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Bad news for squatters and survivalists: Instead of just letting abandoned condo developments turn into illegal havens for trespassers, the city is starting a $20 million pilot program to turn unsold condominiums, unrented apartments and stalled construction sites into affordable housing for middle-income families. Yesterday Mayor Bloomberg and City Council Speaker Christine Quinn announced the plan, called the Housing Asset Renewal Program (HARP), in which the city will negotiate with developers and banks to turn the unoccupied units into affordable housing.
Quinn says the average cost to the city of $50,000 per unit would be less than the $75,000 to $100,000 it usually costs the city create an affordable housing unit from scratch. With HARP, the city won't actually be buying the properties, and the program will focus on neighborhoods outside of Manhattan to turn around two types of developments: completed projects with a high number of vacancies and stalled sites that are still under construction. (There are a lot of them these days!) Bloomberg told reporters yesterday, "Private developments that sit vacant or unfinished could have a destabilizing effect on our neighborhoods, but we’re not about to let that happen." As many as 400 units could be converted as part of the pilot program.
Vincent Riso, a Queens developer, predicts that developers and banks will want to cut their losses and participate in the program. He tells Crain's, "At some point, a developer has to be a practical person and say, 'I don’t see the economy coming back for a year, two years, let me get out of it whatever I can.'" Last year the city announced plans to use $24 million in federal money to buy more than 100 foreclosed homes and create 300 low- and middle income housing units. And last month another program that turned an empty luxury condo in Brooklyn into a homeless shelter drew outrage from some neighbors.
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Hope none of those buildings are near me...
I have an idea...
Say you have a condo that you have not been able to sell or rent, and has been sitting vacant for a year or so. I propose that the city tell you "either sell or rent that condo, or it will belong to the city under eminent domain." Because, let's face it. There is only ONE reason why an apartment doesn't rent or sell...PRICE. People are always looking to buy or rent apartments. They are just not willing to pay some of these exorbitant prices..let's face it.. if your "market rental/sale" isn't being sold or renting, then it is NOT at market price.
yes!
I think the city should take over your house and rent it out to the homeless or poor.
What a scary thought, right?
It's not our property. It's theirs. The price will fall in time. Let the market forces work.
May I suggest moving to Cuba, or perhaps China? I sounds like you would enjoy how their governments (don't) respect private property.
Disgustingly dumb idea Iornagrl.
There's another reason: Credit Crunch.
Last year you could get 100% financing for real estate because everyone knew the prices were only going to go up.
Now banks can require 20% down with a perfect credit history and still say no.
Without financing most people can't buy, period.
I second that!
I think the problem is for many of these folks is they are no longer getting loans necessary to finish their monster projects, hence the holdup. So, even if they were ready to lower the cost of each unit, they're not finished and someone has to pay to finish them. It's a load of crap, I do agree with you there. But that's (I think) what's happening.) :[
Otherwise, I absolutely agree with you, lornagrl.
Also, is there a list of these buildings somewhere? Do they know which units are stalled? For example, the monster that's been sitting empty for what seems like years (near Planet Thailand). Is that one finally going to be finished or demolished? Or is it just going to sit there like some eyesore?
Just wondering if there is an actual list of the stalled projects, etc.
There are condos that were built in the early 90's still sitting largely empty, such as the Trump buildings on the West Side Highway. They should never have been built in the first place.
There is always heavy consequences involved in risk. But without risk there would be no progress. Not only building development progress but starting businesses that make jobs and social risk that gave us the civil rights movement. Oh yeah I forget SP is a socialist to its purest form for he has failed in every one of his lifes endeavers and he now does not want anyone to even try. His biggest nightmare would be that you actually succeeded where he has so heartfully failed.
One more thing: many of these building won't pass inspection without a great deal more work and, again, that takes money and if these contractors are bankrupt and/or their loans are cut off, they can't get that taken care of. It's probably easier for them at this point to walk away and let the city take over. The work will be finished by the city, probably (given what I've heard about much of the new construction taking place) as well as what the crappy contractors would have done. It's not a great plan—not at all. But given the fact that no one is getting loans right now, I can't think of what other options they have...
