Q&A
HPD's plans for new affordable homeownership programs
0:51:56
·
4 min
Deputy Commissioner Kim Darga and First Deputy Commissioner Ahmed Tagani discuss HPD's plans and initiatives to support the development of affordable homeownership.
- Expansion of existing programs like Home Fix and ADU Plus One
- Advocacy for reforms to tax incentives (e.g., 421a) to better support homeownership
- Exploring potential use of zoning incentives like Mandatory Inclusionary Housing
- Experimenting with the Zombie Home Initiative to convert parcels to affordable homeownership
Adrienne E. Adams
0:51:56
Okay.
0:51:57
Thank you.
0:51:57
I I think that both of you have have probably answered the next question that I have already, but we'll we'll just get it out there on the record.
0:52:05
Considering everything that you said, the 3 pronged approach and everything else, does HPD have any plans to create any new programs to support development of affordable homeownership?
Kim Darga
0:52:16
So we've actually they're I know the numbers don't necessarily reflect this the last couple of years.
0:52:22
Right?
0:52:23
So 4% homeownership production, 8% homeownership production see low.
0:52:28
That's in part because, you know, we have kind of spikes at times on the preservation side where you may have a larger Mitchell llama that we're assisting.
0:52:39
The commitment, it's self is actually very significant.
0:52:44
So we have invested tremendous resources over the last couple of years and are continuing to invest resources in expansion on the prong to help retain and stabilize existing opportunities that exist.
0:53:02
So for example, today, we're relaunching home fix with the center for New York City Neighborhoods.
0:53:09
That's an additional $10,000,000 commitment, not on the capital side, but on the expense side of the budget.
0:53:15
So there are plenty of examples like that, the ADU plus 1 program where we've seen tremendous interest trying to expand technical and legal assistance for existing homeowners.
0:53:29
Think about estate planning and, you know, mitigating risk around defect.
0:53:36
We've been doing a lot of work to try to actually get ahead of some of the challenges that homeowners are facing.
0:53:43
We also on the creating new opportunity side to get to your question a little bit more directly.
0:53:50
We we did really advocate at the state level for reforms of 45 x in order to have it work better potentially for homeownership.
0:54:02
So 421A 16 overwhelmingly created affordable rental opportunities that's clearly important in New York City.
0:54:12
We didn't see a lot of use of option d, which allows for homeownership.
0:54:19
As part of the advocacy we did with the state legislature.
0:54:24
We asked for removal of the 35 unit cap.
0:54:28
We also asked that the the program being modified so that the assessed value limit is $89 a square foot now.
0:54:38
That also not that in does 2 things.
0:54:42
1, it hits and that's about the 40 percentile in assessed value in New York City.
0:54:49
So for lower cost markets.
0:54:51
It is actually viable.
0:54:53
And second of all, it's on a square footage basis so that we could actually incentivize larger units of homeownership.
0:55:01
In the past, it was just on a dwelling unit basis.
0:55:05
And we were seeing where there was homeownership produced.
0:55:09
It was smaller units that were being produced.
0:55:12
So we think that coupled with some of the zoning incentives, like mandatory inclusionary, which also allows homeownership if we move forward, when we move forward on city of yes, for housing opportunity, that also will provide flexibility both for rental and homeownership opportunities.
0:55:29
So we think that now that we have a tax incentive, that potentially will work without a lot of additional public subsidies that we may be able to create some lower cost homeownership in the city.
Ahmed Tagani
0:55:42
The only thing I would add is a a program at the Council Knowswell, which is the zombie home initiative something that we actually have seen expanded and improved with state advocacy.
0:55:52
We've been experimenting with using parcels in that program that come back and is under a greater state scrutiny that could possibly be reverted to affordable home ownership in the future.
0:56:04
And we've at least been able to move with 2 parcels and see that as a case study that we can look to expand with further funding in the future.
