East Harlem Affordable Housing Under Threat Strategies for Preserving Rent-Regulated Units - Prepared by Regional Plan Association for Manhattan ...
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East Harlem Affordable Housing Under Threat
Strategies for Preserving Rent-Regulated Units
August 2012
Prepared by Regional Plan Association for Manhattan Community Board 11
Photo by Flickr: Mira (on the wall)
Acknowledgements Executive Summary
This report was made possible by the gener- Across New York City, the availability of
ous support of the Citi Foundation and PNC affordable housing is in jeopardy. Even with
Foundation. It was written and researched the ambitious efforts of the administration
by L. Nicolas Ronderos, Economic and of Mayor Michael Bloomberg to preserve or
Community Development Director, RPA, create thousands of affordable housing units,
with support from Fiona Zhu, Associate rent protections for much of the existing
Planner, GIS, RPA. It was designed by Jeff stock will expire in the coming decades.
Ferzoco, Creative and Technology Direc- Nowhere is this challenge more apparent
tor, with Benjamin Oldenburg, Research than in Manhattan’s East Harlem neighbor-
Associate, Graphic Design, RPA. Additional hood, where most residents live in some
support was provided by Curtis Doucette, form of rent-regulated housing. Regional
Intern, RPA. We want to thank Manhattan Plan Association has a longstanding interest
Community Board 11 for its guidance and in enhancing the economic health of East
support in preparing this report. Harlem, from its work in the late 1990s to
help the community plan for the eventual
building of the Second Avenue subway to its
recent efforts with Community Board 11 to
About RPA develop neighborhood housing strategies.
East Harlem has been the home for
Regional Plan Association is America’s successive generations of newcomers to New
oldest and most distinguished independent York City for more than a century. Ital-
urban research and advocacy organization. ians, African-Americans and Puerto Ricans
RPA works to improve the economic com- settled there before and after World War II
petitiveness, infrastructure, sustainability and many still make their home there. More
and quality of life of the New York-New recent immigrants from the Dominican
Jersey-Connecticut metropolitan region. A Republic, Mexico and other countries in
cornerstone of our work is the development Latin America, the Caribbean and Africa
of long-range plans and policies to guide the make East Harlem one of the most diverse
growth of the region. Through our America neighborhoods in New York City.
2050 program, RPA also provides leadership Affordable housing has always been
in the Northeast and across the U.S. on a central to East Harlem’s identity and success.
broad range of transportation and economic- It has one of the highest concentrations
development issues. RPA enjoys broad of public housing in the city, and a long
support from the business, philanthropic, waiting list of families who want to live in
civic and planning communities. For more one of the many complexes owned by the
information, please visit www.rpa.org New York City Housing Authority. Other
rent-regulated housing makes up much of the
remainder of its housing stock. Due to the
2 East Harlem Affordable Housing Under Threat • August 2012Many East Harlem residents
expiration of government subsidies, many of
East Harlem’s residents are at risk of being
priced out of their homes and neighborhood.
are at risk of being priced
This report provides greatly needed
information and policy strategies for the
East Harlem community to preserve its
out of their neighborhood.
stock of rent-regulated affordable housing.
It represents a collaborative neighborhood
• Public housing: Promote residents’ stew- • Community Land Trusts: A longer-term
revitalization effort between Regional Plan
ardship and continued participation in strategy to preserve affordable housing is
Association and Community Board 11 seek-
development plans and initiatives. While the creation of Community Land Trusts.
ing to preserve and strengthen the commu-
no rent protections are scheduled to CLTs typically are nonprofit corpora-
nity. This is the second report in a series that
expire for these units, maintaining and tions through which residents of a com-
aims to advance policy strategies to preserve
upgrading the quality of public housing munity gain and maintain control of real
rent-regulated housing in the community
is an important component of an overall estate to protect long-term, sustained
through a broad-based coalition of influen-
preservation strategy. affordability. CLTs use a land lease,
tial local stakeholders. It can provide a model
usually with a 99-year term, to establish
for other neighborhoods facing a similar loss • Rent-stabilized housing: Coordinate
affordability and to maintain it even
of affordable housing. with other advocacy efforts to maintain
through the transference of property.
