Agency Expected to Vote on City’s First Housing Development Project Backed by 9/11 Resources
Group Urges Board to Postpone Vote Until They Receive a Response From LMDC Regarding Request For Additional Grants to Create Affordable Units
What: The board of HDC is expected to vote today on a proposed Federally subsidized luxury housing project in Lower Manhattan
Why: Despite the city’s affordable housing crisis and Mayor Bloomberg’s promise to include mixed income housing in the rebuilding of Lower Manhattan, all 386 apartments at the proposed project (90 Washington Street) would rent at market rates. This is the first project to be voted on by the HDC board that is financed with Liberty Bonds. In order to deepen the subsidy so that affordable rents could be included, the city has requested cash grants (in the form of Community Development Block Grants) from the Lower Manhattan Development Corporation (LMDC). However, as stated at an HDC public hearing last month, the LMDC has yet to respond to the city’s request. Without additional subsidy, the city claims, Liberty Bond projects will not include any affordable units.
Background: In March of 2002, President Bush approved $8 billion worth of Private Activity Bonds, a.k.a. Liberty Bonds, for New York City after the September 11th terrorist attacks. The total allocation for residential rental property is $1.6 billion, split evenly between the Governor and the Mayor. To learn more about the Liberty Bond Housing Coalition, the proposed project by the Mayor (including his plan to generate $9 million from fees from Liberty Bonds for housing outside Lower Manhattan) or the history of Liberty Bonds, visit www.reconstructionwatch.net.
To learn more about Good Jobs New York, visit www.goodjobsny.org
# # #