News

Currently, 2.2 million American families live in public housing while an additional 500,000 remain on a waiting list. This supply and demand imbalance, as found in the affordable housing market as well, places many families at severe economic risk. Correcting this problem through new construction and preservation faces many obstacles including a lack of support from the local community. The public’s perception of subsidized housing programs is largely shaped by a host of misconceptions and myths that obscure the overwhelming benefits of these programs. To dispel such inaccuracies, Housing Authority Insurance, Inc. has recently funded a new public relations program to highlight how public housing supports families, builds communities, fosters education and provides stability. The initiative, named ReThink, offers first-hand accounts of how public housing provided the necessary stability for individuals and families to achieve economic independence. Additionally, ReThink illustrates how subsidized housing not only benefits individual residents but also improves the economic conditions of the surrounding community.

Our March post entitled “LIHTC Success” highlighted the overwhelming success of the Low-Income Housing Tax Credit program since it inception in 1986. Bolstering the program’s impressive record, The National Council of State Housing Agencies (NCSHA) recently released 2011 FactBook, concludes that the 2011 allocation will help develop over 85,000 units of affordable housing. Additionally, demand for credits during this time remained extraordinarily high, outstripping supply by over $1 billion. Hopefully this extensive supply and demand imbalance will encourage legislators to consider the Bipartisan Policy Center’s recent recommendation to expand the LIHTC program.

New York City HPD’s four-year pursuit of obscenely negligent slumlord Joel Loutan, has finally lead to the Bronx Housing Court issuing a warrant for Mr. Loutan’s arrest. With tenants living in such extraordinarily appalling conditions, strong enforcement actions to remove negligent owners are warranted and should be applauded. And while such grievous cases are relatively rare, stronger preventative measures may have stymied the gross deterioration of this property. For instance, in the affordable housing industry, the Low Income Housing Tax Credit program requires significant rehabilitation in each transaction. This stringent requirement virtually eliminates the risk of having these properties fall into total disrepair and also protects investors. Such a beneficial alignment of public and private interests is a hallmark of the LIHTC program and perhaps a similar solution is possible outside of the affordable sector. After all, housing is, in many ways, a public good. Healthy, livable housing provides people with the stability and safety necessary to live a productive life. Shattering this foundation with egregious landlord negligence exacts a terrible cost on both residents and the community.

Jun, 2013 24 HVPG Announces New Project in Upstate NY Share HVPG and CB Emmanuel are in contract to acquire and rehabilitate properties in Upstate New York. This work will modernize and preserve over 200 units of affordable housing for hundreds of low-income seniors throughout the county. The properties are within walking distance to many local amenities including a grocery store, public library, and several dining options. The properties currently receive federal housing assistance through USDA Rural Development Section 515. Rural preservation projects have unique challenges and oftentimes scare developers /investors away. HVPG Managing Partner Jason Bordainick adds "this exciting rural preservation project demonstrates HVPG's commitment to preserving and modernizing the shrinking supply of affordable housing in all communities where it is needed, from big cities to quaint rural towns." The project will be funded through a combination of public and private funding sources, including 4% low-income housing tax credits and tax-exempt bonds through New York State Housing Finance Agency. Additional funding from NYSERDA is anticipated given the extensive energy efficiency improvements included in the rehabilitation plan. Details on the specifics of the project will be released soon

It was confirmed today that HVPG Co-Founder & Managing Partner Jason Bordainick has been added to the Board of Directors for the New York State Association for Affordable Housing! Being added to the Board of the foremost affordable housing trade association and advocacy group in New York is both an honor and a testament to the individual expertise and efforts of Jason and our firm, HVPG. Congratulations Jason! Formed in 1998, the New York State Association for Affordable Housing (NYSAFAH) is the trade association for New York's affordable housing industry statewide. NYSAFAH advocates for policies, legislation and appropriations at the local, state and federal level that promote our industry's interests. Our 300 members include for-profit and nonprofit developers, lenders, investors, syndicators, attorneys, architects and others active in the financing, construction, and operation of affordable houging. Together, NYSAFAH's members are responsible for virtually all of the housing built in New York State with federal, state, or local subsidies.