A $20 million pilot program designed to turn unsold condominiums and stalled residential construction sites into as many as 400 affordable housing units for moderate- and middle-income families was unveiled today by city officials.
Under the Housing Asset Renewal Program, officials will seek to wring some good out of the current building bust by working with developers and banks to bring the cost of apartments in selected projects to below market rates.
Officials said the program will simultaneously create affordable housing and help to prevent a 1970s-like situation where vacant buildings and lots led to deteriorating conditions in many of the city’s neighborhoods. The program will largely focus on neighborhoods outside of Manhattan and will target small to mid-size developers.
And from GothamWars on Room Eight:
Deputy Mayor Slush Fund Queen Christine C. Quinn and king Michael R. Bloomberg today announced a $20 million commitment to fund a pilot program that will turn unsold condominiums, market-rate rental buildings and stalled construction sites into affordable housing opportunities for moderate and middle-income families.
First, that the city will overpay for the condos, making this into a developer bailout program.
And second, that too much scarce affordable housing funding will be diverted from the low-income people who need assistance most to higher-income people who can afford the subisidized condos.
Even if the condos are rented to homeless, the city is paying about 2,700 a month for each apartment such as in Crown Heights luxury condos. What an ineffective use of scarce resources when 2,700 dollars can house more than one family. This plan is to bail out Bloomberg's rich friends.
It is shame both Bloomberg and Quinn keep giving our money to the rich with tax breaks and interest-free loans and now even bailing them out. Yet they did nothing for those homeowners who were foreclosed and homeless.
And to all those supporters of Mike, you are a sell-out to your community. Shame on you to sell out for money and undo all the years of blood and sweat of activists who fought to put you where you stand. shame on all of you.
Photo from the Daily News