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  1. #1
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    BMHA's Public Housing Waterfront Subsidies

    This is merely the latest of the endless questions about Bflo's "political housing".

    Logic would dictate that waterfront housing on valuable land in an impoverished city would pay significant taxes. Instead Bflo has 616 heavily subsidized public housing apartments on the waterfront with rents starting at about $250 monthly for one bedroom, INCLUDING ALL UTILITIES.

    Several years ago Attorney George Grasser of "Partners for a Liveable WNY" brought in housing experts to work with a group of interested tenants on turning Marine Drive Apartments into a taxpaying tenant-owned co-operative. They even started a website to keep the community informed.

    But "connected" tenants, accustomed to cheap waterfront living for decades, many even wintering in Florida because the waterfront was too cold, didn't want to be bothered. They lobbied City Hall & NYS officials to keep their bonanza.

    The endeavor died, as taxpayers keep pouring in waterfront public housing subsidies . . and more resources to do damage control on the endless stream of scandals.

    Here is the latest chapter . . .



    http://www.buffalonews.com/home/story/317307.html

    Housing manager cited over own sites

    By Brian Meyer NEWS STAFF REPORTER, Updated: 04/07/08 6:35 AM


    The man who manages a 616- unit complex owned by Buffalo’s public housing agency has been cited by city inspectors for owning dilapidated properties, The Buffalo News has learned.

    Two properties owned by Henry M. Littles are currently in Housing Court, and a third will likely be cited for violations, according to documents city officials released in response to a Freedom of Information request.

    Littles, a longtime friend of Mayor Byron W. Brown, began managing the Marine Drive Apartments 14 months ago after the Buffalo Municipal Housing Authority signed a $70,000-a-year contract with Erie Regional Development to oversee the seven-building complex.

    Housing Court records obtained by The News indicate that inspectors found numerous violations at properties Littles owns on West Utica and Schreck streets.

    The problems include rotting decks, broken windows, old tires, appliances and other rubbish in yards, and loose gutters.

    A Housing Court case could be filed soon involving another property Littles owns on Schreck Street, according to Richard M. Tobe, the city’s permits and inspections chief.

    When contacted for reaction, Littles was contrite.

    “I’m not going to deny that there have been some problems,” he said. “I haven’t been giving my personal properties as much attention as I have in the past.”

    Littles cited his increased workload at Marine Drive and problems finding responsible tenants for properties in “troubled” neighborhoods. But he conceded that these are not valid excuses.

    “I’m guilty of these things,” he said. “The bottom line is that I will get them repaired.”

    Littles promised to rectify the problems by early summer.

    He said he owns about 15 properties through a limited liability corporation with his mother and sister. He acknowledged that during his two decades in the rental property business, there were a couple of cases involving code violations. But he insisted that the problems have been isolated and that he has not been a slumlord.

    The News filed requests for information on Littles’ properties dating back to 2000. Tobe said staffers were still compiling the data Friday.

    “We have insufficient information to make a conclusion one way or another,” about whether Littles has a pattern of property violations, he said.

    Littles also downplayed the severity of the violations cited by inspectors.

    “It’s nothing where someone is living in dire straits or where the property needs to be demolished,” he said.

    “But the bottom line is that I will get things repaired,” he added.

    The chairman of the Buffalo Municipal Housing Authority said Littles must take swift action to fix his properties.

    “If you’re asking me if it’s an issue, absolutely,” Michael A. Seaman said of Littles’ problems in Housing Court. “I told Henry he’s doing a great job at Marine Drive, but there are standards we have to abide by.”

    A tenant-elected housing commissioner who lives in Marine Drive disagrees that Littles has improved conditions there. Joseph Mascia said things have “steadily deteriorated,” and he thinks Littles should be fired.

    “He just doesn’t have the experience to manage a housing complex this size,” Mascia said.

    Seaman defended Littles’ track record, quoting some tenants who attended a City Hall hearing last September. Some speakers said Littles was a vast improvement over the Hutchens- Kissling management group, which he replaced in January 2007.

