AGENCY TESTIMONY
Response to Intro 958 and concerns about rigid requirements
0:31:53
·
103 sec
Deputy Commissioner Darga addresses Intro 958, expressing support for its goals while raising concerns about the proposed rigid requirements and their potential impact on HPD's ability to address housing needs effectively.
- HPD supports the goal of Intro 958 to support homeownership
- Concerns about rigid pipeline requirements limiting HPD's ability to maximize resources efficiently
- Potential forced deprioritization of affordable rental housing or preservation of existing properties
- Challenges in managing requirements across different lending environments and market conditions
Kim Darga
0:31:53
In regard to the legislation being heard today, HPD supports the goal of intro 958 to support homeownership as evidenced by our 3 pronged strategy.
0:32:03
We also need to balance the impact that the proposed requirements would have on our resources and our ability to create and preserve as much affordable housing as possible given the number of New Yorkers in need.
0:32:17
Rigid pipeline requirements would limit HPD's ability to maximize our resources in each closing cycle as effectively and efficiently as possible, and even potentially result in money or projects left on the table.
0:32:32
Meeting this target may force HPD to deprioritize construction of new affordable rental housing or the preservation of affordable rental and home ownership properties, including 1 to 4 family homes, HDFC cooperatives, and mental trauma cooperatives.
0:32:49
Further, a rigid homeownership requirement will make difficult to manage across different sorry, will be difficult to manage across different lending environments.
0:33:00
High interest rates and more restrictive lending practices can at times impact interest within the market to finance home to in financing homeownership, as well as low and moderate income New Yorkers ability to get the financing nest necessary to participate in HPD's homeownership programs.
0:33:18
High interest rates, for example, make mortgage payments more expensive, putting homeownership out of reach, or requiring significantly more HPD subsidy per home ownership unit.
0:33:28
These national and even global trends can impact our ability to meet restrictive homeownership production requirements year over year.
