Update On Roosevelt Island Mitchell Lama Island House Privatization Status, Final Process For Implementing Affordability Plan About To Begin Says Tenants Association - RIOC Real Estate Committee Meeting Today To Discuss

Image of Roosevelt Island's Island House Entrance

As reported in this post last Monday, the Roosevelt Island Operating Corp (RIOC) Real Estate Committee is meeting later today in Executive Session. Among the items on the Agenda is:

Status of Privatization/Affordability Plan and Ground Lease Extension for Island House;...

Earlier this week, the Island House Tenants Association (IHTA) distributed this update regarding the privatization status of their building.

Update on Island House

We are pleased to be able to tell you that there has been significant progress in moving forward the Island House Affordable Conversion Plan.  Through the efforts of the Governor's Office For Economic Development, RIOC, DHCR, ESDC, our elected officials, and the owner, there is agreement on the plan and moving it ahead.  We understand a letter from RIOC to the New York State Legislature confirming this will be delivered very shortly.

Once the RIOC letter is transmitted, the final process for implementing the Affordability Plan can begin.  The State, DHCR and RIOC will put together a process for "next steps" for moving ahead including a ground lease vote by RIOC, the exit of the building from Mitchell Lama into the affordable rent and purchase structure and protections in the plan, and the submission of the conversion plan to the NY Attorney General for his required review.

We will be announcing a date, time and location for a tenant meeting on all this in the next few days.  IHTA, our lawyer, and the agencies will be in a position to provide more specific, detailed information on what will happen over the next few months.

As we move into what we are all hoping is the final phase -- we want to thank you, the tenants, for all your support and encouragement over the last couple of years.  Despite the frustrations we have all shared at the slowness of the process, you should know that your steadfastness and overwhelming support for staying focused on the need for an affordable solution that protects the interests of all tenants, whether as renters or purchasers, has been critical in moving our plan to this stage.

We are also delighted to able to let you know that the first fully modernized elevator cab is going into service this week at 555 and that the second new cab will go into service at 575 next week.  Work on the next two elevators will start promptly thereafter.   Also, with a lot of thanks to our Assemblyman Micah Kellner, FIOS is now on track (shortly) to be available as an alternative cable service.

The IHTA Board

More on the Island House Privatization plan from previous post last January including this December 2011 excerpt from IHTA letter to Governor Cuomo:

... Working under the auspices of DHCR for several years, the tenants and owner have crafted a groundbreaking Plan that, first and foremost, secures aggressive rent protections and affordability for tenants who wish to stay and not purchase their apartments while allowing tenants who wish to buy their apartments the opportunity to do so at a 65% discount below market pricing, with additional provisions to ensure affordability for future generations of purchasers. This Plan was overwhelmingly endorsed by the tenancy in a building-wide vote in September 2009.

Through the efforts of your Office for Economic Development, which has been engaged for nearly a year, the tenants and owner have recently agreed to substantially modify the previously agreed upon Affordability Plan in a way that is projected to result in payments to RIOC of over $20,000,000. This is in addition to the $15,000,000 or more that will be paid to ESDC from increased real estate tax payments under the Plan. In addition to these payments aggregating in excess of $35,000,000, ESDC will also be promptly repaid the full outstanding mortgage of $20,000,000....

Island House appears to be moving forward with an affordable privatization exit plan from the NY State Mitchell Lama program. As to Westview, nothing much seems to be happening since Crains NY reported last November:

... David Hirschhorn, who is a principal at two of the complexes, said he is committed to making sure one of the developments, Island House, remains at least 70% affordable. He is less certain about the second development, called Westview.

“Westview [negotiations are] not nearly as advanced as Island House,” Mr. Hirschhorn said....

Information on Roosevelt Island Rivercross privatization efforts available at this previous post.