The Process of Preservation: Marketing to Property Owners to Maintain Affordability

“HOUSING NEW YORK,” the banners scream in capital letters. Walking around New York City, one sees these blue and white signs hanging on scaffolding in front of new construction. They promote the Mayor’s signature housing plan and bear the logo of the City’s Department of Housing Preservation and Development(HPD). These buildings contain at least some new affordable housing units, which are part of the mythical affordable housing lottery that is a luckier draw than most actual lotto tickets. When New Yorkers think of affordable housing, they think of the struggling public housing authority (NYCHA) or of these newly constructed units. Note, however, that development is only one half of the equation in HPD’s name. As the agency marches on towards an ambitious goal of 300,000 units of affordable housing by 2026, two-thirds of the units achieved so far have been through preservation. No banners hang in front of buildings with preserved affordable housing, but they are fundamental to keeping New Yorkers in their homes as costs of living continue to rise.

When cash-strapped landlords need to make improvements to their buildings, they turn to HPD as a lender of last resort. HPD is happy to provide financing with generous terms, but it comes with strings; the property owners must agree to offer rents affordable to designated Area Median Income (AMI) bands. While many of the agency’s programs are geared toward larger buildings where they can maximize impact, some are geared towards small and medium-sized buildings. Owners of smaller properties, however, are unaware that these programs are available to them. They are usually not professional property managers and may own only one or a few properties. Continue reading “The Process of Preservation: Marketing to Property Owners to Maintain Affordability”