Many of the highrises on Roosevelt Island were built as  affordable housing, under the Mitchell-Lama program. In recent years, some of the co-ops have left the program, resulting in a steep price increases that pay off for tenants but make the units unaffordable. The Rivercross co-op, however, has announced a plan that in theory satisfies all parties.

In the case of the 365-unit Rivercross co-op, the board of the 38-year-old building has created a framework that will initially cap the sale price of 80% of the units at $500 per square foot.

Of that $500, the building will take a "transfer fees" of $150, which will allow it to subsidize the remaining 20% of units in the building, keeping prices near Mitchell-Lama levels.

In theory, everyone should be happy: residents keep paying relatively low rents and the building gets out of the beleaguered Mitchell-Lama program, allowing more funds to be freed for much-needed renovations. Not everyone is convinced, though.

Rivercross took out a $50 million dollar mortgage which will be used, among other things, to pay for the building's $15 million facelift. Current residents feel they have to agree to the pseudo-privatization to cover the loan.

But some residents expressed concern that the co-op plans on using the transfer fee to pay down the $50 million. Having already taken out the loan leaves them little choice but to go ahead with privatization, these people say.

It's a free market, people. Get with the times, or go protest on Wall Street.

eknutsen@observer.com