Preservation of Section 8 properties will prevent conversion to market-rate housing. On August 15, 2018, the Housing Preservation and Development, the Housing Development Corporation, and the LIHC Investment Group announced the preservation of 669 units of project-based Section 8 housing in high-cost City neighborhoods where similar buildings have been converted to market-rate housing.
Section 8 was created by the Housing and Community Development Act of 1978 and provides assistance to eligible low- and moderate-income families to rent housing in the private market.
The agreement will provide 40 years of preservation for the Section 8 properties. The agreements are made possible through tax-abatements under Article XI. The agreements were reached through the Housing New York Plan.
The agreement covers six Section 8 properties in Inwood, Hamilton Heights, Harlem, Williamsburg, and the Lower East Side: La Cabana House in 391 Lorimer Street in Williamsburg, Lower East Side I & II Apartments in 384 East 10th Street and 199 Avenue B in Manhattan, Hudson Piers II at 1640 Amsterdam Avenue in Hamilton Heights, The Paul Robeson Houses at 1990 Adam Clayton Powell Jr Boulevard in Harlem, and the 10 Post Avenue in Inwood.
La Cabana Houses contains 167 project-based Section 8 units. More than $7 million in capital improvements will be completed over time including façade repair and roof replacement to upgrading common areas, kitchens and baths; new flooring, doors, and hardware throughout; LED lighting, and other non-critical repairs. All units will be maintained as affordable to tenants whose annual income does not exceed 50 percent of the Average Minimum Income.
The Lowest East Side I & II Apartments contain a total of 243 project-based Section 8 units. Approximately $7 million in capital improvements will completed, including installing new kitchen countertops and appliances; bathroom fixtures, tile floors, and fittings; laminate wood flooring, doors and lighting in all apartments. All units will be maintained as affordable to tenants whose annual income does not exceed 50 percent of the Average Minimum Income.
Hudson Piers II contains 83 project-based Section 8 units. The property is being refinanced through a HUD 223(f) loan and will secure a 20-year post-rehab HAP contract to facilitate nearly $2 million in capital improvements, including new kitchens, granite countertops, and bathrooms in all apartments; common area upgrades such as LED lighting; and ensuring ADA compliance. All units will be maintained as affordable to tenants whose annual income does not exceed 80 percent of AMI.
The Paul Robeson Houses contain 81 project-based Section 8 units. This property was purchased in June 2018 by LIHC Investment Group for $17 million. The Article XI will allow ownership the cash flow to make critical repairs and complete ongoing façade work. All units will be maintained as affordable to tenants whose annual income does not exceed 80 percent of AMI.
The 10 Post Avenue property contains 95 project-based Section 8 units. The Article XI will generate the necessary cash flow to complete capital improvements to both apartments and common areas. All units will be maintained as affordable to tenants whose annual income does not exceed 80 percent of AMI.
HPD Commissioner Maria Torres-Springer said, “Preserving the existing affordable housing stock that so many hard-working families depend on is a key pillar of the Mayor’s Housing New York plan, and a victory for both residents and neighborhoods that benefit from the stability that comes from extended affordability. Now, more than 650 households across the city can rest assured that, despite rising costs, they can afford to remain in their homes for years to come.”
Housing Development Corporation President Eric Enderlin said, “These projects exemplify the Administration’s efforts to combat displacement and ensure the affordability and diversity of our city’s neighborhoods. HDC is proud to join HPD and LIHC to announce the financing of necessary repairs at these 669 apartments in communities stretching from Upper Manhattan to Williamsburg, Brooklyn and to keep them affordable for at least another generation.”
Andrew Gendron, Principal, LIHC Investment Group said, “This deal will preserve existing affordable housing in neighborhoods where it is under the greatest threat, and we are proud to provide residents with an improved living environment, stable housing, and peace of mind far into the future. In the near term, we plan to secure Article XIs for nine additional properties under our ownership, bringing the total number of units preserved to more than 1,850.”
The New York City Department of Housing Preservation and Development is the nation’s largest municipal housing preservation and development agency. The New York City Housing Development Corporation is the nation’s largest municipal Housing Finance Agency and is charged with helping to finance the creation or preservation of affordable housing under Mayor Bill de Blasio’s Housing New York plan. LIHC Investment Group holds an ownership interest in more than 37,000 units nationwide and is ranked No. 2 in the country on Affordable Housing Finance Magazine’s list of companies completing substantial rehabilitations.