The recent $5.4 billion sale of Stuyvesant Town has heightened concerns about the diminishing number of low-cost housing within New York City. Fortuitously, Mayor Bloomberg has unveiled a plan to create a "New Housing Marketplace." Bloomberg's goal is to "ensure long-term affordability and sound project operations; to address projects' current and future capital needs, financial viability, and existing project debt; and to provide mechanisms for continuing asset management oversight." Included in this plan is a $7.5 billion pledge to create and preserve over 165,000 units by 2013.
One way to realize that goal is to offer financial incentives to developers. The Department of Housing Preservation and Development (HPD) has been using property-tax exemptions and credits as a way to help fuel the construction of over 110,000 units throughout the city since 1971. In early 2006, Bloomberg assembled a task force to undertake a comprehensive review of the City's property tax-abatement programs. This group--comprised of members of HPD, various government offices, and members of the real estate, affordable housing, advocacy and non-profit communities--will be evaluating the effectiveness of current tax exemption policies (such as the "80/20 program," where a developer must set aside 20% of their units for low- and middle-income affordable housing in order to receive certain tax abatements). In addition to relieving developers of certain property taxes, the program also offers zoning incentives, tax-exempt bonds and financing packages to those who commit to reserving a certain percentage of their new developments to affordable housing.
While the plan does not seem to address the immediate crisis our low- and middle-income residents face, Bloomberg has committed the City to help developers increase and preserve the housing stock in a variety of different ways over the course of the next decade.
To download a copy of the October 11, 2006 press release entitled, "Mayor Bloomberg Endorses Task Force Recommendations To Create More Affordable Housing And Continue Strong Housing Construction," and to find out more about these financing options, please click on the following link: Press Release
To download a copy of the "Ten Year New Housing Marketplace Plan," released by the New York City Department of Housing Preservation and Development, please click on the following link:
http://www.nyc.gov/html/hpd/downloads/pdf/10yearHMplan.pdf