Does 80/20 run out after 20 years? (apartments, rent stabilized apartments, homes)
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I realize that it is a little silly for me to think this far in advance, but my desire to make everything as good as possible for my family forces me to plan and budget like a madman.
We have recently been leased an apartment under the 80/20 program and out lease has the "rent stabilization" rider attached which SEEMS to say that the apartment will go up to market rate after twenty years.
I know this rider is standard with any ordinary "rent stabilized" apartment, but does the fact that ours is an 80/20 make any difference? What will happen when the twenty years is up?!
It is not a standard clause with "any rent stabilized apartment" at all.Regular rent stabilized leases have no such automatic expiration date.
The clause means,doesn't just "seem" to say,exactly what it says.At the end of the period all tax abatements to the developer and all subsequent stabilized rents will expire and the rent will go to whatever the market rate may be in that neighborhood at the time.If you can't pay the higher rent you will have to move.
It's pretty simple really.
Just be happy you have what you have for 20 years.
Yeah, according to the current agreement the apartment will become market rate in 20 years. However, that's a long time and anything can happen. Several "temporary" rent control and stabilization efforts have been extended well past their original intended time frame. It really depends on the nature of the city government, market trends and a host of other unpredictable factors.
Now does this apply to 20yrs after a person signs a lease or 20yrs after the building was made. Sucks for a person to think they have 20yrs but in fact its only 8 left or something like that.
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Originally Posted by WithDisp
How can you keep that income level for 20 years? It's so absurdly low
...so say you got a raise or a new job that would disqualify you. Would you turn it down?
I doubt they kick you out once your in. They probably just adjust your rent. This is assuming there is an annual recertifcation process. I don't think there is...
You will NOT be tossed out of 80/20 housing because your income went up over the entry level. I seriously doubt that you will be thrown out after 20 years either.
At the 20 year point you will have a mass of tenants clamoring for the right to stay in their homes and a mass of OWNERS begging for an extension of their tax breaks. No politicians can resist an onslaught from both sides.
Good question NooYowker, how old IS the program. I've applied to many and as I can recollect it has to be near the 20 year mark or even already exceeded it. I got very close but never succeeded.
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We have recently been leased an apartment under the 80/20 program and out lease has the "rent stabilization" rider attached which SEEMS to say that the apartment will go up to market rate after twenty years.
Harry, I haven't seeen the exact wording, but it COULD seem to say that after 20 years the apartments enters rent stabilization? Does that sound logical? Once when I was being interviewed I asked what determines rent increases. I was told it is the same as the rent-stabilization rate. I then said "So these are rent stabilized apartments?" She said "NO"...go figger. (If it walks like a duck and talks like a duck, etc.)
Owners have left Mitchell Lama but those in the apartment at the time of conversion have stayed on as rent stabilized tenants...80/20 could work the same way.
But my overarching recommendation must be: DON'T LOOK A GIFT HORSE IN THE MOUTH...take the apartment and worry about it later. It is a rare opportunity that most do not get.
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