LMDC president Kevin M. Rampe expects this program to be the first of several initiatives to create affordable housing for working families in Lower Manhattan. "These funds will ensure that a diverse range of professionals including firefighters, police officers, and teachers can become part of downtown's thriving residential community," he added.

The media event was held in front of 111 Worth St., a 330-unit residential and retail development that was the first residential site constructed in Lower Manhattan since Sept. 11, 2001. Lower Manhattan was the fastest growing residential neighborhood in New York City prior to September 11, after the tragedy, vacancy rates climbed to over 40% in some areas and the stabilization of the residential base became essential to the revitalization of Lower Manhattan. The LMDC Residential Grant Program funded by HUD contributed significantly to the stabilization of the neighborhood by attracting new residents to the area, encouraging existing residents to stay, and providing an incentive for two-year leases. Occupancy rates in Lower Manhattan are now over 95% and Battery Park City has higher occupancy rates than at any other time in its history. More than half of the residents in the area closest to the World Trade Center site are new residents.

Last December, Bloomberg began an effort to dedicate $3 billion in funds over the next five years, creating or preserving 65,000 units of housing; of these 27,000 units will be new and 38,000 units will be preserved. The plan includes a stream of initiatives aimed at facilitating private investment in housing in targeted communities by removing barriers to development and reducing costs of construction. As of July 1, the official kick-off of the plan, the Housing Development Corporation already started 1,749 units, and in fiscal year 2004, HDC and Housing Preservation and Development anticipate starting 8,030 units of housing.