Overview

Like all housing, subsidized housing will need repairs over time. Providing resources to enable necessary repairs and maintenance, and linking this assistance to extended affordability contracts, can be an effective strategy for preserving affordable rental housing at risk of being lost due to deterioration. It can also enable a property to continue serving low-income residents by addressing a backlog of repair needs without having to raise rents.

Local funds can bridge the gap between what it costs to renovate a property and what can be raised through tax credits and private financing. Local funds can also provide crucial operating support to properties to enable them to be maintained over time while serving very low-income households. In some cases, local funds can allow a property owner to refinance at a lower interest rate to fund repairs.

Case Studies

Mitchell Lama Preservation Program (New York City)

The New York City Housing Development Corporation established the Mitchell Lama Preservation Program to preserve the affordability of rental homes funded through the State’s Mitchell-Lama Housing Program, which began in 1955. The Mitchell-Lama Preservation Program seeks to preserve these homes through two products:

  • The Repair Loan Program preserves Mitchell-Lama developments by offering a loan to owners in order to make needed capital improvements.
  • The Mortgage Restructuring Program offers owners within the Housing Development Corporation’s insured Mitchell-Lama portfolio the chance to restructure the first and second mortgages held on the properties. The mortgages are refinanced at a lower cost to the owner and for a longer period of time. Savings can be taken in the form of further reduction of payments or as funds to repair the property.

For More Info:

http://www.nychdc.com/pages/Mitchell-Lama-Program.html