Mayor Announces Plans to Preserve Remaining Mitchell-Lama Developments
Mayor Bill de Blasio recently announced a new Mitchell-Lama Reinvestment Program. Nearly 20,000 of the city-supervised co-ops and rentals in New York City’s Mitchell-Lama buildings have left the program since 1989. The new program, with an initial infusion of $250 million, will target more than 15,000 homes over the next eight years to save Mitchell-Lamas where affordability is at risk.
With an initial investment of $250 million, the city aims to prevent loss by leveraging an array of financing tools to restructure existing debt, provide long-term tax benefits, and fund critical capital repairs. Most Mitchell-Lama developments, originally funded by the federal government, date from the 1950s and 1960s, and many now need significant rehabilitation work. In addition to low-cost financing, the program will provide Mitchell-Lamas with extended property tax exemptions. These tools help reduce operating costs, which in turn works to keep rents and maintenance fees low for residents. In exchange for the benefits, property owners agree to keep the buildings low-income for at least 20 more years.