Posted by Anna on January 09, 2000 at 23:42:05:
In Reply to: Mitchell-Lama Tenants May Avoid Huge Rent Increases posted by Mark Smith on January 09, 2000 at 03:28:35:
: The Real Estate section of The New York Times for Sunday, January 9, 2000, has a story about the tenants at Cooper Gramercy, a Mitchell-Lama rental development supervised by New York City's HPD, who may be able to continue paying their current rents. The landlord had attempted to pay off the mortgage and leave the Mitchell-Lama program to charge market rents (probably triple the current rents) or turn the development into a co-op or condo, despite a restriction in the ground lease about the type of housing that had to be on the site.
: or click on the link below
The NYTimes boasts of its unbiased reporting: guess that ended with Y2K or did they simply fire too many editors?
"Tenants Find Arcane Weapon in Rent War With Landlord" by Edward Wong
Arcane? he's referring to a clause in the lease, a common clause in real estate land-leases, restricting the use of the land for the term of the lease...
ar·cane (är-kn) adj.
Known or understood by only a few: e.i., arcane economic theories;
requiring secret or mysterious knowledge; "the arcane science of dowsing"
Is there anyone here who cannot understand this? Seavey, the landlord/developer, signed a 75-year lease in 1973 with the land-owner, the New York City Education Fund; a clause in the lease states that the site must be used for low- and moderate-income housing. Seavey 'forgets about' that clause in 1998 and almost gets approval for a buy-out of the Mitchell-Lama program.
Read the story in the October issue of Met Council's "Tenant": http://tenant.net/Tengroup/Metcounc/Oct99/mitchell-lama.html
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