Nine years ago, the residents of Southbridge Towers voted to study the merits of leaving the Mitchell-Lama middle class housing program, and next week they will decide whether or not it will happen.
Voting at the 1651-apartment complex begins Sun., Sept. 28 and runs until Tues., Sept. 30. The residents of each apartment get one vote, and if 2/3 of them vote yes, they will be able to take full ownership of their units.
Proponents argue that obtaining an asset with no money down will provide financial security regardless of whether they want to sell it, use it as collateral for a college or business loan, or leave it to an heir. The first sale of each apartment has a 28 percent flip tax, which will provide revenue to the complex for capital improvements or unexpected costs.
Opponents say there are too many risks including the added real estate taxes, and the possibility that too few people will sell to provide enough flip tax revenue to make it a good deal. As beneficiaries of a subsidized housing program, they also feel a moral obligation to preserve the same chance for future generations.
To read more about the arguments of each side, we read dueling op-eds we published on the subject in June.
