Mitchell Lama Buyout to Rent Stabilization

[ELLENC123]

Has anybody gone through a Mitchell Lama buyout? We've just started a tenants committee to protect our rights now that we are under rent stabilization, but have no idea what to expect. The LL is completely redoing apartments as they become vacated and renting them for more than twice what they were under Mitchell Lama. In fact, the LL was warehousing apartments before the buyout until some of the tenants reported it to HPD. I'm sure they would like to see all of us Mitchell Lama tenants leave so they can raise the rents 30% to 50%. I need some advice, please.

[consigliere]

When a development buys out of the Mitchell-Lama program, its real estate taxes can increase by five to ten times what they were before the buyout.
 
Its mortgage expenses could be more or less, depending on the interest rate and other terms of the Mitchell-Lama mortgage.
 
There will also be city and state taxes payable that a Mitchell-Lama development doesn't have to pay.
 
The landlord could seek a hardship increase for these increased expenses. If the development comes under the Emergency Tenant Protection Act (ETPA), the landlord could seek market rents.
 

[MikeW]

It actually doesn't seem like you're too bad off. At least your building fell into stabilization. Alot of the Michell-Lama buildings could go right to free market.

Basically, you're in the same position as any regulated renter in NYC. As long as you stay in your apartment, and are reasonably aware of you're rights and are willing to let the LL know that, there isn't too much that they can do to you.

The empty apartments are on there own. There has never been too much interest at the regulatory level for dealing with vacancy issues. In a regular stabilized building, a new tenant, after a long and costly fight, MIGHT be able to get an apartment reregulated, if the LL was sloppy enough when the took it out of the system. I have know idea what would happen with a vacant apartment coming through a Mitchell-Lama buyout.

[alinnyc]

I've been though a very messy Mitchell Lama buyout, and have fought with the owners and DHCR for four years on any number of issues.

Send me an email at alinnyc@hotmail.com and we can speak further, if you like. There are a number of pitfalls and tricks to watch out for. I'd be glad to fill you in.