Amalgamated Housing Corporation in Bronx, NY review: Corruption of the AHC coop Administration and management causes imminent bankruptcy

Followed letter was addressed to then Bronx District Attorney Mr. Robert Jonson on February 24, 2014. [edited] http://riverdalepress.com/stories/Amalgamateds-new-manager-has-fraud-on-resume-,48948 ) Mr. Zsebedics’ defiled Resume was selected by AHC Board of Directors from 50 other Resumes - while every applicant for the Co-op apartment undergoes mandatory criminal background checkup. Applicants with found criminal past are rejected. Soon after hiring Mr. Zsebedics, capital projects never before considered as necessary, started to emerge one by one. For the last nine months several big buildings are surrounded with expensive rented scaffoldings without any visible work being done. Today, according to the letter of AHC President Mr. Ed Yaker, Co-op has eight such capital projects in progress.

These projects were started by taking a $30 million loan with extremely high 4.51% APR rate. ( http://www.ncb.coop/default.aspx?id=5238 - removed from the Internet). For the Housing Co-op of about 1500 units this figure means roughly $50 + million total debt, or $33,600 debt for every household. The letter under signature of Mr. Ed Yaker, informing Cooperators about closing the loan, is silent regarding general amount of borrowed money. It only says that this transaction will make AHC Cooperators to repay to the NCB Bank $1.8 million (or $7500 per family) more money than originally expected.

This size of financial transaction taken by Board of Directors without approval by the whole community of shareholders looks like squandering of corporate account committed under color of official right. What are in reality these capital projects that supposedly urgently needed to be completed with this enormous debt?

The “Building Entrance Project” was presented to the cooperators in the letter of AHC Assistant Manager Mrs. Jennifer Rankin: “…several entry staircases of two biggest buildings constructed in 1960 will be demolished. New staircase to building 13A and walkway from the building entrance to the sidewalk will be built with a heating element under the concrete steps”. The price for this project is not disclosed. The workers of the AHC Service Department can fix small visible dents on the entrance steps of the building for the price of 20 bricks. Pictures show that such repairs have been done in the past. The entrance was designed for lasting as long as the building itself by making small repairs when needed. Heating elements under steps, besides being unneeded luxury, are prone to malfunction, and so, to constant repair (for extra charges, of course). Indeed, already completed first entry staircase and walkway of the building 13A was demolished again because the heating elements failed. Damage done to aesthetical integrity of the building by demolition of its original entrances is already irreversible. So, no investigation needed to see that this project is phony – to say the least. “The blind can see” that the Administration is running projects the Co-op does not need for the money Co-op does not have. Precise information regarding real necessity of all other capital projects can be obtained from Mr. Zsebedics himself. Last year, as a preparation for taking multimillion loan, Co-op leadership addressed DHCR with request to increase monthly maintenance payments by $20 per room - and was able to secure increase by $14 starting from June 2013. In 5 years when heavy financial burden of enormous loan will start affecting Co-op budget, next significant monthly payment increases will be imminent. As a result, the Co-op will not be able to provide affordable housing for people with low and moderate income – the very purpose of its creation 84 years ago, and the main reason of its financing by the State. Many members (probably majority) will be forced to move out. People do not realize this today. Multimillion loan being feverishly squandered on phony projects creates impression that AHC President Mr. Ed Yaker has led AHC Board of Directors into hiring Mr. Zsebedics – an experienced in grand larceny felon with special skills and connections – as the best candidate for running a kickback and bid rigging scheme like that successfully prosecuted by the NY City Department of Investigation in year 2000. Additional information together with expression of frustration and anger of dozens of members of the AHC community can be found on this Free Press Web page: http://yourfreepress.blogspot.com/2011/07/hiring-of-felon-causes-cooperator.html

Thorough investigation of financial practices of current AHC Administration is urgently needed to insure the very existence of the Amalgamated Co-op as affordable housing in the near future.

(all mentioned above supporting materials and pictures are available upon request)

Thank you.

Sincerely,

Boris Gerasimov

February 24, 2014

My letter was totally ignored.

As a result of Bronx DA's failure to take requested investigation, today the AHC coop is facing unsolvable financial problem.

Detailed information can be found on the Internet, at

https://www.bxtimes.com/riverdales-amalgamated-houses-facing-gas-service-shutoffs/ ,

[Edited]

[edited]

N.B. (by B. Gerasimov). In 2011, at the time of being hired for the Position of AHC Gen. Manager, Mr. Zsebedicks was fully aware of the urgency of all the capital issues with the aging coop’s buildings. However, allegedly, the AHC Board of Directors’ first priority was collecting hefty (allegedly, 10% of the sum total of contract) kickbacks paid to the AHC Administration by the Howard L. Zimmerman Architects, Yates Restoration Group; and Cerina Constructions (see the next fact). Sure, $47 million borrowed in 2012 and later, if spent appropriately, was enough to prevent today’s catastrophe. But the money was squandered on ostensibly “overdue” makeover. This allegation warrants DOI investigation.

Today the AHC coop is facing imminent bankruptcy. Allegedly, but visibly, four individuals are the main beneficiaries behind intentional mismanagement of the Amalgamated Coop’s funds, namely: Mr. Ed Yaker, former President Emeritus of the AHC Board of Directors, presently the AHC Treasurer – the mastermind; (who promoted hiring of) Mr. Charles M. Zsebedicks, convinced in Grand Larceny felon, the AHC Gen, Manager – main acting agent; the NYS Assemblyman Mr. Jeffrey Dinowitz – provider of inappropriate political influence behind the scene; and attorney Mr. Dean M. Roberts, an associate of Norris McLaughlin Law Firm – provider of legal coverage of all the AHC affairs.