Turn around, move and innovate*

The SEV tells us to prepare for action, set things in motion and to turn around, move and innovate! The SEV asked me to respond to their plans from a New York housing perspective, giving examples of innovative approaches to housing issues. Before I do, I have to explain that it may be difficult to set the minds of New York's housing professionals on innovations and experimentations, while struggling to hold on to the city's affordable housing.

The sale of Stuyvesant Town, Peter Cooper Village and Starrett City has stirred a lot of commotion. These assisted rental properties, were built with expiring affordability restrictions. As restrictions expire and aging properties present ever greater capital need, owners are tempted to capitalize on the city's strong real estate market. Although the proposed sale of Starrett City has been blocked by HUD, tenants still fear rent increases that will force them out of the city, looking for an affordable place to live, far removed from their jobs and social network.

Preserving affordable housing is one of the cornerstones of mayor Bloomberg's administration. In some cases, the city has been able to convince owners to stay in the affordability programs. A major achievement has been the financial rescue of Parkchester in the Bronx by the Community Preservation Corporation through shrewd refinancing, hands-on management and protection of tenants' rights. At a recent symposium on affordable housing held at NYU, participants questioned the focus on preservation at the expense of new housing. According to some, keeping rents artificially low benefits only the lucky few.  In order to really address the problem of housing affordability, more emphasis should be placed on expanding the supply and investing in transportation infrastructure.

There is strong political support, and there are success stories to tell, but the current situation presents serious threats for future of affordable housing in New York.

* Summary of a column is published in the quarterly magazine of the SEV, the Steering Committee for Experiments in Public Housing, an independent nonprofit thinktank on housing issues in the Netherlands. The SEV is financially supported by the Dutch national government, Department of Housing, Spatial Planning and the Environment (Ministery of VROM).

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Column 1: Keer, beweeg en vernieuw! (in Dutch)