Preventing the Next Prospect Ave. Tragedy:

Sen. Klein Releases Report on Dangerous Foreclosed Properties & Irresponsible Banks That Disregard the Law

Senator Jeffrey D. Klein, today released a startling new survey that shows many foreclosed properties across New York City in a similar state of disrepair as the bank-owned property that claimed three lives in a fatal fire last Spring.

Several of these properties also appear to be occupied, while having serious building code violations levied against them –  ratcheting up the potential for additional deadly consequences.

“Even while holding ticking time bombs, these banks continue to disregard the law and act irresponsibly,” Senator Klein said. “The fact that this sorry state of affairs exists after the tragedy on Prospect Avenue is even more outrageous and unacceptable. These lenders need to step up and stop abusing our communities with their neglect.”

The report shows a pattern of banks ignoring a 2009 state law sponsored by Senator Klein that required banks to maintain and secure foreclosed properties in their possession. In the event that they fail to act, the law also gives municipalities the power to clean up the properties on their own and bill the bank for the cost.

On April 25, a 12-year-old boy and his parents died in a fire at 2321 Prospect Ave.  The property had been owned by the Bank of New York Mellon due to a foreclosure and had open complaints against it for a faulty boiler, bad wiring, illegally subdivided apartments, and a lack of access to exits.

Senator Klein's Office found close to 2,000 foreclosed properties in the five boroughs  with some 3,751 open violations. Multiple bank-owned properties are the subject of similar complaints as the Prospect Avenue property. Included in this list is a property situated just three blocks away from the fatal fire.

That Citi-owned property, located at 2290 Beaumont Ave., Bronx, has 13 open complaints that included multiple illegally subdivided apartments. People appeared to be living in the building.

Additionally, spot checks by Senator Klein's Office, also found that some bank-owned properties with the most open building violations also appeared to be occupied.

These properties included:

1055 Martin Luther King Blvd., Bronx,  which has the dubious distinction of being the bank-owned residence with the highest number of violations in the Bronx and the second highest in the entire city.  These complaints range from illegal conversion of apartments to structural defects, sinking floors, and a defective boiler.

1744 Clay Ave., Bronx.,  which has 60 open violations, with new complaints lodged as recently as two weeks ago.

“The condition of these properties place entire communities in harm's way,” said Senator Diane Savino, (D-Staten Island/ Brooklyn.). “If the banks can't be counted on to maintain their properties, we need to use the resources at our disposal to make sure people are not placed in harm's way, and that these lenders pay for every single repair.”

The full list of  the worst bank-owned buildings in New York City are:

County	Open Violations	Address	Zip	Lender/Owner
Brooklyn	100	68th Street	11220	Indymac
Bronx	84	1055 MLK Blvd	10452	Highbridge Apts
New York	74	1 Central Parkway West	10023	CSB NY Holdings
Bronx	62	900 Hoe Avenue	10459	Hunts Point Assn
Bronx	60	1744 Clay Avenue	10457	OLR ECW

A borough -by-borough breakdown is included in Senator Klein's report: 'Who is Accepting Responsibility?: A Survey of Bank Owned Properties in New York City.'

The Top Five Lenders with Open Violations on Foreclosed Properties are:

Open Violations	Lender
211	Deutsche Bank
163	US Bank
141	Federal National Mtg
119	SG Assets LLC
118	Indymac

Jonathan Levy, Deputy Director for Legal Services NYC - Bronx's Housing Unit, said: “It’s time for financial institutions, whose reckless lending contributed to the foreclosure crisis, to take some responsibility for the aftermath.  Tenants – especially lower income tenants who have few options – should not be forced to live in dangerous conditions.”

Jean Sassine, Homeowner and Board Member of NY Communities for Change, said: "This law is primarily about making lenders take responsibility for the mess they continue to make. If the city doesn't hold banks accountable for maintaining their own property, then it's just like giving them another taxpayer-funded bailout."

