The Real Deal New York

Coney Island housing complex gets $21M to stay affordable

November 02, 2009 06:19PM
By David Jones

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From left, Brooklyn Beep Marty Markowitz, State Sen. Diane Savino, Rep. Jerrold Nadler

City officials announced a $21 million deal today to renovate the Luna Park housing complex in Coney Island, under an agreement that would keep the apartments in the Mitchell Lama affordable housing program for another 20 years.

The agreement ends years of controversy about the Coney Island co-op complex. A number of shareholders at the 1,600-unit development had been actively considering a plan to go private, with some actively pushing for a feasibility study on whether to exit the Mitchell Lama program.

“It was a poignant moment for us to preserve the affordability [of Luna Park],” said one local official, who asked not to be identified.

Several other Mitchell Lama buildings in the Coney Island area have gone private in recent years, including Ocean Towers, a 360-unit development that was sold for $5.9 million to Cammeby’s International in 2007.

The agreement was reached after intensive talks between a number of local politicians and city agencies, including Representative Jerrold Nadler, Brooklyn Borough President Marty Markowitz and State Senator Diane Savino. Under the agreement, $15 million will come from the city department of Housing Preservation and Development, while the remaining funds will come from other sources.

The grant is the largest ever allocated through the Mitchell Lama program by HPD.

Officials said the funds will be used to replace brickwork, windows and the building rooftops.

“The buildings are in terrible shape,” said the official.

HPD officials were not immediately available for comment.

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