Council Member Dinowitz questions 50% security cost increase at Tracy Towers
Dinowitz highlights Tracy Towers' security costs jumping from $1.8M to $2.8M, a nearly 50% increase, and asks whether HPD reviewed financials before proposing the 31% rent increase. Phillips says the increase hasn't gone into effect and they're reviewing expenses further.
I want to talk about one of those operating expenses.
Right.
Because for Tracy Towers and their financials for fiscal year 25, security.
Costs total about $1.8 million in the fiscal year ending 25.
In FY27, they jumped to $2.8 million.
That's nearly a 50% increase in that two-year period.
That's $267 a month per unit in security costs.
Now, as you say you go over these financials, does that seem like a reasonable amount for security costs to increase?
I mean, that's quite a large increase.
I'm not going to say it's not.
We are bringing in the property management firm to meet with HPD to go into even more detail than we already have in the past to get a better understanding.
But I'm sorry, but you're doing this after the rent increase was already proposed.
So help me understand what work HPD does before they even propose an outlandish 31% rent increase on these hardworking tenants.
And we have one example here of a 50% increase in security costs alone.
Help me understand what work you're doing beforehand.
So the rent increase has not gotten to effect yet.
It has not gone into effect.
We do our analysis.
But it's been proposed and you have.
It's been proposed.
Absolutely.
It's been proposed and it's a requirement so we can close on the capital financing to start addressing some of the urgent physical conditions.
Now that we've closed on financing.
The increase has not gone into effect yet.
We still have a chance to work with the property management firm to take an even deeper look at the operating costs.
We're not stopping just because the increase
Has been approved.