Congressman Crowley Schedules Visit to James Monroe Senior Center

U.S. Representative Joseph Crowley Will Visit The James Monroe Senior Center in The Bronx. Tuesday August 9, 2011 at 10:30AM. U.S. Representative Joseph Crowley (7th District-Bronx-Queens)  will visit the James Monroe Senior Center on Tuesday August 9, 2011 at 10:30AM  to discuss the federal budget process, and local issues, Said Franck LaBoy associate director of Monroe Senior Center. After making some initial opening remarks, Representative Crowley will open the floor  to take questions from seniors regarding the federal budget negotiations, various local issues, and the Nation's economy. James Monroe Senior Center is sponsored by Institute for the Puerto Rican /Hispanic Elderly, Inc., and is  located at 1776 Story Avenue, The Bronx, New York 10473.    James Monroe Senior Center is located between Taylor Avenue and Rosedale Avenue   For more information contact Frank Laboy at 718-893-3484

JOINT AUDIT BY DiNAPOLI AND LIU CONCLUDES MTA’S EXPANDING SUBWAY DIVERSIONS HEADED DOWN A WASTEFUL, CONFUSING TRACK

  A joint audit released today by New York State Comptroller Thomas P. DiNapoli and New York City Comptroller John C. Liu takes the Metropolitan Transportation Authority (MTA) to task for leaving subway riders in the dark about wasteful and unproductive service diversions. Under MTA’s New York City Transit (Transit), subway service diversions are on the rise and over budget with little explanation or instruction to riders.

“When the MTA fails to manage its service diversions properly, it's more than an inconvenience; it's a waste of taxpayer money and it derails local businesses,” Comptroller DiNapoli said. “Our audit found that MTA’s service diversions are increasing in frequency and leaving taxpayers on the hook for millions of dollars in cost overruns. The subway system is showing its age, but the MTA has to do a better job managing all aspects of these diversions, from rider notification to budgeting.”

“Sadly this confirms the nagging suspicion of riders, residents and business owners alike, that subway service is taken down more than necessary,” Comptroller Liu said. “The MTA must understand that the City never sleeps and weekend service is neither ancillary nor expendable. We expect the MTA to maintain and repair the tracks, while keeping disruptions to a minimum.”

The first joint audit conducted by the State and City Comptrollers in more than a decade recommended that Transit make significant improvements when it comes to budgeting, scheduling and managing service diversions. The audit, which covered a period from January 2009 to January 2011, brought together the expertise of the staffs of both offices and expanded upon the series of ongoing audits both have conducted of the MTA.

Transit Doesn’t Do Enough to Inform Riders of Service Diversions Transit’s budget for advertising diversions is woefully inadequate and Transit management failed to notify riders of diversions consistently or effectively. In 2010, its budget for informing its 2.3 billion annual riders of service diversions was $228,000. In comparison, the Long Island Rail Road, with 81.9 million annual commuters, spent $742,432 to notify its riders of service diversions that year.

In June and July 2010, auditors visited 39 stations that were affected by diversions. They found:
 No more than 20 signs at any station, despite Transit’s claim of posting 50 on each platform;
 No signs in any language besides English at all 39 stations, despite Transit’s policy;
 One sign in each of 10 stations on the 1 and 2 lines, but no signs at street level, in cars or on platforms;
 Only two of 13 Americans with Disabilities Act stations checked had signs in elevators, despite Transit’s policy;
 Transit’s only written policy for informing riders of diversions consists of newspaper advertisements, which are required to run forall diversions. Newspaper ads were only created for two of 50 sampled diversions (Fulton Street Station and World Trade Center E line).

More Diversions, Scheduled Poorly: Work Starts Late, Ends Early The frequency and duration of Transit’s subway diversions are increasing. Between 2008 and 2010, the number of weekend diversions rose from 47 to 74 and the number of diversions lasting for at least one month increased from 7 to 57.

Transit often reroutes riders’ trains even when no work is taking place. When asked for the General Order Worksheets that track time spent on each diversion, Transit management could only provide auditors with 29 of the 50. Of those 29 diversions, work started late on 28 and stopped early on 21. Unproductive work time ate up anywhere from 10 to 27 percent of the time trains were diverted, though there was no cost mitigation. Transit management wasted an estimated $10.5 million in this manner over the 3,332 diversions in a sample period from January 1, 2009 and July 14, 2010.

$26.6 Million Over Budget
Spending on diversions is not properly managed. The Comptrollers reviewed 15 diversions covered by 12 contracts budgeted at $141.7 million. Four of these contracts went over budget by a combined $26.6 million and cost a total of $83.1 million. The MTA’s financial constraints demand that Transit properly monitor costs during diversions and keep them within budget.

Shuttle Bus Schedules Based on Six-Year Old Rider Numbers
The audit team sampled six diversions in which buses were used to transport the riding public. Transit management could not document how ridership estimates were used to decide how many buses to put into operation or for how long. Transit could provide only one ridership estimate and that was six years old.

