State, City Enter Stalled Project Discussion
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…
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]
CALL THE CAMPAIGNS TO PROTEST THIS RIPOFF OF TAXPAYERS!
Here is some information on our district 33 city council candidates:
Jo Anne Simon, Stephen Levin, Evan Thies, Kenneth Diamondstone, Doug Biviano are all FOR the plan
(source: gotham gazette, levin campaign literature)
I havn’t found position info for three others: Elizabeth Tretter, Isaac Abraham, Ken Baer. working on it.
This is an underhanded grab by the politicians to get cheap housing for their friends, ‘community activists’, and other associated hangers-on.
Total UGLY political payoff — absolutely corrupt.
Wait until the condos go bankrupt and revoke the tax exemptions. This will encourage the banks to sell the apartments and the market will clear.
NYS needs 20-40000 new apartments per year to keep up with population growth. The only reason that we have boarded up houses are due to government interference, not lack of demand (as in the 70s).
BH76, when the HARP plan was originally proposed, it was indeed billed as blight-prevention in “at-risk” neighborhoods, as well as a way to add to affordable housing. I think this was supposed to conjure up images of boarded-up holes in Crown Heights. That is a totally different scenario than what seems to be on the table now: a subsidy for developers of complete but unsold lux towers like the Forte and Be@schermerhorn.
I would imagine that the city’s stance would be that the developers will not sell/rent at market but rather leave these empty and/or in default. So by the city subsidizing the sale/rental, it is preventing the areas in question from being subject to eyesores and quality of life issues.
With the real estate tax abatements they all got the city couldn’t even foreclose for that… It’s all bad no matter where you look.
Wow. I’ve been waiting all day for someone to come out on the other side of this and make an argument. Guess that’s not going to happen.
all subsidized housing is total sh*t. affordable anything just means more money out of my pocket sanctioned by people i didn’t vote for to give to people that shouldn’t be getting it.
it’s socialism, it’s gross.
this is obscene.
NO BAILOUTS FOR DEVELOPERS!
NO $50000 DISCOUNTS FOR FRIENDS OF HAKEEM!
VOTE AGAINST EVERY POLITICIAN THAT SUPPORTS THIS!
Why should I pay taxes to subsidize a luxury apartment that I can’t buy?
I also agree – if the developers and the banks backing them simply scale the rates back to what the market will bear, they’ll fill their empty buildings. Why should govt step in to, in effect, ensure these guys make a profit?
joe, I’m sure Bloomberg feels SORRY for those developers because they are millionaires and not BILLIONAIRES, and as such they “don’t make much money” from the mayor’s point of view.