Stretching Existing Housing Programs and Dollars &
Finding New Ideas for Preserving Affordable Housing

The two housing forums sponsored by UNHP for our 15th Anniversary in 1998 highlighted ways to create and preserve affordable housing by using existing programs in new ways and stretching dollars to meet the demand for affordable housing creation. Following are some of the problems and solutions that were discussed.

Problems

• The scarcity of Section 8 certificates limits the use of the Participation Loan Program to purchase and rehabilitate multifamily buildings.
• Properties that come to the attention of not for profits have often been physically neglected and maintenance deferred. Lead Hazard precautions also increase renovation costs.
• The need and demand for public programs and dollars has increased in sharp contrast to the public budgets.

Ideas and Solutions

• Commercial and community space rents can help subsidize the low income residential rents
• Use recaptured Section 8 subsidies more effectively to help more families with the same amount of money.
• The Selective Vesting Program could be a vehicle for developing additional affordable housing through strategic targeting of vesting sites, in coordination with local community development efforts, proper funding for the rehabilitation of deteriorated properties and the inclusion of not for profits as possible third parties and owners.
• Existing City housing programs, such as the Participation Loan Program with an adjustment to the private public mix could address the loss of section 8 rental subsidies and assist more projects.
• Projects that should have 100% tax abatement are not getting full benefits in a timely manner due to the difficult, labor intensive process developed by the City for J-51 tax abatement. Streamlining this program would save the City money and get tax benefits to the projects that deserve them.
• Save, Save, Save -The need to save on operating costs in existing affordable housing is critical. The installation of heat computers can reduce fuel consumption by 30%. The computer monitors the heat in the building and adjusts the temperature according. Owners and managers must work closely with the tenants around the installation of these computers as the apartment temperatures will be less than what tenants are accustomed to. Recommendations were made to follow up with tenants, take apartment and room temperatures and address problems with radiators and air infiltration.
• Regarding water and sewer costs; owners and managers should check meter readings, examine DEP programs to reduce rates and fight increases in rates.
• Find flexible, low costs supplemental financing for housing in private and non profit sector- Fannie Mae has a mini loan program for smaller multi family buildings in need of $100,000- $750,000- New York State weatherization programs have grant funds for conservation improvements, Not for profit community development loan funds, credit unions as well as NYS Low Income Tax Credits can be part of a financial package to purchase and rehabilitate occupied housing.