Mitchell lama housing bronx ny11/18/2023 Intro 637, sponsored by Brooklyn Councilmember Lincoln Restler, would require the City to give first priority to nonprofit developers and community land trusts when selling City-owned land. Three bills pending in the Council have been backed by more than half its members. "We know the speculators are out there trying to flip our homes. These bills "will keep truly affordable homes in our neighborhood," Debra Ack of the East New York Community Land Trust told Hell Gate at the rally, timed to coincide with a Council Housing and Buildings Committee hearing on the legislation. The goal of these bills, Brooklyn City Councilmember Sandy Nurse said at a rally outside City Hall in late February, is to "defend our communities against the class war that is being waged against us" and give working-class New Yorkers the opportunity to stay here. Now, the City Council is considering a package of legislation to support building more social housing. But their limited scope points to how much needs to change-these bills are primarily procedural changes to enable more nonprofit development, a far cry from the massive housing construction programs that existed from the end of World War II to the beginning of the Reagan era. Over the years, these bulwarks against rising rents have been significantly eroded. State agencies, including the Housing Finance Agency (HFA), Empire State Development Corporation (ESD), and HCR, have collaborated to identify State Mitchell-Lama housing companies to participate in mortgage refinancings, which generate funds for capital improvements and property upgrades.New York City has a rich history of creating social housing: affordable housing co-ops, Mitchell-Lama buildings, public housing, and community land trusts. What sets social housing apart from other forms of so-called "affordable" housing are its general principles: "deep affordability," or being truly affordable to poor and working-class people democratic management and being removed from the speculative market. When owners buy out, their buildings are no longer subject to HCR or HPD Mitchell-Lama regulation, and apartments need not be kept affordable for moderate-income households (rent regulation for rental projects built before 1974 remains in effect, as do the regulatory requirements of tax relief or other programs). Owners may choose to buy out of the Mitchell-Lama program by prepaying the existing mortgage in order to have the ability to re-sell their projects at market rates. By 1980, HDC had refinanced projects containing 29,000 units and thereby reduced New York City’s debt burden.ĭevelopments were eligible to withdraw or buy out from the program after 20 years, upon prepayment of the mortgage, or after 35 years in the case of developments aided by loans prior to May 1, 1959. Beginning in 1977 (after New York City’s fiscal crisis in the 1970s), the New York City Housing Development Corporation (HDC) and the Federal Housing Administration (FHA) refinanced many of the City’s Mitchell-Lama portfolio. The program also required ongoing supervision by the agency originally sponsoring the development of the project, either the New York City Department of Housing Preservation and Development (HPD) or New York State Homes and Community Renewal (HCR). In exchange for low-interest mortgage loans and real property tax exemptions, the Mitchell-Lama program limited profits and placed income limits on tenants or cooperative owners. The Mitchell-Lama program has subsidized the construction of 269 developments, with over 105,000 apartments for middle-income households. Agency: NYS Homes and Community Renewal (NYS HCR).
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