Thursday, May 28, 2015

Do-over: HDC to again approve bonds for B3 tower, this time at $95 million

Pacific Park B3, aka 38 Sixth Avenue, is listed for the upcoming hearing Monday, June 1, of the New York City Housing Development Corporation (NYC HDC), with $95 million in tax-exempt bonds expected.

However, it was already the subject of the 3/30/15 NYC HDC hearing, with an announced $75 million bond issuance. The fact sheet distributed at the hearing did disclose a $95M bond issuance, as I wrote.

So why this second hearing?

"The new amount... incorporates a cushion, which is common to all our projects, and which was inadvertently omitted in the previous ad for the March 30th hearing," NYC HDC spokeswoman Christina Sanchez responded. "The B3 fact sheet that you received is still valid."

The re-approval is apparently necessary for the building to break ground, as expected, in June.

Note that the $95 million in tax-exempt bonds do not represent a direct subsidy of $95 million, but rather the difference (likely tens of millions) in interest paid compare to taxable bonds.

Details on the housing

The fact sheet is at bottom. While it disclosed the number of units for each income band in this "100% affordable" building, it did not disclose, as I wrote, the expected rents, which I estimate directly below.

Rent is calculated on 30% of household income, divided by 12 monthly payment. Though tThe number of units per band is an estimate, since, as footnoted, some units may have more people, and they will pay a higher rent.

But it's clear that the building is skewed to Band 5--middle-income households, paying over $3000 for a two-bedroom unit. That's below market, but it's surely beyond the means of most of the people who rallied for affordable housing.

The fact sheet

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