Landlord Can't Buy out of Mitchell-Lama Housing Agreement

December 1, 2006

LVT Number: 19292

Landlord was a limited-profit housing company formed under the Mitchell-Lama Law in 1969 to provide housing for low- and moderate-income tenants. Landlord's building complex was a middle-income housing project. More than 20 years after the buildings opened, landlord asked HPD for permission to buy out of the Mitchell-Lama program. Landlord claimed it could do so after 20 years. HPD ruled against landlord. Landlord appealed and lost. The court ruled that HPD reasonably denied landlord's request.

Landlord was a limited-profit housing company formed under the Mitchell-Lama Law in 1969 to provide housing for low- and moderate-income tenants. Landlord's building complex was a middle-income housing project. More than 20 years after the buildings opened, landlord asked HPD for permission to buy out of the Mitchell-Lama program. Landlord claimed it could do so after 20 years. HPD ruled against landlord. Landlord appealed and lost. The court ruled that HPD reasonably denied landlord's request. Landlord didn't simply agree to provide housing for 50 years when it opened the building; landlord agreed to provide affordable housing. Landlord now wanted to charge high rents. This would be unfair and inappropriate because the buildings were planned and intended as a project for middle-income housing.

Tivoli Stock LLC v. HPD: NYLJ, 11/29/06, p. 18, col. 1 (Sup. Ct. NY; Lippmann, J)

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