6. Affordable Housing Preservation
~ 1 million rent regulated units; 47% of all NYC rental housing
Over past 30 years, net loss of 231,000 regulated units
Stable, affordable
buildings directly affect
neighborhood outcomes
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7. Affordable Housing Preservation
~ 45,000 affordable housing units will reach the end of their
affordability requirements during next mayor’s first term
~ 170,000 more at risk by 2037
With federal involvement in
flux, NYC more reliant on
new and creative financing
strategies
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Notas del editor
Multifamily affordable housing preservation priorities rest on two major pillars.
First is preserving the housing that is integral to New York’s neighborhood fabric: the rental assets that already provide low cost housing solutions through rent stabilization.
The availability of this housing stock is steadily shrinking: in 1981, it represented 63% of all rental units, decreasing to 47% in 2011.
Because of their existing low rents, these buildings present a great opportunity to bring into long term affordability, by layering public and private financing with smart physical repairs.
Affordable housing developers are analyzing public databases, communicating with tenants, and working with local landlords to acquire and preserve these buildings.
Given the cost effectiveness of preservation, as well as the importance to community well-being of keeping families in their homes, the next administration should continue the significant strides that this one has in targeting resources to preservation.
While government involvement always takes affordability to the next level with 30+ years of affordability restrictions, there are also other opportunities to upgrade this housing without using limited public funds.
Rent stabilized housing operating at limited margins doesn’t always have access to favorable financing for capital upgrades.
We are working with private institutions to create opportunities for below-market financing with flexible terms to facilitate the renovation of privately-owned rent stabilized housing, incorporating green retrofit elements.
The second pillar of preservation in New York City is retaining the assets that the affordable housing community worked so hard to create over the past several decades.
According to the Furman Center, over 45,000 existing units of affordable housing will expire from their current affordability restrictions and require new subsidies to remain affordable during the next mayor’s first term.
