NEW YORK—The potential rent increase for affordable housing at 505 LaGuardia, under New York University’s (NYU) rezoning of its two South Village superblocks, will no longer be a concern for residents. An agreement between NYU and 505 LaGuardia to continue affordable rent at the Mitchell-Lama development was announced Tuesday.
“I am overjoyed that 505 LaGuardia will have a new lease that will finally ensure long-term affordability for residents and prevent uncertainty about future rent increases,” Congressman Jerrold Nadler said.
Under the co-op’s current lease, it pays an annual rent of $28,400 per year to NYU. The lease was set to expire in 2014. If it does, the co-op’s rent would be 6 percent of the land’s market value—which is a significant hike for many of its senior and long-term residents.
Under the lease agreement announced Tuesday, NYU has agreed to extend 505 LaGuardia’s lease as long as the building remains in the Mitchell-Lama program. Although specifics were not disclosed, the agreement will preserve 505 LaGuardia as affordable housing.
It was built in 1964 as part of a three-building complex on the southern superblock along Houston Street that NYU acquired in 1960. The other buildings are Silver Towers I and Silver Towers II that house NYU faculty. The third, 505 LaGuardia, became a co-op under the Mitchell-Lama program to be reserved for affordable housing.
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