New Housing Marketplace Plan Tally Stands at 140,920 Affordable Homes
In Fiscal Year 2012, City Invested or Leveraged $1.9 Billion to Finance 16,502 Units of Affordable Housing – Surpassing its Goal for the Year by More Than 2,000 Units
Mayor Michael R. Bloomberg, Deputy Mayor for Economic Development Robert K. Steel, Housing Preservation and Development Commissioner Mathew M. Wambua and Housing Development Corporation President Marc Jahr announced today that New York City is 85 percent of the way towards completing Mayor Bloomberg’s New Housing Marketplace Plan goal of financing the creation or preservation of 165,000 units of affordable housing by the end of the 2014 fiscal year. In total, between July 1, 2011 and June 30, 2012 when the fiscal year ended, the City invested or leveraged $1.9 billion to finance 16,502 units of affordable housing for middle-class and low-income New Yorkers, surpassing its goal for the year by more than 2,000 units.
“Long-term affordability gives families spending power to put back into local economies, which in turn builds confidence in communities that attracts further investment and new jobs,” said Mayor Bloomberg. “That’s why, even in tough times, we haven’t backed down from the most ambitious affordable housing plan in the country and we are right on track to achieve it.”
“Mayor Bloomberg's New Housing Marketplace Plan has attracted billions of dollars of private investment to strengthen New York neighborhoods in all five boroughs and create tens of thousands of construction jobs,” said Deputy Mayor Steel. “The Administration's progress toward the historic accomplishment of building or preserving enough affordable housing for 500,000 New Yorkers would not be possible without the talented and dedicated teams at both HPD and HDC, led by Commissioner Mat Wambua and President Marc Jahr.”
“I am proud of what we were able to achieve over the course of the last twelve months. We exceeded our 2012 fiscal year target because of the tremendously talented team of affordable housing experts that we have here at HPD and HDC,” said HPD Commissioner Mathew M. Wambua. “The nearly 16,500 affordable units we started in FY 2012 brings our total NHMP unit count to nearly 141,000. The fact that we financed more than 2,000 units more than we had projected will get these projects underway much faster and to the benefit of New Yorkers who depend on this housing. We are 85% of the way to the finish line and I am confident that we will meet our goal.”
“HDC is among the leading issuers of multi-family housing revenue bonds and affordable housing lenders in the United States. This is a record of which we are extremely proud and could not achieve but for the support of our partners at the State and City levels and in the development and financial sectors. The housing that we finance -- whether newly constructed or renovated -- embodies thousands of new units brought to market or reclaimed as affordable and given new life,” said HDC President Marc Jahr. “It helps stimulate the local economy, provides affordable housing to those who need it, and contributes to a better quality of life for New Yorkers by strengthening their neighborhoods. The NHMP is an investment in the future of this City, and it is on a scale that is unequalled anywhere else in the nation.”
Through the NHMP, the City and its partners have now funded the creation or preservation of 140,920 units of affordable housing across the five boroughs. The NHMP also serves as an economic catalyst, injecting capital into distressed neighborhoods and creating jobs that advance the City’s recovery efforts. To date the plan has created more than 125,000 full-time equivalent jobs in construction and related industries and over its full course, it is estimated that it will create approximately 150,000 full-time equivalent jobs.
Funding sources include approximately$370 million in City Capital, Reso A and Federal HOME funds. Additional funding includes $67.6 million in cash from HDC corporate reserves and $485 million raised in tax-exempt bonds issued by HDC. Completion of the NHMP would not be possible without the financial support of other elected officials, New York State agencies, non-profit organizations and private partners.
Units Financed By Borough - FY 2012/Total NHMP:
- Manhattan: 5,091 units/47,553 units
- Bronx: 5,878 units/43,721 units
- Brooklyn: 4,444 units/34,668 units
- Queens: 763 units /12,706 units
- Staten Island: 326 units/ 2,272 units
Since the inception of the New Housing Marketplace Plan, the City has financed the construction of 45,759 new units. The 2,734 units of new construction financed in fiscal year 2012 include more than 250 homeownership units in multifamily buildings and 350 units of Inclusionary Housing. The Inclusionary Housing program is designed to preserve and promote affordable housing within neighborhoods where zoning has been modified to encourage new development. In areas where the Inclusionary Housing Program is applicable, a zoning bonus allows increased floor area for multiple dwelling developments in return for the new construction, substantial rehabilitation, or preservation of permanently affordable housing.
Of the total FY 2012 units, 13,768 units are in existing multi-family housing stock that is occupied and is now preserved as affordable. Many of these buildings were originally built with the aid of government subsidies and had reached or neared the end of their income regulated agreements. These regulatory agreements keep properties affordable for significant periods of time—often the 30-year life of the mortgage or longer. The low-cost loans offered to the owners through HPD’s and HDC’s various preservation finance programs are used for moderate or substantial rehabilitation and system upgrades that prolong the useful life of the property, ensuring that it can remain a safe home for generations to come. Since the inception of the New Housing Marketplace Plan the City has preserved 95,161 units.
Other FY 2012 New Housing Marketplace Plan Highlights Include:
Amalgamated Warbasse Houses, Inc. is a 2,585-unit New York State Mitchell-Lama cooperative housing complex serving low- and moderate-income residents in Coney Island, Brooklyn. With $15.2 million in financing from HDC, the first phase of substantial rehabilitation can begin this summer. The second phase, expected to occur next year, will restructure its existing first mortgage debt and provide additional funds for more renovations. In exchange for the low cost financing from the City, Warbasse Houses will extend its commitment to the Mitchell-Lama program for an additional 20 years. The rehabilitation work will include façade repairs, boiler replacement, upgrades to all plumbing and heating systems, upgrades to circuit breakers, and upgrades and repairs to parking lots.
21 Truxton Street will be a 48-unit, five-story development in Brownsville, Brooklyn serving low-income residents. Some apartments will be reserved for individuals with special needs. All tenants will have access to on-site services including supportive case management, wellness self-management, employment service referrals and social activities. The total development cost is $12.3 million. In addition to funding from HPD’s Supportive Housing Loan Program and an allocation of Federal low-income housing tax credits, this project will use $1.5 million from the second phase of the Federal Neighborhood Stabilization Program (NSP2) funds provided to the project by HPD. The project will be constructed on land formerly owned by the City of New York.
Low-Income Rental /Inclusionary Housing
Morris Court will be located at 253 East 142nd Street and 250 East 144th Street in the Bronx. The two-building development will have 201 units available to low- and moderate-income residents. Forty units will be set aside for formerly homeless families. The project will be subject to an Inclusionary Regulatory Agreement. The development will also include a below-grade garage containing 185 parking spaces as well as approximately 30,200 square-feet of ground floor retail space. The total development cost will be $69.7 million. HDC is providing $34.7 million in tax-exempt bonds for construction financing and the project will benefit from $21 million in low-interest subordinate loans.