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MICAH Z. KELLNER65 th Assembly District
THE ASSEMBLYSTATE OF NEW YORK
ALBANY COMMITTEES
BanksCities
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834 Legislative Office Building, Albany, NY 12248 (518) 455-
5676 , FAX (518) 455- 5282 1365 1 st Avenue, New York, NY 10021
(212) 860-4906, FAX (917) 432-2983
E-mail: [email protected]
May 2, 2012 Contact: Ross M. WallensteinFOR IMMEDIATE RELEASE
Office: (212) 860-4906
Cell: (917) 602-2433
Kellner Statement onIsland House Affordability Plan
Roosevelt Island, New York Assembly Member Micah Z. Kellner
(D-Upper East Side,Yorkville, Roosevelt Island) has released the
following joint statement regarding the agreementpreserving
affordable housing for the 400 families who live in the Island
House Apartments.
The Island House Affordability Plan signifies the next
generation of affordable housing onRoosevelt Island and it should
be used as a template for other Mitchell-Lama conversionsthroughout
New York State, said the Assembly Member. This deal ensures
affordability forall Island House residents and I am proud to have
played a vital role in making it a reality. I willsleep well at
night knowing that tenants will be able to keep their apartments
whether they ownor rent for years to come.
Our focus throughout this long process has been on maximizing
affordability and protection forevery tenant so that any tenant who
wishes to stay in Island House, either as a buyer or renter,would
be able do so, said Graham Cannon, Chairman of the Island House
Tenants Association.We are delighted with this outcome. This is a
very important breakthrough for the tenants of Island House. I
especially recognize the efforts of our elected officials
especially AssemblyMember Kellner and Councilmember Jessica Lappin
who played such a critical role in movingthis forward.
The Affordability Plan is the culmination of many years of hard
work among all of thestakeholders and was made possible only
through the willingness of those involved to work cooperatively
toward achieving a delicate balance among competing interests, said
David
Hirschhorn, the General Partner of the ownership group.The plan
provides the following:
Island House residents will be able to purchase their apartments
at a discount of approximately 65% off of the market price.
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For those Island House residents who do not wish to purchase
their apartments, they mayremain as tenants for the next 30 years
and will be protected under a rent stabilization-like program.
The Division of Housing and Community Renewal (DHCR) will
continue to supervisethe property to insure that the terms of the
Affordability Plan are adhered to.
Owner contributes $9.6MM to building improvements and reserves
Owner pays $4,500,000 in transfer fees to RIOC Tax Equivalency
Payments for affordable units remain low during the 30 year
affordability period and thereafter phase into a market level
tax payment During the 30 year affordability period, Island House
residents (and future owners) may
resell their apartments but are limited to the amount they can
charge and are required topay a significant portion of their profit
back to the building, as well as a 1% fee to RIOC
Roosevelt Island Operating Corporation (RIOC) will receive
substantial additionalground rents upon the expiration of the
affordability period.
Under the Public Authorities Law, a 90 day notice letter was
filed by RIOC on April 27, 2012.The closing of the Affordability
Plan is scheduled for July 31, 2012.
The offering portion of the deal must still be submitted to the
Office of the New York StateAttorney General for acceptance of the
cooperative offering plan.
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