Q&A
Discussion on Mitchell-Lama apartments and their preservation
1:13:13
·
113 sec
Council Member Eric Dinowitz inquires about Mitchell-Lama apartments and their preservation in the context of affordable housing. Commissioner Adolfo Carrión Jr. explains that preservation involves financial assistance, refinancing, and entering into regulatory agreements to keep units affordable.
- HPD participates in preservation deals as a lender and equity capital provider
- Preservation efforts are triggered when projects need refinancing or rent increases
- Regulatory agreements are used to maintain affordability for some units
Eric Dinowitz
1:13:13
So I'm looking at the the I wanna talk a little bit about Michelamas and then my other favorite subject bedrooms.
1:13:22
I'm looking at the mayor's of the management report, and it says preservation starts in preservation, completions, and affordable units.
1:13:31
Are your Mitchellama Apartments ones that you consider when you consider your portfolio of affordable housing?
Jumaane Williams
1:13:37
Yes.
Eric Dinowitz
1:13:38
Okay.
1:13:39
And can you talk a little bit about what you mean by preservation of those units?
Adolfo Carrión Jr.
1:13:44
So whenever a project that has a history with us of Mitchellama, obviously, 93 of those developments in New York City do.
1:13:59
There are state man state Mitchellamas as well.
1:14:04
Whenever they get to a critical point where they need to refinance, whether they need the famous rent increases that they asked for, by the way, FYI, because they need to keep up with costs.
1:14:21
Whenever they're financing sunsets and they are looking to make improvements into the future and remortgage those improvements and that modernization they often come to us.
1:14:37
And we participate in in the preservation deals as a lender and and often as a an equity capital statement.
Eric Dinowitz
1:14:47
So it's solely financial though, is when you say preserve affordable units.
1:14:53
You're talking about financial.
Adolfo Carrión Jr.
1:14:55
And on the renter side, we enter into regulatory agreements.
1:14:58
Anybody correct me if I'm wrong.
1:15:01
To keep some of those the the rent units affordable.