THE ASSEMBLY STATE OF NEW YORK ALBANY

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MICAH Z. KELLNER th 65 Assembly District

May 2, 2012 FOR IMMEDIATE RELEASE

Contact: Ross M. Wallenstein Office: (212) 860-4906 Cell: (917) 602-2433

Kellner Statement on Island House Affordability Plan

Roosevelt Island, New York Assembly Member Micah Z. Kellner (D-Upper East Side, Yorkville, Roosevelt Island) has released the following joint statement regarding the agreement preserving affordable housing for the 400 families who live in the Island House Apartments. The Island House Affordability Plan signifies the next generation of affordable housing on Roosevelt Island and it should be used as a template for other Mitchell-Lama conversions throughout New York State, said the Assembly Member. This deal ensures affordability for all Island House residents and I am proud to have played a vital role in making it a reality. I will sleep well at night knowing that tenants will be able to keep their apartments whether they own or rent for years to come. Our focus throughout this long process has been on maximizing affordability and protection for every tenant so that any tenant who wishes to stay in Island House, either as a buyer or renter, would be able do so, said Graham Cannon, Chairman of the Island House Tenants Association. We are delighted with this outcome. This is a very important breakthrough for the tenants of Island House. I especially recognize the efforts of our elected officials especially Assembly Member Kellner and Councilmember Jessica Lappin who played such a critical role in moving this forward. The Affordability Plan is the culmination of many years of hard work among all of the stakeholders and was made possible only through the willingness of those involved to work cooperatively toward achieving a delicate balance among competing interests, said David Hirschhorn, the General Partner of the ownership group. The plan provides the following: Island House residents will be able to purchase their apartments at a discount of approximately 65% off of the market price.

834 Legislative Office Building, Albany, NY 12248 (518) 455-5676, FAX (518) 455-5282 1365 1st Avenue, New York, NY 10021 (212) 860-4906, FAX (917) 432-2983
E-mail: KellnerM@assembly.state.ny.us

For those Island House residents who do not wish to purchase their apartments, they may remain as tenants for the next 30 years and will be protected under a rent stabilizationlike program. The Division of Housing and Community Renewal (DHCR) will continue to supervise the property to insure that the terms of the Affordability Plan are adhered to. Owner contributes $9.6MM to building improvements and reserves Owner pays $4,500,000 in transfer fees to RIOC Tax Equivalency Payments for affordable units remain low during the 30 year affordability period and thereafter phase into a market level tax payment During the 30 year affordability period, Island House residents (and future owners) may resell their apartments but are limited to the amount they can charge and are required to pay a significant portion of their profit back to the building, as well as a 1% fee to RIOC Roosevelt Island Operating Corporation (RIOC) will receive substantial additional ground rents upon the expiration of the affordability period.

Under the Public Authorities Law, a 90 day notice letter was filed by RIOC on April 27, 2012. The closing of the Affordability Plan is scheduled for July 31, 2012. The offering portion of the deal must still be submitted to the Office of the New York State Attorney General for acceptance of the cooperative offering plan.

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