By Michael V. Cusenza
The long, local nightmare is finally over.
All eight long-standing members of the Dayton Beach Park Cooperative Board of Directors recently lost their seats, paving the way for new voices that have pledged to work together for the residents of the 1,156-unit housing community on the shores of Rockaway Beach.
“A HUGE congratulations to the newly elected members of the Dayton Beach Park Board of Directors,” said Councilwoman Joann Ariola (R-Ozone Park). “This was a hard fought battle, but I was proud to be there with these men and women, fighting it out since the moment I came into office. We constantly stayed on top of [the City Department of Housing Preservation and Development] to make sure that there was a free and fair election, and this was the much anticipated end result of that work. This is a huge win for everyone in Dayton Beach Park, congratulations once again to all of the new members.”
The new board members: Edwin Perez, Alex Verbitsky, Robert Gallagher, Grace Miller Kevin Flaherty, Patricia McCabe, Caren Washington Dawkins, Irene Finley, Bianca Malcaus, Jeff Gross, Karen McKeon, Cathleen Norton, Joanne Larcheveque, Minzalia Platanova, and Gleb Fromin.
“A big thank you to Councilwoman Ariola and her office,” Flaherty said. “Her support was instrumental in making this day finally happen.”
“Councilwoman Ariola kept the pressure up on HPD since day one, and that really got us where we needed to be,” added Joanne Smith, a shareholder at Dayton Beach Park. “Thank you to the councilwoman for her support, and congratulations to everyone who won in this election. It’s time for long overdue change to finally arrive!”
In January, following many years of listening to litigators lock horns, HPD settled their case with the board members at Dayton Beach Park, and established that elections would be held on or before May 1, 2024—unless HPD agreed to an extension. Current board members were eligible for re-election, in order to avoid a prolonged legal battle, and HPD was the final arbiter of a Dayton resident’s eligibility to vote in the upcoming board election.
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, as 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 HPD. These individuals cast pivotal votes in corporation business including the $47 million refinancing of the corporation’s underlying mortgage leading to nearly 30 percent in maintenance increases to Dayton Beach shareholders.
- Although no equity was paid and no prior 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 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 HPD are some of the largest debts owed to Dayton Beach Park in maintenance arrears.
