Q&A
Affordability protections and options for tenants and homeowners in ADU program
0:36:20
·
4 min
Council Member Pierina Sanchez inquires about affordability protections for tenants in ADUs and basement apartments, particularly those who may need to temporarily vacate during conversions. Kim Darga, Deputy Commissioner for Development at HPD, responds by explaining the challenges in balancing feasibility for homeowners with tenant protections.
- Darga emphasizes the priority of making ADU creation possible for owners while ensuring safety
- The basement temporary status program allows evicted tenants the option to return after renovations
- The Plus 1 ADU program offers homeowners choices between cheaper financing with unit restrictions or less cheap financing without restrictions
- Darga notes the tension between creating restricted affordable units and improving homeowners' financial viability, especially for low-income homeowners
Pierina Sanchez
0:36:20
So, my next question is on affordability protections.
0:36:23
Right?
0:36:24
We're we're talking about ADUs, and you you and I both, framed similarly that accessory dwelling units can can be helpful, as meeting a part of the housing crisis that we have.
0:36:36
Jumani, the public advocate just mentioned, that many advocates have have estimated an an estimated 400,000 New Yorkers that live in basement apartments now, and, they live there today.
0:36:48
So for for tenants who may need to temporarily vacate a basement unit that is being converted or an ADU, whatever their circumstance, what are the rent protections, that are on the table for for residents either in the pilot programs that, that you have described or moving forward?
0:37:06
What is the city considering in terms of protecting residents from displacement and from, very big increases in their rents?
Kim Darga
0:37:14
Yeah.
0:37:14
That's actually it's an interesting question.
0:37:18
This is one area where, you know, working in in, public policy and trying to figure out the right path, I think it's more difficult.
0:37:27
Right?
0:37:28
I run programs that finance affordable housing.
0:37:31
That's what I do as a living.
0:37:34
And, there are times when we have to make choices.
0:37:37
And I think this is one of those times.
0:37:39
We just talked about a few minutes ago that, right now, the barriers to owners in doing this work are extremely significant.
0:37:50
If we don't make this possible for owners, it will not happen, and we will not create safer spaces for tenants to live.
0:37:58
So our first priority here is to make sure that owners have the option, that we are balancing feasibility and safety within the codes, and, that we can create a path for people to bring ADUs out of the shadows.
0:38:19
So that's our first priority.
0:38:22
For the basement temporary status program that was authorized by state law and that we had authorized in New York City through the legislation that we are looking at today, the basement or seller apartments, that have a resident there and at the point in time the law was enacted and that where that tenant is evicted or removed because of the renovations, that tenant has the ability to return to the unit.
0:38:58
Their choice to return.
0:39:02
So the point here is not to remove folks.
0:39:05
Right?
0:39:06
It's to give them a choice to stay, but to stay in a safer home.
0:39:10
As part of the Plus 1 ADU program, we actually are experimenting with this very question.
0:39:18
We actually have 2 options for homeowners.
0:39:22
So owners can choose to have, basically cheaper, financing if they agree to a restriction on the new ADU unit, or are they gonna choose to have, still pretty cheap, but less cheap financing, and not have a restriction on the unit.
0:39:45
And the reason we've done that is because we are working with so many different types of owners.
0:39:51
And what we've learned from, the Basement Pilot and the, Plus 1 ADU pilot, most of the homeowners that are coming to us are themselves low income and that adding an ADU is a way for them to improve their family's financial security.
0:40:09
So there is actually some tension between creating a restricted affordable unit and improving the financial viability of the homeowner.
0:40:19
And so I'm gonna go back to we need to make sure that this is a, the regulatory structure set up here allows homeowners to make that choice.
0:40:30
And then it's our goal to provide financial assistance to homeowners that allows them to make a choice that makes the most sense for their family.
