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Judd Levy, New Chairman of the N.Y. State Housing Finance and Mortgage Agencies, Discusses N.Y.'s Commitment to Affordable Housing PreservationReturn to the main Public Policy page
New York State’s position in support of preserving the affordability of Starrett City demonstrates that preservation is a core component of our affordable housing policy. While investment in new affordable housing is necessary, affordable housing preservation is a cost effective way to leverage the decades of federal, state and local investment in housing to provide affordable housing for the twenty-first century. Preserving existing affordable housing both ensures that the current residents keep their quality, affordable housing and guarantees that future generations of New Yorkers will benefit from the affordable housing opportunities created by this investment. New York reserves a certain portion of bond proceeds to preserve and rehabilitate affordable housing under the Housing Opportunity and Preservation for the Empire State (HOPES) program. How many affordable apartments are preserved annually under this program? Do only subsidized properties qualify, or can unsubsidized properties qualify as well? Are there any plans to expand this program in the near future? From 2001 through 2006, the HOPES program preserved approximately 4,000 units of affordable housing statewide. Due to Governor Spitzer’s renewed emphasis on preservation, the program has expanded to add more than 6,000 units to its pipeline since the beginning of this year, and is continuing to recruit more. We are looking for projects that have never received subsidies before, as well as projects in all of New York’s many portfolios of state financed affordable housing. This includes senior housing projects, section 202 projects, section 8 projects, section 236 decouplings, and state financed Mitchell-Lama projects. Considering the importance of preservation in solving New York’s affordable housing crisis, what else are you planning as Chairman of the NY state HFA to safeguard the State of New York’s affordable housing stock? We are working with the Governor and several of our fellow state agencies to create a unified state Mitchell-Lama Preservation Program that will offer these properties low-cost rehabilitation financing and ensure 40 additional years of affordability. In total, New York State has approximately 200 Mitchell-Lama projects that, until now, have been maintained in various agencies’ portfolios, including HFA and ESDC. This new unified Mitchell-Lama Preservation Program will provide a single powerful point of access for the state’s preservation programs. HFA is already refinancing 14 of these Mitchell-Lama projects and is working with the owners of an additional 17 projects to determine their refinancing and rehabilitation needs. HFA has initially set aside $124.8 million in volume cap for preservation and is grateful to have received an additional $50 million in preservation subsidies from the state legislature. Prior to joining the HFA, you founded The Community Development Trust (CDT)- the nation’s only real estate investment trust dedicated to affordable housing- which has successfully preserved thousands of affordable units throughout the country. What role does CDT play in the preservation of affordable housing? CDT makes direct equity investments in affordable housing properties with the intent to hold these acquisitions for the long term. CDT acquires existing Section 8 and LIHTC properties as well as “market affordable” properties. By restricting rent increases, CDT maintains and preserves these assets as affordable rental properties. CDT currently owns 18 properties representing over 5,000 units
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The potential
loss of Starrett City in Brooklyn has galvanized local, state, and federal
policymakers. What does your position on Starrett City say about the
importance of affordable housing preservation in New York?