Q&A
Consideration of 100% affordable housing and financing options
2:46:28
ยท
89 sec
The project team explains why a 100% affordable housing development was not feasible for the Arrow Linen site, citing long public financing pipelines and the benefits of the MIH program for cross-subsidizing affordable units. The possibility of financing one building as 100% affordable is also discussed.
- Public financing for 100% affordable housing has a long pipeline, making it unfeasible for this project
- The MIH program allows for quicker production of affordable units through private financing
- Financing one building as 100% affordable faces similar timeline concerns
Nora Martins
2:46:28
we did review and engaged an affordable housing consultant to take a look at along with, you know, our experience with affordable housing development, which our firm does a lot of work in that space.
2:46:40
Unfortunately, right now, the pipeline for public financing for a 100% affordable housing development is quite long.
2:46:48
This is a big site.
2:46:49
It would be a large financing, a large use of public resources.
2:46:53
And this neighborhood and this kind of site is exactly why the MIH program was created.
2:46:59
It's an area where market rate housing can cross subsidize permanently affordable housing that is privately financed, does not use city resources, and does allow for production of those affordable units far more quickly than if they were 100% publicly financed.
Shahana K. Hanif
2:47:19
Fine.
2:47:20
So have you, discussed the possibility of financing 1 of the 2 buildings as a 100% affordable new construction project with HPD?
Nora Martins
2:47:30
We have looked into that.
2:47:31
Again, it's the same it's the same concern, even though it would be smaller and less units.
2:47:35
Again, the pipeline is just very long, and the applicant can't finance one building and start construction and then have to wait 5 years on the other portion of the site.
2:47:45
And then whilst trying to relocate the operations of the facility.
Shahana K. Hanif
2:47:49
And so this is, just to make sure we have this on the record, the concern is mainly about the timeline?
Nora Martins
2:47:57
Yes.
2:47:57
Yes.