Recommendations
The Comptrollers issued five recommendations. The MTA and Transit should:do
1. Reevaluate its budget for alerting the riding public about planned subway service changes due to diversions;
2. Monitor expenditures for service diversions and justify spending over budget amounts;
3. Ensure that diversions adhere to scheduled start and end times for service diversions and restore normal subway service as soon as possible after diversion work is completed;
4. Use updated ridership data to determine shuttle bus deployment for transporting riders during a subway diversion;
5. Adhere to Federal law and Transit procedures related to communicating with the public regarding diversions.

LIU ISSUES DEBT CEILING ADVISORY

Memo to Mayor and City Council Outlines Possible Effects on NYC’s Finances,

Puts Forth Contingency Plans if Debt Talks Fail

City Comptroller John C. Liu today issued a Debt Ceiling Advisory outlining potential effects on the City’s finances, and offered recommendations to help offset the potential risks, if a deal is not struck in Washington to raise the nation’s debt limit.  

“As inconceivable as it seems, Washington appears stuck in a quagmire just days from the hard deadline for a debt ceiling resolution. The irresponsibility and ineptitude being demonstrated in our nation’s capital could cause profound damage to our City, first and foremost with more than one million seniors and disabled New Yorkers being cut off from their primary source of income,” Comptroller Liu said.   “After weeks of monitoring the situation, my office issued an advisory outlining the financial threat to our City and calling for an immediate mobilization of our resources to evaluate and shore up our preparedness.”

We have been closely monitoring this situation and as a result, my office has outlined actual consequences that the inaction in Washington could have on our City’s finances, programs and benefits,” Comptroller Liu said. “Due to the irresponsibility in our nation’s capital, New York City’s seniors could feel the brunt of the pain if a deal is not reached, putting their much relied upon benefits in jeopardy.  New York City should view this as a financial threat, and I am calling for an immediate mobilization of our resources to discuss our preparedness.”

Liu has recommended the creation of an emergency Debt Ceiling Task Force, comprised of representatives of the Comptroller’s Office, Mayor’s Office of Management and Budget, New York City Council, and other relevant parties to begin meeting immediately to discuss the City’s options.

In addition, Comptroller Liu has put forth recommendations for discussion in the event that an agreement in Washington is not reached.

Since a failure to extend the debt ceiling could potentially result in a stoppage of federal payments, including Social Security benefits to 1.1 million New York City seniors and disabled persons, Liu is calling for the Task Force to explore any and all possibilities for the City to temporarily help finance these payments to ensure that the City’s most vulnerable are cared for. 

Comptroller Liu has also recommended that the City work together with banking institutions to establish mechanisms to open credit to seniors in the event that an agreement is not reached and has requested an analysis of how City-funded service providers to the elderly and disabled could receive additional support if their client load increases.

A review of the City’s finances has highlighted five impact areas that may be affected by the lack of a deal in Washington. Each area was assigned delegation of “HIGH, MEDIUM or LOW” depending on the potential impact.

IMPACT ON NYC SOCIAL SECURITY BENEFICIARIES – HIGH

Liu said that New Yorkers who will feel the brunt of the inaction in Washington are the City’s seniors, many of whom rely solely on Social Security as their main source of income. The lack of an agreement on the debt ceiling could result in more than 1 million seniors and disabled persons being denied their payments each month, totaling $1.1 billion.  See the chart below

NYC Social Security Recipient Population Profile, December 2010
	# Beneficiaries	Total Benefits	Per Recipient
			Monthly Benefit
Bronx	176,450	$169,942,000	$963
Brooklyn	301,475	$298,082,000	$989
Manhattan	235,805	$276,498,000	$1,173
Queens	300,695	$324,533,000	$1,079
Staten Island	81,015	$95,707,000	$1,181
NYC Total	1,095,440	$1,164,762,000	$1,063
Source:  OASDI Beneficiaries by State and County, 2010, U.S. Social Security Administration.
*Note: This estimate shows a deviation of 20 recipients greater than reflected in NYC Aggregate Profile

IMPACT ON MEDICAID, MEDICARE AND PUBLIC ASSISTANCE PROGRAMS – MEDIUM

Several major social service programs in New York City could be at risk if the debt ceiling is not increased. Federal Medicaid support totals more than $1 billion monthly.  A delay could affect the state’s ability to pay Medicaid service providers on a timely basis. This could also affect health care providers.

IMPACT ON NYC CASH POSITION – LOW

Because of the City’s financial strength, our cash position is such that it will be able to sustain the delay of federal and state aid receipts. The City currently has $6.9 billion in cash on hand and is expected to continue to meet its normal obligations, including payroll, vendor payments and interest payments on outstanding debt. 

