A shortage of federal money designed to spur the development of affordable housing may endanger up to 3,000 lower-priced apartments in Downtown Brooklyn. But what exactly is going on? Let The Explainer explain:
A developer who includes affordable units in his or her development can apply to the city or state for tax-exempt bonds.
Developers in New York State are seeking $6 billion to $7 billion in such bonds this year, yet only $1.6 billion is available.
Partly because developers know they can circumvent some neighborhood opposition by including below-market-rate units. Also, several Bloomberg administration initiaives gave more incentives for developers to build affordable, thereby putting further strain on the system.
Some of them won’t get built.
Yes — with no penalty.
An earlier version of “The Explainer” inaccurately reported that Atlantic Yards developer Bruce Ratner must pay a $500,000 penalty if 50 percent of the project’s rentals are not below-market-rate units. In fact, under the Community Benefits Agreement, there is no penalty if Ratner does not build the units. The corrected copy appears above.
©2008 Community News Group
By submitting this comment, you agree to the following terms:
You agree that you, and not BrooklynPaper.com or its affiliates, are fully responsible for the content that you post. You agree not to post any abusive, obscene, vulgar, slanderous, hateful, threatening or sexually-oriented material or any material that may violate applicable law; doing so may lead to the removal of your post and to your being permanently banned from posting to the site. You grant to BrooklynPaper.com the royalty-free, irrevocable, perpetual and fully sublicensable license to use, reproduce, modify, adapt, publish, translate, create derivative works from, distribute, perform and display such content in whole or in part world-wide and to incorporate it in other works in any form, media or technology now known or later developed.