A shortage of federal money designed to spur the development of affordable housing may endanger up to 3,000 lower-priced apartments in Downtown Brooklyn. But what exactly is going on? Let The Explainer explain:
A developer who includes affordable units in his or her development can apply to the city or state for tax-exempt bonds.
Developers in New York State are seeking $6 billion to $7 billion in such bonds this year, yet only $1.6 billion is available.
Partly because developers know they can circumvent some neighborhood opposition by including below-market-rate units. Also, several Bloomberg administration initiaives gave more incentives for developers to build affordable, thereby putting further strain on the system.
Some of them won’t get built.
Yes — with no penalty.
An earlier version of “The Explainer” inaccurately reported that Atlantic Yards developer Bruce Ratner must pay a $500,000 penalty if 50 percent of the project’s rentals are not below-market-rate units. In fact, under the Community Benefits Agreement, there is no penalty if Ratner does not build the units. The corrected copy appears above.