“Golden Age” Co-ops Tarnished by Discrimination Suit

On the surface, all is well at Sunnylane and Woodbury Gardens, two thriving co-ops for senior citizens in the town of Oyster Bay, Long Island. They’re getting ready to celebrate their 15- and 20-year anniversaries with dinners and festive events.

“The co-ops have active club houses and very social communities,” says Ilene Von Felde, assistant director of asset management at Fairfield Properties and the manager at both co-ops. “This is absolutely important and why people move there.”

But there’s a cloud hanging over these co-ops’ anniversary celebrations. The U.S. Department of Justice is pursuing charges that the town of Oyster Bay, which determines who is allowed to buy into Sunnylane and Woodbury Gardens, has violated the Fair Housing Act. “The complaint alleges that two housing programs designed to develop below-market-rate housing for first-time homeowners and senior citizens discriminate against African-Americans because the programs give preference to residents of the town, which is predominantly white,” the DOJ says in a statement. Oyster Bay is about 87 percent white and 2 percent African-American.

The co-ops are part of so-called “Golden Age” housing, privately-owned affordable co-ops for seniors, mandated by an Oyster Bay zoning code that encouraged the construction of buildings for residents over the age of 62. The program and its shareholder selection process are administered by the town's Department of Community and Youth Services.

“It’s a wonderful program, however the town doesn't really have a pulse on the communities,” says Von Felde. “The town sets the prices and they control the application list. I have been managing the properties for 11 years and have never seen the list. The co-ops’ boards have nothing to do with the approval process, which is frustrating for the seniors. A lot of the board members feel that the town doesn’t always utilize the list. There’s supposed to be certain income criteria, but some people move in who have (second) homes in Florida – which is quite difficult to do if they have to meet the financial criteria. A lot of board members feel the town is not strict enough on proving finances.”

The co-ops, their board members (who did not respond to requests for comment from Habitat), and management companies are neither named nor linked to the lawsuit. Oyster Bay officials declined to comment on the suit, referring questions about the program to its website, which states:

“‘Golden Age’ housing provides high-quality, privately-owned, affordable cooperative units for seniors who meet income and residency requirements, making it possible for our seniors to enjoy their later years in the Town they helped build.”

Despite the federal lawsuit and questions about the town’s administration of the co-ops’ admissions process, Von Felde says the shareholders in Sunnylane and Woodbury Gardens have ample reasons to celebrate the upcoming anniversaries.

“It’s a success because it allows seniors to stay in their beloved Long Island with their families and grandchildren, and it’s affordable,” she says. “You can't get anywhere to live for $160,000 unless you go to a regular co-op with an underlying mortgage. The only costs they share are maintaining the common spaces and amenities, which are very low. These are large communities and hot commodities.”