    “There are some residents who like him, but they’re the ones who get the perks,” Mascia retorted.

    Littles said his recent accomplishments include troubleshooting water leaks that slashed bills at Marine Drive from $700,000 to $143,000.

    Seaman said the contract at Marine Drive could be terminated on a month’s notice. But he said he thinks Littles should continue running the complex as long as he fixes his properties.

    “I have all the confidence in the world in Henry,” Seaman said.

    The mayor echoed the sentiments, saying everything he has heard about conditions at Marine Drive tells him that Littles is meeting and exceeding expectations.

    “He has done an absolutely exceptional job in turning around a property that had many problems,” Brown said.

    The mayor denied that he had any involvement in the decision to hire his longtime friend to manage Marine Drive. The Housing Authority approved a contract with Erie Regional Development, a nonprofit property manager and human services provider, Brown said. In turn, Erie Regional hired Littles to be the sole manager of the complex.

  2. #2
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    Subsidized waterfront rent

    Here is a letter from a Marine Drive tenant praising the new manager.

    But the needed discussion of why there is heavily subsidized housing on the waterfront in a desperately poor city keeps getting lost.

    Does anybody know current rents in the BMHA-owned 616 waterfront apartments? Last I checked several years ago, they started at about $250 per month for one bedroom, ALL UTILITIES INCLUDED.

    How much property tax does the complex pay? As I recall, they pay a "payment in lieu of taxes" on a fraction of the real value of the waterfront complex. They even got water at a major discount, perhaps a reason that major leaks remained unrepaired?

    And what is the taxpayer cost of the massively bureaucratic structure of its governance? Unless changed, tenant selection was (very badly) supervised by NYS-DHCR (state equivalent of HUD) bureaucrats in the Bronx (NYC). And of course, a share of BMHA's costly bureacracy "governs" Marine Drive as well.

    It makes no sense . . . except to politicians . .and to all those 'connected' tenants who get cheap waterfront rent, many benefitting for decades.

    The letter:

    http://www.buffalonews.com/opinion/e...ry/325235.html

    Many residents support Marine Drive manager

    Updated: 04/17/08 6:38 AM


    The place where I live was in deplorable condition. Then Henry Littles became the manager of Marine Drive Apartments and conditions improved greatly. In a News article, tenant commissioner Joseph Mascia said Littles should be “fired.” Mascia failed to mention that the person he wanted to manage Marine Drive was not selected. Mascia alleges that Littles does not have the “experience” to manage Marine Drive. In addition to many improvements, Littles obviously is experienced enough to decrease the amount of unpaid rents and to drastically decrease water bills.

    Mascia insulted the residents he supposedly represents by implying that they “get perks” for liking Littles. I like Littles, and have never asked for or received any “perks.” I like him because he makes himself available to residents. He is polite, helpful and honest. He personally addresses problems, whether during the workday, evenings or weekends. I can understand if making 616 units a better place to live hasn’t allowed Littles much time for personal tasks.

    I have been at meetings where Marine Drive residents burst into spontaneous applause for Littles, thus expressing their approval of him. Mascia seems to forget he was elected by these residents.

    Marilyn Gallivan

    Buffalo

  3. #3
    Member Linda_D's Avatar
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    Dick, give it a rest! You've been repeating this same cago for at least 2 years (I found one of your posts from 2006 on BuffaloRising which made the same claims!)

    FYI, the Marine Drive Apartments are supervised by the NYS Division of Housing and Community Renewal, NOT by the BMHA. Moreover, they are for middle income families and seniors who meet income guidelines, with the subsidies being paid by the federal and state governments not by the local government. (http://www.dhcr.state.ny.us/ohm/apps...s/hsgdevls.asp).

