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August 21, 2008
The reality behind FCR's 80 DeKalb deal (and the implication for AY)
Atlantic Yards Report
Norman Oder posits that the stories being written about Forest City Ratner's 80 DeKalb financing are missing the real story.
The FCR project, along with three others, was selected among 14 projects for the state agency's bonds, because "we view [the 80 DeKalb project] as an efficient use of a scarce resource," said Priscilla Almodovar, President and Chief Executive Officer of HFA. "[T]he developer agreed to limit its allocation to $1.5 million per low-income unit--lower than our $1.7 million ceiling--and agreed to permanent affordability for its low-income units rather than for just 30 years.
...The larger question is whether a similar fate awaits Atlantic Yards. Though the financing of Atlantic Yards remains murky, it's reasonable to speculate that, given the significant amount of subsidies and tax breaks for Atlantic Yards, plus the advantage of eminent domain, Forest City Ratner may be able to successfully compete for the scarce pool of tax exempt bonds offered by the city Housing Development Corporation by asking for somewhat less per unit than other 50/30/20 projects that include 50% market-rate units, 30% middle-income units, and 20% low-income units.
And that's an argument for a full accounting of subsidies and public costs for AY, before such a decision is made.
NoLandGrab: As usual, Oder offers up some helpful background, elucidates the subsidies, and wraps it all up in the context of Atlantic Yards.
Posted by eric at August 21, 2008 11:11 AM