Recession Hitting Low-Income Housing Hard
This time it’s different. In past real estate downturns, builders of affordable housing have managed to stay busy, as the demand for below-market apartments is constant. With a $14 billion budget gap, however, the state is cutting back its allocation to low-income housing (like Glenmore Gardens in East New York, at right) by 2/3, from…
This time it’s different. In past real estate downturns, builders of affordable housing have managed to stay busy, as the demand for below-market apartments is constant. With a $14 billion budget gap, however, the state is cutting back its allocation to low-income housing (like Glenmore Gardens in East New York, at right) by 2/3, from a little over $300 million last year to $105 million this year, reports The Observer. This on top of a decline in federal incentives. It’s certainly the most challenging time that I’ve seen in the affordable-housing business, said Bernie Carr, executive director of the New York State Association for Affordable Housing, an industry group. Generally, we’ve weathered recessions pretty well—it’s a countercyclical business. To make matters worse, Governor Patterson is trying to raid a key affordable housing trust for the city. More evidence that, certain people’s schadenfreude notwithstanding, the housing bust and associated heavy-duty recession aren’t just knocking down brownstone buyers a few pegs, they’re hurting those on the bottom rungs as well.
Why Low-Income Housing Can’t Afford the Recession [Observer]
Photo from Apartment Therapy
Christopher – are you aware of the plan put forward by Quinn and Bloomberg?
Hardly likely, rob. All the bitching and moaning that goes on here because the people in the projects have “free” parking, while the more deserving have to play musical cars in tony neighborhoods, would be nothing compared to the uproar if a lux condo went to the poor. Which isn’t going to happen. Worse case, they’ll go market rate. The trickle down housing theory being that this will free up the former market rate housing, now abandoned in favor of unsold luxury condos, will now be free to become the new affordable or low income housing. I don’t believe that one either.
As to the story, it doesn’t surprise me in the least that affordable housing takes a massive hit. Those with the least money and the least political power are the first to get the ax. They might grumble and agitate a bit, but they don’t have any real power. They have no lobbyists, no PACs, no powerful and influential constituents who might withhold contributions or other perks, and up until recently, they didn’t vote in great numbers either. Can’t blame them, really. Those politicians and activists who genuinely advocate for them get drowned out or outvoted.
I get very cynical about these things because it happens time and time again, and I just don’t understand why those in power can’t see that dodging the issues of decent, affordable shelter only make the problems worse, and more expensive and more painful and tragic later. We pay for it threefold in increased costs when it is finally addressed, increased social service, policing and correctional costs, and increased housing and construction costs, not to mention increased educational costs. Because people who don’t live in decent, safe housing can’t function well in society, in school, or at work. Budget crises mean cuts everywhere, but cutting 2/3 of the budget makes no sense.
PitbullNYC,
I don’t think the luxury condos would turn into official low-income housing (requiring applications, adhereing state and federal guidelines, etc).
I think the rational is more “mass vacancies will cause rents to drop so low people who might traditional qualify for ‘low-income housing’ will find themselves with more mainstream, non designated, options”
This seems to support mopar’s Quote of the Day a couple of days back.
actually if these luxury condos turn into low income housing that i don’t qualify for im going to be one pi$$ed off mofo. that couldnt happen tho, could it?
*r*
gov paterson should just end rent stabilization. that would allow tons of apartments to come on the market. and everyone else’s apartments would suddenly be a lot more affordable. it’s a cheaper and more effective solution than spending $300m on Glenmore Gardens.
oh wait, Gov patterson, his dad, charles rangel, christine quinn and all their friends would have to give up their sweet deals.
At least there is more housing is becoming more affordable in the unregulated market – its not all bad news. All rents are dropping.
“Certain people’s schadenfreude notwithstanding, the housing bust and associated heavy-duty recession aren’t just knocking down brownstone buyers a few pegs, they’re hurting those on the bottom rungs as well.ertain people’s schadenfreude notwithstanding, the housing bust and associated heavy-duty recession aren’t just knocking down brownstone buyers a few pegs, they’re hurting those on the bottom rungs as well.”
Ok Brownstoner you want me, you got me. There is plenty of “Low Income” housing. All the Housing Paper and Banks that the Government subsidize will turn these “Luxury” Condo’s into “Low Income” housing, just wait and see. The explosion of the Mutant Asset Bubble will have major benefits for poor people and the Ghetto will reclaim it’s space. I hope you stick around Brownstoner…..
The What
Someday this war is gonna end…
Brownstoner, what about today’s front page article in the Times about Manhattan condos being auctioned off for half price? That was interesting…