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.
If your income goes over the limit, you pay the surcharge which is calculated based on a formula. I think the maximum surcharge is 50%. Besides, if you pay 50% surcharge for 3 years, mitchell Lama has a right to kick you out.
I should know this answer by now but another post sparked the question in my head... once you buy, say your income goes over the limit at some point, what happens when you verify your income for the year? Are you forced to sell?
I do not forsee this ever becoming a problem for me, but just in case my $1k in the stock market ever turns into a few hundred thousand. LOL
If your income goes over the limit, you pay the surcharge which is calculated based on a formula. I think the maximum surcharge is 50%. Besides, if you pay 50% surcharge for 3 years, mitchell Lama has a right to kick you out.
I don't think our income increased enough for us to trigger a surcharge, thank god, although I still don't know how it's calculated.
From what I've heard, Penn South calculates it by hitting you with a 5% increase for every 5% over the ceiling you are, with a max surcharge of 200%. But, they do not go by the standard mitchell lama income guidelines. 200% surcharge seems very excessive but I'd imagine at PS it's still probably well below market rate maintenance (or 'rent') for what an apartment in the area would be.
If your household experiences a significant loss of income but the overall composition remains the same, would you get a decrease in maintenance? I highly doubt it, but just wondering.
Is this true that Penn South will charge you a max surcharge of 200%?
So if I am within the income limits when I get the unit, then my income jumps to well above or someone moves in with me to make the limit jump up, I will only pay a max surcharge of 200% right? Even if my new income is 1M (as an example).
So if I am within the income limits when I get the unit, then my income jumps to well above or someone moves in with me to make the limit jump up, I will only pay a max surcharge of 200% right? Even if my new income is 1M (as an example).
unfortunately (for the spirit of the coop), yes.
There was a documented case in a daily news article, i think, circa 2015 about a older resident whose income was half-a-million and had a porsche (or something similar) in the parking lot. They paid the surcharge and couldn't be forced out due to the letter of the law.
unfortunately (for the spirit of the coop), yes.
There was a documented case in a daily news article, i think, circa 2015 about a older resident whose income was half-a-million and had a porsche (or something similar) in the parking lot. They paid the surcharge and couldn't be forced out due to the letter of the law.
Okay that's good to know, thanks!
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.
