Thursday, March 11, 2010

Crain's whiffs on affordable housing

Crain's New York Business thinks this is news:
At the ceremony at the site of the vast Atlantic Yards development, Mayor Michael Bloomberg announced that the city has secured a commitment from project developer Forest City Ratner to ensure that at least 50% of the units in the first residential tower to be built will be affordable to a mix of low-, moderate- and middle-income families
Um, any all-rental building would be 50% affordable--that's the financing plan.

This represents "progress" only compared to the not-so-affordable plan contemplated for the first building, with most units at a very high Area Median Income.

2 comments:

  1. What do you mean, "That's part of the financing plan?"

    I thought the financing plan only requires Ratner to make a good faith effort to attempt to find funding for affordable housing. If he secures alternate funding sources, isn't he under no requirement whatsoever to provide any affordable housing units?

    Neil Gronowetter
    www.multifamilyinvestor.com

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  2. Any all-rental building is supposed to be 50% affordable.

    Yes, he can delay building affordable housing by claiming a subsidy unavailability but surely the Bloomberg will ensure that some funds are available for this project, esp. given the political pressure to deliver it. The larger question is whether there will be money for all 2250 affordable units and what the affordability will be.

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