Friday, November 20, 2015

Is funding for affordable tower (535 Carlton?) on hold?

Politico NY yesterday reported Cuomo threatening de Blasio’s affordable housing plan, sources say:
In another apparent dispute between Gov. Andrew Cuomo and Mayor Bill de Blasio, the governor has threatened to cancel funding for federal tax-exempt bonds that would finance the mayor's affordable housing plan, multiple sources have confirmed.
Cuomo's office indicated in the last week it would not give City Hall any funding for the bond program through the end of the calendar year, despite an earlier commitment, sources said. Cuomo spokeswoman Dani Lever said that the governor never threatened to cancel the funding.
The state controls a finite amount of "bond cap"--a limit on the total of tax-exempt funding, the burden of which mostly falls on federal taxpayers. At issue, apparently, is the state's discretion to give more than the required $300 million it has already given the city, which anticipated another $200 million to $300 million, even as the statewide bond cap is oversubscribed.

Reports Politico:
Among the projects in question is a 299-unit affordable housing project as part of the Pacific Park development formerly known as Atlantic Yards.
That sounds like the 535 Carlton affordable housing tower, B14, which started last year (but maybe was relying on bond cap from this year?). It's also been described as having 298 units.

The other affordable housing project that started this year was 38 Sixth Avenue, B3, with 303 units.

Both were to get about $75 million in tax-exempt funding.

Given developer Forest City Ratner's ties to both the governor and mayor, I'd be surprised if the ultimate compromise excludes the Atlantic Yards/Pacific Park tower.

Note the follow up coverage today in Politico NY, which stated, "After POLITICO New York initially reported on the pending crisis Thursday afternoon, talks seemed to be improving.

No comments:

Post a Comment