Division of Housing and Community Renewal
Mitchell-Lama Buyout Program The Division of Housing and Community Renewal (DHCR) supervises 211 privately owned and privately managed housing developments that were created under the New York State Private Housing Finance Law (the Mitchell-Lama Law). The profits and rents of these housing developments are subject to certain limits. However, housing companies may “buy out” of the Mitchell-Lama Program if they meet certain conditions. At the time of our audit, a total of 60 housing companies had bought out of the Program, and about a dozen others had formally indicated that they intended to do so. We examined DHCR’s oversight of the buy-out process and found that DHCR was effectively ensuring that housing companies met the buy-out requirements before allowing them to withdraw from the Program. We also determined that certain improvements could be made in the process. For example, we recommended that tenants be given greater advance notice of pending buyouts.
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