By creating baseline data on the number supply of rent-stabilized housing and
and locations of rent-regulated housing, this provide safety nets for tenant relocation,
report seeks to enable East Harlem residents to make sure tenants continue to live in
to slow down the conversion of rent-regu- the community and have legal and finan-
lated housing into market-rate units by pro- cial resources to find new housing. Some
viding the community with viable strategies deregulation of stabilized housing is
to persuade decision makers to implement inevitable under current New York State
policies, zoning and other changes. law, but the impact can be mitigated to
Based on data collected from three insure that tenants have sufficient legal
sources, RPA estimates that there are approx- protection and assistance.
imately 40,500 rent-regulated housing units,
• Other-regulated housing: Work with
as follows: 14,700 public housing units,
building owners to promote continued
9,900 rent-stabilized units and 15,900 other
participation in preservation programs
rent-regulated units. Rent protections will
or plan for tenant relocations. This calls
expire in nearly one-third of the regulated
for a concerted community effort to
housing units by 2040. Based on previous
address potential deregulation by work-
research and continued policy development,
ing directly with owners to keep these
the preservation strategies that would be
units regulated and affordable.
most appropriate for East Harlem’s different
types of housing are as follows:
3 East Harlem Affordable Housing Under Threat • August 2012Unregulated or market-rate housing has Rent Regulation
increased at a very fast pace over the last two in East Harlem, 1993–2008
decades, while the number of regulated units 100%
remained steady. This is leading to a greater Other Regulated
90%
diversity of housing stock and household
80%
incomes. However, with no net increase in
The need the amount of rent-regulated units, there is 70% Controlled
greater pressure to preserve the affordable Stabilized
for housing housing that currently exists. With subsidy
60%
50%
restrictions phasing out throughout the city,
preservation in there is a question whether low- and moder- 40%
ate-income households in East Harlem will
East Harlem be priced out not only from their existing
30%
20%
Public
community but from other neighborhoods
as well. In this context there has been an 10%
increase in the share of stabilized units as Unregulated
some public housing units have been taken ‘93 ‘96 ‘99 ‘02 ‘05 ‘08
off the market and new stabilized units have Source: New York City Housing Vacancy Survey
entered it.
RPA collected data from three sources and Through an intensive database synthesis
estimated there are approximately 40,500 process, RPA acquired and streamlined these
rent-regulated housing units. three datasets and created a common set of
characteristics to describe each building.
This effort provides a unique perspective into
Public Housing 14,700 Units the housing inventory for a New York City
Building Source: New York City Housing Authority neighborhood that provides building-by-
building rent-regulation information.
inventory of Rent Stabilized 9,900 Units
rent-regulated Source: Rent Guidelines Board
housing in Other 15,900 Units
Source: NYU Furman Center SHIP Database
East Harlem
Total 40,500 Units
Expiration status for 92% of units was
identified. By knowing when the units will
lose rent-regulated status, we can identify
where and when preservation efforts should
be targeted.
Targeting Expiring
Undetermined
8% (3,400 units) Public Housing
preservation Rent-Regulated
Housing
2040 and beyond
0.5% (200 units)
36% (14,700)
strategies to 39% (15,900 units) 2030 - 2040
11% (4,500 units)
types of rent- 2020 - 2030
Total
40,500 units
13% (5,200 units)
regulated
housing 2010 - 2020
6.5% (2,600 units)
Rent Stabilized*
25% (9,900 units)
*Some rent-stabilized properties are under other regulations that expire. Units on those properties are classified in expiration groups.
4 East Harlem Affordable Housing Under Threat • August 2012Inventory Rent-Regulated Housing Buildings Expiring Rent-Regulated Housing Units
East Harlem 2011 East Harlem 2011
Number of Units
E 138 St E 138 St
10 100
Har
Har
1,000
le
le
mR
mR
ive
ive
rD
rD
r
r
5 Av
5 Av
Madison Av
Madison Av
r
r
vB
vB
Park Av
Park Av
3A
3A
W 130 St W 130 St
r
r
B
B
Av
Av
llis
llis
Wi
Wi
3 Av
3 Av
2 Av
2 Av
Randalls Island Randalls
1 Av
1 Av
E 125 St Triborough Br E 125 St Triborough Br
Marcus Marcus
Garvey Garvey
Park Park
W 120 St W 120 St
Dr
Dr
FDR
FDR
W 115 St W 115 St
Jefferson Jefferson
Park Park
5 Av
5 Av
110 St Central Park N 110 St
Central Central
Park Park
E 105 St E 105 St
2 Av
2 Av
E 98St E 98St
Dr
Dr
FDR
FDR
N N
E 95 St E 95 St
Public Housing Expires 2010 - 2020
Rent Stabilized Expires 2020 - 2030
Other Expires 2030 - 2040
Expires 2040 and beyond
Undetermined
5 East Harlem Affordable Housing Under Threat • August 2012Public and Rent-Stabilized Housing Units
East Harlem community-based East Harlem 2011
housing preservation strategy Number of Units
10 100
E 138 St 1,000
Har
To maintain an adequate supply of rent-regulated housing in East
le
mR
Harlem, RPA recommends the following approaches, based on type
ive
rD
of housing:
r
Public housing
5 Av
Madison Av
➜➜Promote residents’ stewardship and continued participation in
r
development plans and initiatives.
