New York, NY – New York Governor Kathy Hochul is set to sign new legislation offering significant property tax relief to residents of New York City’s Mitchell-Lama housing developments, marking a major win for affordable housing advocates and thousands of middle-class New Yorkers.
The bill, co-sponsored by Assembly Member Tony Simone and State Senator Brad Hoylman-Sigal, both representing Manhattan, gives city officials the authority to grant local tax breaks to residents of Penn South, a Mitchell-Lama cooperative in Chelsea. The measure also expands the shelter rent tax benefit established in the governor’s recent state budget, cutting property taxes by 50 percent for nearly 100,000 Mitchell-Lama households citywide.
A Lifeline for Aging Affordable Housing
Governor Hochul said the initiative aims to help preserve the long-term affordability and maintenance of buildings that date back to the 1950s, such as Penn South, which has struggled with rising operational costs and infrastructure needs.
“With inflation driving up the cost of housing across the country, my administration is cutting taxes for Mitchell-Lama residents in half, keeping money in the pockets of nearly 100,000 hardworking households,” Hochul said at a press conference. “Since I took office, the state has invested nearly $500 million to preserve these developments and protect middle-class New Yorkers.”
The governor emphasized that affordability remains a cornerstone of her housing agenda, particularly as the city faces a persistent shortage of affordable units.
Protecting Penn South and Similar Communities
Penn South — officially known as Mutual Redevelopment Houses — is one of Manhattan’s most iconic affordable housing complexes. Built in 1955, it has long served as a symbol of cooperative living for working-class New Yorkers. Rising costs for maintenance, energy, and insurance, however, have increasingly strained residents’ budgets and the complex’s financial stability.
The new legislation, identified as A8651A/S7780B, authorizes the city to extend targeted tax relief to Penn South and other Mitchell-Lama developments facing similar pressures. State housing officials say this move will ensure that cooperatives can make critical capital investments without burdening residents with higher fees.
Statewide Impact and Broader Relief Measures
Governor Hochul’s administration has already rolled out a series of affordability initiatives, including a $2 billion inflation refund program that began distributing checks of up to $400 to more than 8 million households across New York.
The governor’s office described the new Mitchell-Lama tax cuts as part of a broader strategy to help New Yorkers weather rising living costs, from groceries to rent, while keeping aging housing stock habitable.
A Legacy of Affordable Living
Created in 1955 under legislation sponsored by Senator MacNeil Mitchell and Assembly Member Alfred Lama, the Mitchell-Lama program was designed to provide affordable homeownership and rental opportunities for moderate-income residents. Over the decades, it has become a cornerstone of New York’s middle-class housing landscape.
Today, hundreds of Mitchell-Lama developments operate throughout New York City and across the state. With this new legislation, Governor Hochul’s administration is signaling a renewed commitment to protecting the affordability and stability of these communities for future generations.
Reporting by The Midtown Times New York Desk
