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December 24, 2008
Details on AY housing point to 80/20 rentals, not condos, in a smaller Phase 1
Atlantic Yards Report
As far back as May, developer Forest City Ratner was planning to convert at least one of the first three residential towers on the Atlantic Yards arena block from condos to rental housing, a recognition of the tough lending and consumer market for condos--and of the opportunities in gaining tax-exempt financing.
That's the indication from a fact sheet prepared (but not actively distributed) to accompany the release in May of new designs for the arena block, as well as from news emanating from a meeting Monday between local officials and the Empire State Development Corporation.
The fact sheet stated that the first of the three residential buildings, the 34-story, 350-unit B2 (in red), would have 50% affordable housing--and thus participate in the New York City Housing Development Corporation's (NYC HDC) 50/30/20 program, involving 50% market rate, 30% subsidized for middle- and moderate-income households, and 20% subsidized for low-income households.
The fact sheet said nothing specific about the contours of the affordable housing for the other two buildings, known as B3 and B4 (the office tower known as B1, at left, is on indefinite hold as the developer searches for an anchor tenant), but it did state:
These buildings will all include significant amounts of affordable housing and, like B2, will also require securing tax-exempt bonds from the City and State.
(Emphasis added)The New York State Housing Finance Agency (HFA) does not support 50/30/20 programs, but rather 80/20 programs, with 20% low-income housing and 80% market-rate rentals, as at the developer's 80 DeKalb Avenue project.
So B4, which at one point was to be more than twice as big as the first two buildings combined, would be an 80/20 building, according to reports I got from the meeting Monday.
Posted by eric at December 24, 2008 9:44 AM