They should go back in time and regulate... Oh, wait. That could be said for pretty much all of corporate America right now.
The people who are really going to hate this are the people who paid full price for their expensive condominiums far away from middle class people. The horror!
Yes we should hate them for being able to afford the condo and to budget themselves correctly.
We should hate them even more because, if they're living so far away from the middle class, that means they're probably workers not trust fund babies.
We should relish the net worth of of the working class sinking.
It's such a good feeling to watch others who have been able to make a living here get screwed!
Go section 8!!!
You sound angry. Do you need a beverage?
I don't know yet what they and you mean by "middle class" in this instance but...
My husband makes pretty great money. He does well enough that I'm able to stay home and raise our son (in our rental!). Yet! We can't afford to buy into one of these condos. (Especially considering in most all cases you need to have 10% down and that starts at about 60 grand—but more often than not around 80 grand and up, and that doesn't include the closing costs which are about 40 thousand.) So, while I think I get your point, there are many of us who actually do work really hard, we do make decent money, we do budget ourselves wisely, yet we still can't afford to buy these condos.
There are only so many millionaires in this city. More importantly, there are far, far more middle class workers out there. On top of all that, the banks aren't giving out loans, people are losing their assets in the stock market, 401K, and elsewhere and therefore don't have the down payment.
What did they think was going to happen?
More importantly, what would *you* like to see happen?
There are others of us that have waited wait 10+ years to attain the necessary down payment and were able to buy just in time to see everything go to shit.
Why should people who have scraped like that sit by while the city essentially dooms their neighborhood by creating projects?
It shouldn't be run by the city. Fines for the developer/owner should be increased and enforced for not maintaining security in the unrented/sold units.
That cost should give the developer/owner some more incentive to sell. If not it will at least maintain a semblance of a decent neighborhood.
But what if they don't have any money? The contractors? What then? You fine them and they don't have the money? They go bankrupt and then the buildings are left empty? There were too many too fast and no one is able to come in and save them all.
This is a hindsight situation. It's too late now. We have to deal with what we have in some way. No?
If the developer goes bankrupt then the buildings are the banks problem. Whoever holds the note should be forced to provide security until sale. And this sale should be to people or entities that can pay a mortgage without assistance.
We have to deal with the current problem, but not by doing the buildings to be a problem forever. We need timely responsible action, not hasty panicked action.
I just wonder how our housing market will stabilize if we strong-arm developers into taking losses in our market?
And especially if we're creating neighborhoods of new projects at the same time...
This has to be handled delicately.
It's about taking bad loans and unfinished structures off the books so these unfinished condos don't languish and become not only squatter-friendly eyesores, but actually cost the city millions to demolish after the weather destroys them in a few years. This is smart, proactive, and necessary even if not everyone is satisfied with the terms.
They should be able to hold those responsible to their obligations.
As I noted above force them to pay security until they're able or willing to get market rate for someone who can afford a mortgage on their own.
I knew this was coming.
Such as also, how the hell does someone get off sell a 380000 coop in the East Village with a 87k salary cap under HDFC income restrictions. You could not afford that mortgage making 87k a year. Doh! What's the scam there?
why can't we let them crumble? why should the city get involved? let them lose their shirts.
aren't most of these developments financed by private equity funds? (hedge funds or whatever rich people invest in)
how much will go into affordable housing?
don't get me wrong, this is a good plan but it just seems again the rich gets preferential treatment, bailouts or make out like a bandit.
If you ever lived in an imploding neighborhood, you would never ask why not let it all crumble. There is a human cost. People and communities will die and it won't be pretty, cheap nor short-term. And if you think it won't effect your neighborhood because it's far away, you are dreaming.
Well what did you all expect with all of the building in this city ! Those that can afford these condo's take them while those stuck somewhere in the middle have to do without .