Mitchell-Lama loophole closed

Governor Eliot Spitzer and Manhattan Borough President Scott Stringer announced a regulatory decision today that closes a loophole affecting Mitchell-Lama rental buildings constructed before 1974. The loophole allowed landlords who were taking properties out of Mitchell-Lama to claim that leaving the affordable housing program qualified as a “unique and peculiar circumstance” that allowed them to hike rents to market rate. Because of today’s decision, thousands of units that may have been subject to market-rate rents will be protected by the rent-stabilization program. more TRD