Affordable Housing in CH Discussion

whynot_31

In addition to the prosecuting the landlord mentioned on Oct 8th, the Attorney General has now taken down its first "Tenant Relocator":

http://therealdeal.com/blog/2014/10/27/ag-puts-first-tenant-relocator-out-of-business/

The low hanging fruit is usually picked first.

Do we think the AG has the time and resources to get the other "fruit"?

southeast

Did anyone else see this?  "Affordable" - http://www.dnainfo.com/new-york/20150729/prospect-lefferts-gardens/studios-cost-1900-at-new-46-unit-affordable-building-crown-heights

There are definitely cheaper one bedrooms out there.  They may be in an older building which don't include all the amenities, but definitely much more affordable.  Calling this place affordable is a joke, and pretty much a lie.

Don't get me wrong, I am totally fine with market rate apartments.  Call it as it is...

whynot_31

If they call it market rate, DeBlasio doesn't get to count it toward the totals he is working toward.

Also note that the city's ability to make a developer abide by low rents is in direct relation to how much they give the developer. In this instance, only $2.9M changed hands.

"The project was reinvigorated four years later thanks to a $2.9 million subsidy from the Housing Asset Renewal Program, or HARP, meant to create middle-income housing from stalled condo developments, the report said."

southeast

So basically they got $2.9m to call a market rate apartment affordable. It's not like they could have gotten much more than what they are putting them on the market for currently.  Great business (on the developer's side).

whynot_31

Yup, that's the case in the short run.

However, the apartments have to remain rent stabilized for some period of time.

So, if the RGB continues to not authorize increases and the prices continue to escalate, the apartments could become affordable.

I'm interested in seeing how many people apply for the units.

southeast

I wouldn't apply.  Go next door, next block, or around the corner and get a at least 25% discount.  Not sure people are thinking long term, i.e., 10 years when it becomes affordable and they're already in.

whynot_31

HARP is an interesting in that it creates such apartments from stalled condos.

If I were mayor, I think I would use that $2.9M to subsidize said condos so middle income could OWN in the city.

...but clearly, I am not mayor and did not run on a platform that only measured me on how many RENTALS I created.

Hey Deblasio, thanks for the middle income rentals. However, helping amiddle class people to own units would allow them to build and create wealth.

....that would not only free them from the yearly RGB drama, but go a long way toward your utopian goals.

mugofmead111

Yup, that's the case in the short run.

However, the apartments have to remain rent stabilized for some period of time.

So, if the RGB continues to not authorize increases and the prices continue to escalate, the apartments could become affordable.

I'm interested in seeing how many people apply for the units.

From the DNA article:

"Monthly rent for a studio in the building is $1,909. A one-bedroom will cost $2,047 per month and a two-bedroom costs $2,465 per month, the listing said."

The rent for the 2 BR will creep toward that magical figure at which a unit comes out of stabilization soon enough.

whynot_31

shhhh. Don't tell the people that are so dumb they just count the total number of affordable units created.

DeBlasio has to fulfill their beliefs that he is changing the world! They think he can repeal the law of supply and demand.

whynot_31

@southeast
@mugofmead111

BTW, the deal with the developer of the above property stipulates that the rents be maintained for 30 years:

http://www.nydailynews.com/new-york/exclusive-odds-slim-finding-affordable-housing-ny-article-1.2312553?cid=bitly

I believe that means the apartments will subject to rent stabilization rules for 30 years, not the exact current rents.

ehgee

Inflation and wage growth seem like they've been low enough for long enough, and don't seem to be tending upward anytime soon, that those apartments will never become 'cheap' by any reasonable standard. Or even 'reasonably priced.'

whynot_31

If you elect me mayor, I will improve high school graduation rates by similar methods: I'll merely lower the graduation requirements.

mugofmead111

@southeast
@mugofmead111

BTW, the deal with the developer of the above property stipulates that the rents be maintained for 30 years:

http://www.nydailynews.com/new-york/exclusive-odds-slim-finding-affordable-housing-ny-article-1.2312553?cid=bitly

I believe that means the apartments will subject to rent stabilization rules for 30 years, not the exact current rents.

I was going to ask would the rent approach $2,699 - the (current) event horizon of rent stabilization?

whynot_31

In buildings that take tax abatements (ie the 80/20 programs) the units are subject to RS for the agreed upon time period.

http://www.nycrgb.org/html/resources/faq/421a-J51.html

I believe this acts in the same way.

So, the rents can only be increased if the increase conformed with existing RS rules;   RGB and  MCI increases are ok, but the units are still subject to overall framework of RS for 30 years.

Summary:   HPD and HCR employees will always exist.