City pouring $250M into Mitchell-Lamas if they stay in program

East Midtown Plaza (Photo via Wikipedia)

By Maria Rocha-Buschel

The mayor’s office has announced a plan to protect affordability at remaining Mitchell-Lama developments throughout the city through additional financing of $250 million.

A representative from the Department of Housing Preservation and Development confirmed that the funding will be available for all Mitchell-Lama developments, meaning that the East Midtown Plaza complex west of First Avenue and East 24th Street will be getting some of the funds. The specific needs of individual developments will determine how the resources are used, but information on the exact amounts is not yet clear.

“The Mitchell-Lama Reinvestment Program will focus on preserving the long-term affordability of all residences currently enrolled in the program,” HPD representative Matthew Creegan said. “It will utilize an array of financing tools, determined by the individual needs of each project, as an incentive for these properties to remain in the program as stable, sustainable and affordable homes for years to come.”

The mayor’s office noted that the new program will target 15,000 homes over the next eight years. Known as the Mitchell-Lama Reinvestment Program, the initiative is part of the mayor’s plan to create and preserve affordable housing throughout the city by financing 200,000 affordable home and expanding to 300,000 affordable homes by 2026.

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Some East Midtown Plaza shareholders launch new effort to turn complex private

East Midtown Plaza resident Jeanne Poindexter, who is staunchly against privatizing the property (Photo by Maria Rocha-Buschel)

East Midtown Plaza resident Jeanne Poindexter, who is staunchly against privatizing the property (Photo by Maria Rocha-Buschel)

By Maria Rocha-Buschel

Mitchell-Lama cooperative East Midtown Plaza is once again beginning the process to go private with a vote happening this Thursday evening.

The vote will be held at a special meeting that was called because the co-op’s board received a petition from more than 250 shareholders who support privatization. The property has been through this process in the past, with the last attempt at privatization resulting in a court case that sided with co-operators who were against the privatization, with a final decision made in November, 2012. Privatizing would allow residents to sell their homes at a profit. The special meeting this Thursday, which will be held at the NYU Dental School, is only open to shareholders.

The vote this Thursday is the first of three successive votes that shareholders will participate in to determine if the property will go private, and is for a feasibility study on whether or not the plan to go private is viable. The first vote only requires a simple majority of 51 percent of those who attend the meeting but the second and third votes require a two-thirds majority of all shareholders, rather than just those who show up at the meeting. The second vote is required to be held at least a year later where shareholders vote on a proposed offering plan on whether or not to continue to the next step. If the second vote passes, a “Black Book” offering plan is filed with the Attorney General, which proposes the form of a privatized co-op and the third vote, at least another year later, is taken on the completed, accepted and filed cooperative structure. If this vote passes, the property can privatize.

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