University Neighborhood Housing Program’s 2005 Affordable Housing Forum in memory of Michael S. Crawford
Rising Values in a Highly Subsidized Market
An assessment of Bronx multifamily affordable housing indicatorsWednesday, March 30th, 2005
Fordham University’s Rose Hill Campus, The Bronx
Faculty Lounge, McGinley CenterClick here to download the publication in pdf format
This forum was dedicated to the memory of Michael S. Crawford. Michael began working with the Northwest Bronx Community and Clergy Coalition to bring community reinvestment funds into the NW Bronx nearly 30 years ago. He went on to a distinguished career in community development and banking. His example and single-minded determination to get to the facts and use them to best aid the people living in the community helped shape the way UNHP has done its research work over the years.
Forum Summary:
Moderator: Guillermo Franco, Vice President Community Development Deutsche Bank
Attendance: The forum was attended by about 70 people representing a wide range of affordable housing interests including financial institutions, real estate agents, banking regulators, affordable housing owners, managers, advocates, non profits and foundations.
The forum was dedicated to the memory of Mike Crawford a friend and community development colleague, who was remembered by Joseph Muriana, UNHP President and Associate Vice President of Government Relations and Urban Affairs at Fordham University.
UNHP’s Deputy Director and lead researcher, Gregory Jost, presented updated research on the continued rise in multifamily housing values, the high number of Bronx housing affordability and quality problems as well as the concentration of Section 8 vouchers in our borough. The research was distributed in a corresponding publication entitled, Rising Values in a Highly Subsidized Market. UNHP has tracked the rise in sales prices from $12,000 per unit in 1996 to about $37,000 per unit in 2000 to $53,000 per unit in 2003 and $67,000 per unit in 2004. The report also illustrates with data, graphs and maps that renters in the densest parts of the Bronx have the lowest median household incomes, pay the highest percentages of their incomes for rent and live in the housing with the highest incidence of housing quality problems. The Bronx has more tenant based Section 8 than any other borough and the NWBronx has about 20% of the vouchers in the City.
Daniel White, Grants Analyst and Non-Profit Community Liaison from Congressman Serrano’s Office, discussed the future of the Section 8 Program and stated that threats to the program are real and may become intensified by a shrinking federal budget and competition for a finite amount of housing funding in which Section 8 has the largest share. Mr. White encouraged attendees to get press articles and op ed pieces published and to network with other housing groups in Republican areas as a way to build support for the preservation of the program.
Elliot Hobbs, Vice President JPMorganChase Community Development Group, discussed his institution’s lending in the current market looking beyond loan to value ratios to include a wide range of factors in the loan analysis. In properties where Section 8 rents are higher than the market rents, they revert to using the market rent in the analysis.
Dan Houlihan, of NY Appraisal, concurred with our presentation that sales prices have continued to rise in the multifamily rental market although he sees experienced market participants opting out of new deals. He also stated that for buildings where Section 8 rentals are higher than the market rent, he reverts to the market rent in the appraisal acknowledging the tenuousness of the program. A point was raised from the floor that in some parts of the Bronx where Section 8 is so prevalent the Section 8 rents are intrinsic to the market and severe cuts to Section 8 will have a broad impact on the market itself.
Elaine Calos, Executive Director of the Housing Finance Bureau for HPD, talked about the ways that HPD is working to respond to the changing market in order to facilitate affordable housing development. HPD is revising programs to reflect higher acquisition prices, prioritizing the use of the Section 8 vouchers and utilizing the Third Party Transfer Program.
James Buckley, UNHP Executive Director, discussed University Neighborhood’s response to current market conditions by the creation of Multifamily Assistance Center. The Center would serve as an alternative to foreclosure for interested lenders and owners of distressed properties. Jim encouraged people to attend or send testimony into the water board to keep rates low at this hearing as well as monitoring the list of tax liens for properties that may be used for affordable housing development.
Photos from the event:
