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Aug 18, 2026

Zohran Mamdani Kicks Them Out — Residents Stunned: “He Lied to Us!”1

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

Ismene Speliotis, executive director of MHANY Management, said the accumulation of city requirements, insurance expenses, housing court challenges and difficult tenant situations has become increasingly hard for her organization to absorb after decades of work in affordable housing.

MHANY is a nonprofit housing organization that develops, owns and manages affordable housing in New York City, making Speliotis' concerns notable in a debate that often focuses on the costs faced by private landlords.

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

Speliotis described a series of expenses that she said illustrate how rules intended to protect residents can create significant financial burdens even for mission-driven housing providers operating on constrained budgets.

One example involves New York City's lead-based paint requirements.

Speliotis recalled that MHANY used city assistance in the mid-1990s to extensively renovate an older building, describing the work as so comprehensive that the interior was essentially stripped before being rebuilt.

“There were no walls,” she said.

Even after that renovation, she said, the property remained subject to testing requirements because of the building's age.

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

New York City generally requires residential buildings constructed before 1960 to comply with its lead-paint framework. Under Local Law 31, owners were required to complete one-time X-ray fluorescence testing of painted surfaces in covered dwelling units and common areas by August 2025, although owners can seek exemptions when testing establishes that areas are free of lead-based paint.

Fire-safety systems are another source of recurring costs, according to Speliotis.

She said some of MHANY's smaller buildings must maintain both sprinkler systems and centralized fire monitoring, expenses she estimated at 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 created a separate operational problem, she said, because residents sometimes remove the devices after repeated alarms, while a missing detector can still result in a violation for the property owner.

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.”

Speliotis also described how safety equipment can lead to costly damage when it is misused.

She recalled an incident in which a seventh-floor tenant hung laundry from a sprinkler head, causing the system to activate and release water through the property.

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

MHANY filed an insurance claim after the incident, but Speliotis said the organization was already facing rising premiums, adding another layer of pressure to its operating budget.

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