Q&A
Factors enabling deeper affordability in some Open Door developments
0:43:13
·
140 sec
Deputy Commissioner Kim Darga explains the factors that enable HPD to reach deeper levels of affordability in some Open Door developments.
- New affordable homeownership opportunities generally target 80-120% of area median income (AMI)
- Factors enabling deeper affordability include:
- Low-cost mortgage products (previously offered by partners like Habitat for Humanity)
- Additional funding from city council or borough presidents
- Inclusion of non-city funding, including state funds
- Developer equity contributions
- Lower acquisition and land costs
Adrienne E. Adams
0:43:13
Okay.
0:43:15
We've seen some open door developments able to reach deeper levels of affordability, which we've been speaking about, such as those proposed by Habitat for Humanity.
0:43:23
Mhmm.
0:43:24
What are the tools or factors that enable the HPD to reach those deeper levels of affordability?
Kim Darga
0:43:30
So there are a couple of factors, I would first say so in general, the new affordable home ownership opportunities that we're creating by financing real estate, we are targeting between 80a120 percent of area median income.
0:43:51
We have occasionally had some units priced lower than that.
0:43:54
And, again, that's in part based on the market local market conditions.
0:44:01
We and then, of course, in partnership with Habitat, we've been able to do that in part because they had a low cost mortgage product that they were able to offer that brought the the cost of financing down for homeowners.
0:44:20
That product is no longer available.
0:44:24
So I think we can make it more viable without driving the public investment cost up, without driving the subsidy up dramatically is certainly where there's commitment from city council or borough president to investors away, right, that can help inclusion of non sitting funding, including state funds.
0:44:47
So right now, New York State does have about 400,000,000 that is available for the affordable home ownership opportunities program.
Yoselin Genao-Estrella
0:44:57
Yeah.
Kim Darga
0:44:58
A portion of that will be available within New York City.
0:45:01
And so that certainly can help.
0:45:05
Some project is there's a possibility of contribution of developer equity by the developer that in part depends on the sales prices and other economics of the project.
0:45:18
And then, of course, lower acquisition and land cost can make that viable too.
0:45:23
The higher the construction and land cost, the harder it is, for us to bring the sales prices down without really having a very high subsidy made.
