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Q&A
Explanation of lack of public subsidy for the project
0:33:28
·
79 sec
David Rosenberg explains that current HPD and HDC term sheets do not have room to fund mixed-income developments like this project. The city's funding pipeline for subsidized housing is about 5-6 years out, which is not feasible for private developers due to carrying costs.
- Current term sheets don't support mixed-income developments
- City's funding pipeline is 5-6 years out
- Project aims to be union-built, financed, and operated without public subsidy
David Rosenberg
0:33:28
Correct.
0:33:28
The current HPD and HDC term sheets do not have room to fund any kind of mixed income developments.
0:33:37
There's one mixed income, which is kind of a pilot program that's for smaller projects than this.
0:33:43
Those are the existing term sheets.
0:33:45
And I think also with this, we were told that right now, h that the city has about 1300 or so units of 100% affordable developments that are in the EUO pipeline.
0:33:58
But HPD's funding pipeline for their support for the subsidized housing is about 5, 6 years out to be able to close.
0:34:06
So even stuff that the council is voting on in the coming months is not gonna be able to be funded by the city for 5, 6 years, and that with the carrying costs that we have because as private developers, it's just not even if the term sheet were there, a 5, 6 year timeline would not be feasible.
William Wallace IV
0:34:22
And I think the city has decided as a matter of policy to only fund 100 percent nonunion built affordable housing.
0:34:31
And that's something that we didn't want to do, wanted to have a mixed income, and we wanna have a union BFO, union built, Union financed, union operated for the first time to have a template that we can duplicate in the city moving forward.