Momentum has been gathering in the discussion about using stalled or empty luxury condo developments for affordable housing: as we mentioned earlier, at least one building downtown is already in talks with the city about unloading its unsold units as below-market housing, and Assemblyman Hakeem Jeffries is working on others. Now The New York Times reports that the city and state definitely have proposals in development for possible uses of troubled luxury buildings. But there are definite obstacles for these kinds of programs: “With budgets tighter than ever, there are few financial incentives to entice developers and lenders. And there are the practical challenges of selling apartments to buyers for far less than what their neighbors paid, not least among them possible complications for market-rent buyers, whose mortgages often depend on the building’s financial status.” The New York State Housing Finance Agency is working on a program that would offer buyers state-financed mortgages for units in buildings partially occupied by market-rate buyers, while developers would simultaneously decrease prices. Another possibility the agency is considering is to allot $5 million for $40,000 grants to 125 homebuyers. Mr. Jeffries also proposed his plan on Tuesday, to “help developers refinance troubled loans worth up to $150 million and make it easier to turn troubled condo and rental projects at all stages of construction into moderate-income rental units.”
City Considers Stalled Projects for Moderate-income Housing [NY Times]
Mystery Downtown Development Going Affordable [Brownstoner]
ID’ing Troubled Condos [Brownstoner]
More Plans Surface to Make Luxury Leftovers Affordable [Curbed]