Sub-Market Rate Housing Preservation

Mayor Bloomberg has announced an astonishingly low foreclosure rate for city housing preservation projects.

By: John Noble Mayor Bloomberg, along with Shaun Donovan, the Commissioner of Housing Preservation, has announced that the city's 10-year plan to either build or preserve more than 160,000 units of below-market rate housing has reached its midpoint. One fact that Mayor Bloomberg has highlighted is that, of the more than 17,000 units that have already been financed for ownership, only 5 of them have faced or are facing foreclosure. The main reason for this stunning track record is that the city heavily regulates the units on the plan. They encourage buyers to obtain standard financing, and helping them avoid other types of loans that could lead to credit and payment troubles. The values of those properties are continuing to increase, as well, as NEw York City mainly escapes the nationwide housing downfall. The city has also announced that the plan is benefiting more low-income families than originally foreseen. 75 percent of the total units financed or built have gone to families who qualify as "low-income". and the city is planning for a shift to mid-level earners and units in the plan.Two developments are slated to help that goal, the Atlantic Yards project and the Hunter's Point development are being designed to create thousands of middle-income units.