Q&A
Delays in HPD financing and closing of approved housing projects
2:08:17
·
3 min
Council Member Salamanca raises concerns about significant delays in HPD financing and closing of approved housing projects, some waiting 4-6 years after rezoning approval. Commissioner Carrión explains the complexities of these projects and the steps being taken to address delays.
- HPD has 750 projects in the pipeline, with 300 being new construction
- The administration has invested nearly $20 billion over the next 10 years to accelerate the process
- Efforts to improve efficiency include hiring more project managers and temporary workers, and seeking help from federal partners
Rafael Salamanca, Jr.
2:08:17
Alright.
2:08:18
In terms of agency capacity, this is more towards HPT.
2:08:22
Mhmm.
2:08:22
There are sites in my district and in my colleague's districts as well.
2:08:26
That were approved for rezoning for an HPD term sheet development 4, 5, even 6 years ago that are still waiting for HPD financing to close.
2:08:36
Why is HPD years after year?
2:08:39
Why is HPD the late and disclosing of these units that we approved here in the council.
Adolfo Carrión Jr.
2:08:46
Thank you for your question.
2:08:47
And let me just go back one half step and say that This proposal creates that opportunity that I think those 10 districts are looking for, where you spread the development of affordable rentals around the city in a more fair way you it lives within this fair housing concept that people should have opportunity to move around, and it also creates an opportunity for for homeownership to to to take the place of those rental units that might be moving to other parts of the city.
2:09:26
The question about the delays in the projects, you all have heard me before say we have 750 projects in the pipeline, 300 of them our new construction.
2:09:39
A lot of those projects or a good number of them are the result of rezonings that occurred.
2:09:46
We were able to apply the mandatory inclusionary housing text in in those mappings.
2:09:53
Those are great opportunities.
2:09:57
These are complicated projects in a crowded field of projects supported by a huge mix of financing mechanisms that include all of the things that you are all familiar with loan and housing tax credits and city subsidy.
2:10:16
Obviously, this administration has invested nearly $20,000,000,000 over the next 10 years to try to move that process along.
2:10:25
What this does, it helps us to accelerate our work by simplifying the work that we do by streamlining some of the problems that exist currently in our system.
2:10:39
So it'll make for more efficient use of our staff time.
2:10:44
You know, we've struggled through the last few years.
2:10:47
Obviously, we've bounced back We were held exempt in in in our development office and in some of our, you know, legal, the attorneys to to not have to live up live by the peg that was imposed on us.
2:11:02
So we were able to keep hiring, and we've hired a core of project managers.
2:11:07
We've we've gone outside to hire temporary workers working with vendors to help us close the deals, and those deals have set record numbers.
2:11:19
It's still obviously not fast enough.
2:11:21
We need to help from our federal partners.
2:11:24
We need to lower the 50% test that you all are familiar with that would unleash more low income housing tax credits.
2:11:31
So it's a mix of efforts We're committed to moving these projects long, but inside the city of yes, context, this only helps.
