Chair Lee on Council actions to preserve Mitchell-Lama housing
Lee reviews the Council's prior steps: extending property tax exemptions, expanding benefits for buildings staying in the program, and the FY25 state budget reducing shelter rent tax from 10% to 5%.
So we are here today as the housing affordability crisis continues to challenge New York City.
as we in city government continue to work to ease the burden of New Yorkers.
The hearing is not intended to litigate the value of the Mitchell-Lama program.
This council has long supported and continues to support the feasibility and longevity of the program.
As was highlighted during our last oversight hearing on Mitchell-Lama affordability last October,
The City Council has taken multiple steps to preserve Mitchell-Lama housing, extending property tax exemptions for developments that had paid off their mortgages, incentivizing them to remain in the program,
enacting laws expanding benefits previously unavailable if improvements were financed through government loans or grants to Mitchell-Lama buildings that commit to stay in the program.
Further, the fiscal year 2025 New York State budget, with support from Governor Hochul and the state legislature, further reduced the local tax burden on these developments through the New York Shelter Rent Tax Law.
This law caps local and school taxes at 5% of a development's annual shelter rent, down from the previous minimum of 10%.
Some properties may qualify for greater exemptions depending on prior Board of Estimate resolutions.