Examples of CDP Work

CDP clients fall into three groups: nonprofit organizations, low-income entrepreneurs and low-income housing cooperatives. A brief description of these practice areas and illustrative case examples follow below.

CDP’s nonprofit clients receive a wide range of legal services including incorporation, tax exemption, charitable compliance, real estate and corporate governance. These organizations provide essential services to the neediest New Yorkers in the areas of health care, immigrant advocacy, housing, substance abuse treatment, employment, child care, education and recreation. In addition, they create substantial numbers of jobs in the communities that they serve.

Peace on the Street, Inc. arrived in East Harlem with a grant to create a dojo and meditation center with special emphasis on the needs of children with asthma, anger management and social integration for ex-offenders and their families and self-defense for women. CDP staff attorneys partnered with pro bono attorneys from two of New York’s premier law firms on this matter. First, CDP and pro bono real estate counsel negotiated a lease on behalf of the client for a large commercial loft space. Second, CDP and pro bono corporate counsel amended the certificate of incorporation after securing the approval of the Attorney General’s office and the New York State Supreme Court. Third, CDP and pro bono counsel prepared and filed the application for 501(c)(3) tax-exempt status. The dojo now enrolls over 150 students, has hired four full-time and seven part-time employees (seven from East Harlem) and is collaborating with other East Harlem organizations to address community-based health and social issues.

CDP’s low-income entrepreneur clients receive assistance in choosing the appropriate business form, incorporation, tax, real estate, securing loans to preserve and expand their businesses, regulatory compliance, employment and intellectual property. By fostering the creation of small businesses, CDP aims to increase the income and stability of low-income entrepreneurs, and to create jobs and economic activity that will benefit the community as a whole.

Fatman Flavor, LLC. In 2004, two Jamaican immigrants seeking to open a Carribbean restaurant in Harlem approached CDP. One, a home-health aide, was struggling to support her family. Her brother, an unemployed chef, had dreams of owning his own restaurant. Working with pro bono counsel, CDP assisted the principals in virtually every step in the process of opening their restaurant, Fatman Flavor. First, we created a limited liability company to minimize the personal liability of the principals. Second, we helped Fatman Flavor apply for a loan from a credit union, for the purchase of restaurant equipment from an existing restaurant. Third, we negotiated and drafted an asset purchase agreement for the purchase of restaurant equipment. Fourth, we helped negotiate a commercial lease for the restaurant site. Fifth, we guided Fatman Flavor through the process of obtaining the myriad licenses and permits required to operate a restaurant in New York City. Finally, we explained to the client its on-going legal responsibilities. Today, Fatman Flavor is open for business and is operating at a profit. Its owners enjoy higher incomes and a new level of economic stability. The restaurant also has generated five new jobs in the Harlem community.

Finally, CDP represents tenant-shareholders in existing low-income housing cooperatives and tenants in tax-foreclosed city-owned housing. For existing cooperatives, CDP assists with corporate governance, financing renovations, securing loans to pay off tax and other arrears, negotiating with the city for tax forgiveness, tax compliance and closings on cooperative units. For city-owned properties, CDP advocates for low-income cooperative conversion, adequate rehabilitation of the property and protection of the interests of low-income tenants during the lengthy transition process. In the rapidly escalating rental markets of Harlem and Northern Manhattan, low-income housing cooperatives provide ownership opportunities and long-term housing stability for the poor and expand the supply of decent, affordable housing.

2159 1st Avenue Housing Development Fund Corporation (the "HDFC") is a 31-unit low-income, tenant-owned housing cooperative located in East Harlem. The cooperative residents are predominantly Spanish-speaking families who own their own units and who would be unable to afford open-market rents in East Harlem. The HDFC faced imminent loss of the property due to more than $180,000 in property tax arrears and outstanding water and sewer charges. CDP negotiated nearly $1 million in loans from a credit union and from New York City, which were used to pay all debts. The HDFC used the remainder of the loan to rehabilitate the building. CDP is also completing the HDFC’s application for property tax exemption under the City’s J-51 program. The HDFC is now on sound financial footing, and the renovation of the premises is progressing on schedule. Due to CDP services, this valuable source of tenant-owned affordable housing will be preserved.