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February 25, 2008
Where’s the Dough for AY Affordable Housing?
Last week Norman Oder had an extensive post on Atlantic Yards Report about where funding for AY’s affordable housing is going to come from. The issue is of serious concern as funding dries up for affordable projects around the city; Oder makes the point that AY’s 2,250 units of subsidized housing will require $1.4 billion in housing bonds, and there’s no evidence that Forest City Ratner has applied for any of those bonds (that’s important since there’s only about $1.6 billion bond financing to go around each year for all of New York State, and other developers also have to wait in line for the funds). The Post, meanwhile, had a hard hitting 52-word article that quotes HDC prez Marc Jahr as saying the city is “not concerned” about AY affordable funds being available because of the development’s “scale.” But isn’t there a lot to be concerned about? For example, does the project’s “scale” mean the city is giving a free pass for construction on the affordable housing parts of Atlantic Yards to take much longer than other aspects of the development? And what if there’s even less funding available for affordable housing in the future? Finally, is it fair for Forest City Ratner’s mega-development to eat into the creation of affordable units in other parts of the city and state?
AY Affordable Housing Jeopardized By funding "Crisis" [AY Report]
Atlantic Yard$tick for Poor Housing [NY Post]
Is the Creation of Affordable Housing in Jeopardy? [Brownstoner]
Photo by True Scot
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Comments
affordable housing. affordable by whom?
Posted by: guest at February 25, 2008 9:31 AM
"AY’s 2,250 units of subsidized housing will require $1.4 billion in housing bonds..."
Who do you think picks up the tabs for these bonds? You and me of course - the NYC and NY State Taxpayers.
Affordable housing is another form of wealth re-distribution. Take money from taxpayers so that others can "Afford" cheap housing.
Posted by: guest at February 25, 2008 9:34 AM
Well,that's odd since the issue really is that Ratner is making the money off of us taxpayers and had very cynically played the race card to manipulate everyone. (Rev. Daugherty and Acorn take your bows now). I have no problem with my taxes going to help people have a place to live. I really object to my taxes going to line the pockets of a guy who could buy and sell the whole state 5 times over. If ou want to have something to complain about, complain about the breaks AY is being given and how much money THAT is costing the people of NYC.
Posted by: bx2bklynstill at February 25, 2008 9:58 AM
It is indeed a form of wealth redistribution - wealth is redistributed from taxpayers like ourselves to the developers of "affordable" housing.
You're also seeing wealth redistribution via Con Ed. They're using the AY infrastructure build out as a reason to justify hiking all of our bills - starting this year.
How personal wealth is impacted by 6,400 apartments going on the market is something some folks might want to consider as well if you're worried about income redistribution. Given the size of our funding ($2 billion on a $4 billion project), Ratner can weather a downturn in the market caused by such a glut. Folks without billions in subsidies (y'know like us) won't be so well insulated.
Still, we'll always have the Nets. Just try not to think about the fact that we paid Ratner $2 billion to move them across the river for a few years.
Posted by: Johnny at February 25, 2008 10:04 AM
...and the sky is falling.
These projects like AY create jobs and create real estate value. The public component of the projects are financed by the increased tax revenues. You once had a lot that was contributing $5,000/yr at best in RE tax revenues. Down the road, the same plot of land will be contributing 10+ times that in RE tax revenues and much more in sales tax revenues that never existed before. The developer takes on a huge risk in moving forward with these projects.
It's time to wake up!
Posted by: guest at February 25, 2008 10:07 AM
"Who do you think picks up the tabs for these bonds? You and me of course - the NYC and NY State Taxpayers."
Big time!! This is why AY is in serious trouble. Where is Ratner getting the money from??!!! Here read this story, higher taxes coming your way.
Auction-Rate Bonds Force `Predatory' Yields on Cities
http://www.bloomberg.com/apps/news?pid=20601009&sid=aZdB.TLa5k2c&refer=bond
Guess what folks, people want return for risk! Interest rates are going back up!
The What
Someday this war is gonna end.....
Posted by: guest at February 25, 2008 10:11 AM
Once again the debate is framed by pro-AYers as "You're either with us or you're against development." An approach that's too silly to take seriously, but . . .
The yards themselves weren't sold to the highest bidder. They were sold to the second-highest bidder at a price that was $100 million lower than the best bid. Some folks might wonder why.
The yards could have been developed in a manner that provided jobs, taxes AND a benefit to the community at a price that cost the city less than it stood to gain from the economic development. They simply weren't.
In this case, the developer isn't taking a huge risk. His risk is being underwritten by the taxpayer to the tune of $2 billion. Ratner's assuming 50% of the risk while standing to benefit from 100% of the profit.
This excludes the increase in the value of the Nets that comes from us building them a stadium.
Posted by: Johnny at February 25, 2008 10:24 AM
how will FCR handle the revelation that they haven't made the proper arrangements to provide affordable housing?
Two words:
"I FORGOT."
problem solved!
Posted by: Jimmy Legs at February 25, 2008 10:28 AM
Instead of bond financing with subsidized interest rates, how about performance based zoning?
Given Ratner additional FAR on the AY site in exchange for building the income restricted housing.
Posted by: Polemicist at February 25, 2008 10:39 AM
Didn't they kind of already do performance-based zoning with AY? Those towers are awfully big already, and there's no need to make them bigger.
