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FOR IMMEDIATE RELEASE
PR- 111-03
May 1, 2003

MAYOR MICHAEL R. BLOOMBERG GIVES PROGRESS REPORT ON ADMINISTRATION’S NEW HOUSING MARKETPLACE PLAN

8,000 of 65,000 Homes and Apartments to be Created or Preserved Already in Development Pipeline

Mayor Michael R. Bloomberg today delivered an update on his administration’s New Housing Marketplace plan, announced in December 2002.  The Mayor’s $3 billion plan to create and preserve more than 65,000 homes and apartments in neighborhoods over the next five years will increase production of new units by 25%.  It includes a stream of initiatives aimed at facilitating private investment in housing. The five-year plan formally kicks-off on July 1, 2003, but much of the predevelopment work has begun.  Approximately 8,000 of the 65,000 homes and apartments to be created or preserved are already in the development pipeline. The Mayor delivered his address at the New York State Association for Affordable Housing’s 2003 Annual Conference in Manhattan.

“Today, nearly five months later, the question is how’re we doing?” said Mayor Bloomberg. “The answer is that progress is being made on every front and in every borough. We are laying the groundwork for building and preserving thousands of new apartments. Given the City’s current budget problems, some people may think investing in housing is a luxury we can’t afford now.  That’s exactly the wrong thinking. Building for the future is a responsibility we can’t shirk – especially now.  We’re not going to push our problems – or our responsibilities – off on our children.  New York City’s short-term financial recovery – and our long-term economic health- depend on our ability to attract and keep the best and the brightest – the dreamers and the doers.  To do that, we need housing for people of every income level – those who are successful now – and those who are about to write their success stories right here, in all five boroughs of New York City.”

During his remarks, the Mayor challenged the audience of private sector, affordable housing organizations to invest their equity, to put together sites and deals, and to be optimistic and aggressive about New York City’s real estate future.  While he acknowledged the City’s short-term budget problems, he said the same is true of virtually every other city and state in the nation.  He stressed that no other city has the competitive advantages that New York City enjoys.

The Mayor emphasized the need to make scarce City dollars go farther and increase private investment in an era when deep cuts to capital spending for housing are unavoidable.  He then demonstrated the private sector’s willingness to invest and make City dollars go farther by announcing that a consortium of banks in the City – Citigroup, JPMorganChase, Deutsche Bank, and HSBC – have agreed in principle to match every City dollar pledged for financing development on brownfields with four private dollars.  This means that the cost to the City of a $200 million revolving fund established for this purpose in the New Housing Marketplace plan would be only $40 million, allowing the City to use the balance of the $160 it had committed to meet other housing needs.

The housing strategy targets resources to areas that the City plans to rezone to encourage the development of much-needed housing.  The Mayor announced the approval yesterday by the City Council of the Administration’s proposed rezoning of sections of Park Slope, Brooklyn.  He also announced that the City will make available on a first-come, first-served basis, $6 million from the New Housing Marketplace plan to encourage the development of affordable housing there in order to help establish a vibrant mixed-income community.  This City investment is expected to yield more than 100 affordable apartments and leverage an additional $16 million in private investment.  Park Slope sets the framework for rezoning plans in communities throughout the city in neighborhoods ripe for private development in housing, including West Harlem, Jamaica, Long Island City, Hunts Point, Morrisania, Greenpoint, Williamsburg, and the Hudson Yards.  Many of the neighborhoods have abandoned waterfronts and underutilized manufacturing areas that will be assessed with an eye toward beneficial reuse.   

The Mayor also spoke of the importance of State aid and of the preservation of the Low Income Housing Tax Credit.  An unintended consequence of Washington’s proposed dividend tax exemption is to make Low Income Housing Tax Credits less attractive.  The City’s housing agency has used Tax Credits to subsidize the production of nearly 18,000 units for low-income families in New York City over the last 15 years.  He noted that the bottom line impact on the housing plan if the City were forced to enact contingency cuts would be delays to some 2,000 housing units.

“We need housing to help the City generate jobs and investment; we need housing for our people,” concluded Mayor Bloomberg.

The New Marketplace plan is available on HPD’s website at www.nyc.gov/hpd





CONTACT:

Jordan Barowitz / Jennifer Falk   (212) 788-2958

Carol Abrams   (HPD)
(212) 863-5176


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