Twenty years ago, BPCA revenues were pledged to create housing for New Yorkers of all income levels. If approved, the fund will expand upon Mayor Michael Bloomberg's New Market Housing Marketplace Plan, which provided $3 billion to fund the creation or preservation of 65,000 affordable housing units over five years.
The trust fund would provide subsidies to target income ranges in households earning below 30% of area median income and households earning between 60% and 80% of area median income. These subsidies could be used in conjunction with a variety of programs such as 9% Low Income Housing Tax Credits to enhance HPD's Mixed Income Rental Program and with the Housing Development Corp.'s New Housing Opportunities Program and Low Income Affordable Marketplace programs.
It would also preserve existing affordable units by funding large-scale acquisition and renovation of loans or properties. It would also fund land acquisition and predevelopment costs for affordable housing. In order to secure these funds, the mayor, city comptroller and the BPCA must agree on their use. The fund also establishes a mechanism that could be used by future administrations to continue investing Battery Park City funds in affordable housing.
After the Marketplace plan introduction, the city unveiled the Enterprise Foundation's $1-billion investment to create and preserve 15,000 affordable homes for low-income New Yorkers. This is the private sector's investment in the city's affordable housing stock. The city also has the New Ventures Incentive Program, which over a five-year period, is expected to provide up to $200 million for acquisition and pre-development costs to encourage residential development in derelict manufacturing areas, particularly brownfields, appropriate for rezoning for residential use. Citibank, Deutsche Bank, HSBC and JPMorgan Chase have committed the first $40 million for the first year of the program. The city has committed to guarantee up to $8 million of these loans in order to leverage the private bank funds.
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