Mitchell–Lama Housing Program: Difference between revisions

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{{shortShort description|Housing Programprogram in New York}}
{{third-party|date=June 2016}}
 
[[image:Co-op City Hutch River.jpg|thumb|[[Co-op City, Bronx|Co-op city]] in the [[Bronx]], a Mitchell–Lama development<ref name="IowaPress" />]]
 
The '''Mitchell–Lama Housing Program''' is a [[subsidized housing|non-subsidy governmental housing guarantee]] in the state of [[New York State|New York]]. It was sponsored by [[New York State]] Senator [[MacNeil Mitchell]] and Assemblyman [[Alfred A. Lama]]. It was signed into law in 1955 as ''The Limited-Profit Housing Companies Act'' (now officially contained in the1962 ''Private Housing Finance'' law, article II titled ''Limited-Profit Housing Companies'' and referring to not-for-profit corp., whereas article IV titled ''Limited Dividend Housing Companies'' refers to non-Mitchell–Lama affordable housing organized since 1927 as business corp., partnerships or trusts fromunder 1927State Housing law of on1926).
 
The program's publicly stated purpose was the development and building of [[affordable housing]], both rental and [[housing cooperative|co-operatively]] owned, for middle-income residents.<ref name="DHCR Synopsis">New York State Division of Housing and Community Renewal (DCHR) - now merged into the NYS Housing and Community Renewal, [http://nysdhcr.gov/Programs/Mitchell-Lama/]</ref> Under this program, local jurisdictions acquired property by [[eminent domain]] and provided it to developers to develop housing for low- and middle-income tenants. Developers received [[tax abatement]]s as long as they remained in the program, and low-interest [[Mortgage loan|mortgages]], subsidized by the federal, state, or [[New York City]] government. They were also guaranteed a 6% or, later, 7.5% return on investment each year. The program was based on the [[Morningside Gardens]] housing cooperative, a co-op in [[Manhattan]]'s [[Morningside Heights]] neighborhood that was subsidized with tax money.<ref>[http://www.mitchell-lama.org/history.html History]. Mitchell-Lama Residents Coalition.</ref>
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The New York State Division of Housing and Community Renewal (DHCR), was merged with the New York State Housing Finance Administration in 2010 to create the [[New York State Homes and Community Renewal|New York State Housing and Community Renewal]] agency. The new agency provided financing, maintenance and supervision of mortgages to developments as long as they remained in the Mitchell–Lama program.<ref name="DHCR Synopsis"/>
 
According to the New York State Homes and Community Renewal (formerly DHCR), "A total of 269 Mitchell-Lama developments with over 105,000 [[apartment]]s were built under the program."<ref>[{{Cite web |date=2015-04-01 |title=Mitchell-Lama Housing Program |url=http://nysdhcrwww.govnyshcr.org/Programs/Mitchellmitchell-Lamalama |url-status=dead |archive-url=https:/]/web.archive.org/web/20190212215742/http://www.nyshcr.org/Programs/mitchell-lama Division|archive-date=2019-02-12 of|website=New HousingYork &State Homes and Community Renewal.}}</ref>
 
==History==
Between 1955 and 1978, roughly 135,000 units of afforadable housing were produced using Mitchell-Lama funding.<ref name="IowaPress">{{cite book |last1=Bendiner-Viani |first1=Gabrielle |title=Contested City: Art and Public History as Mediation at New York's Seward Park Urban Renewal Area |date=3 January 2019 |publisher=University of Iowa Press |isbn=978-1-60938-611-5 |page=143 |url=https://books.google.com/books?id=dOl3DwAAQBAJ&pg=PA143 |language=en}}</ref> Notable apartment complexes developed with Mitchell-Lama funding include the Dayton Towers, [[Manhattan Plaza]], the [[Cadman Plaza]], [[Co-op City, Bronx|Co-op City]], and the [[1199 Plaza]].<ref>{{cite news |title=Opinion: New York needs more housing. There's a real solution on the horizon |url=https://www.cityandstateny.com/opinion/2024/02/opinion-new-york-needs-more-housing-theres-real-solution-horizon/393922/ |work=City & State NY |date=5 February 2024 |language=en}}</ref>
 
