Can Affordable Housing Be Affordable for Landlords, Too?
In their worst moments, current landlords and aspiring real estate investors sound like supervillains in a movie where the protagonist’s goal is to stop a run-down New York City tenement building, the only home he has ever known, from being destroyed to make room for a Pilates studio and a dog park. If you doubt tis, talk about your company’s finances with a coworker and then, afterwards, replay the conversation in your mind and behold as an earworm from Rent or “Big Yellow Taxi” (the Joni Mitchell version is fine if you are so old that you have never had a .edu email address, but in all honesty, the Counting Crows version has more pathos) invites itself into your eardrums. When anyone chooses a profession, earning money is at least one of the goals, if not the only one, but if you own rental units, it is hard not to notice that the number of people who can afford your product is getting smaller and smaller. Therefore, local governments, especially in prohibitively expensive cities like New York, offer financial incentives to landlords and real estate developers to build and maintain rental units that local residents can afford. To find out more about the nuts and bolts of being an affordable housing landlord, contact a Bronx real estate attorney.
Public Private Partnership Promises to Bring Hundreds of Affordable Housing Units to the Bronx
In one of the most expensive cities in the world, affordable housing is essential to the city’s survival. A new housing development called Stevenson Square is in the works for the Soundview neighborhood in the Bronx. The project has a total budget of $1 billion, but construction will take place in several phases. Some of the units are rental units reserved for people aged 55 and older whose income does not exceed 50 percent of the area median, which, in the Bronx, means just over $56,000 for a couple. A subset of the senior living units will be for seniors who have been homeless at some point in their lives.
The other units will be sold to residents as part of New York City’s affordable homeownership program. Eligible buyers must have a household income between 70 and 80 percent of the area median. The sale price for a one-bedroom unit will be $174,000; units with two and three bedrooms will also be priced to be affordable to buyers in the same income bracket. Financing for the project takes the form of a public private partnership, with the local government subsidizing the costs. Recently, Camber Property Group, one of the developers involved in the project, received a $125 million toward the construction of the units.
Schedule a Confidential Consultation With a Bronx Real Estate Attorney
A real estate lawyer can help you make wise decisions about participating in projects designed to provide affordable housing for tenants and home buyers. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
crainsnewyork.com/real-estate/camber-property-group-lands-125m-financing-stevenson-square-bronx