vB
Park Av
3A
W 130 St
Although the 14,700 public-housing units in East Harlem don’t
expire, promoting tenant participation in housing stewardship
r B
Av
is essential to strengthening the community. Residents in these
llis
Wi
3 Av
buildings would benefit from a strong network that can provide
long-lasting social and economic links that act as support for cur-
2 Av
Ra
rent and future tenants.
1 Av
E 125 St Triborough Br
• About a third of all the identified rent-regulated apartments are
in public-housing projects. Most are larger developments of more
Marcus
than 100 units below 115th Street or along the East River. Garvey
Park
Stabilized housing
W 120 St
➜➜Coordinate with other advocacy efforts to maintain supply of rent-
regulated housing and provide safety nets for tenant relocation,
to make sure tenants continue to live in the community and have
legal and financial resources to find new housing.
Dr
• Most rent-stabilized units are in small buildings scattered
FDR
W 115 St
throughout the neighborhood. Riverton Square, located between
135th and 138th streets along the East River, has more than 900 Jefferson
units. Park
5 Av
Other-regulated housing Central Park N 110 St
➜➜Work with building owners to promote continued participation in
preservation programs or plan for tenant relocations. Central
Park
• 2,600 units are going to expire before 2020, most of them north
of 120th Street along Lexington Avenue or near 124th Street
between 2nd and 3rd avenues. About 36% of units use Project- E 105 St
Based Section 8/Section 236 programs combined for their
subsidy.
• 5,200 units will expire between 2020 and 2030. Large develop-
ments at 1199 Plaza (1,600 units), Villa Hermosa Apartments
and Lakeview Apartments (combined 700 units) and 175 East
96th Street (500 units) will expire in this decade in addition to a
2 Av
significant number of small buildings across East Harlem. About E 98St
Dr
53% of units are in two programs: J-51 Tax exemption/LIHTC
FDR
9%, and Project-Based Section 8/ Section 223 (f)/ J-51 Tax N
Exemption/ Mitchell-Lama/ Other HDC Mortgage.
E 95 St
• 4,500 units expiring between 2030-2040. Large projects along
106th Street, 97th Street, or along 1st Ave between 99th and Public Housing
105th streets. 36% of units use the Article 8A Loan Program/ Rent Stabilized*
Mitchell-Lama/ Other HDC Mortgage programs combined. 36%
14,700 units
* Some rent-stabilized properties are under
• Only a few projects with 200 units in total will expire after 2040. other regulations that expire. Units on
44% of them are in Section 202/811/ Project Rental Assistance
Contract programs.
25%
9,900 units
those properties are classified in expiration
groups.
