The Board of Directors of River Terrace Apts.(a Mitchell-Lama building on 158th and Riverside Dr. W) with HPD ignored the petitions and dissent of majority of shareholders and approved a 10 million dollar loan for building repairs, without bids or contracts, further indebting the shareholders to HDC/HPD for another 22 years to the tune of a 22.8% compounded increase in monthly carrying charges.
Information from the finance committee letter dated 7/12/2008:
•”The amount of the repair loan far exceeds our needs. Our engineer stated that 4 million would begin to cover our immediate critical/priority repair needs. (Shareholders forming a Finance Committee) compiled figures that reduced the Board's projections by 4.5 million dollars.”
•”The cost of the loan is exceedingly high; third-party HDC expenses (legal, audit, consultation), annual servicing fee (interest) with additional basis points, and $162,500 in annual professional fees. Ultimately, the shareholders will pay three times the loan amount over 30 years.”
• "The loan has been obtained without bids or any scope of work specifications. HDC's own regulations say that no loans can be made without 3 bids for each project. How can HPD and HDC approve and sign a contract without the required bids and support of the shareholders?"
