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All help is appreciated I have a ton of questions about mitchell lama coops.
Is there a somewhat standard buy in price or cost for Mitchell lama coops in Manhattan? I read through some of the Mitchell lama posts on here, and it seems that many bought units well under $50,000. The mitchell lama applications I've seen in the past few years for manhattan were 85-125k for studio- 2 bedroom, prices are certainly under market value.
I'm trying to understand how long term costs compared to market costs would look like, and what happens if the building finances are troubled. Is it possible to buy in and not get the investment/money returned or get booted by a new management company even if paying consistently?
What happens if a Mitchell lama coop takes out a mortgage and cannot pay it back- can the city sell the building or shareholders shares?
Can mitchell lama coops (not rentals) be sold to a private company (if so do shareholders have to vacate or pay new fees)?
Are assessments common in Michell lama coops?
Are Mitchell lama units often managed like uhab units, or more like hdfcs? I've read, and personally researched, uhab units with exorbitant mortgages. I considered one myself, but the buy in was about $225k (likely cash). Most uhab buildings that I saw listed in the past 2 years had high mortgages (one was perhaps almost a million per apartment, all the buildings were significantly mortgage more per unit than the buy in price) which can make sense in some scenarios- but that building seemed to take out 2-5 few million every other decade which didn't seem possible to pay off. Can mitchell lama coops do this?
All help is appreciated I have a ton of questions about mitchell lama coops.
Is there a somewhat standard buy in price or cost for Mitchell lama coops in Manhattan? I read through some of the Mitchell lama posts on here, and it seems that many bought units well under $50,000. The mitchell lama applications I've seen in the past few years for manhattan were 85-125k for studio- 2 bedroom, prices are certainly under market value.
I'm trying to understand how long term costs compared to market costs would look like, and what happens if the building finances are troubled. Is it possible to buy in and not get the investment/money returned or get booted by a new management company even if paying consistently?
What happens if a Mitchell lama coop takes out a mortgage and cannot pay it back- can the city sell the building or shareholders shares?
Can mitchell lama coops (not rentals) be sold to a private company (if so do shareholders have to vacate or pay new fees)?
Are assessments common in Michell lama coops?
Are Mitchell lama units often managed like uhab units, or more like hdfcs? I've read, and personally researched, uhab units with exorbitant mortgages. I considered one myself, but the buy in was about $225k (likely cash). Most uhab buildings that I saw listed in the past 2 years had high mortgages (one was perhaps almost a million per apartment, all the buildings were significantly mortgage more per unit than the buy in price) which can make sense in some scenarios- but that building seemed to take out 2-5 few million every other decade which didn't seem possible to pay off. Can mitchell lama coops do this?
Personally:
forget co-ops...(who needs the AHjida) .....buy a condo. it's your own little piece of property...
Candlestix, you're asking some really good questions. Particularly, what happens if the coop isn't well managed and you're unable to get your purchase price refunded when you leave.
Unfortunately, I am not knowledgeable enough to answer your questions. I'm hoping someone comes along who's more informed!
In the meantime, I can tell you what I know about purchase ("buy in") price for one bedrooms:
York Hill (Upper East Side): $17,400 to $20,230
East Midtown Plaza (East 23rd St.) $51,172 to $73,418
Big Six (Woodside, Queens): $28,253 to $32,080
Gouverneur Gardens (Lower East Side): $23,805
Penn South (a limited-equity co-op but not technically a Mitchell Lama): $101,247 to $134,995
Cadman Towers (Brooklyn Heights): $36,658 to $60,728
Village East ("townhouse'): $32,192 to $44,191
In all cases, the monthly carrying charges are very reasonable, a couple of hundred a month up to maybe $900.
Also, if a ML building needs to borrow money, it is usually available at a below-market cost because of state and even federal funds. Also, that's why the monthly charges are so low: tax abatements.
Yes, ML buildings can have assessments.
UHAB buildings are an entirely different animal. They are for low-income people who have a huge amount of money saved up. It has always seemed like a weird program to me for that reason. I guess it's good for retired people who have saved up diligently. I have a friend who inherited money from a family member who used it to buy an apartment in that program. That's all I know!
I personally think the city should DRASTICALLY cap resell prices on UHAB apartments. What good is it to have such a small subset of people who qualify? I've seen an apartment for $800k where a purchaser couldn't make more than $36,000 a year. I rolled my eyes so hard.
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