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September 6, 2007

“Affordable” studio would cost more (per square foot) than market-rate studio

Atlantic Yards Report

This is another Norman "The Mad Overkiller" Oder must-read.

In a nutshell, in the top tier of Bruce Ratner's "affordable" housing plan, a studio apartment is more expensive per-square-foot than a market-rate studio:

The fine print--and it is fine--in the Atlantic Yards Financial Projections document unearthed in the lawsuit by Assemblyman Jim Brennan and State Senator Velmanette Montgomery suggests something quite curious: affordable middle-income studio apartments in the Atlantic Yards project would cost more per square foot ($55.83) than market-rate studios ($51.62) in the same building.

The document projects that phenomenon in every rental building. The market-rate units would still cost a bit more on a monthly basis, $2151 vs. $1861, but that’s because they’d be 500 square feet, as opposed to 400 square feet.
Not all this is new. The projected monthly rents were revealed last year in the developer's housing chart and the size of the affordable apartments, governed by a New York City Housing Development Corporation (NYC HDC) program, was also publicized last year.

But the cost per square foot was not discussed until this document surfaced. Most crucially, the developer had not announced the projected costs and sizes of the market-rate apartments.

The laddering among the affordable units is apparently not triggered by the developer but by the NYC HDC , which would authorize bonds for the market and affordable rental housing.


NoLandGrab: Is the fact that NYC's Housing Development Corporation will be issuing bonds for financing "affordable" units that are predicted to cost more per square foot than market-rate units offensive to anyone other than Atlantic Yards freaks and geeks?

Posted by lumi at September 6, 2007 9:22 AM