Mitchell-Lama co-ops in Queens

Which co-op buildings of this kind are actually in Queens?

• Very large developments in Jamaica and Woodside built under the limited-profit housing program, holding thousands of apartments between them
• Smaller developments in Astoria and Long Island City from the same era
• A mix of City-supervised and State-supervised developments, which decides which rules and forms apply
• Developments that have debated privatization without leaving the program

What do board approval and financing look like in Queens?

• Waiting lists at the largest developments are administered formally, opened and closed by announcement, and a closed list is closed
• The price is a formula figure under the program, not a negotiated one, and income limits apply at purchase
• Surcharges apply where a shareholder’s income later exceeds the limit, and they are assessed by the supervising agency
• Lenders will write share loans on these apartments, but they are lending against a regulated resale price

Which taxes and recording steps apply in Queens?

• No mortgage recording tax and no recorded purchase instrument, the same as any co-op
• New York State transfer tax and the New York City real property transfer tax apply to the transfer
• While the development remains in the program it is taxed on its shelter rent or carrying charges rather than on assessed value, which is the benefit privatization gives up
• Judgment and lien searches run against Queens County records, and the corporation is searched in the co-op lien search

What pattern does a purchaser meet in Queens?

• Scale changes the experience: a development of thousands of apartments runs its own management office, its own list and its own timetable
• Because these developments are large employers of their own staff and services, the operating budget is more like a small municipality than a building
• The gap between the formula price and the surrounding Queens market is smaller than in Manhattan, which lowers the pressure to privatize
• Physical plant across a large campus means recurring capital projects, and carrying-charge increases follow those rather than market conditions

What else should you read before closing on one of these?