IMPACT ON MUNICIPAL BOND MARKETS – MEDIUM

The City has successfully managed its capital borrowing through prior periods of market turmoil, such as the fallout from the Lehman Brothers bankruptcy in 2008. However, higher interest rates would hit City taxpayers directly and for an extended period.  The Comptroller’s Office is monitoring the capital markets very closely to minimize any impacts on the City’s capital borrowing from the current debt ceiling debate. 

IMPACT ON CITY’S PENSION FUNDS – MEDIUM

It is assumed that any failure to raise the debt ceiling would have an impact on the financial markets.  With over $7 billion of short term securities, the pension funds are well equipped to make their near term pension payments to beneficiaries regardless of the near term stock and bond market volatilities. As long-term investors, while the markets will readjust in the short term, the asset allocations may need to be reviewed for the longer term implications. 

A full copy of Comptroller Liu’s advisory is available at http://comptroller.nyc.gov/press/pdfs/debt_advisory.pdf

URBAN ENTREPRENEURSHIP FORUM

BOEDC Welcomes the

New York City

URBAN ENTREPRENEURSHIP FORUM

Monday, August 1, 2011 - 9:00 a.m. to 5 p.m.

Registration 8 a.m. to 9 a.m.

Monroe College

King Hall (Bronx Campus)

2501 Jerome Avenue - The Bronx, NY 10468

Co-hosted by:

The White House Business Council

The White House Domestic Policy Council

 The Office of the Honorable Michael Bloomberg - Mayor, New York City,

 Monroe College

The Fund for Public Advocacy

Office of Russell Simmons

Minority Business Development Agency

Small Business Administration

100 Urban Entrepreneurs

Operation HOPE & multiple federal agencies

The Bronx Overall Economic Development Corporation's President

Marlene Cintron will be featured as a panelist in the

 "Investing in Urban Entrepreneurs: Creating Funding/Financing Urban Entrepreneurs" workshop  

Additionally, Bronx businesses, Astoria Coffee and Cappuccino Machine Inc. and Melita Corp., recipients of the SBA 504 Loan Program will provide conference participants with their products.  

  This invitation is non-transferable. The event is free.

   Pre-event registration is required and space is limited. 

Please RSVP at:

http://urbanentrepreneurshipsummitnyc.eventbrite.com/

Visit us at: http://www.whitehouse.gov/africanamericans

Assemblywoman Rivera celebrates National Night out with Local Precincts

On Tuesday, August 2nd Assemblywoman Naomi Rivera will celebrate the 28th Annual National Night Out. In collaboration with the 49th and 52nd police precincts, this event is sure to promote the communal spirit of the Bronx through enjoyable programming as well as to encourage better relationships amongst residents and law enforcement officials in the area.

National Night Out 2011 will take place at two locations within the 80th Assembly District. The 52nd Precinct will hold their National Night Out at Williamsbridge Oval Park (206th and Bainbridge Ave) and the 49th Precinct’s National Night Out will be held on the Pelham Parkway Lawn located at Pelham Parkway North (Between Wallace Ave. and Barnes Ave). The event is anticipated to run from 6:00 to 9:00 pm.

National Night out was designed to heighten drug and crime prevention awareness, increase support and involvement towards anticrime programs, build neighborhood spirit and police-community partnerships, and send a message to criminals letting them know that neighborhoods are organized and fighting back. This year’s event is sure to carry on the tradition.

There are no financial obligations for residents who wish to participate in National Night Out. This event is family oriented and there will be food and refreshments for all to enjoy. National Night Out events are successful every year and they continue to transform communities into better places to live. This event is sure to be a great way to kick off the Assemblywoman’s Summer Event Series of 2011.

MISSING WOMAN

MISSING SINCE 7/8/11

YVONNE PINNOCK
60 Year Old Female
Last Seen at 845 E. 224th Street, Bronx, NY

5'2" 104 1bs
Has serious medical conditions
Anyone who has seen this woman should contact NYPD












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Statement by Senator Jeff Klein on SLA investigation into Caffeinated Four Loko sales

Local Downtown Manhattan Newspaper finds sales continue

Statement from Senator Jeffrey D. Klein, (D-Bronx/ Westchester), Chairman of the Senate Standing Committee on Alcoholism & Drug Abuse:

“News of a State Liquor Authority probe regarding on-going sales of caffeinated Four Loko proves that a simple gentleman's agreement is not enough to keep this dangerous product off store shelves and out of New York State. My legislation, (S.3889A), to outright ban caffeinated alcoholic beverages passed the Senate this session. The Assembly needs to do its part to protect New Yorkers from this product, which the FDA deemed 'unsafe,' and pass my bill as soon as possible.”  

The article from "The Local East Village" can be found here .