Thursday, November 19, 2009

New market-rate units at FCR's 80 DeKalb building would be cheaper than some AY affordable housing (as of 2006!)

In July 2006, Forest City Ratner projected that the most expensive "affordable" studios in the Atlantic Yards project would rent for $1861 a month.

That was over market-rate then--and it still is. Forest City Ratner's new 80 DeKalb building in Fort Greene will offer studios at $1795 a month, according to the Brooklyn Eagle.

Given that the Area Median Income (AMI) has gone up since 2006, the rent for AY units would be higher now--and likely would be even higher when and if units are built.

Market vs. subsidized units

In July, I questioned whether 40% (900) of the 2250 subsidized units would be above market, given that the projected rents for the new Brooklyner tower would be below the rents for the two most expensive affordable "bands."

Not every new building, including 80 DeKalb, will offer rents that "affordable." But the rents at 80 DeKalb would apparently be more expensive than at least 20% (450) of the subsidized units.

The ACORN disconnect

If ACORN members who support Atlantic Yards were following this, they might be concerned. However, as shown during testimony at (and submitted to) the most recent Atlantic Yards hearing, there's a curious disconnect between support for "affordable housing" and acknowledging the reality on the ground.

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