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Location: Read the Marketing Handbook, and Income a Guide.
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Quote:
Originally Posted by macnyc2003
My question is, how were Cadman’s finances allowed to get so seriously out of whack? Who was in charge? Also, could this financial crisis have been deliberately created so that leaving the Mitchell Lama system was the “only choice”? I think an investigation is in order.
I think it’s so unfair that residents who bought in years ago for cheap, and received state and city tax breaks for decades, can now make out like bandits. And the ones who mismanaged Cadman’s finances are also getting a windfall.
I don’t have answers to your questions.
Maybe they deliberately didn’t want to impose assessments or increase maintenance on share owners to finance needed maintenance. SCRIE and NORC might influenced matters. Not paying more money can be an easy sell for old people and/or residents who anticipate leaving Cadman sooner.
I suggest the City/State create % clawback fee on households that meet a certain wealth standard and receive a windfall upon sale on their shares. Some proceeds stay at Cadman others fund affordable housing in general. I don’t know how that might be made to happen. Could Cadman impose a ‘sales commission’?
I thought getting on the list was a lottery process.
Could this happen in the near future to other ML waiting lists -
Getting on the Cadman list IS (or WAS) a lottery process. Some MLs have open waiting lists, though. You just have to apply and then wait to be called.
And could this happen in the near future to other ML waiting lists? Yes, although the state made it harder through recent legislation for MLs to leave the system.
Location: Read the Marketing Handbook, and Income a Guide.
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Quote:
Originally Posted by Jennbrazil
I thought getting on the list was a lottery process.
Could this happen in the near future to other ML waiting lists -
Beginning on page 21 or so there are borough maps in this 2004 report. On the maps locations and name of M-L buildings and Limited Divided housing with the year they opened. Some of the buildings have exited Mitchell-Lama status. Rules might have shifted over the decades. But some affordable housing projects were initiated with features that allowed their status to be changed after so many years under certain circumstances. It was part of the deal from the start. Some buildings have changed to a different form of affordable housing. Others might be nearer to market rate depending on circumstances.
The present status of former M-L buildings can vary. Likely most rentals would be subject to rent stabilization.
I don’t see 75 Henry St on the Brooklyn map. It is adjacent to the tall Cadman Tower. On the other side is Cadman Plaza North. I think 75 Henry St started life as middle income affordable housing. Perhaps it left that status before the 2004 publication of the report and so is not included on the map.
My question is, how were Cadman’s finances allowed to get so seriously out of whack? Who was in charge? Also, could this financial crisis have been deliberately created so that leaving the Mitchell Lama system was the “only choice”? I think an investigation is in order.
I think it’s so unfair that residents who bought in years ago for cheap, and received state and city tax breaks for decades, can now make out like bandits. And the ones who mismanaged Cadman’s finances are also getting a windfall.
How is it "unfair"? If you want to blame anyone go back to politicians and others who crafted Mitchell-Lama scheme.
Created in 1955 from get go it ML developments could leave program after twenty years. No one seemed bothered by that fact for decades until buildings actually started to exercise that option. Now everyone is choosing sides and pointing the finger.
Policy or not, it is unfair. People who have enjoyed tax breaks for decades are now cashing in. Yes, it was part of the law but that doesn't make it morally or ethically sound. I understand it must have been in there for the law to pass, but it absolutely is unfair.
Policy or not, it is unfair. People who have enjoyed tax breaks for decades are now cashing in. Yes, it was part of the law but that doesn't make it morally or ethically sound. I understand it must have been in there for the law to pass, but it absolutely is unfair.
Flipping it around it is also then "unfair" that city and state lost out on tax revenue via those tax "breaks".
By extension it also was "unfair" that other ratepayers had to pay more than they otherwise might to make up revenue shortfall created by said tax "breaks".
There's no such thing as a free lunch. Governments require revenue to operate. Primary sources are taxes, fees and surcharges. What one source does not pay another will, it's just that simple. Well NYC or NYS could cut back spending to bring things in line with actual revenue, but that's never going to happen.
Location: Read the Marketing Handbook, and Income a Guide.
2,130 posts, read 1,746,606 times
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Fair. Is it fair that a household that moved out of Cadman Towers last year will not benefit with this change? I don’t think it’s a fair question. It’s about being at the right place at the right time.
It would be unwise to let the building deteriorate just to hold to model. It unclear if all the households there could pay assessments necessary. Perhaps this switch keeps people in their homes.
Please, someone share knowledge about the tax impact of households that sell shares under the new model. Just curious. Could there be a way the City and/or can capture a piece of the higher prices.
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