    Generally in these types of buildings, subsidized tenants pay 30% of their monthly income for their housing costs, including the apartment and utilities, so elderly people living on only Social Security could very well be paying less than $300 a month for an apartment and utilities (I'm assuming that rents have increased a bit since you've used $250 for at least 2 years). By all means, let's throw them out so they can make some flippers more money.

    BTW, how much in taxes are those new half million dollar townhouses on the Inner Harbor going to net the city for the next ten years? Certainly not enough to cover annual road maintenance and police and fire protect.

    I think your outrage is misplaced, but then the poor are always "undeserving" aren't they, Dick? Even if it's because they're old.

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    Jamestown Juantice

    I think your outrage is misplaced, but then the poor are always "undeserving" aren't they, Dick? Even if it's because they're old.
    LINDA D.....YOU OUGHTA CHECK YOUR FACTS BEFORE YOU SHOOT OFF YOUR MOUTH...!!!
    MOST OF THE RESIDENTS HERE ARE "CONNECTED" AND WHO'S INCOME IS ABOVE THE "POOR". These apartments have for some time been controversial because of the "system" used to pick and choose potential renters, most of which were placed "from the friends and family sytem".
    The rents here are ridiculously low for a waterfront view...of which many enjoy.
    DICK has good reason to "cago" as this complex should be sold, and put on the city's TAX ROLLS.
    PERHAPS you might focus your energies in JAMESTOWN ....I'm sure it far from paradise there!!

  5. #5
    Member Linda_D's Avatar
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    Quote Originally Posted by joe d.
    I think your outrage is misplaced, but then the poor are always "undeserving" aren't they, Dick? Even if it's because they're old.
    LINDA D.....YOU OUGHTA CHECK YOUR FACTS BEFORE YOU SHOOT OFF YOUR MOUTH...!!!
    MOST OF THE RESIDENTS HERE ARE "CONNECTED" AND WHO'S INCOME IS ABOVE THE "POOR". These apartments have for some time been controversial because of the "system" used to pick and choose potential renters, most of which were placed "from the friends and family sytem".
    The rents here are ridiculously low for a waterfront view...of which many enjoy.
    DICK has good reason to "cago" as this complex should be sold, and put on the city's TAX ROLLS.
    PERHAPS you might focus your energies in JAMESTOWN ....I'm sure it far from paradise there!!
    1. I said these apartments were for middle income families and the elderly. The elderly are the ones who most likely qualify for the super-low rents because many only have Social Security and very small pensions from their jobs.

    2. The previous management company was removed because they were not following DHCR rules about renting to families as well as discriminating against non-whites.

    3. When the COB gets rid of the Empire Zone tax breaks for the owners of the half million dollar townhouses for the rich folks, then maybe we can talk about displacing middle income people who live in the Marine Drive apartments.

    4. The COB has plenty of waterfront property to develop without touching the Marine Drive apartments, so let developers develop those sites -- without subsidies and without giant tax breaks.

    5. It's not against the law to have worked in City Hall or to know or be related to someone who works in City Hall.

  6. #6
    Member leftWNYbecauseofBS's Avatar
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    Quote Originally Posted by Linda_D
    1. I said these apartments were for middle income families and the elderly. The elderly are the ones who most likely qualify for the super-low rents because many only have Social Security and very small pensions from their jobs.

    2. The previous management company was removed because they were not following DHCR rules about renting to families as well as discriminating against non-whites.

    3. When the COB gets rid of the Empire Zone tax breaks for the owners of the half million dollar townhouses for the rich folks, then maybe we can talk about displacing middle income people who live in the Marine Drive apartments.

    4. The COB has plenty of waterfront property to develop without touching the Marine Drive apartments, so let developers develop those sites -- without subsidies and without giant tax breaks.

    5. It's not against the law to have worked in City Hall or to know or be related to someone who works in City Hall.

    And the truth comes out.

    At least you are not trying to say those tax breaks are against the rules. I just loved how you walked away from that thread once you were proven wrong.

    In terms of waterfront property, I thought it was the tundra and not able to be developed. According to you, the Outer Harbor is uninhabitable. That leaves the Inner Harbor where this complex is and the First Ward where you say the residents should be left alone.

