FOR IMMEDIATE RELEASE
October 14, 2004
MAYOR MICHAEL R. BLOOMBERG ANNOUNCES $1 BILLION PRIVATE INVESTMENT IN AFFORDABLE HOUSING CITYWIDE
The Enterprise Foundation, Leading National Affordable Housing Nonprofit,
Mayor Michael R. Bloomberg today announced The Enterprise Foundation's $1 billion investment to create and preserve 15,000 affordable homes for low-income New Yorkers. The funds are in addition to the $3 billion that the Mayor announced during his housing address in December of 2002, and the 15,000 are a part the administration's plans to create and preserve more than 65,000 homes and apartments through 2008. When the Mayor issued his housing plan, New Housing Marketplace: Creating Housing for the Next Generation, he challenged the private sector to invest their equity, to put together sites and deals, and to be optimistic and aggressive about New York City's real estate future. Enterprise's commitment demonstrates the private sector's willingness to invest and leverage the City's own investment in affordable housing.
As part of the announcement, the Mayor delivered an update on the progress of his $3 billion housing plan. More than 26,000 of the 65,000 homes and apartments to be created or preserved are already in the development pipeline. That is 40% of the total during the first two years of the five-year plan, putting the Administration on track to meet its goal. The Mayor delivered his address at Enterprise's 23rd Annual Network Conference in Manhattan, and was joined by Housing Preservation and Development (HPD) Commissioner Shaun Donovan, The Enterprise Foundation Chairman & CEO Bart Harvey and Senior Vice President & Eastern Regional Director Bill Frey.
"Our Administration has found new ways to meet today's urgent demand for affordable housing," said Mayor Bloomberg. "We're using every means possible to stimulate more affordable housing by creating innovative incentives and removing barriers to development, and we're encouraging the strong involvement of private and non-profit funders and developers who are absolutely crucial to creating more new affordable homes for more New Yorkers. I want to thank the Enterprise Foundation for this tremendous vote of confidence in New York City."
Enterprise New York, with money pledged from major financial institutions, will work with the Department of Housing Preservation and Development to provide equity, loans and grants to create 10,000 new affordable homes for low-income New Yorkers; preserve 5,000 existing affordable apartments; and provide grant dollars and technical assistance for community-based organizations to ensure their success in an increasingly competitive housing development market. These units are part of the 65,000 unit goal.
"Enterprise New York has committed to doing in five years what we did in our first 15 years in New York: invest $1 billion to provide more than 45,000 people with fit and affordable housing," said Bill Frey, Senior Vice President & Eastern Regional Director for The Enterprise Foundation. "By working closely with the public and the private sectors, Enterprise New York will help community-based nonprofits meet the affordable housing needs in their neighborhoods."
"Enterprise will equal or exceed that commitment in the next five years, as we redouble our efforts to see that low-income people have the opportunity to move out of poverty," said Bart Harvey, Chairman & CEO of The Enterprise Foundation.
One portion of the $1 billion commitment will support the Mayor's plan to end chronic homelessness. Specifically, Enterprise New York will invest $150 million in new funding to jump-start the creation of 2,500 units of supportive housing in 45 buildings Citywide. The funding will help leverage City operating and service dollars and existing development programs. Another $625 million from Enterprise New York will fund 7,500 new homes for low-income New Yorkers. This includes much needed equity for acquisition and pre-development costs for vacant privately-owned sites adjacent to city-owned parcels, properties located in derelict or substantially vacant manufacturing areas of the City to be rezoned for residential use, other vacant privately-owned land or buildings, and/or brownfields that have been deemed appropriate for residential use.
Housing preservation and support for the City's community-based nonprofit developers are the other key components of Enterprise's commitment. Enterprise New York will invest $200 million in financing to preserve 5,000 homes for low-income New Yorkers. This includes preserving 4,000 affordable homes for low-income seniors and working with non-profit partners to re-structure their mortgages so that they will be able to keep rents affordable for at least another 1,000 low-income New Yorkers. Enterprise New York also will invest $25 million in direct funding, low-interest lines of credit, and training and technical assistance for community-based nonprofit developers.
The Mayor also emphasized the importance of continued federal financial support for affordable housing. He urged Congress and the President to stand by their commitment to the lowest- income Americans by fully funding the federal Section 8 Rental Assistance program and cited the importance of other federal housing programs to New York City.
The Enterprise Foundation helps America's low-income families with their struggle out of poverty by providing decent homes, access to steady employment, quality child care and safer streets and works with a network of 2,500 community organizations nationwide and through its 15 local offices.
The New Housing Marketplace plan is available on HPD's website at www.nyc.gov/hpd.
Edward Skyler / Jennifer Falk (212) 788-2958
Carol Abrams (Housing Preservation and Development)
Vicky Hernandez (Enterprise Foundation) (917) 837-4270
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