Potentially Costly Delays Caused by MOU & PACB Inaction
We are in our 9th month of inaction on theMemorandum of Understanding (MOU)to unlock nearly $2 Billion for a statewide affordable housing plan.This money remains unspent due to the failure of Albany leaders to come to agreement on a spending plan.Given the severity of our affordable housing crisis and federal spending cuts on the horizon, New Yorkers needs this MOU signed today!
Albany politics is also preventing the Public Authorities Control Board from approving $120 million in bonds for 5 projects creating 1000 units of affordable housing across NY State.In addition, another $200 million in bonds for NYCHA’s first Rental Assistance Demonstration (RAD) conversion is also in jeopardy.In NYC’s first RAD conversion, public housing tenants impacted in the Rockaways by Sandy are waiting for system replacement and resiliency work to provide working boilers, new roofs and other essential building updates.1400 apartments and 1000 jobs are on the line. Similar to the other affordable housing projects, tax credit investors are only holding pricing through December.In January, these projects will face fiscal uncertainty as lower tax credits rates will create financing gaps (see below for LIHTC pricing impact), project delays and ultimately a higher price tag for taxpayers.
Read more on the MOU in the Daily News this week and Crain’s, “Clock is Ticking on Vital Affordable-Housing Funds“. The Times Union reported on the push to approve bonds for languishing tax credit projects. Politico’s “City officials brace for potential cuts to public housing under Trump” reports on the feared threats to NYCHA.