    Just where do you think the COB should look to develop waterfront housing Linda?

    Do you want some sugar with the lemons you are sucking on.....

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    MARINE DR delinquents face eviction

    It appears that some rationality is finally appearing at BMHA's Marine Drive Apartments.

    However, I fear that Deidre Wms is off the mark by alleging that the complex is not subsidized, when it has long benefited from heavy INDIRECT SUBSIDIES . . . . reduced taxes, mortgage expense on a fraction of the complex's worth, etc.

    Most troubling is the 'culture of entitlement' enabling tenants to run up such huge arrears without consequences, when rents for those who do pay are so low.

    What is the current rent structure at Marine Drive by bedroom size?


    http://www.buffalonews.com/cityregio...ry/458696.html

    MARINE DRIVE APARTMENTS
    Delinquent tenants face eviction

    By Deidre Williams NEWS STAFF REPORTER, Updated: 10/09/08 7:09 AM


    Marine Drive Apartments residents who owe thousands of dollars in back rent are facing eviction under a sweeping housecleaning initiative.

    Since Erie Regional Housing Development Corp. took over management of Marine Drive, about 60 residents have been put through the eviction process and so far 25 have been evicted, said Henry M. Littles, the general manager.

    The others either moved out before they could be evicted, or they paid up their rent.

    Littles was hired by Erie Regional Housing Development Corp. in January 2007, when the company started managing the downtown apartment complex on the waterfront, which is owned by the Buffalo Municipal Housing Authority.

    About a year ago, Erie Regional hired Kevin Gaughan, known as a regionalism activist, to handle the eviction process, BMHA Board Chairman Michael Seaman said.

    The help was needed, Littles added. When Erie Regional came aboard, finances were in disarray. There was an outstanding water bill for more than $1 million. Other bill delinquencies exceeded $250,000. And the tenants of about 60 apartments in the 616-unit development were at least a year behind in rent, Littles said.

    The delinquent rents were a big problem because Marine Drive, which receives no subsidies, pays its bills from the rents it receives.

    “The rent revenue is close to $3 million annually and our bills are about equal,” said Littles, adding that some of the tenants’ outstanding balances were at $7,000.

    “That’s not even delinquent. That’s just basically squatting in the apartment,” he said.

    Added Gaughan: “There are people who owe $3,000, $4,000 or $5,000. We’ve evicted about 25 people who haven’t paid rent at all. About four are left who we’re trying to work with.”

    Hutchens-Kissling, a management company, ran Marine Drive from 2004 to 2006, when residents spearheaded its termination through a letter-writing campaign. Residents had complained about the run-down condition of the complex.

    dswilliams@buffnews.com

  8. #8
    Member MERL J's Avatar
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    Quote Originally Posted by kernwatch
    It appears that some rationality is finally appearing at BMHA's Marine Drive Apartments.

    However, I fear that Deidre Wms is off the mark by alleging that the complex is not subsidized, when it has long benefited from heavy INDIRECT SUBSIDIES . . . . reduced taxes, mortgage expense on a fraction of the complex's worth, etc.

    Most troubling is the 'culture of entitlement' enabling tenants to run up such huge arrears without consequences, when rents for those who do pay are so low.

    What is the current rent structure at Marine Drive by bedroom size?
    Kern, you are correct. As most subsidized housing is paid by state and federal bonds the mortgage here is paid by NYS. However, the monthly rents are in place to cover all expenses of the property unlike other subsidized housing complexes. Marine Drive pays full water, electric and gas bills like anyone else but the taxes are paid "in lieu" and amount to approximately $40,000 annually.

    If you would like more information regarding the rents at Marine Drive, we are currently developing a website with all rental information. Please understand the site is under construction. http://marinedriveapts.com

  9. #9
    Member PickOranges's Avatar
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    Quote Originally Posted by kernwatch
    It appears that some rationality is finally appearing at BMHA's Marine Drive Apartments.

