Chair Sanchez on Mitchell-Lama program history and HPD oversight role
Sanchez reviews the program's 1955 creation, 269 developments statewide, 170 in NYC, HPD's supervisory responsibilities including budget approval, rent increases, inspections, and public investment in preservation.
Created in 1955, Mitchell
Chalama encouraged private developers to build rental and cooperative housing by offering low-interest mortgages and property tax exemptions.
In exchange, owners accepted limits on their profits, resident incomes, rent levels, purchasing prices, and carrying charges.
Since the program began, 269 developments containing more than 105,000 apartments have been built statewide.
An estimated 170 of those are in New York City, and about 60% of those are supervised by HPD.
These developments were made possible through public subsidies, and public oversight was intended to preserve their affordability, financial stability, and physical condition.
For city-supervised developments, HPD approves budgets and rent or carrying charge increases, monitors finances, oversees tenant eligibility and waiting lists, and conducts inspections.
The city and state have also invested significant public resources in preservation.
HPD testified just earlier this year that its 10-year capital plan includes $1.1 billion
for Michilama housing, some of which was secured through this council through the City of Yes negotiations, while the state's fiscal year 2027 budget, as Shirley mentioned, includes $80 million in new appropriations accessible to developments in the city.