Q&A
Council Member Brewer questions affordability in HDFC program
1:02:00
·
161 sec
Council Member Gale A. Brewer raises concerns about the affordability of HDFC (Housing Development Fund Corporation) units, particularly regarding mortgages and maintenance costs. Commissioner Adolfo Carrión Jr. defends the program's structure, stating it's designed to maintain affordability for original shareholders.
- Brewer expresses skepticism about the long-term affordability of the program
- Carrión acknowledges challenges but asserts that HPD is addressing core issues
- Carrión accuses some groups of spreading misinformation about the program
Gale A. Brewer
1:02:00
Just picking up on the till question because I spent some time on that in the past.
1:02:05
So how do you make sure as you go through this that the individuals who are buying it for 25100 or 2 they aren't going to get stuck with a big mortgage.
1:02:14
Has that not been true in terms of the ones that have been converted?
1:02:18
You have to you have to deal with, you know, the mortgage is gonna be for the construction and, you know, whatever else gets You got a perhaps a private mortgage and perhaps a HPD.
1:02:30
And how does that keep the maintenance down?
Adolfo Carrión Jr.
1:02:33
Thank you.
1:02:33
Thank you, Colin.
Gale A. Brewer
1:02:33
People are concerned about unless why they're
Adolfo Carrión Jr.
1:02:35
Yeah.
Gale A. Brewer
1:02:36
Not moving forward.
Adolfo Carrión Jr.
1:02:38
Thank you.
1:02:38
Thank you, council member, for for the question.
1:02:41
And I know you you've been advocating on this for a long time.
1:02:45
Yeah.
1:02:47
The the commitment, the structure of the deals, is to maintain affordability, especially for the original shareholders who come in under that notion.
1:03:06
These have these are math These are math problems like any other real estate deal.
1:03:09
Right?
1:03:10
They have to work.
1:03:12
And so the deals are structured in a way where the buildings can assume to have income to cover all the costs for debt service and operating costs.
1:03:24
So that's the underlying assumption.
1:03:26
That's the structure of the deal, and and it maintains that integrity throughout its life.
Gale A. Brewer
1:03:33
Okay.
1:03:33
I mean, without getting into all the details, a lot of people don't agree with that.
1:03:36
And so you're gonna Yeah.
1:03:37
Continue to have these challenges.
1:03:39
And The vacant apartments get sold for a higher amount to be able to deal with the original.
1:03:45
But in my opinion, when you go down that road, you're going to end up with in the end, a non affordable future housing stock.
1:03:53
I'm just saying, the lease in Manhattan, because the higher I mean, I I'm shocked at who's buying some of these bacon units.
1:04:00
You know, brokers are moving them, not individuals who need them.
1:04:06
So I think you need to relook at this till this, I'm just saying.
Adolfo Carrión Jr.
1:04:09
We yeah.
1:04:10
And and as you heard deputy commissioner, Darga, say, you know, we addressed some of those core issues so that we can ensure affordability long term
Paula Segal
1:04:19
Okay.
Adolfo Carrión Jr.
1:04:20
For the shareholders.
1:04:20
We'll
Gale A. Brewer
1:04:21
see what Alicia thinks of it.
1:04:23
Palente, not happy still.
1:04:25
Okay.
1:04:26
No problem.
Adolfo Carrión Jr.
1:04:27
Well, I I'm gonna say it for the record, and I'll I'll poke the the the lion.
1:04:32
They have advanced misinformation about this program.
Gale A. Brewer
1:04:35
Okay.
Adolfo Carrión Jr.
1:04:36
We are trying to counter educate and counter inform and deal with that misinformation.