Policy change urges landlords to maintain affordable offerings

Building owners now able to sell market rate rentals in exchange for preserving low-income units

New York /
Oct.October 10, 2014 11:00 AM

As of today, New York landlords will be able to sell their market rate rentals — up to 80 percent of an individual building — in exchange for preserving or increasing the property’s number of low-income offerings.

The new guidelines, implemented by the New york state Attorney General’s office, apply to existing rental buildings participating in government programs that offer subsidies such as bond financing and tax breaks to landlords who set aside 20 percent of a building’s units for low-income housing.

Typically such affordability restrictions expire after a fixed period, generally 30 or more years. Many owners convert such properties into condominiums or co-ops at that stage, and so the affordable offerings disappear from the market, according to the New York Times.

The state’s Housing Finance Agency and the city’s Housing Development Corporation and Department of Housing Preservation and Development, which oversee the programs offering subsidies to property owners who set aside 20 percent of apartments for low-income housing, have collectively agreed to require the same general conditions.

Property owners praised the changes, saying there was little downside to the new guidelines. But housing advocates and building owners were somewhat more cautious.

“You have to look at the financial picture of each building individually,” Paul Januszewski, vice president of planning at Rockrose Development, which owns two 80-20 buildings in Manhattan and is currently building another in Long Island City, told the Times. “It could be good policy but it will depend on what the additional constraints will be.” [NYT]Julie Strickland


Related Articles

arrow_forward_ios
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
State senator Michael Gianaris with 21-12 30th Road (NY Senate, Marner Architecture, Getty)
Astoria redevelopment gets intergalactic
Astoria redevelopment gets intergalactic
53 Sonrise Place in Fellsmere, FL and Starwood Capital Group chairman Barry Sternlicht (Google Maps, Illustration by The Real Deal with Getty)
Starwood snaps up Florida affordable housing portfolio
Starwood snaps up Florida affordable housing portfolio
From left: Boston Mayor Michelle Wu and South Boston Senator Nick Collins with Boston City Hall
Controversial transfer tax bill advances in Boston
Controversial transfer tax bill advances in Boston
Yonkers mayor Mike Spano with 354 and 358 Nepperhan Avenue (Google Maps, Yonkers NY, Getty)
Yonkers greenlights $182M in residential, commercial projects
Yonkers greenlights $182M in residential, commercial projects
Justice Debra James and Elizabeth Street Garden (NYCourts, Elizabeth Street Garden, Getty)
Judge’s two years of silence paralyzes Little Italy project
Judge’s two years of silence paralyzes Little Italy project
160 NYS Route 25 in Greenport, LI (Google Maps, Getty)
Yellow light for Greenport project
Yellow light for Greenport project
Gregory Russ and Mayor Eric Adams (Getty)
Adams ousts NYCHA chief after arsenic scare
Adams ousts NYCHA chief after arsenic scare
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...