Around 400 residents say the elected, 15-member board has not been transparent about the sale of Parking Lot 7 at Village View, a 1,236-unit seven-building Mitchell-Lama complex located on a patch of land between East 2nd and East 6th Streets and 1st Avenue and Avenue A on Manhattan’s East Side. 

Sources close to the residents of Village View told amNewYork that the board is moving forward with plans to sell the lot for around $30 million, though that number may fluctuate depending on a final sale. However, residents are calling for greater transparency, saying they have been kept in the dark about the reasons for the sale, the identities of the prospective buyers, and what will replace the lot. 

Sebastian Kot has lived at Village View for more than 20 years. He and his family have one of the spots in Parking Lot 7. Kot told amNewYork that, by law, the board must inform shareholders about the potential sale so they can hold a vote.

“There is huge secrecy with the board right now,” Kot told amNewYork. “Some of those board members have been on the board for 20 or 30 years. They run it.”

Nothing being withheld, co-op board attorney rebuffs

Jodi Stein, an attorney from Sheppard representing Village View, said the board has been exploring selling the lot to offset raising costs at the complex for about two years. Recently, maintenance increases were approved for the complex at 14% for the first year, followed by smaller hikes over the next few years.

Stein denied that the board members are withholding information from shareholders and residents.

“The shareholders have access to all the board minutes,” Stein said. “They are permitted to attend open meetings. The board has held informational sessions specifically for this very issue.”

Nearly 600 residents are currently waiting for parking spaces across the complex’s seven lots, Kot said. Kot, who has repeatedly pushed for greater transparency from the board, said residents have seen only limited information about the potential sale of Parking Lot 7 through meeting minutes. Otherwise, they have not been allowed to review documents related to the proposal. 

“There is no reason to sell it,” Kot said. “We’ve never seen votes, we’ve never seen the proposal, we’ve never seen the analysis, we’ve never seen the studies.”

Kot said there have even been times when shareholders were kept from asking questions at meetings. 

Stein acknowledged the limitations on input during meetings. 

“It is difficult for open meetings, so the board does take questions beforehand to answer during virtual meetings,” she said.  “At in-person meetings, it’s one question per person just because it can go on for hours.”

Financial pressures on Mitchell-Lama developments

Mitchell-Lama remains one of the city’s key affordable housing programs for middle-income New Yorkers, though it has been experiencing increased financial and operational pressure in some areas. 

NYC Housing Preservation and Development (HPD), which oversees the middle-income complex, confirmed to amNewYork that the parking lot would be developed for housing. Kim Moscaritolo, a spokesperson for HPD, said the agency supports the sale. 

“HPD is aware of the efforts by the board to sell the parking lot and allow it to be developed for housing,” she said. “While HPD will not have an official role in approving this sale until much later in the process, we have been supportive of these efforts.”

Moscaritolo added that the sale could even lead to lower costs for Village View residents. 

“The revenue generated from the sale would provide funding for capital improvements and would also provide funds for operational costs, which could mean lower maintenance cost increases for shareholders,” she said. “We are also very supportive of the proposal to provide additional housing in the East Village.”

Stein confirmed that the housing would include an affordable component, as required by HPD.

Meanwhile, Kot said the board has spent close to $400,000 on lawyers and lobbyists to promote the sale of the lot without a shareholder vote. Attorneys for the board could not provide an exact figure for how much the complex owes, but it is over $1 million. 

Kot disputes the board’s claims that Village View is in a dire situation and that the lot sale is needed to repair the buildings. 

“So basically, we only have $1 million, and you know that they spent close to $400,000 on this redevelopment, that’s half the debt almost right there,” Kot said. 

Kot, meanwhile, has compiled a list of alleged Mitchell-Lama violations on Village View Community, a website he created to keep residents informed. He has also reached out to the state Attorney General’s office, which forwarded his complaint to the office’s Real Estate Finance Bureau. 

But right now, no sale has been made, and the board is still sifting through offers while trying to include parking in the plans.

“We’re still getting best and final offers, things are still changing, and we’re asking for parking to replace the parking lot,” Stein said. “So numbers are still changing.”