![]() ![]() ![]() Rents and maintenance are also substantially below market-a more extreme example being a three-bedroom Manhattan co-op with a monthly maintenance of less than $1,000. On the higher end of the scale, the equity purchase price of a one-bedroom apartment in Chelsea's 15-tower Penn South complex is around $70,000-less than a tenth of the $799,000 median price of a market-rate one-bedroom co-op in the neighborhood. It frequently ranges from $4,000 to $35,000. The purchase price of a Mitchell Lama co-op-known as the 'equity value purchase price'-has no relationship to actual market value. The big differences between a Mitchell-Lama building and a “normal” apartment building The remaining Mitchell-Lama developments are supervised by the NYC Housing and Preservation Department (HPD) (a list can be found here, organized by borough) or the NYS Division of Housing and Community Renewal.Ģ. A number of Mitchell-Lama co-ops have exited the system as well. However, many of them have navigated the complex process of buying out their mortgages and exiting the system, converting into market-rate co-op or condo buildings. ![]() The Mitchell-Lama program produced many rentals as well as co-ops. In exchange for keeping prices low, the buildings received tax breaks and low interest mortgages. The apartments were intended for middle-income, working residents-particularly nurses, police and teachers. To stabilize these areas and encourage middle-class families to stay in the city, tenements were torn down and 269 Mitchell-Lama developments were constructed in their place. These areas include many neighborhoods where, today, many if not most family sized apartments easily cost over $1 million, including Chelsea, the Lower East Side, the Upper East Side and the Upper West Side. The Mitchell-Lama program was created nearly 60 years ago to provide affordable housing in blighted neighborhoodsīack in the 1950s and 1960s, vast swaths of New York City were deemed “blighted” and in need of urban renewal. Here’s a rundown of the basics, from what a Mitchell-Lama building is to how to find an apartment in one.ġ. In part that may be because no Mitchell-Lama apartment buildings have been constructed since the 1970s.Įven if you live in one of the 170 remaining affordable housing complexes constructed under the Mitchell-Lama program (or aspire to), you may be puzzled about the exact nature of your rights and responsibilities.Īs an attorney working day-to-day with dozens of Mitchell-Lama buildings for 25 years, I am familiar with their intricacies and nuances as well as the modern-day challenges they face. Chances are that if you moved to New York within the last couple of decades, the name Mitchell-Lama means as much to you as “co-op” to your average Idaho teenager. ![]()
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