Sale price cap helps Roosevelt Island co-op stay affordable

New York /
Oct.October 05, 2011 08:48 AM

A 365-unit Roosevelt Island co-op has an innovative plan to keep its apartments affordable even as it leaves the Mitchell-Lama program, the Wall Street Journal reported. The 38-year-old Rivercross co-op, at 531 Main Street, will exit the program, which limits the prices landlords can charge for units for 20 years in exchange for tax breaks, but will cap the sale price of 80 percent of the units at $500-per-square-foot. Of that price, $150 will subsidize the remaining 20 percent of the units to keep them near Mitchell-Lama prices.

“We will be, as far as I know, the first building that would be able to find a middle ground between staying in Mitchell-Lama, which would result in higher maintenance to fix the building, and privatization,” said Sanjiv Tandon, chairman of the co-op’s finance committee.

The Journal noted that the move comes as the demographics on the island, once a haven for affordable housing, are changing. One building, the Eastwood, exited Mitchell-Lama and went market rate a couple of years ago, and two other large rental buildings, Westview and Island House, are contemplating following suit.

But some residents say privatization was inevitable because of the $50 million mortgage the building recently took out, in part to fund $16 million in building upgrades, and they worry the $150 will be used mostly finance debt repayment. [WSJ]


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)
Nonprofit plans affordable housing development near Essex Crossing
Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
Camber Property Group's Andrew Moelis and Rick Gropper with 2060 Pitkin Avenue in Brooklyn and 1971 and 1975 Grand Avenue in the Bronx (Photos via Camber Property Group, Omni New York)
Affordable housing developer Camber scoops up Section 8 portfolio
Affordable housing developer Camber scoops up Section 8 portfolio
33 Eastville Ave, Sag Harbor, NY (Google Maps)
East Hampton pursues affordable housing dev for former Baptist church
East Hampton pursues affordable housing dev for former Baptist church
Tishman Speyer president Rob Speyer and Edgemere Commons (Getty)
Tishman Speyer grabs bulk of Arker’s mammoth, delayed project
Tishman Speyer grabs bulk of Arker’s mammoth, delayed project
Investors continue to snatch up city’s multifamily, industrial assets
Investors continue to snatch up city’s multifamily, industrial assets
Investors continue to snatch up city’s multifamily, industrial assets
How long does it take to lease an affordable housing project? Too long
Red tape keeping affordable units empty for 15 months
Red tape keeping affordable units empty for 15 months
Attorney General of New York Letitia James and United States Secretary of Housing and Urban Development Marcia Fudge (Getty)
State attorneys general call for eviction ban on subsidized renters
State attorneys general call for eviction ban on subsidized renters
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...