Elections to be Held at Dayton Beach Park After HPD Settles Case

After years of legal wrangling, the New York City Department of Housing Preservation and Development (HPD) has settled their case with the board members at Dayton Beach Park, and elections will be held on or before May 1, 2024, unless HPD agrees to an extension. Current Board members will be eligible for re-election, in order to avoid a prolonged legal battle, and HPD will be the final arbiter of a Dayton resident’s eligibility to vote in the upcoming board election. The election itself will be overseen by an outside election company, as required by the Mitchell-Lama Rules.

According to the findings of an independent audit, several irregularities were found, including:

• Prior Boards allowed several individuals to vote in Board of Elections and serve on the Board without becoming a shareholder proper, a violation of the corporation’s by-laws. The immediate past prior Board President was NOT a shareholder of the corporation.
• Several other former members of prior Boards were not shareholders but were given stock certificates as though they paid equity and were approved by NYC HPD. These individuals cast pivotal votes in corporation business including the $47 million refinancing of the Corporation’s underlying mortgage, leading to nearly 30% in maintenance increases to Dayton Beach shareholders.
• Although no equity was paid and no prior NYC HPD approval was obtained, prior Boards issued stock certificates to individuals in Dayton Beach Park No. 1 Corporation in violation of the corporation by-laws, HPD rules and regulations, and New York State Law.
• Past Board Members received preferential treatment in securing larger apartment units without meeting the required occupancy standards or gaining prior HPD approval. Preference was shown for amenities such as parking spaces, and granted to other residents in exchange for their support during cooperative-wide elections.
• Individuals who remained in apartments without paying equity or securing succession rights from NYC HPD are some of the largest debts owed to Dayton Beach Park in maintenance arrears.

“This is something that has been dragged out for far too long,” Councilwoman Joann Ariola said. “I’ve made it the mission of my office to make sure that shareholders will get a chance at a new election and a new board, and I am proud to see that this is finally coming into fruition. I am disappointed to learn that the current board members can enter these elections, but I understand HPD’s position to bring a resolution to this issue as soon as possible. I urge all shareholders to come out and vote once the date of the election is set in stone, so this chapter in the history of Dayton Beach Park can finally come to a close.”

“We’ve been waiting for this since 2017, and I’m glad we are finally getting close to a resolution here,” said Dayton Beach Park shareholder Joanne Smith. “We will finally be able to make our voices heard, and right the wrong we’ve all been living with for much too long.”