No Progress as Deadline Nears

Hope Dims for the Westview Affordability Exit Plan

Updated 22 weeks ago David Stone
Hope Dims for the Westview Affordability Exit Plan
© Roosevelt Island Daily file photo

As The Daily reported on May 29th, RIOC threw the settled agreement already in motion for Westview's affordability exit from Mitchell-Lama into crisis by reneging on a deal reached after more than a year of hard negotiations. As a critical deadline nears, we've learned that reasonable progress has not been made, greatly increasing the likelihood of collapse resulting in an exit into market rates instead.

You can see the details of the agreement between RIOC and Westview's sponsor here. The letter, address to State Comptroller Thomas Dinapoli is required under public authorities law. It frees up the parties involved to complete the deal.

But RIOC President and CEO Susan Rosenthal later shocked David Hirschhorn, who represents the sponsor/owner group, with an after the fact demand for renegotiations, asking for more money.

Still eager to get the deal done for providing increased affordability for Westview, just as he has for Island House, Hirschhorn agreed to talk.

According to a source in State Assembly Member Rebecca Seawright's office, talks between the Westview Task Force,  RIOC and RIOC's parent, New York State Homes and Community Renewal, have not produced results.

The deadline mentioned above is the drop dead date for a financing deal Westview's sponsors negotiated to cover the conversion from Mitchell-Lama. That's July 15th, one month from now. Sources tell The Daily that RIOC's aware of that deadline.

As of today, there are no scheduled meetings for RIOC's Real Estate Development Advisory Committee, which oversees ground leases. The next and final full Board Meeting before the deadline is on RIOC's calendar for June 25th, although the same webpage says it's to be held on June 21st.

The prospects, once so bright for affordability are dimming. 

Oh, and Rosenthal? She's gone away on vacation.

Comments powered by Disqus