6 East Harlem Affordable Housing Under Threat • August 2012Expiring Rent-Regulated Housing Units, 2010–2020 Expiring Rent-Regulated Housing Units, 2020–2030
East Harlem 2011 East Harlem 2011
Number of Units Number of Units
10 100 10 100
E 138 St 1,000 E 138 St 1,000
Har
Har
le
le
mR
mR
ive
ive
rD
rD
r
r
5 Av
5 Av
Madison Av
Madison Av
r
r
vB
vB
Park Av
Park Av
3A
3A
W 130 St W 130 St
r
r
B
B
Av
Av
llis
llis
Wi
Wi
3 Av
3 Av
2 Av
2 Av
Randalls Island Randalls
1 Av
1 Av
E 125 St Triborough Br E 125 St Triborough Br
Marcus Marcus
Garvey Garvey
Park Park
W 120 St W 120 St
Dr
Dr
FDR
FDR
W 115 St W 115 St
Jefferson Jefferson
Park Park
5 Av
5 Av
110 St Central Park N 110 St
Central Central
Park Park
E 105 St E 105 St
2 Av
2 Av
E 98St E 98St
Dr
Dr
FDR
FDR
N N
E 95 St E 95 St
Expires 2010 - 2020 Expires 2020 - 2030
6.5%
2,600 units
13%
5,200 units
7 East Harlem Affordable Housing Under Threat • August 2012Expiring Rent-Regulated Housing Units, 2030–2040 Expiring Rent-Regulated Housing Units, 2040 and beyond
East Harlem 2011 East Harlem 2011
Number of Units Number of Units
10 100 10 100
E 138 St Har 1,000 E 138 St 1,000
Har
le
le
mR
mR
ive
ive
rD
rD
r
r
5 Av
5 Av
Madison Av
Madison Av
r
r
vB
vB
Park Av
Park Av
3A
3A
W 130 St W 130 St
r
r
B
B
Av
Av
llis
llis
Wi
Wi
3 Av
3 Av
2 Av
2 Av
Randalls Island Ra
1 Av
1 Av
E 125 St Triborough Br E 125 St Triborough Br
Marcus Marcus
Garvey Garvey
Park Park
W 120 St W 120 St
Dr
Dr
FDR
FDR
W 115 St W 115 St
Jefferson Jefferson
Park Park
5 Av
5 Av
Park N 110 St Central Park N 110 St
Central Central
Park Park
E 105 St E 105 St
2 Av
2 Av
E 98St E 98St
Dr
Dr
FDR
FDR
N N
E 95 St E 95 St
Expires 2030 - 2040 Expires 2040 and beyond
11%
4,500 units
0.5%
200 units
8 East Harlem Affordable Housing Under Threat • August 2012Type of Housing Subsidy Expiration Decade
2010 2020 2030 2040 Grand
to to to and Total
2020 2030 2040 later
421a Tax Exemption, LIHTC 4% 371 371
421a Tax Exemption, LIHTC 4%, Other HDC Mortgage 232 232
Article 8A Loan Program, Mitchell-Lama, Other HDC Mortgage 1,627 1,627
J-51 Tax Exemption, LIHTC 4%, Other HDC Mortgage 78 23 101
J-51 Tax Exemption, LIHTC 9% 1,152 368 51 1,571
J-51 Tax Exemption, LIHTC 9%, Other HDC Mortgage 131 131
J-51 Tax Exemption, LIHTC 9%, Section 221 (d) (3) & (4) with affordability restrictions, Other HDC Mortgage 60 60
LIHTC 4% 707 707
LIHTC 4%, Other HDC Mortgage 204 204
LIHTC 9% 92 234 690 62 1,078
LIHTC 9%, Other HDC Mortgage 522 522
Mitchell-Lama, LIHTC 9%, Rental Assistance Program (RAP) 134 134
Other HUD Insurance without affordability restrictions, Project-Based Section 8 388 388
Other HUD Insurance without affordability restrictions, Project-Based Section 8, Other HDC Mortgage 192 91 283
Other HUD Insurance without affordability restrictions, Project-Based Section 157 157
8, Section 221 (d) (3) & (4) with affordability restrictions
Project-Based Section 8 48 135 183
Project-Based Section 8, J-51 Tax Exemption 177 177
Project-Based Section 8, J-51 Tax Exemption, Section 236 34 34
Project-Based Section 8, Section 202/811 40 40
Project-Based Section 8, Section 202/811, Other HDC Mortgage 125 125
Project-Based Section 8, Section 221 (d) (3) & (4) with affordability restrictions 272 272
Project-Based Section 8, Section 221 (d) (3) & (4) with affordability restrictions, Other HDC Mortgage 60 60
Project-Based Section 8, Section 223 (f) 55 55
Project-Based Section 8, Section 223 (f), J-51 Tax Exemption, Mitchell-Lama, Other HDC Mortgage 1,594 1,594
Project-Based Section 8, Section 236 927 229 1,156
Section 202/811, Project Rental Assistance Contract (PRAC) 229 90 319
Section 221(d)(3) Below Market Interest Rate (BMIR), Project-Based Section 8, J-51 Tax Exemption 35 35
Section 221(d)(3) Below Market Interest Rate (BMIR), Project-Based Section 8, Rental Supplement Program (Rent Supp) 100 100
Section 236, Mitchell-Lama, Rental Assistance Program (RAP) 446 446
Section 236, Mitchell-Lama, Rental Supplement Program (Rent Supp) 341 341
Grand Total 2,611 5,198 4,491 203 12,503
Community Land Trusts: A Long-Term Preservation Strategy
A longer-term strategy to preserve afford- The CLT extends a long-term lease that • adopting a nonprofit structure to best
able housing is to create Community contractually obligates the lessee to main- facilitate a diverse mix of funding
Land Trusts. CLTs typically are nonprofit taining affordability through ownership sources and roles;
corporations through which residents of a and transference. CLT’s best practices
• determining whether the CLT acts
community gain and maintain control of include:
as the developer or hires an external
real estate to protect long-term, sustained
developer based on capacity and
affordability. CLTs use a land lease, • providing a variety of tenure options
expertise.
