Friday, November 14, 2014

Southbridge Towers in the news

Divided by a Windfall: Southbridge (former Mitchell-Lama) residents are the topic of a NY Times article
Privatizing assumes financial risk, particularly for the type of tenant the program was designed to serve — someone who can barely afford the current costs. No longer eligible for tax abatements, Southbridge would have to pay at least $8.1 million a year in real estate taxes, significantly more than the $1.64 million it now pays.  The development could also be on the hook for a $27.77 million transfer tax if the New York State Court of Appeals rules in favor of the city in an ongoing case involving a former Mitchell-Lama
development in Coney Island that privatized in 2007.

If privatization goes through, and “you want to sell, then there is
this incredible opportunity to cash out and get a windfall,” said Max
Weselcouch, the director of the Moelis Institute for Affordable
Housing Policy at the Furman Center. “If you don’t want to sell, then
you are locked into paying higher maintenance and taxes. Your living
expenses rise.”

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