Annual Report 2010Annual Report 2010

New York City is a city of renters.

For the most part, the more than eight million residents of the five boroughs don’t own their homes, they rent. Around seventy percent of us pay rent monthly.

The City’s landlords and tenants in New York share a special relationship, as do the City’s Housing Development Corporation (HDC) and sister agency the Department of Housing Preservation and Development (HPD). Together, HDC and HPD play an active role in ensuring that the hundreds of thousands of rental units remain habitable, safe and sustainable housing. By the end of 2010, under Mayor Michael R. Bloomberg’s New Housing Marketplace Plan (NHMP) to finance the creation and/or preservation of 165,000 affordable units by the close of the 2014 fiscal year, HDC had issued more than $8 billion in bonds and had devoted more than $1 billion in cash subsidy to fund nearly 50,000 of the more than 111,000 units already completed or under construction. In the 2010 calendar year alone, HDC and HPD funded 12,184 units for low-, moderate-, and middle-income New Yorkers—8,812 preserved and 3,372 newly constructed—creating thousands of construction and construction-relate d jobs along the way.

The preservation and creation of the City’s affordable housing stock is critical to the health and economic growth of the City itself. In this report we will be providing some insight into the types of preservation projects we undertake and we hope that you come away with a sense of the philosophy that drives us in this effort.

Every building is someone’s home and part of the fabric of our neighborhoods. Our goal is creating affordable housing and preserving the City’s diverse neighborhoods as great places in which to live.

In 2010, the financial markets continued their tumultuous ride, but the NHMP forged ahead. One of the strengths of the NHMP is that it is about the market in New York City: crafted to be responsive and flexible, and easily redirected to respond to the real needs created by the marketplace. In this ongoing financial crisis, when many families and apartment building owners are facing increased economic challenges, HDC has strengthened its focus on preservation and sustainability; the tenants get the stability they need and the owners or developers gain access to low-cost capital to make essential repairs and improvements that keep these buildings well-maintained, affordable and economically sustainable now and over the long run.

By the close of 2010, our heightened focus on aggressively pursuing more and bigger, strategic preservation opportunities was paying off for the City. HDC and HPD locked in affordability over the long term by reinvesting in developments that were originally financed by municipal, state or federal programs: Mitchell-Lamas and HUD 202s for example; providing financing for green retrofit; and offering innovative financial products that will allow new, responsible ownership to step in and rescue financially and physically distressed properties from continued decline.

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In the pages that follow you can read about the federalization of 20,139 units of New York City Housing Authority (NYCHA) public housing and how this helped close NYCHA’s $70 million annual budget gap; how HDC worked to refinance two very different Mitchell-Lama properties, funding essential system-wide improvements and replacements while ensuring that they would remain affordable for many more years to come; the rescue of the Ocelot portfolio from financial and physical disaster; and the renovation and green rebirth of an entire block in Central Harlem.

We hope you’ll find this report informative and welcome any comments you have about the City’s efforts to preserve and expand its supply of affordable housing and strengthen its many wonderful neighborhoods.

 

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