Assembly Passes Package To Preserve
Mitchell-Lama Housing Stock

Assembly Speaker Sheldon Silver and Assembly Housing Committee Chair Vito J. Lopez today announced the passage of legislation to strengthen the Mitchell-Lama affordable housing program, a crucial component in providing housing for thousands of middle-income families in New York.

Among the bills passed was legislation extending the obligation of Mitchell-Lama development owners from 20 to 50 years, as well as an extension of protections for tenants whose building owners opt out of the program, and a measure that would allow Mitchell-Lama participants in New York City to adjust rents annually based on rates set by the city's Rent Guidelines Board.

More than 120,000 residents across New York live in 280 Mitchell-Lama housing developments , the majority of which are located within New York City. The program was established to produce greater affordable housing opportunities by offering tax incentives and low interest mortgages to developers in exchange for their long-term participation and the guarantee of below-market rents.

"In tight housing markets in New York the Mitchell-Lama program has ensured for thousands of middle class families the ability to live and contribute to the communities in which they live," said Silver (D-Manhattan). "It is essential to maintaining the vibrancy of these communities that we offer Mitchell-Lama property owners greater motivation to continue their participation in the program and we must protect hardworking tenants from being thrust into a volatile housing market in which it is difficult to find affordable apartments."

"The Mitchell-Lama program has become a necessary component for many working families in New York's highly-competitive housing markets," said Lopez (D-Brooklyn) "Today's legislation works to preserve housing stock for thousands of New Yorkers and protects tenants from being forced into high-priced housing markets, while at the same time offering greater incentives for Mitchell-Lama development owners to remain in this program and ensure availability of units to those whose hard work benefits their communities."

In order to preserve the availability of Mitchell-Lama housing, the Assembly passed legislation (A.793/Lopez) extending the from 20 to 50 years the time before Mitchell-Lama companies can voluntarily dissolve and charge market rates for their properties. The measure would prevent thousands of Mitchell-Lama housing units from being put on the open market.

To encourage participation in the Mitchell-Lama program in New York City, the Assembly approved legislation (A.795/Lopez) allowing developers of municipally-aided Mitchell-Lama housing to receive annual dividends of more than six percent with the approval of the city Department of Housing Preservation and Development. Mitchell-Lama property owners would also be permitted to increase rents on a yearly basis at a rate set by the New York City Rent Guidelines Board. The bill would also protect tenants in post-1974 Mitchell-Lama buildings, that voluntarily dissolve from dramatic rent increases, by classifying the properties as rent stabilized.

The Assembly package includes legislation (A.4196/Pretlow) which would subject former Mitchell-Lama units in Nassau, Rockland and Westchester counties to rent stabilization after voluntary dissolution of the Mitchell-Lama company.