WVH Article-11 CO-OP Structure | West Village Tenants Association

Following two years of negotiations, the West Village Houses — a 420-unit residential complex between Bank and Morton streets — were converted to a co-op in 2004.

Built in the early 1960s, the residential complex was originally conceived by housing activists as a community-based co-op. But because of rising construction costs, the project did not attract enough buyers and was eventually acquired by private owners as a Mitchell-Lama property in the mid-1970s.[1]

The conversion was the result of a tenant-sponsored initiative that, following the owners’ decision to opt out of the state’s Mitchell-Lama housing program in 2002, sought to fight enormous rent increases and the displacement of hundreds of long-time community members.

Leonard Grunstein, who worked directly with the tenants association, was involved in the creation and financing of the Article 11 co-op structure, which was essential to the success of the tenants’ non-eviction proposal.

According to the agreement, tenants would purchase the complex from the landlord at a discounted rate. Additionally, the city would forgive approximately $19 million in interest on the mortgage loan and approve a tax exemption for 12 years.

Eventually signed by the tenants association, owners, and the Department of Housing Preservation and Development, the plan ensured that existing tenants would be able to either buy into the co-op or continue to rent their units at below-market rates. Relieved of the anxiety stemming from the possibility of 300 percent rent increases, tenants association President Katy Bordonaro applauded the Bloomberg administration’s commitment to affordable housing and its involvement in the project.

New York State Assemblywoman Deborah Glick lauded the conversion, saying at the time, “It’s the first step in what will be a long-term victory for affordable housing.”[2]

 

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[1] The Villager, “Victory! West Village Houses to become an affordable co-op,” 5/26/04

[2] Ibid.

Tagged: Affordable Housing, Article-11, CO-OP, Financing, Leonard Grunstein, Mitchell-Lama, NYC, Rent, West Village Houses, West Village Tenants Association