"Given the condition and prospects for the City's budget (a deficit projected to be at least $3.7 billion in Fiscal 2004) the investment of additional City capital dollars for affordable housing is not realistic," said Miller. "But with Liberty Bonds we have an unprecedented opportunity to create more than 5,000 units of new housing, a substantial portion of which would be affordable to the families of public school teachers, firefighters, police officers, nurses, clerical workers, hospital employees, and other hard working residents."

Under the current plan, which is administered by the New York State Housing Finance Agency, 5% of housing units in Liberty Bond-financed buildings must be designated affordable. According to Miller, an annual family income of at least $94,000 is required to qualify for an affordable apartment under the current structure, which, he says, eliminates roughly 85% of New York City households. "This plan," said Speaker Miller, "will benefit wealthy New Yorkers renting luxury apartments at the expense of thousands of low and middle income residents."

The system caught considerable heat earlier this summer when the first three Liberty Bond projects received HFA approval for $340 million in funding over the strenuous protests of housing activists, who said the funding was being squandered on luxury housing. Two of those projects were later tabled for further study by the Public Authorities Control Board, which oversees and reviews projects financed for public authorities, including HFA. (Community Board 1, which advises the Council on housing matters in Lower Manhattan, approved the two projects at its meeting earlier this week.)