Roosevelt Island Rivercross Board Of Directors Meeting With Shareholders Tonight To Update Residents On Status Of Privatization Efforts To Exit Mitchell Lama Program
Image of Rivercross Building Entrance
Roosevelt Island's Rivercross Board of Directors are meeting with its shareholders tonight at the Good Shepherd Community Center to present an update on its privatization plans for the building to exit the Mitchell Lama Program.
Below is an excerpt from Rivercross Board of Directors memo to its shareholders summarizing portions of the privatization plan.
Will update when more information available.
According to the September 28 Main Street WIRE:
...The plan will allow owners of Rivercross apartments to sell them at market prices, giving up to the cooperative a 45% transfer fee on the portion of the selling price that exceeds their original Mitchell-Lama purchase price. Under the plan, when owners give or bequeath apartments to adult offspring, parents, or spouses, this transfer fee will be deferred until the recipient sells at some future time...and:
Estimates provided for preparation of the privatization plan suggest that the largest apartments in the building will sell for over one million dollars. For all sizes, the estimates (in thousands) are:Here is prior post on the Rivercross Building's privatization efforts to leave the Mitchell Lama program as well as previous meeting on the Island House privatization efforts which was open to the media and allowed the meeting to be video recorded. Also, previous post on the Rivercross $50 million interest only 10 year mortgage refinancing and December 2010 ground lease extension from the Roosevelt Island Operating Corp (RIOC).
UPDATE 10/24 - How much did the Roosevelt Island Rivercross building co-op owners pay for their NY State Mitchell Lama subsidized apartments? According to this 2005 NY Times article:
... Discussions have also begun about privatizing Rivercross, a Mitchell-Lama co-op where an average one-bedroom apartment now goes for $33,000 and an average three-bedroom for $54,000. Privatizing would entitle Rivercross owners to sell their apartments at market rate, but they would be subject to substantial flip taxes in order to keep the maintenance charges reasonable.
"We don't want to increase maintenance so much that people will have to leave," said Mr. Weatherhead, the board's president. "We are a middle-income building and don't want to privatize ourselves onto the street."...