Management requested removal of applicant..help needed (apartment, coop)

[candlestix]

Hi all I need some advice, due to miscommunication or misunderstanding I think a management company took advantage during a mitchell lama purchase application. The apartment is in a highly desirable area and I'm unsure how to proceed.

My family has been on a wait list for a 1 bedroom Mitchell Lama Coop for about 5 years, the log number was called this spring. The original application listed occupancy of 1-3 people for a 1 bedroom. Management sent a letter that had purchase information and a maximum income eligibility for 1 or 2 people.

We were under the impression that only 2 could purchase the apartment so we filed a preliminary application with two. My sibling was also listed on the wait list from 5 years ago and when I asked if it was possible to upsize to a two bedroom the response received was no that it wasn't possible and that my sister needed to write a letter relinquishing her rights to the application.

We followed the management's request and had her create and sign a letter but after reading more about Mitchell Lama Housing I feel that this was a huge mistake. As a household of three adults, one parent and two adult children I think we probably still qualified for the 1 bedroom.

Perhaps I should have contacted an attorney before submitting anything. The application was sent in before the covid pause and has not been processed.

I'm wondering how/if I can add the 3 third member to the purchase application. I'm very nervous that trying anything will informally get us blocked from the building, but I feel that we probably had/have the right to submit an application with the three of us.

I'm unsure of what to do, or if the request was unlawful and if so is it best to get an attorney, or try to get into the building/buy and then add the third person.

Any advice is welcome, if you know advocates, please do provide contact info.

[randomperson2]

You need to look at the individual co-op's advertisement to see about the occupancy standards. Most of the ones I've seen allow one to three individuals in a one-bed but I don't think that's an absolute rule.

As far as I know (there are people on here who know more about M-L than I do), assuming that the building does permit three residents to a one-bed, your sister can still live in the apartment even if she's not on the application and, crucially, can have succession rights from your parent if she lives there for the appropriate length of time before your parent (eventually, hopefully in the far future) dies or moves to long-term care. She just won't/can't be a shareholder. If you are all planning to live together indefinitely, it's not ideal for your sister but on a day-to-day basis doesn't make much difference.

Trying to think of a delicate way to put this...it's not super common to be able to add a third person without affecting income qualification in the relatively narrow M-L one-bed band. You don't want to shoot yourself in the foot that way.

[candlestix]

Word for word this is what the original lottery listed:

One bedroom: One (1), Two (2), or Three (3) persons, shall occupy a one bedroom apartment.

Two Bedroom: No Fewer than Three (3) Persons A parent or guardian with at least one child of any age a brother and a sister who are both adults, or a parent or guardian with at least one child of any age.

Can the building coop or management decide they want to lower the apartment occupancy from 3 people to 2?


I get that we might have only been on the 1 bedroom waitlist and that two wait lists is separate but from what I can tell there is nothing indicating all three of us can't be a shareholder/on the application.

In terms of income we'd be looking at marginally being under the income caps it looks like a 120% ami income cap. If not I also read that a surcharge is an option, we are under $125k so we should be eligible for the surcharge ...

Honestly the entire experience has been very nerve wrecking, the buy in is cash and we were given 14 days to come up with proof of almost $100,000 that in itself was exceptionally difficult. The price seems like a lot for a 1 bedroom mitchell lama coop, but it's significantly below market purchase price for any neighborhood in the city. I think that is what kills most people's application.

The thought is buy in and hopefully somehow move to a larger apartment internal wait list which might take another 5 years but is well worth the effort. I'm wondering if they had my sister sign that letter so that we could not apply for a larger apartment in the future.

I don't know if I should get a housing advocate or attorney, if that would matter or it would make things worse. I don't know much about Mitchell Lama housing, but I do know that this is potentially a once in a lifetime opportunity.

[randomperson2]

$100K for a M-L one-bed....? That seems really high. Like around twice the average. That's more like a Penn South number.

After applying, you can't switch onto a waitlist for a different size apartment. You just can't. I don't know why they gave you bad information on occupancy, but probably just incompetence, of which there is no shortage. I believe a two-bedroom requires three qualifying TENANTS, not three SHAREHOLDERS, so I don't *think* her not being a shareholder will ultimately prevent you from getting an internal transfer. (Again, if somebody with more direct experience knows better...)

Unless your sister is disabled in some way, it seems to me that if she cares about being a shareholder as opposed to just a tenant until the time comes when your parent is no longer with you, she should be worrying about this, not you. Really the question is how much is having that status worth it to her now, knowing that ultimately she can inherit it?