The City could see a loss of 21,000 new affordable apartments next year due to NYC Housing Preservation and Development’s budget cuts, as reported in the Commercial Observer. And while HPD stated the budget is shifting to the 2022 and 2024 fiscal years, delays to construction projects resulting in the cuts will have a dramatic impact on the availability of much needed affordable housing and will undercut job opportunities in construction and building maintenance, primarily in lower-income neighborhoods where unemployment is hitting hardest during the COVID crisis and beyond.

The need for affordable housing in New York outpaces the supply available. By delaying projects, there will be a further strain on affordable housing stock, and – as some families feel financial stress as a result of COVID-19 – the need for affordable housing will be exacerbated. Additionally, projects like Sendero Verde in East Harlem bring more than housing to vulnerable New Yorkers. They can provide spaces for nonprofits, retailers like grocery stores, or even schools.

Affordable housing has always been a key driver for growth and job opportunities, especially during difficult economic times where there is a slowdown in market generated development activity.  The development of affordable housing leverages public dollars with private sector funding by almost 4-1 and creates opportunity for economic and job stimulus as a result. Each project employs workers for the job, often from the community, including contractors, security, and property management, as well as ancillary jobs in the architectural, engineering and legal professions.

To read more about this complex issue, please visit: https://commercialobserver.com/2020/07/affordable-developers-worry-about-building-more-housing-amid-budget-cuts/