Cooperatives & Condominiums

Mitchell-Lama

A NY State limited-equity affordable housing program providing income-restricted cooperatives and rentals.


Definition

Mitchell-Lama is a NY State affordable housing program enacted in 1955 (Limited-Profit Housing Companies Law). It funded the development of moderate-income housing in cooperative and rental form, with income limits restricting who can buy or rent and limited-equity formulas restricting resale prices. Many Mitchell-Lama buildings have 'bought out' of the program over time and converted to market-rate ownership. Mitchell-Lama cooperatives have strict succession rules, sublet prohibitions, and waitlists for available units. The program is managed by the NY State Division of Housing and Community Renewal (DHCR) for state-financed projects and by HPD for city-financed projects.

Exam Tip

Limited-equity = capped resale profit. Income-restricted. Many have bought out into market-rate. Managed by DHCR or HPD.

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