Q&A
Impact of AMI changes on rent prices for delayed projects
2:11:41
·
84 sec
Council Member Salamanca highlights how delays in project closings lead to increases in rent prices due to annual AMI changes, potentially doubling initial rent estimates. Commissioner Carrión explains that projects are revisited multiple times to ensure appropriate affordability.
- Projects approved years ago may see significant rent increases due to AMI changes by the time they close
- This discrepancy affects what was initially negotiated and presented to community boards
- HPD iteratively reviews projects with developers and local officials to ensure affordability aligns with community needs
Rafael Salamanca, Jr.
2:11:41
Alright.
2:11:41
Well, commissioner, you know, I'm I'm gonna go on to my next line of questioning, but just wanna point out.
2:11:47
When we in the council approve a a U Alert, and we negotiate a project, an affordable housing project with HPD.
2:11:54
I'm gonna use a year, 20, let's say, 2017.
2:11:57
And we set the AMI structure depending on your income.
2:12:01
That's how it determines your rent.
2:12:04
Well, there are projects that still have not closed, and it's 2024.
2:12:08
Every year, the AMI changes, and meaning that the your rent is much higher.
2:12:14
And so a project that I negotiated, and I went to my community board in 2017, and I'm saying, hey, your rent's gonna be 800 bucks.
2:12:20
Years later, that $800 rent could be 12, 13, $1600.
2:12:25
And so, you know, it's important that HVD expedite these closing of these projects because what we're actually negotiating is not really the outcome of that project when we're talking about rents that New Yorkers are paying.
Adolfo Carrión Jr.
2:12:36
And just to address the adjustments that are made over time, these are live projects.
2:12:43
And the financing is revisited many, many times to ensure that we reach the affordability price point and mix that's necessary for that immediate area.
2:12:55
So it is iterative in the sense that we're always going back and forth with the developers and with local elected officials to ensure that it works for the host community.
