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Aug 17, 2026

Zohran Mamdani Kicks Them Out — Residents Stunned: “He Lied to Us!”

A longtime New York City affordable housing advocate is warning that mounting regulatory, insurance and operating costs are putting growing pressure on nonprofit organizations trying to keep rents affordable.

Ismene Speliotis, executive director of MHANY Management, says the burden has become increasingly difficult even for mission-driven housing providers that have spent decades working with the city to preserve and develop lower-cost apartments.

After roughly 35 years in affordable housing, Speliotis said a combination of city mandates, rising insurance premiums, housing court challenges and difficult tenant situations is making it harder for nonprofit operators to sustain their properties.

“These unfunded mandates are absolutely killing me,” Speliotis said. “They’re killing me.”

Speliotis runs a nonprofit housing organization rather than a conventional private landlord, and MHANY has long focused on affordable housing development and management in New York City.

Her concerns are notable because they come from within the nonprofit housing sector itself, where organizations often operate on tighter margins and depend on public subsidies, regulated rents and government programs to keep units affordable.

One of the costs Speliotis highlighted involves New York City’s lead-paint rules.

She recalled a building that MHANY extensively renovated in the mid-1990s with city assistance, describing the rehabilitation as so comprehensive that the interior was effectively stripped down before being rebuilt.

“There were no walls,” she said.

Despite that work, Speliotis said the property remains subject to lead testing requirements because of the building’s age.

“It doesn’t matter,” she said. “Any building before X date gets tested for lead — $150 to $200 per unit.”

New York City requires owners of residential buildings constructed before 1960 to comply with extensive lead-based paint rules, and a citywide testing deadline took effect in August 2025. Owners can seek exemptions for units or common areas that test negative for lead, but compliance can still require inspections, recordkeeping and certified testing.

Fire protection systems are another expense Speliotis says weighs heavily on smaller properties.

She said some MHANY buildings are required to maintain sprinkler systems and centralized fire monitoring, which she estimated can cost between $7,000 and $10,000 per building each year.

“When you burn toast, the Fire Department comes,” Speliotis said. “When you burn toast a second time, the Fire Department comes again. If they come three times, it’s a $1,000 fine. It’s not fightable.”

Smoke detectors have also become a recurring operational issue, according to Speliotis. She said some residents remove the devices after becoming frustrated by alarms, while housing providers can still face violations when required detectors are missing.

Ahead of a federal housing inspection, Speliotis said she recently purchased another 500 detectors.

“I have 9 million smoke detectors,” she joked, “and a fire escape.”

Even safety equipment can create unexpected losses.

Speliotis described one incident in which a seventh-floor tenant hung laundry from a sprinkler head, causing the system to activate and send water through the building.

“Ruins the entire building,” she said. “Four hundred thousand dollars in damage.”

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