SUBJECT:

PURPOSE:

Tenants at Mitchell-Lama projects, such as the one at Starrett City, face the possibility of being priced out of their homes if the owners of their buildings leave the Mitchell-Lama program. In addition, once a project leaves the Mitchell-Lama program, the units may be lost forever to families of low- and moderate-income. The Assembly has introduced several bills, including A.795, to protect these units of affordable housing and their tenants. This hearing will examine the existing Assembly legislation and explore how the Legislature can further assist in preserving these units.

Please see the reverse side for a list of subjects to which witnesses may direct their testimony, and for a description of the bills which will be discussed at the hearing.

Persons wishing to present pertinent testimony to the Committee at the above hearings should complete and return the enclosed reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of emergency postponement or cancellation.

Oral testimony will be limited to ten minutes duration. In preparing the order of witnesses, the Committee will attempt to accommodate individual requests to speak at particular times in view of special circumstances. These requests should be made on the attached reply form or communicated to Committee staff as early as possible.

Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committee would appreciate advance receipt of prepared statements.

In order to further publicize these hearings, please inform interested parties and organizations of the Committee's interest in hearing testimony from all sources.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.

SELECTED ISSUES TO WHICH WITNESSES MAY DIRECT THEIR TESTIMONY:

1. Assemblyman Lopez has introduced A.795, which would encourage companies to remain in the Mitchell-Lama program and protect tenants in Mitchell-Lama developments that still choose to leave the program that would not currently be protected.

   • Is the incentive to companies proposed in this bill, eliminating the 6% cap on dividend payments and providing regular rent increases, enough for owners to remain in the program? What other incentives could be offered to entice owners to remain in the Mitchell-Lama program?

   • How would this bill affect the Starrett City development? How would tenants be affected in any other Mitchell-Lama development should an owner take advantage of such incentives?

   • Are the tenant protections in this bill, requiring rent stabilization protections upon buyout, enough to protect existing as well as future low- and moderate-income tenants? What other tenant protections could be added?

2. A.353 (Bing) would require a standard form and procedure for the casting of proxies or absentee ballots in any matter requiring a shareholder vote. Has the use of proxy votes been problematic? Does this bill adequately address the problem?

3. In re KSLM-Columbus Apartments Inc. v. New York State Division of Housing and Community Renewal, allowed the owner of Westgate Apartments to apply for rent adjustments to bring the rents to market rates. The court case held that DHCR may rule that the transition from the Mitchell-Lama program constitutes a "unique and peculiar circumstance." What effect will the KSLM-Columbus Apartments Inc ruling have on Mitchell-Lama developments? What incentives can be provided to owners to remain in the Mitchell-Lama program in light of this ruling? Would A.352 (Bing) effectively address this court decision?

4. The Assembly also has legislation to require more notification to tenants when an owner plans to leave the Mitchell-Lama program (A.797) and legislation to require companies to remain in the program for fifty years (A.793). What other legislative measures could be introduced to protect tenants in Mitchell-Lama projects that propose to leave the program and to preserve the decreasing number of affordable units?

PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing on Preserving Mitchell-Lama Units for Existing and Future Low- and Moderate-Income Tenants are requested to complete this reply form as soon as possible and mail it to:

Steve McCutcheon
Legislative Associate
Assembly Committee on Housing
22nd Floor, AESB
80 S. Swan Street
Albany, New York 12248
Email: mccutcheons@assembly.state.ny.us
Phone: (518) 455-4355
Fax: (518) 455-7250

I will address my remarks to the following subjects:

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