Image of Roosevelt Island’s Island House Entrance
An update on Roosevelt Island’s Island House efforts to exit the NY State Mitchell Lama program under a privatization and affordability plan agreed to by the Owner (David Hirschhorn), Residents and NY State.
On May 27, the Island House Tenants Association ( IHTA ) held a meeting at the Good Shepherd Community Center
with tenants to discuss the privatization/affordability plan and answer questions from residents. In addition to the IHTA Board, Roosevelt Island Assembly Member Micah Kellner , NY State Homes and Community Renewal ( DHCR ) Assistant Commissioner Richmond McCurnin and IHTA attorney Stuart Saft were in attendance to answer questions.
After an introduction by IHTA Chair Graham Cannon, Assembly Member Kellner gave a brief review explaining to the Island House residents that the Mitchell Lama program was coming to an end and the question is how it will end so that the residents of Island House can remain in their homes either under an affordable plan for home ownership or remaining as renters.
Mr. Kellner then introduced DHCR Assistant Commissioner McCurnin who stated that not a single Mitchell Lama building exiting the program has been saved from going market rate through a home ownership conversion such as the one proposed and agreed to for Island House. If the Island House privatization and affordability plan succeeds, it will be unprecedented said Mr. McCurnin. Also, Mr. McCurnin emphasized that the plan is a result of a great deal of compromise and that everybody is not going to like every single provision but that if this privatization/affordability plan is not accepted, the alternative is market rate housing. Many current Island House tenants would not be able to afford remaining in their homes if a market rate housing plan was instituted.
Here’s a video excerpt from the beginning of the meeting (full video of meeting is below).
The IHTA prepared this summary of the plan:
SUMMARY OF THE ISLAND HOUSE PLAN FOR PRESERVATION OF AFFORDABLE HOUSING AND WITHDRAWAL FROM THE MITCHELL-LAMA PROGRAM (THE “AFFORDABILITY PLAN”)
Please find attached the Island House Plan for Preservation of Affordable Housing and Withdrawal from the Mitchell-Lama Program.
This is the final version of the Plan,* negotiated and agreed by the owner, DHCR, RIOC, the Empire State Development Corporation, and the Governor’s office, that we voted for in September 2009 and by which we “signaled the owner, DHCR and RIOC to move ahead with a ground lease extension and preparation of the offering plan”.
We are very pleased with the outcome. As many others have noted, at a point where the owner has the absolute right to withdraw our building from Mitchell-Lama and charge market rents, this is a plan that protects tenant purchasers and continuing renters at affordable levels that will allow us the security of remaining in our homes for many decades to come.
The purpose of the Affordability Plan is to provide a structure for the withdrawal of Island House from the Mitchell-Lama Program on terms that will preserve Island House as an affordable housing project for both existing tenants and future occupants.
The key elements of the plan are as follows:
Among the questions asked by the Island House residents during the meeting was:
what is the amount of flip tax on future apartment sales and will there be a windfall in profits for sellers,
and why is the Island House plan so unique?
Here’s the entire Island House Affordability and Privatization Plan
and full video of May 27, 2012 IHTA meeting.
You Tube Video of Island House Affordability/Privatization Meeting (Part 1)
You Tube Video of Island House Affordability/Privatization Meeting (Part 2)
Following the meeting I asked Assembly Member Kellner if there were any outstanding issues remaining with the Roosevelt Island Operating Corp ( RIOC ) extending the ground lease on Island House with the current building owner. Mr. Kellner replied that there were no outstanding issues to his knowledge. I sent an email the next day asking RIOC President Leslie Torres:
After the Island House Meeting last night on their privatization/affordability plans, I asked Assembly Member Micah Kellner if there were any outstanding issues remaining regarding the ground lease extension being sought by the building’s owner from RIOC.
Mr. Kellner replied that to his knowledge there were no outstanding issues remaining for the ground lease extension.
From RIOC’s perspective, is it true that there are no issues remaining to be agreed upon for the Island House Ground Lease extension?
Thank you.
Have not received a response back from RIOC.
RIOC’s discretion in granting the ground lease extension for the building is a key component in the affordability plan negotiations. Without the ground lease extension, the building owners would find it very difficult to finance exiting Mitchell Lama. It’s going to be very interesting to see how this all plays out and how it impacts privatization/affordability of the other remaining Roosevelt Island Mitchell Lama buildings – Rivercross Coop and Westview rental.