== Removing properties ==
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=== Rentals built before 1974 ===
Tenants in rental buildings built before 1974 go into [[rent stabilization]] upon leaving Mitchell–Lama. That means their rents increase according to the [[New York City Rent Guidelines Board]] orders for each new lease<ref>[{{Cite web |date=2013-12-12 |title=NYC Rent Guidelines Board |url=http://www.housingnyc.com/ |url-status=unfit |archive-url=https://web.archive.org/web/20140122142949/http://www.housingnyc.com/ houseingnyc.com]|archive-date=2014-01-22}}</ref> as well as according to orders by the [[New York Office of Rent Administration]] for, among other things, major capital improvements <ref>http://www.dhcr.state.ny.us/rent/factsheets/orafac24.pdf {{Bare URL PDF|date=March 2022}}</ref> and landlord hardship.<ref>{{Cite web |url=http://www.housingnyc.com/html/resources/dhcr/dhcr39.html |title=houseingnyc.com |access-date=2013-01-26 |archive-date=2013-01-26 |archive-url=https://archive.today/20130126041956/http://www.housingnyc.com/html/resources/dhcr/dhcr39.html |url-status=dead }}</ref>
 
=== Rentals built since 1974 ===
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=== Division of Housing and Community Renewal lawsuit ===
In November 2007, the State's [[New York State Division of Housing and Community Renewal|Division of Housing and Community Renewal]] (DHCR) - now NYS HCR - adopted regulations stating that just removing a pre-1974 Mitchell–Lama from the program is not a "unique or peculiar circumstance" justifying a substantial rent increase.<ref>{{cite web|url=http://www.save-ml.org/modules.php?name=News&file=article&sid=165 |title=Save Mitchell-Lama - New Regulations in Place |publisher=Save-ml.org }}</ref> Several landlords challenged that policy in court, asserting that it contradicts a court decision, ''KSLM-Columbus Apts. v. NYS DHCR'',<ref>[http://insaf.net/ml/files/KSLM%20Ct%20of%20Appeals%20Official.pdf ''KSLM-Columbus Apts. v. NYS DHCR'']{}</ref> and a lower court's reference to DHCR policy letters.<ref>{{cite web|last=Susman|first=Sue|url=http://save-ml.org/files/Summary%20of%20Cases%20Feb8_09.pdf |title=Summary of Cases Feb8_09.doc }}</ref> Justice Schlesinger of the New York State Supreme Court ruled<ref>http://save-ml.org/files/Schlesinger%20Decision%20Nov%2025%202009.pdf {{Bare URL PDF|date=March 2022}}</ref> that the regulations are legal, and one of the owners ([[Steve Witkoff]], owner of 95 W. 95th Street, now called "Columbus 95") appealed to the state's mid-level Appellate Division. On December 28, 2010, the Appellate Division, First Department (covering the New York City boroughs of Manhattan and the Bronx) unanimously upheld DHCR's regulation.<ref>{{Cite web|url=http://www.courts.state.ny.us/reporter/3dseries/2010/2010_09569.htm|title=Columbus 95th St., LLC v New York State Div. Of Hous. & Community Renewal (2010 NY Slip Op 09569)}}</ref> The owner of Columbus 95 failed to pursue judicial permission to appeal to New York State's highest court.<ref>[http://save-ml.org/modules.php?name=News&file=article&sid=362 ''Tenants have won the "U or P" case]</ref>
 
==See also==
*[[Riverside Park Community]]
*[[Housing Development Fund Corporation]]
 
== References ==
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* [https://web.archive.org/web/20061011232849/http://www.dhcr.state.ny.us/ohm/pubs/html/mlhcar04id.htm 2004 Annual Report - Mitchell-Lama Housing Companies in New York State]
 
{{Housing rights in New York}}
{{DEFAULTSORT:Mitchell-Lama Housing Program}}
[[Category:Housing in New York (state)]]
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[[Category:Public housing in the United States]]
[[Category:Rent regulation]]
[[Category:Housing and rent legislation in New York]]