Q&A
Financial requirements for implementing Intro 958
1:08:15
·
110 sec
Council Member Salamanca asks for specific financial details about implementing Intro 958, and HPD officials provide a detailed breakdown of the resources required.
- Last year, HPD financed 15,695 units, and to meet the 6% target under Intro 958, they would have needed to finance 942 units.
- The estimated cost to finance these additional units would have been $382 million, which is about 17% of HPD's capital budget for that year.
- HPD officials note that this is a resource-intensive goal, potentially requiring hard choices if the overall budget doesn't grow.
- They also highlight that construction costs are increasing rapidly, which could further increase the required funding in the future.
Rafael Salamanca, Jr.
1:08:15
Can you remind me of the dollar amount that you need, Zoom?
Kim Darga
1:08:18
So in order to like, last year, I you know, this is a little bit this is the tricky part.
1:08:23
Right?
1:08:23
So last year, we produce, we financed 15695 units.
1:08:31
There's a whole series of other housing that we provide financial assistance for through as of right programs, inclusionary housing, being one of them, 421a, going forward 45 x, that is not in that universe.
1:08:48
The financed universe was 15,695.
1:08:51
So last year, we would have had to finance 942 units in order to get to the 6%.
1:08:58
We would have needed $382,000,000 in order to do that.
1:09:05
So we do a portion of that work today.
1:09:09
Right?
1:09:13
And so last year, we financed 396 units.
1:09:17
I would have counted it it's more than double goal that we would need to get to.
1:09:25
And just for context, that's about 17% of the capital budget this year, right, for about 6% of the house So that's what I mean about being resource intensive and having to potentially make hard choices, especially if we didn't grow the pot.
Ahmed Tagani
1:09:42
And then the only things over the last couple of years, that's last year's numbers.
1:09:46
So if the environment continues to accelerate the way it has, and, you know, from talking to developers who are working in your communities as well, the costs have gone up usually faster and more quickly than they expect.
1:09:59
So we would have to continue to reevaluate.
1:10:02
That number would change unless the environment would cool down.
