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Mitchell-Lama Conversions and the Martin Act
Can a limited-profit housing company seeking to withdraw from the Mitchell-Lama program avoid supervision by the Attorney General if the withdrawal does not involve any transfer of property or physical exchange of shares? That question reached the Court of Appeals in East Midtown Plaza Housing Co. Inc. v. Cuomo (NYLJ 11/20/12, p. 23, col. 1). The court answered it with a resounding “no,” and simultaneously held that if the company's certificate of incorporation calls for voting on a one-apartment, one-vote basis, the same voting rule applies in determining whether the requisite two-thirds majority has approved withdrawal from the Mitchell-Lama program.
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