usually with a 99-year term, to establish to residents (ownership, rental, coop-
affordability and to maintain it even erative) to be more equitable;
through the transference of property. The
• pursuing financial alliances with
CLT acquires the land.
government and engaging government
early in the planning process;
9 East Harlem Affordable Housing Under Threat • August 2012NY 4 Irving Place, 7th floor
New York, NY 10003 NJ 179 Nassau Street, 3rd floor
Princeton, NJ 08542 CT Two Landmark Square, Suite 108
Stamford, CT 06901
212.253.2727 609.228.7080 203.356.0390
Regional Plan Association is America’s oldest and most distinguished the Northeast and across the U.S. on a broad range of transportation
independent urban research and advocacy organization. RPA and economic-development issues. RPA enjoys broad support from
works to improve the infrastructure, economic competitiveness the business, philanthropic, civic and planning communities.
and sustainability of the New York- New Jersey-Connecticut
metropolitan region. A cornerstone of our work is the development For more information about Regional Plan Association, please visit
of long-range plans and policies to guide the growth of the region. our website, www.rpa.org.
Through our America 2050 program, RPA also provides leadership in
BOARD OF DIRECTORS
Chairman Rohit T. Aggarwala John Z. Kukral
Elliot G. Sander* Hilary M. Ballon, Ph.D. Trent Lethco
Joseph G. Barile Christopher D. Levendos
Vice Chairman, Co-Chairman, New York Committee Stephen R. Beckwith Charles J. Maikish*
Robert L. Billingsley Edward J. Blakely, Ph.D. Sean Patrick Maloney
Relina B. Bulchandani Joseph J. Maraziti, Jr.
Vice Chairman, Co-Chairman, Connecticut Committee Tonio Burgos* Peter Miscovich
Michael J. Critelli Michael J. Cacace J. Andrew Murphy
Susan E. Chapman Jan Nicholson
Vice Chairman, Co-Chairman, New Jersey Committee Frank S. Cicero* Michael O’Boyle
Christopher J. Daggett* Kevin S. Corbett* Richard L. Oram
Anthony R. Coscia Kevin J. Pearson
Vice Chairman Alfred A. DelliBovi Lee H. Perlman
Douglas Durst Brendan P. Dougher Neil Peterson
Ruth F. Douzinas James S. Polshek
Vice Chairman, Co-Chairman, New Jersey Committee Brendan J. Dugan Richard Ravitch
The Honorable James J. Florio Fernando Ferrer Gregg Rechler
Luke Eberly Fichthorn IV Michael J. Regan
Vice Chairman, Co-Chairman, New York Committee Barbara Joelson Fife* Denise M. Richardson
Maxine Griffith Michael Fleischer Peter Riguardi
Emil H. Frankel Michael M. Roberts
Treasurer and Co-Chairman, Long Island Committee Doreen M. Frasca Elizabeth Barlow Rogers
Matthew S. Kissner* Timur F. Galen* Gary D. Rose
Carl Galioto Lynne B. Sagalyn
Chairman Emeritus and Counsel Armando F. Goncalves Lee B. Schroeder
Peter W. Herman* Jerome W. Gottesman* Anthony E. Shorris
John S. Griswold, Jr. H. Claude Shostal
President John K. Halvey Susan L. Solomon
Robert D. Yaro* Dylan Hixon Monica Slater Stokes
David Huntington Robert Stromsted
Adam Isles Gail Sussman
Kenneth T. Jackson Luther Tai*
Secretary of the Corporation Marc Joseph Marilyn J. Taylor*
Thomas K. Wright* Richard D. Kaplan* Sharon C. Taylor
Dr. Marcia V. Keizs Richard T. Thigpen
Greg A. Kelly Karen E. Wagner
Robert Knapp William M. Yaro
Michael Kruklinski John Zuccotti*
*Member of Executive CommitteeYou can also read
