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20 years is a long time. If you manage you money wisely, you can save a huge sum to buy you own property. I bought my house in 1992 with a 15-year load and paid it off in 12 years. I strongly believe at the end of your 20 year, there will be a government program helping you to be a home owner. Just stay out of trouble, keep a minimum 700 credit score, and have a good amount of cash in hand. You will be a much better New Yorker, at least financially.
As the original poster in this thread, I want to thank everyone again. I'm learning a lot.
To answer a question somewhere above, our unit is an 80/20 unit, but the lease rider is most definitely a rent stabilized document. Something like "this unit is subject to the Rent Stabilization Law, and pursuant to this law management wishes to inform you that 20 years from now on this date _____, your apartment will be subject to market rate."
My confusion stems from the fact that I was under the initial impression that the 80/20 units would remain stabilized for as long as we live here, but maybe that's not the case? I will learn more at my annual certification meeting, and will find this thread and post new information then.
I remain extremely lucky and extremely grateful, and I am wondering these things just so I can plan more specifically for the future.
Found a blurb in the Times archives from 1997...16 years ago.
Quote:
Ms. Vias pays $413 a month for her one-bedroom apartment at 100 Jane Street. The apartment right above her rents for $2,700.
Ms. Vias and Mr. Rahman are among a fortunate few low-income people in New York City who are beneficiaries of what is called the 80-20 Program. They live in buildings that were constructed with proceeds from tax-exempt bonds, under the proviso that 20 percent of the apartments be set aside for low-income tenants while the remaining 80 percent are rented at market rates. It is a program that, since its inception in 1984, has helped finance the construction of 9,305 apartments in New York City (6,432 through the city's Housing Development Corporation and 2,873 through the New York State Housing Finance Agency), thereby creating 1,861 units for poor people.
So the program is already 28 years old with almost 10,000 apartments more than 16 years old. So if anyone is IN an old 20 percenter...like 100 Jane St., give us the scoop. Did you revert to market, or to rent stabilization?
How old is 80/20 as a program? I would imagine this comes into play more for people moving into one of the older developments.
The 80/20 program has been around for at least 15 or 20 years but it is still ongoing.There are developments where the rent stabilization and tax abatements have already expired and there are some that have been built recently.I would assume the OP is talking about a new one.
The length of the tax abatement/rent stabilazation aspect can also vary.It's not always 20 years.Sometines it's only 10 or 15 years.
This is the same thing that has been happening with many Mitchell Lama developments around the city in the last 10 year or so.There was a time period,usually 25 years I think,when the buildings had income and rent restrictions but when the 25 years was up the developers began converting to market rents and many middle income people were forced to move.The conversion of Mitchell Lama buildings to market rate rents and market rate co ops is still ongoing.It has been a bonanza for the original co op owners but a disaster for tenants.
The 80/20 program has been around for at least 15 or 20 years but it is still ongoing.There are developments where the rent stabilization and tax abatements have already expired and there are some that have been built recently.I would assume the OP is talking about a new one.
The length of the tax abatement/rent stabilazation aspect can also vary.It's not always 20 years.Sometines it's only 10 or 15 years.
This is the same thing that has been happening with many Mitchell Lama developments around the city in the last 10 year or so.There was a time period,usually 25 years I think,when the buildings had income and rent restrictions but when the 25 years was up the developers began converting to market rents and many middle income people were forced to move.The conversion of Mitchell Lama buildings to market rate rents and market rate co ops is still ongoing.It has been a bonanza for the original co op owners but a disaster for tenants.
Actually, most tenants in Mitchell Lamas that were taken out of the program get to stay on as rent-stabilized tenants. It is only when they are vacated do the owners get to take the apartment to market rates.
I will bet my bottom dollar that no tenant has been evicted from 80/20 after expiration of the tax credit period, nor has such a tenant been forced to pay market rent to stay on. For this I have no evidence other than understanding how these things generally work out. The City has a revulsion against taking affordable apartment and making them UNaffordable. Neither do the courts take kindly to mass evictions.
Had evictions happened we'd have heard a HUGE uproar reported in the media.
Actually, most tenants in Mitchell Lamas that were taken out of the program get to stay on as rent-stabilized tenants. It is only when they are vacated do the owners get to take the apartment to market rates.
I will bet my bottom dollar that no tenant has been evicted from 80/20 after expiration of the tax credit period, nor has such a tenant been forced to pay market rent to stay on. For this I have no evidence other than understanding how these things generally work out. The City has a revulsion against taking affordable apartment and making them UNaffordable. Neither do the courts take kindly to mass evictions.
Had evictions happened we'd have heard a HUGE uproar reported in the media.
Not really true.If a Mitchell Lama building was constructed before 1973 it remains stabilized after the expiration of the j 51 tax abatements but if constructed after 1973 it does not.There are many,many Mitchell Lama buildings where middle and low income tanants have been displaced by higher rents.
One of the more recent examples is Tracey Towers,built in 1974,where the courts have validated a 65% across the board increase for all units .It is The single largest rental complex in The Bronx.There have been numerous other cases in the last decade where tenants in Mitchell Lama complexes have fought the expiration of rent stabilization status and lost.
Mitchell Lama was started in 1955 so there are many buildings where the rent stabilization still holds but there are also plenty built after 1973 where there have been endless battles,with the tenants usually losing.
I've got to disagree with you, bluedog.
But settling the argument as to whether the continuance of rents below market do or do not generally apply to Mitchell-Lama housing as it exists in the City would take more effort than either of us is probably willing to invest.
For every single case of rents that have gone to market that you could list, I could list several that have remained far below market. Do not forget the effect of "236" federal money holding rents to a 30% income ceiling even on the post-1974 places. LOTS of places took HUD money.
It's a complex issue that will clog the courts for a long time.
I am also having a hard time getting an answer from various city agencies that keep telling me to call someone else about what happens after the 20 year period.
I left my old rent stabilized apt to move into what I thought and was told by TF Cornerstone would be my home for the rest of my life in that after the 80/20 program ends my apt would convert to rent stabilization.
There is a 421-a rider attached to my current expiring lease that says the apartments are to remain rent stabilized for 35 years which I did not worry about as I am 50 and disabled living on a very small income and would probably be dead by then or have money from my parents estate to be able to live on by that date.
But the rider with my new lease renewal has now deleted the 35 year line and changed it to 20 years minus the 4 years I have been living here. And now I am being told the Company has the option of charging me fair market rent at the end of their 20 year tax credits.
I would hope as others have said they would not do this to seniors but who knows what landlords do these days as we live in a world that is all about money and profits.
I am also having a hard time getting an answer from various city agencies that keep telling me to call someone else about what happens after the 20 year period.
I left my old rent stabilized apt to move into what I thought and was told by TF Cornerstone would be my home for the rest of my life in that after the 80/20 program ends my apt would convert to rent stabilization.
There is a 421-a rider attached to my current expiring lease that says the apartments are to remain rent stabilized for 35 years which I did not worry about as I am 50 and disabled living on a very small income and would probably be dead by then or have money from my parents estate to be able to live on by that date.
But the rider with my new lease renewal has now deleted the 35 year line and changed it to 20 years minus the 4 years I have been living here. And now I am being told the Company has the option of charging me fair market rent at the end of their 20 year tax credits.
I would hope as others have said they would not do this to seniors but who knows what landlords do these days as we live in a world that is all about money and profits.
I would get a housing attorney to review both your old lease and your new one before you sign the new one. This seems underhanded to me.
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Being Old/Disabled
