Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: Read the Marketing Handbook, and Income a Guide.
2,007 posts, read 1,626,371 times
Reputation: 479
Advertisements
Quote:
Originally Posted by macnyc2003
Fredlet, thanks you for the information you’ve been sharing. I am on the wait list and will get in touch with the committee. But I am confused as to why some cooperators are pushing for this conversion to a different middle-income program. Is the Cadman co-op currently in financial trouble? After the conversion, will current residents be able to sell their apartments for more money?
I don’t know much about the HDFC program, but I read an article saying that many of them are on shaky financial ground. A friend who lives in one told me her building hadn’t made a mortgage payment in years.
I can’t claim that what follows is specific to Cadman Towers.
There are some HDFC buildings that don’t have upper limits on co-op resale prices, I don’t claim that this is universal. So, an HDFC would have income limits on being approved, but the resale price would not be limited. This could push some owners to switch. For example, the price might be a million but the income limit $150K. The price set is only limited by finding a buyer for that price. This would favor new purchasers with much wealth but modest incomes. If that is so, it is a drastic retreat from the concept of middle income housing.
If the scenario above were true, existing co-op owners at Cadman Towers could sell their units at much higher prices than they paid for them. Also, they could spend lots of money on renovations, appliances, and fixtures with the confidence that they could price their co-op unit accordingly when they sell.
The faction pushing for the conversion claims it will being in more income (in flip taxes and such) for maintaining the building. It seems there is not good support for this claim, as HDFCs are notoriously difficult to sell, and the board hasn't provided proper info on how this would bring in more money.
But. Conversion will also mean owners can sell their individual units and make more on the sale, at least theoretically, and also hand apartments down to their heirs. I suspect this is a big part of the motivation, though they're not saying this out loud.
Yes, Fredlet, I think you are correct that current Cadman residents, who have paid next to nothing for their apartments and had low maintenance over the years, want to cash in now. But I know the rules for leaving Mitchell Lama have been made more strict, with a greater percentage of cooperators needed to vote to privatize.
Also, this leads me to question Cadman's underlying financial health. I know that the development borrowed millions of dollars in order to repair the facades, and this led to a couple of recent increases in the monthly maintenance. Even with these increases, though, it's a reasonable charge, which makes me wonder if anything else bad is going on. Why are they looking for funds all of a sudden? After seeing what is happening at Amalgamated Housing in the Bronx, running out of money could happen anywhere.
Here's an article on the new rules for leaving the Mitchell Lama system:
Location: Read the Marketing Handbook, and Income a Guide.
2,007 posts, read 1,626,371 times
Reputation: 479
Quote:
Originally Posted by RosemaryNyc
Has anyone received a 1 bedroom apt offer recently?? If so, when?? I can’t help but feel like I’m being skipped or something! :/
Scroll back for details, in April, a 1 bed was acquired, the fore mentioned Simplex.
ML Connect reflects that in early May, log# 65 took a unit, which likely means log#s higher than #65 were contacted.
Yes, Fredlet, I think you are correct that current Cadman residents, who have paid next to nothing for their apartments and had low maintenance over the years, want to cash in now. But I know the rules for leaving Mitchell Lama have been made more strict, with a greater percentage of cooperators needed to vote to privatize.
It's 80% for a proper privatization vote, but the threshold for this type of HDFC conversion vote is only 67%.
Fredlet, do you live in Cadman? What's the general consensus like? I pray it doesn't convert...
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