    However, I fear that Deidre Wms is off the mark by alleging that the complex is not subsidized, when it has long benefited from heavy INDIRECT SUBSIDIES . . . . reduced taxes, mortgage expense on a fraction of the complex's worth, etc.

    Most troubling is the 'culture of entitlement' enabling tenants to run up such huge arrears without consequences, when rents for those who do pay are so low.

    What is the current rent structure at Marine Drive by bedroom size?

    It's ironic... like you stated in another thread, a city of Bflo property owner without a correct # on his house will get a fine for over $50.00 and will get penalities and interest and headache for being a hardworking stiff.


    Marine Drive Apts will never see any of their money. 60 tenants X $4,000 average = $240,000 . That would of keep the property owner fines to $25.00

    The people on this forum should be outraged.

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    Real progress . . . & more questions

    The new Marine Drive website is a huge step forward in erasing the "insider trading" culture that has long existed there.

    But the incredibly low subsidized waterfront rents for relatively affluent households raise serious 'economic justice' issues in such an impoverished city.

    Why are taxpayers subsidizing & running a waterfront complex in a city where there is such a massive housing surplus? At an estimated "In lieu of taxes" payment of about $40K annually, each of the 616 apartments contributes merely $65 annually to the local taxbase, as tenants may earn up to $70K annually.

    Here is the rent schedule (including all utilities) from the new website:

    Apt size, Rent, fam size, Income limits

    1 BR, $305, 1 - 2, $37.5K - $42.9K

    2 BR, $393, 3 - 4, $48.2K - $53.6K

    3 BR, $482, 5 - 6, $57.9K - $62.2K

    4 BR, $567, 7 - 8, $68.04K - $70.8K

    In short, many households earning far more than the norm for Bflo are being heavily subsidized to live on the waterfront.

    Incidentally, what is BMHA Commissioner Masicia saying now about the new Marine Drive administrator?

    Here is Masicia's statemnt form the news coverage last spring?
    A tenant-elected housing commissioner who lives in Marine Drive disagrees that Littles has improved conditions there. Joseph Mascia said things have “steadily deteriorated,” and he thinks Littles should be fired.

    “He just doesn’t have the experience to manage a housing complex this size,” Mascia said.

  11. #11
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    Quote Originally Posted by kernwatch
    The new Marine Drive website is a huge step forward in erasing the "insider trading" culture that has long existed there.

    But the incredibly low subsidized waterfront rents for relatively affluent households raise serious 'economic justice' issues in such an impoverished city.

    Why are taxpayers subsidizing & running a waterfront complex in a city where there is such a massive housing surplus? At an estimated "In lieu of taxes" payment of about $40K annually, each of the 616 apartments contributes merely $65 annually to the local taxbase, as tenants may earn up to $70K annually.

    Here is the rent schedule (including all utilities) from the new website:

    Apt size, Rent, fam size, Income limits

    1 BR, $305, 1 - 2, $37.5K - $42.9K

    2 BR, $393, 3 - 4, $48.2K - $53.6K

    3 BR, $482, 5 - 6, $57.9K - $62.2K

    4 BR, $567, 7 - 8, $68.04K - $70.8K

    In short, many households earning far more than the norm for Bflo are being heavily subsidized to live on the waterfront.

    Incidentally, what is BMHA Commissioner Masicia saying now about the new Marine Drive administrator?

    Here is Masicia's statemnt form the news coverage last spring?

    There should be time limits on these subsidies!!! Comm Masicia should give someone else a chance since apparently he has been there a long time to notice there has been no improvement.


    Once a generous program like this is started, he never goes away. Now that the Feds, state and local gov't treasuries are now in shambles, maybe he can kick in a little to help.

  12. #12
    Tony Fracasso - Admin
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    I can't believe utilities are included in the rent. Your just about living there for free. With all the vacant housing in the area the marine apartments need to go or be commercialized.

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