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Explanation of lack of public subsidy for the project

0:33:28

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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.

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Alternative development scenarios without rezoning approval

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Comparison of unit numbers in different zoning scenarios