By Tom Jordan
State meeting does not change board's mind
Despite mounting debts and a meeting with state officials last week to discuss privatization, the Rockville Centre Housing Authority board says it is not planning to take on any partners.
Housing Authority board members met with three officials from the New York State Division of Housing and Community Renewal and the Village Board on Friday, Nov. 17 to discuss the potential impact of privatizing the housing project. However, housing board members maintained that the meeting was strictly informational and that they have "no intention" of allowing a private entity to take even partial control of its 164-unit apartment complex at Old Mill Court on North Centre Avenue.
Residents of the apartments have long feared that the board would hand the complex over to a company that would raise rents out of their earnings range.
Repeating what has become the mantra of the board, Chairman Bob Pagnotta said, "We're reluctant to take on a partner as long as we're able to operate on our own. ... If we found that we had to restructure to serve the community, then we would consider it, but we have a number of options on our plate at this time to solve our financial difficulties, and [restructuring] is not one of them."
During the meeting, the state division of housing explained what would happen if the board changed its mind. Under the state plan, the Rockville Centre authority would take on a private partner that would participate in the rehabilitation of the apartment complex. These partnerships make the local housing authority eligible for federal low-income-housing tax credits and tax-exempt bonds.
According to the state housing division, no tenants would be displaced during the renovations and the local authority would still have to provide housing for low-income tenants once the fix-up is completed. However, paperwork indicates that the nature of the complex could be changed.
Marketing studies would be done to decide what the best use of the facility would be following renovations. For example, a study may reveal that there is not enough housing for senior citizens in the area. Other studies may reveal the need for larger apartments for a growing number of families or smaller units if singles predominantly inhabit the area.
"We want to be aware of all the possibilities," John Duenges, executive director for the Rockville Centre authority, said after the meeting. "But there is no thought about [restructuring] whatsoever. Our feeling at this time is that we would prefer to remain self-sufficient."
One option that the board would support is a takeover by the federal Department of Housing and Urban Development (HUD). Rockville Manor, a 54-unit housing project primarily for senior citizens and also overseen by the housing board, is already HUD operated.
Mr. Duenges has sent written inquiries regarding HUD operation of Old Mill Court to Congresswoman Carolyn McCarthy.
A troubled past
The authority's troubles increased four years ago when state-funding cuts left them unable to meet operating costs. State grants of $60,000 -- the same amount cut by the state -- facilitated by Senator Dean Skelos have been received for three of the four years. Most of this year's grant was used to satisfy a lien against the Old Mill Court property as a result of unpaid water bills. In all, the housing authority owes the Village of Rockville Centre $133,000, according to village comptroller Michael Schussheim.
Mr. Pagnotta, the local authority chairman, knows there is no guarantee that the senator will be able to continue these grants indefinitely. However, he said, "It is unreasonable to expect us to provide housing, heat, light and water on the amount of money we're collecting."
The average monthly rent at Old Mill Court is approximately $450.
Some rehabilitating of the 33-year-old project has been put on hold as a result of tight finances. Several apartments were left unrented for months because there was no way to pay for needed repairs. Nine furnaces, each three years past its prime, need to be replaced, and the plumbing is considered inefficient, according to Mr. Duenges.
The executive director believes that some recent modernization of apartments has helped the authority to move toward economic recovery. A volunteer effort began last spring by Habitat For Humanity, a not-for-profit organization. The group has assisted in the restoration of more than 20 previously unoccupied apartments. Four others that needed more significant work will be completed in a matter of weeks. According to Mr. Duenges, the village was instrumental in providing supplies for the renovations.
The housing board has also hired a consultant to submit a financial plan for the apartment complex.
Mary Bossart, Village trustee and liaison to the housing authority, said the authority has "made substantial progress."
"It's going to take a lot of work by a lot of people to get the project to run properly, but we're getting there," Mr. Duenges said. "There is hope."
