|Alternative Name(s)||State Mitchell-Lama; City Mitchell-Lama; Article IV Limited Dividend Company; Article V Limited Dividend Company|
The Mitchell-Lama program subsidized the construction of 269 developments, with over 105,000 apartments for moderate- and middle-income households. Prior to Mitchell-Lama, a precursor under the Article IV of the New York State Limited Dividend Company Act authorized in 1927 subsidized 22 owner-occupied middle-income developments with an additional 10,000 apartments. In exchange for low-interest mortgage loans and real property tax exemptions, the Mitchell-Lama program limited profits and placed income limits on tenants or cooperative owners. The program also required ongoing supervision by the agency originally sponsoring the development of the project, either HPD or HCR. After New York City’s fiscal crisis, HDC, beginning in 1977, working with FHA, refinanced many of the City’s Mitchell-Lama portfolio; by 1980, HDC had refinanced projects containing 29,000 units and thereby reduced New York City’s debt burden.
Developments are eligible to withdraw or buy out from the program 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. Owners may choose to buy out of the Mitchell-Lama program by prepaying the existing mortgage in order to have the ability to re-sell their projects at market rates. When owners buy out, their buildings are no longer subject to HCR or HPD Mitchell-Lama regulation, and apartments need not be kept affordable for moderate-income households (rent regulation for rental projects built before 1974 remains in effect, as do the regulatory requirements of tax relief or other programs). State agencies, including the Housing Finance Agency, Empire State Development Corporation, and HCR, have collaborated to identify State Mitchell-Lama housing companies to participate in mortgage re-financings, which generate funds for capital improvements and property upgrades.
|Related Programs||Mitchell-Lama Mortgage Restructuring Program
Mitchell-Lama Rehabilitation and Preservation Program
Mitchell-Lama Repair Loan Program
|Benefit Classification (?)|
|Supply or Demand||Supply|
|One-Time or Ongoing||Ongoing|
|Benefit Type (?)||Financing, Property Tax Incentive|
|Government Agency (?)||NYS Department of Homes and Community Renewal|
|Program Information (?)|
|Scale||Very Large Scale (over 10,000 units produced)|
|Developer/Owners (?)||For-Profit, Non-Profit|
|Property Information (?)|
|Construction Type||Rehabilitation, New Construction|
|Occupant Tenure (?)||Rental, Homeownership|
|Occupant Income Restrictions (?)||Moderate-Income|
|More Information||NYS HCR
NYS HCR (FAQ's)
|Available on CoreData.nyc?||Yes|
|Last Updated||June 2018|
|Data Source||New York City Department of Housing Preservation and Development, New York State Department of Housing and Community Renewal|
The end date listed for Mitchell-Lama properties reflects the opt-out date. The Subsidized Housing Database includes Mitchell-Lama properties that have exceeded their opt-out date but (as best we can determine) have not opted out of the program.Data from New York City Department of Housing Preservation and Development accessed November 2016, and data from New York State Department of Housing and Community Renewal accessed June 2018 (reflects data as of March 2018).