Pilot Program Would Subsidize Unsold Condos

NEW YORK CITY-An idea first floated by City Council Speaker Christine Quinn last February is getting a tryout as a $20-million pilot program to turn unfinished or unsold condominiums into subsidized housing. Through the Housing Asset Renewal Program announced Wednesday by the Bloomberg administration, the city intends to provide developers with enough incentive to restart stalled projects.

Although details still remain to be worked out, HARP would entail developers setting aside a portion of their projects’ units as affordable for moderate- or middle-income families. In return, the developer would receive a subsidy and a guaranteed buyer or rental income stream.

The city says HARP will focus on two types of problematic developments: completed projects with a high number of vacancies and stalled sites that are still under construction. In late July, the city’s Department of Housing Preservation and Development will issue a Notice of Funding Availability for the new program, soliciting proposals from developers and lenders.