Mitchell-Lama Housing Program
The New York State Mitchell-Lama Housing Program was created in 1955 for the purpose of building affordable housing for middle-income residents. The housing developed under this program is more commonly known as Mitchell-Lama housing, derived from the last names of former Manhattan State Senator MacNeil Mitchell and former Brooklyn Assemblyman Alfred Lama, who sponsored the legislation. It is officially embodied in the Private Housing Finance Law and is designed to accommodate the housing needs of moderate-income families.
A total of 269 Mitchell-Lama developments with over 105,000 apartments were built under the program. In addition, 22 middle-income developments with over 10,000 apartments were built under the Limited-Dividend program, a precursor of the Mitchell-Lama program. A number of the Mitchell-Lama developments have withdrawn from the program under a process called buyout and are no longer under DHCR supervision.
In exchange for low-interest mortgage loans and real property tax exemptions, the M-L Law required limitation on profits, income limits on tenants and supervision by DHCR. Developments are eligible to withdraw from the Mitchell-Lama program, or buyout, after 20 years upon prepayment of the mortgage (or after 35 years in the case of developments aided by loans prior to May 1, 1959). When developments buy out, they are no longer subject to DHCR regulation, and apartments need not be kept affordable for moderate-income families. Because an increasing number of Mitchell-Lama developments were becoming eligible for buyout in the early l990's, in 1991 DHCR issued regulations stipulating that in areas subject to the Rent Stabilization Law or the Emergency Tenant Protection Act, developments that buy out are covered by rent stabilization. Buildings in areas not subject to either the RSL or ETPA are no longer subject to regulation.
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Funding Category: |
Limitations on profits, income limits on tenants and DHCR supervision in exchange for low-interest mortgage loans and real property tax-exemptions. |
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Target Population: |
Moderate and middle-income families in New York City |
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Funding Available: |
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Application Information: |
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Contact: |
DHCR Housing Management Bureau, (212) 480-7343; the NYC Housing Authority, (212) 306-3000; or the NYC Department of the Aging (SCRIE), (212) 240-7000. |
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Links To More Info: |
Mitchell-Lama Program Description State Supervised Middle Income Developments for Families and Senior Citizens |
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Administering Agency: |