City Agrees to $500 Million Investment to Build and Preserve Affordable Housing

On July 22, 2024, New York City Mayor Eric Adams, New York Governor Kathy Hochul, and New York City Comptroller Brad Lander announced a $500 million agreement between Mayor Adams, The Battery Park City Authority (BPCA), and Comptroller Lander. The $500 million agreement involves BPCA providing $500 million in excess operating funds to New York City’s Affordable Housing Accelerator Fund to provide New Yorkers improved access to housing by building more affordable housing.

This agreement replaces the previous agreement for the disbursement of The Battery Park City Authority’s excess operating revenues. The previous agreement, in effect since 2010, not only contributed $461 million to building and maintaining affordable housing across the five boroughs, but also helped build and preserve over 10,000 affordable housing units.

The Battery Park City Authority is a New York state public benefit corporation that is responsible for operating, maintaining, and improving Battery Park City. The Battery Park City Authority has experience entering long-term ground leases with developers and generating lease revenue from commercial and residential buildings. This cash flow served as the primary source of funding for the $500 million that was provided to the New York City’s Affordable Housing Accelerator Fund.

Mayor Eric Adams said, “Today’s announcement takes us one step closer to delivering that relief. Our administration and our partners are united by a common cause: building more affordable housing. The only way to solve these dual crises is to simply build more, and with this $500 million commitment, we are coming together to use our dollars to make a difference and better support working-class New Yorkers.”

Governor Kathy Hochul said, “This agreement will turn excess funds from the Battery Park City Authority into a massive $500 million investment to help New York City realize its housing potential. From our landmark budget agreement to tackle the housing crisis to transformative investments that get housing built, I am continuing to work with partners like the BPCA, Mayor Adams, and Comptroller Lander and fighting for a more affordable and more livable New York.”

Comptroller Brad Lander said, “Financing the production of affordable housing remains the city’s most powerful tool in combatting the city’s housing affordability crisis. This landmark $500 million investment will help ensure that New York City and New York state have the resources we need to effectively deliver safe and affordable housing to New Yorkers.”

By: Chelsea Ramjeawan (Chelsea is the CityLaw intern and a New York Law School student, Class of 2025.)’

 

 

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