New York City Wants to Put the Limits Back in Limited-Equity Co-ops

Dec. 8, 2015 — Affordable housing is beginning to look like an endangered species in New York City. To make sure it doesn’t go the way of the dodo, a City Council task force has proposed eliminating property taxes for the city’s 1,271 limited-income co-ops in exchange for tighter rules – including strict limits on the income of buyers and the price at which units can be sold.
 
As reported by The Wall Street Journal, the task force’s proposals sprang from a pair of yin-and-yang trends: distressed limited-equity co-ops fell behind on their property taxes by $7 million in fiscal 2014, while successful limited-equity co-ops have been selling for as much as $1 million – and, in one case, more than $2 million – effectively removing them from the city’s stock of affordable housing.
 
“The current situation both imposes more taxes than we think are necessary and leaves the public with far too weak guarantees of long-term affordability,” said Councilman Mark Levine, co-chairman of the task force, which also proposed requiring limited-equity co-ops to hire outside property managers. “It is crying out for reform.”