The New York City Department of Housing Preservation and Development (HPD) today announced the availability of $16 million in funding for the acquisition and preservation of affordable housing in Chinatown and the Lower East Side. Allocated to the City by the Lower Manhattan Development Corporation (LMDC) through a Community Development Block Grant from the U.S. Department of Housing and Urban Development, the funds will be used to rehabilitate and preserve at least 160 low- to moderate-income units located in the Chinatown/Lower East Side community. HPD’s Chinatown/Lower East Side Acquisition Program is part of a larger federally funded initiative to preserve and create more affordable housing throughout Lower Manhattan. By facilitating the long-term affordability and maintenance of currently vulnerable housing in this rapidly changing neighborhood, the Chinatown/Lower East Side Acquisition Program will provide improved residential opportunities for the area’s low- and moderate-income residents. This innovative new funding is part of Mayor Bloomberg’s $7.5 billion New Housing Marketplace Plan to develop and preserve 165,000 units of affordable housing over ten years.
Through the fund, pre-qualified not-for-profit developers can apply for financing to assist in the purchase of small and mid-size buildings located in the targeted area. These buildings must have average rents that are affordable to households earning no more than 80% of Area Median Income (AMI) or $56,700 for a family of four. Up to $100,000 per dwelling unit is available to fill the gap between private debt supportable by the project and the acquisition cost. Once the property is purchased, the not-for-profit must maintain the affordability of the units by adhering to rent regulation laws, filling vacancies only with tenants whose incomes do not exceed 80% of AMI, and setting rents at affordable levels, for at least 30 years after acquisition.
“Over the past five years, Lower Manhattan has again become a dynamic 24/7 community. This new funding is an opportunity to preserve and improve the community’s affordable housing for existing residents and other New Yorkers who want to experience this revitalization,” said HPD Commissioner Shaun Donovan. “Preserving affordable apartments in Chinatown and the Lower East Side demonstrates the Mayor’s commitment to maintaining the community’s diversity and is part of our larger effort to build and preserve affordable housing for 500,000 New Yorkers, more than the entire population of Atlanta, over ten years.”
The area identified for funding is bounded by Houston Street to the north, FDR Drive to the east, South Street and the Brooklyn Bridge approach to the south, and Broadway to the west. To become pre-qualified for participation in the program, non-profits must respond to the Request for Qualification (RFQ) available on HPD’s website, www.nyc.gov/hpd. Building proposals will be assessed on the viability of the project andthe strength of the applicant’s experience. Proposals will be evaluated on a rolling basis for the duration of the program which will run until the funding is exhausted or until December 31, 2010.
Interested parties should forward all requested documentation to the New York City Department of Housing Preservation and Development, attention Joan Wan, 100 Gold Street, Room 9-06, New York, NY 10038, or electronically to firstname.lastname@example.org.
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The New York City Department of Housing Preservation and Development's (HPD) mission is to promote quality housing and viable neighborhoods for New Yorkers. The department is the nation’s largest municipal housing development agency and is implementing Mayor Bloomberg’s New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing over ten years. The New Housing Marketplace Plan is the largest municipal affordable housing effort in the nation’s history. HPD also encourages the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards.