1,898 a month in rent or $22,776 a year.

Glantz reported to WPCNR that of the 39 one-bedrooms, Related Apartment Preservation had been charging an average $1,306 a month, and HUD has forced Related to lower that rent to $1,215, a decrease of $91 a month. That works out to $3,549 a month in rent shortfall or $42,588 a year.  The total rental shortfall, according to the figures Glantz supplied on the individual apartments totals $65,364. The city had been paying Related $125,000 a year for rent on the senior citizen center in the Armory. Related wanted the city to up that rent and also take care of a portion of the rent loss demanded by HUD.