powerpoint presentation · rate loans . lihtc . property tax incentives . direct rental subsidy ....

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Over the last 60 years, the federal, state, and city governments have subsidized over

250,000 units of privately-owned, affordable rental housing in New York City

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Affordable housing is threatened in two ways

• If the operating revenue does not cover operating costs and capital improvements, and reserves are inadequate, the physical condition of the properties could deteriorate. Bringing these properties back into healthy condition could require additional government subsidy.

• When affordability restrictions expire, owners can either – Convert the units to market rate – Extend the affordability restrictions in exchange for a new or

renewed subsidy – Sell the property to a new owner

In the ten-year period between 2002 and 2011,

30,000 units opted out of all subsidy programs and converted to market rate.

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29.0%

23.7% 20.9%

0%

10%

20%

30%

Extended AffordabilityRestrictions

Opted Out New York City

Poverty rate of neighborhoods surrounding subsidized housing, 2011

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10.7

8.1

4.7

0

2

4

6

8

10

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Extended AffordabilityRestrictions

Opted Out New York City

Violent crime rate of neighborhoods surrounding subsidized housing, 2011

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54.5% 58.3%

62.3%

0%

20%

40%

60%

80%

Extended AffordabilityRestrictions

Opted Out New York City

Share of 4th grade students in the zoned public school that are proficient in math, 2011

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57.0%

77.5% 69.9%

0%

20%

40%

60%

80%

Extended AffordabilityRestrictions

Opted Out New York City

Share of units within ½ mile of a subway station entrance

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$1,706

$2,100

$2,658

$0

$1,000

$2,000

$3,000

Extended AffordabilityRestrictions

Opted Out New York City

Median asking rent in the zip code, 2012

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Four types of tools are available to finance preservation of subsidized, affordable housing

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Four types of tools are available to finance preservation of subsidized, affordable housing

CITY STATE FEDERAL

LOW-INTEREST RATE LOANS

Tax Exempt Bonds City Capital $

Tax Exempt Bonds State Capital $

FHA

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Four types of tools are available to finance preservation of subsidized, affordable housing

CITY STATE FEDERAL

LOW-INTEREST RATE LOANS

Tax Exempt Bonds City Capital $

Tax Exempt Bonds State Capital $

FHA

LIHTC 4% Tax Credits Administering Administering

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Four types of tools are available to finance preservation of subsidized, affordable housing

CITY STATE FEDERAL

LOW-INTEREST RATE LOANS

LIHTC

DIRECT RENTAL SUBSIDY

Tax Exempt Bonds City Capital $

Tax Exempt Bonds State Capital $

FHA

4% Tax Credits Administering

Section 8 Mark-Up-To-Market

Administering

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Four types of tools are available to finance preservation of subsidized, affordable housing

CITY STATE FEDERAL

LOW-INTEREST RATE LOANS

LIHTC

PROPERTY TAX INCENTIVES

DIRECT RENTAL SUBSIDY

Tax Exempt Bonds City Capital $

Tax Exempt Bonds State Capital $

FHA

4% Tax Credits

420c Article XI

J-51

Administering

Section 8 Mark-Up-To-Market

Administering

About 50,000 units will reach the expiration date of their subsidy restrictions in the next ten years.

How can the city and state preserve more affordable units – and to what degree should they prioritize units in high-opportunity, high-cost neighborhoods.

About 50,000 units will reach the expiration date of their subsidy restrictions in the next ten years.

How can the city and state preserve more affordable units? To what degree should they prioritize units in high-opportunity, high-cost neighborhoods?

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