PART I:MITCHELL-LAMAHISTORY IN BRIEFWhat is the Mitchell-Lamaprogram and why does it exist? In 1954, in the post-war period, New York Mayor Wagner’s offi ce developed a new housing plan to solve two pressing cityproblems: middle-class fl ight to the suburbs, and the inadequate and deteriorating housing supply. In 1955, Manhattan State Senator MacNeil Mitchell, a Republican, and Brooklyn AssemblymanAlfred Lama, a Democrat, co-sponsored the legislation thathad been formulated to create a program to build aff ordable housing developments for middle-income

This handbook is a guide to understanding Mitchell-Lama cooperatives; we hope you fi nd it helpful. It is not a legal document.

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ContentsPart 1: ML History in Brief . . . . . . . . . . . . . . . . . . 1

What is a Mitchell-Lama and why does it exist? . . . . 1What does ML look like now? . . . . . . . . . . . . . . . 2

Part 2: ML Structure . . . . . . . . . . . . . . . . . . . . . . 3LEGAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . 3

Housing co-op defi nition . . . . . . . . . . . . . . . . . . 3Limited equity . . . . . . . . . . . . . . . . . . . . . . . . 3Oversight agencies . . . . . . . . . . . . . . . . . . . . . 3

COOPERATIVE STRUCTURE. . . . . . . . . . . . . . . . . 4

Part 3: Governing Documents . . . . . . . . . . . . . . . . 5FOR ESTABLISHING A COOPERATIVE . . . . . . . . . . . 5

Certifi cate of incorporation . . . . . . . . . . . . . . . . 5Deed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

FOR PERSONAL OWNERSHIP. . . . . . . . . . . . . . . . 5Stock Certifi cate . . . . . . . . . . . . . . . . . . . . . . . 5Proprietary Lease/Occupancy Agreement . . . . . . . 6

FUNCTIONAL/FOR WHOLE CO-OP . . . . . . . . . . . . . 6Bylaws. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6House Rules . . . . . . . . . . . . . . . . . . . . . . . . . 7

FINANCIAL . . . . . . . . . . . . . . . . . . . . . . . . . . . 8OTHER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Part 4: Regulations . . . . . . . . . . . . . . . . . . . . . . . 9HCR 1700 . . . . . . . . . . . . . . . . . . . . . . . . . . . 9HPD Mitchell-Lama Rules . . . . . . . . . . . . . . . . . 9

Part 5: Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Private Housing Finance Law . . . . . . . . . . . . . . . 10Business Corporation Law. . . . . . . . . . . . . . . . . 10

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

mitchell-lama basicswhat every mitchell-lama shareholder should know

Index

ACRIS (Automated City Register Information System), 5amortization, 3Article II of the Private Housing Finance Law, 2,10Article V (Redevelopment Corporations), 10Article XI, 10assignment, 6Board of Directors, 7,9,10,11Business Corporation Law (BCL), 10buy-out/privatizing, 2Bylaws, 3,6,7,9capital stock, 3,7carrying charges, 3,6,9certifi cate of incorporation, 5Chapter 3 of the Rules of the City of New York, 9cooperative movement, 4deed, 5Disability Rent Increase Exemption (DRIE), 3Financial statement, annual audit, 7,8gentrifi cation, 2grievances, 3HCR 1700, 9HM-78.2 (4-08) (Limited Profi t-Mutual Coop), 6Homes and Community Renewal (HCR), 3,5,6,7,9house rules, 6,7,9housing company, 7housing co-op defi nition, 3Housing Preservation and Development (HPD), 3,5,7,9indemnifi cation, 7joint ownership, 5Lama, Alfred, 1 limited equity, 3,4,7,10Limited Profi t Housing Companies Law, 2,3,6,7,10management company, 5,6,7,9Mayor Wagner, 1Mitchell, MacNeil, 1Mitchell-Lama Rules, 9New York Code Rules and Regulations (NYCRR), 9New York State Homes and Community Renewal (HCR), 3NY State Statutes, 10NYS Department of State, 5NYS Legislature, 10occupancy agreement, 3,6,7,8Occupants’ Annual Affi davit of Household Income For Calendar Year, 9Offi cers of the Board, 4,5,7oversight agencies, 1,3,5parking license agreement, 8Private Housing Finance Law (PHFL), 2,3,10proprietary lease/occupancy agreement, 6proxies, 7

Quorum, 7Repairs and painting, 6Rochdale Principles, 4SCRIE, 3,9shelter rent tax, 2,3state/municipality loans, 2stock, 7,10stock certifi cate, 3,5,6stockholders meetings, 7subletting, 6succession, 9supervising agencies, 6,7,8surcharges, 6,9tax abatements, 2transfer, 6,7urban renewal land, 2urban renewal plan, 1,5voting, 5,7,9

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