Problems persist at Co-op City
(08/06/03) CO-OP CITY - Troubles at Co-op City continue to mount as the cooperative's management company announces it has no money to make needed repairs.
The cooperative is already facing a parking crisis and a potential strike by workers. But now, Riverbay, the company that manages Co-op City, claims it owes NYS more than $200 million and estimates that it would cost an additional $200 million to make repairs at the cooperative.
Currently there are two options for Riverbay. One is to stay in the Mitchell Lama Program and receive state funding or to privatize, which would increase the cost of living at Co-op City. If the cooperative were to privatize, residents could sell their apartments at market value. That has some officials worried about losing affordable housing.
Despite the debate, ultimately the decision to privatize Co-op City or stay in the Mitchell Lama program is up to the shareholders. A two-third majority vote is needed by shareholders to approve privatization.
Co-op City is currently New York's largest housing cooperative in the Mitchell Lama Program.