Co-op City may stay affordable for years to come

The residents of the nation’s largest co-op, Co-op City in the Bronx, are in talks to take out a $600 million loan that could allow the middle-income housing complex to remain in the Mitchell-Lama program, the Wall Street Journal reported.

Properties can exit the Mitchell-Lama program, which restricts sales and prices based on income, after around two decades, the Journal said. Many co-ops opted to leave the program during the boom years, so that owners could reap high profits, which caused concern that middle-income housing in New York City would become scarce.

But the low-interest loans Co-op City is shopping would require the property stay in the program, the Journal said.

“During this loan, Co-op City has to stay affordable, so you’re going to preserve the affordability,” Alan Wiener, a managing director at Wells Fargo, which would issue the loan. [WSJ]