Gabby, I don't get what you mean by suggesting that AY would take affordable housing money away from elsewhere in the city/state. OK, there's a limited amount of funding out there, but is there something wrong with putting a whole lot of that new affordable housing in a desirable neighborhood and luxury development? Why hold back -- to make sure we have enough left over to build more projects in Brownsville? Do we want Parisian banlieues on the periphery of NYC?
Posted by: guest at February 25, 2008 10:51 AM
Calling a Norman Oder post "extensive" is about as redudant as saying that water is wet. They guy can't express a point in less than 10,000 words.
Johnny, if anyone cops a "if you're not with us then you're against us", it's groups like DDDB, PHAC, or no land grab.
Posted by: guest at February 25, 2008 11:50 AM
ACORN and the Rev. Daughtry, and everyone else who bought into AY, precisely because of "affordable" housing should have read the fine print, and should have known better. Words like, "if", "after" and "then" should have made their warning bells go off. As in "After the market rate portion of AY is finished, if the units sell well, and if that generates funds, then we will build the affordable units."
A variation on this theme was always right out in the open. These people allowed themselves and their followers to be the foot soldiers in a race and class war, which was not what opposition to AY was about. Now it looks like there will probably be no affordable housing, especially on site, and the race and class struggle in a gentrifying Brooklyn has gotten worse.
Thanks a bunch, everyone.
Posted by: Montrose Morris at February 25, 2008 11:58 AM
Hey Montrose Morris, why are you surprised?! This BIG BOY stuff! But I don't think AY will be built. The Credit Market turmoil and Mutant Real Estate Bubble thing will knife this project. I know you think I'm wishful thinking but, We have serious credit problems.
The What
Someday this war is gonna end...
Posted by: guest at February 25, 2008 12:08 PM
They'll build it allright and all those with thier hands out expecting crumbs will be pickiting, marching and singing the same ol sorry "I've been hoodwink by the Man" song.
I mean if you cant afford to live in the area now did you honestly think Ratner is building a cushy apt for you in 10 yrs?
Posted by: guest at February 25, 2008 12:23 PM
"Give Ratner additional FAR"
Are you kidding? Isn't AY already planned as the densest development in the entire country?
Posted by: guest at February 25, 2008 12:33 PM
I agree with Montrose Morris, the "affordable housing" was never truly promised. At the end of the day Ratner et al will say they just couldn't afford (the ironies!) to build the affordable housing. It would have been a good idea, but the millionaires just didn't line up for the rest of the plan as hoped.
The people on the take at ACORN and Rev. Daughtry should have been ashamed of themselves a long time ago, but they certainly are quiet right now.
Posted by: guest at February 25, 2008 12:53 PM
Ay will create jobs for a select group of folk- the developers,construction industry and friends of FCR. Supposedly jobs were going to go to the community via groups like Build but they were talking maybe 1000 jobs total and the chance to get into the union. FCR is supposedly a union project so I would love to know why they began the disastrous Bakery demo with a non union company- and with such interesting results? If that doesn't show everyone how much they can count on Ratner's word I don't know what will. So while we taxpayers will have to keep the promises our elected political leaders so stupidly made to Ratner, there is obviously no constriction on him to keep his.
Posted by: bx2bklynstill at February 25, 2008 1:07 PM
The What: how much of AY did you think will actually get built? I'm really wondering how much he will actually downscale- and more importantly, will we know about it before he gets all our promised money. I don't really know how all that works- is it all on paper until the project is truly underway? Or does he basically have it in the bank, so to speak, and we will never see it again?
Posted by: bx2bklynstill at February 25, 2008 1:10 PM
"The What: how much of AY did you think will actually get built?"
Well... Ratner will have to borrow plenty of money! Goldman Sachs is getting cold feet in this project. If GS goes forward, they will have to hold the debt on their books. The market for Commercial debt is imploding. Just look at the story, rates are going up.
Auction-Rate Bonds Force `Predatory' Yields on Cities
http://www.bloomberg.com/apps/news?pid=20601009&sid=aZdB.TLa5k2c&refer=bond
How can NYC give Ratner 2 Billion??? Plus he needs the money in place before construction. BTW The Nets are bleeding money. Plus there is a new arena in downtown Newark NJ http://www.prucenter.com/ and it is beautiful!! I think Ratner will Back-Door Brooklyn and go to Newark NJ in 2012. If this happens, they will need to get me a oxygen tank. I will be laughing my fucking ass off.
The What
Someday this war is gonna end...
Posted by: guest at February 25, 2008 1:46 PM
How much of AY will get built? I'll tell you how much:
the HUGE "temporary" asphalt parking lot over the former yards site.
the luxury condos on the Western edge of the site, including the part that isn't officially part of the Yards.
the stadium.
That's it. The rental housing, fuhgeddabodit. The "affordable housing," never gonna happen.
Maybe a hotel. That's all she wrote.
Posted by: guest at February 25, 2008 4:15 PM
Oh, I'm bein' shafted by a boondoggle, boondoggle, boondoggle
Taxin' and grabbin' by a boondoggle, boondoggle, boondoggle
And if I ever lose my hands, lose my plough, lose my land...
Posted by: guest at February 25, 2008 6:47 PM
An ode to The What:
http://www.harpers.org/archive/2008/02/0081908
Posted by: guest at February 25, 2008 11:02 PM
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