BPC Homeowners to BPCA: Curb Ground Rent Hikes and Cut Wasteful Spending

CORRECTION: A previous version of this opinion piece mistakenly omitted the name and affiliation of the writer. 

The Battery Park City Authority, locked in a long-running ground rent dispute with homeowners, voted June 28 to award a $132,000 per year public relations contract to Risa Heller, using taxpayer and resident funds that are intended to go to New York City to pay for affordable housing.

The un-elected BPCA Board consists of six people appointed by former Gov. Andrew Cuomo. The terms of all six people have long expired, but under New York State law, they remain in power until Gov. Kathy Hochul reappoints them or names new members to replace them.

The BPCA already has a vice president for communications with a staff, with a total annual salary in excess of $500,000.

The Battery Park City Homeowners Coalition represents more than 5,000 homeowners in Battery Park City, which also has about 10,000 rental tenants. The ground in Battery Park City is owned by the state and administered by the BPCA. In addition to the equivalent of New York City property taxes, all property owners pay ground rent to the BPCA, up to $20,000 per condo unit on top of taxes.  

This combination of taxes and ground rent supports municipal services such as schools, police and sanitation and pays to support 40 acres of public space, including the riverfront promenade and extensive parkland, public spaces considered the most beautiful in the city.These public spaces, paid for by Battery Park City property owners, not New York City taxpayers, are open 24/7 to all visitors.  

The 5,000 condo owners and other property owners present this as their gift to the city. Any funds remaining after the BPCA covers operations and debt service go to New York City, to be used for affordable housing.  Any extra spending, then, reduces the money for affordable housing.

The Homeowners Coalition, representing the board presidents of the 18 residential condos, has in the past negotiated ground rent agreements successfully with the BPCA. Despite encouragement from all local elected officials, the current BPCA refuses to negotiate. 

The Coalition has offered to pay increasing ground rents, but wants to curb the rate of increase, pointing out that pending increases threaten to force residents out of their homes.  

Ground rents are set to rise to such levels that financial institutions will refuse to write mortgages, leading to foreclosures and abandonment. At risk also are $750 million in bonds the BPCA plans to issue in the coming months to finance a massive Hudson River flood control project to protect the community. If homeowners are unable to pay the ground rents needed to finance the bonds, the BPCA will default.

Rather than solve this problem with a fair ground rent settlement, the BPCA is spending money on public relations. — Pat Smith, Battery Park City Homeowners Coalition