Tuesday, January 22, 2008

Rivercross Schedules 2nd Attempt at Privatization Vote

The Rivercross Tenants' Corporation has scheduled a new Privatization Vote for January 30, 2008 after its December 12, 2007 vote was cancelled by the DHCR. The rescheduled vote was announced to the Rivercross residents through a January 15, 2008 internal building memo.

DHCR claimed the Dec. 12th vote, which included votes by proxy, to be invalid. The Rivercross Board of Directors claimed that the proxy vote was valid as this was the second vote in a series that began in October 1996. DHCR invalidated the 2007 vote as reliance on the 1996 initial vote was stale.

The Privatization Committee has indicated that this vote is not the final vote but only one to authorize the committee to begin the paperwork to move forward towards privatization which does as part of the process notify DHCR of the building's intent. Once a "black book" is created which would be the final "plan" the residents would then post an actual vote on that plan. A percentage of Rivercross residents don't want to even begin this process based on their belief that all avenues have not been exhausted to solve the buildings financial needs without going the privatization route. The Main Street WIRE has covered the issues much more in depth than I can here and I encourage any reader to go the WIRE website to read the indepth coverage provided.

What I find interesting is the timing of the vote in light of DHCR Commissioner Van Amerongen's January 17th promise to get back to the Board within the week with information regarding the FMV ESDC tax bill which is in part pushing the Rivercross privatization process along. If the DHCR wants to be taken seriously the Commissioner better get back to Rivercross before the January 30th vote if the news is to have any impact on this rescheduled initial vote.

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