Saving the City’s Mitchell-Lamas
As the city’s remaining Mitchell-Lamas are under increasing pressure to convert to market-rate housing, saving this portfolio is a major priority of Mayor Bill de Blasio’s administration. The preservation of Mitchell-Lama housing ensures these developments continue to serve as a vital source of affordability for New Yorkers for at least another generation to come.
In June 2017, HDC’s Board granted authority for the Corporation to deploy up to $100 million in additional funding to facilitate the preservation of more of this vital affordable housing stock. Building upon this effort, HDC and HPD joined Mayor de Blasio to announce the City’s new Mitchell-Lama Reinvestment Program (MLRP). With an initial infusion of $250 million, the new MLRP program aims to protect the long-term affordability of more than 15,000 units over the next eight years. This program reflects the City’s ongoing commitment to develop creative and competitive financing products, while leveraging other public resources to address the unique challenges facing the Mitchell-Lama portfolio.
Initially constructed in 1975 as Mitchell-Lama workforce housing, “Keith and Kelly” were at risk of going market rate when HDC intervened to fund critical building repairs, energy efficiency enhancements, and upgrades to lobbies, common areas and apartments, while also extending affordability for an additional 35 years. Keith Plaza is one of the first preservation projects in the nation to utilize HUD’s Rental Assistance Demonstration (RAD) program, which includes the issuance of a new 20-year Section 8 Project-Based Rental Assistance contract providing subsidy to over 80% of the units. In addition, both Keith Plaza and Kelly Towers benefit from decoupled HUD Section 236 Interest Reduction Payments that support the new financing.
In October 2017, HDC and HPD joined Mayor de Blasio at Ryerson Towers to announce the City’s new Mitchell-Lama Reinvestment Program (MLRP). One of the earliest Mitchell-Lamas preserved under Mayor de Blasio’s Housing New York, Ryerson Towers is a 327-unit moderate-income cooperative development that initially came under HDC’s portfolio in 2014 and benefited from a 30-year extension of affordability, as well as moderate rehabilitation including roof repairs, electrical system upgrades, and new elevators. Thanks to the new MLRP program, the City is equipped to protect many more valuable Mitchell-Lama developments like Ryerson Towers that are at risk of being lost to market.