De Blasio proposes big cuts to affordable housing budget

Mayor would compensate with more funding after he is out of office

New York /
Apr.April 28, 2020 09:10 AM
Mayor Bill de Blasio (Credit: Getty Images)

Mayor Bill de Blasio (Credit: Getty Images)

Mayor Bill de Blasio’ signature affordable housing plan, already troubled by a string of setbacks at the start of year as rezonings encountered roadblocks, is set to take another big blow.

The mayor has proposed cutting $583 million from the plan’s budget for the fiscal year which ends June 30 and another $456 million next year, Politico reported. The de Blasio administration says it will compensate by adding just over $1 billion to the budgets for fiscal years 2022 through 2024.

“The agency is taking a hard look at the projects in our pipeline and working creatively with partners to find additional sources of financing to move our projects forward,” a spokesperson for the city’s housing department told Politico.

“We understand that affordable housing will be more important than ever on the other side of this crisis, which is why we are advocating for more federal resources to support our push forward.”

But the economic shutdown in response to the coronavirus pandemic is costing the city billions of dollars in tax revenue.

Record-low interest rates have also reduced the value of federal housing tax credits, making it more difficult to finance affordable housing development.

“All of our government partners have certainly been preparing us for a slowdown in the production pipeline just given the massive amount of resources the city and state have had to devote to crisis response,” said Riseboro Community Partnership CEO Scott Short.

As the City Council prepares to hold remote budget hearings in the coming weeks, de Blasio’s proposed cuts are likely to face some resistance. Council Member Brad Lander has warned that the crisis could lead to “austerity thinking,” and proposes that the city take on more long-term debt instead of cutting the capital program for housing.

“One danger in a crisis like this is in the name of budget balancing, which you have to do, you eat your seed corn and you make decisions that sacrifice the city’s long-term future,” Lander said. “I really think leaning into and investing more in affordable housing is part of how we promote the recovery.” [Politico] — Kevin Sun


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)
Nonprofit plans affordable housing development near Essex Crossing
Nonprofit plans affordable housing development near Essex Crossing
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
A rendering of Stapleton project (Rendering via Secchi Smith)
City approves 360-unit affordable housing project on Staten Island
City approves 360-unit affordable housing project on Staten Island
Local officials acknowledge history of racism in city planning, pledge change
Local officials acknowledge history of racism in city planning, pledge change
Local officials acknowledge history of racism in city planning, pledge change
Gov. Kathy Hochul (Getty, iStock)
Hochul signs bill that could add 0.5% tax to most East End sales
Hochul signs bill that could add 0.5% tax to most East End sales
90 Sands Street
Hotel conversions race against the clock
Hotel conversions race against the clock
Clay Grubb (Glen Lennox, Getty)
Grubb Properties tests affordable housing model in NYC
Grubb Properties tests affordable housing model in NYC
Layer by layer, 3D-printed housing community rises in Mexico
Layer by layer, 3D-printed housing community rises in Mexico
Layer by layer, 3D-printed housing community rises in Mexico
arrow_forward_ios

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

Loading...