Developments could not buy out or depart for the first 20 years of the program’s existence. If a building were built before 1974, it would most likely be rent-stabilized, but it might become market rate if built after that year. Mitchell-Lama housing was lost by 22,688 units, or 34%, between 1990 and 2005. However, the City committed $250 million in 2017 to keep 15,000 Mitchell-Lama flats sold at market prices.
Residents in cooperative buildings own their units with “restricted equity,” limiting the profit they can make from selling their house. To opt-out of the program after a limited period, shareholders must cast three distinct affirmative votes, two of which require a 2/3 vote in support of opting out. According to HPD, many rental and co-op buildings “have consented to remain in the program for up to an extra 35 years in exchange for government-subsidized loans to pay for the rehabilitation of aged building systems.”
Just this year, the Bronx’s Co-Op City (the world’s largest housing cooperative, with over 15,300 apartments spread across 72 buildings) struck an agreement with HPD that ensures the development’s participation in the Mitchell-Lama program until 2052.
Affordable housing
HPD’s second affordable housing initiative, NYC Housing Connect (more on that later), operates through an internet portal and includes newer apartments built as part of market-rate complexes using either the 80/20 tax exemption or inclusionary zoning. Simply put, the 80/20 scheme offers tax breaks to rental developers that set aside at least 20% of their units for affordable housing. According to the Department of City Planning, inclusionary zoning “promotes economic integration in areas of the City undergoing substantial new residential development by offering an optional floor area bonus in exchange for the creation or preservation of affordable housing, on-site or off-site, primarily for low-income households.”
If the overall number of affordable dwellings is more in some specified places, such as the Special Hudson Yards District and the Greenpoint-Williamsburg shoreline, a fixed number of units may be set aside for middle-income residents. According to HPD’s Juliet Pierre-Antoine, for a recent analysis of middle-income housing, “the rentals for middle-income flats cross-subsidize the extremely inexpensive apartments in mixed-income complexes.” This contributes to the building’s operational revenue, which allows it to be maintained over time without requiring as much City funding.” A single person earning $120,000 per year, for example, may be able to qualify for a middle-income “affordable” apartment.
The City uses Area Median Income to decide who qualifies for a certain affordable housing project. Each year, the U.S. Department of Housing and Urban Development (HUD) (not the City of New York, as many people believe) defines it using the American Community Survey. For example, a three-person family’s AMI in the New York City region in 2021 is $107,400. (100 percent AMI).
As previously stated by 6sqft, New York City’s AMI includes several affluent suburbs, including Westchester, Rockland, and Putnam counties. Given that these three suburbs are widely thought to have greater area median incomes than New York’s five boroughs, many individuals believe their inclusion artificially inflates New York City’s AMI.
The City categorizes affordable housing opportunities into five groups:
Extremely Low-Income: 0-30% of AMI
Very Low-Income: 31-50% of AMI
Low-income people earn between 51 and 80 percent of the AMI.
81-120 percent of AMI for those with a moderate income
Middle-income people earn 120-165 percent of AMI.
Mitchell-Lama is more perplexing because each development necessitates a unique application. There are also three developments, each with its own set of eligibility requirements: federally subsidized rentals, federally subsidized cooperatives, and non-federally subsidized units. Mitchell-Lama chances are only available through waiting lists. Fortunately, the Mitchell-Lama Connect web portal allows you to view all waitlists that are presently accepting entries, as well as those that will be opening their waitlists shortly. You can create a profile and submit to several developments using the portal.
Next, you can access two PDFs that display the current Mitchell-Lama buildings with open waitlists and short waitlists that use a lottery mechanism. Veterans are given preference. The lists indicate if the building is rental or cooperative, as well as whether it is nationally subsidized or not. It also indicates the types of flats available, ranging from studios to one- to four-bedrooms. On the HPD website, you may also view featured re-rentals.
