The mayor said the program was created in response to the housing needs and is a part of an overall housing plan that aims to foster mixed-income communities, transform derelict former industrial areas and encourage the development of new housing and investment in the existing housing stock. It is anticipated that the initiative will create up to 10,000 units of affordable housing on cleaned-up brownfields throughout the city over the next five years. These sites can be difficult to develop because of potential environmental contamination or the perception of such given prior use which makes it difficult for developers to obtain private financing.

Many agree that a public/private partnership is the way to go toward making this program effective. "A partnership is absolutely what is necessary," says Thomas Osterman, an executive vice president of Sterling Equities Inc. and one of the general partners of the Sterling American Funds. For Sterling, he has overseen the development and construction of commercial and residential properties in the New York metropolitan area. "It's refreshing to hear someone talk about affordable housing. It's such a critical need," he says, adding that as much as 25% of city residents have critical housing problems--meaning 50% of their income goes toward housing.

"I've seen plenty of promises from politicians, but this seems to have substance," says Jim Gray, vice president of National Cooperative Bank's Development Corp., which has a program, "Together We Can," which tries to increase home ownership opportunities. He looks forward to working with the city in this initiative.

"It's particularly smart and fills a gap," says Richard Bassuk, principal of the Singer and Bassuk Organization, a mortgage brokerage and real estate advisory firm, adding that the fact that initiative keyed in on housing in Lower Manhattan will be a major factor in its success. "It could be part of a terrific revitalization." Bassuk heads and is responsible for all Liberty Bond and 80/20 financing at the firm. In total, 10,000 units are expected in Lower Manhattan.

Other aspects of the plan include creating an estimated 66,950 full-time construction and construction-related jobs, increasing homeownership opportunities, expanding special needs and housing for the homeless and protecting Mitchell-Lama residents from large rent increases and eviction.

Progress was also made on a separate $3-billion plan to create and preserve more than 65,000 homes and apartments citywide over the next five years. To date, 10,197 units are already in the development pipeline with 8,549 and 13,250 units projected in the second and third years.

Instant Insights /

$200M Public/Private Affordable Housing Initiative Launched

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