City Invests $1B for New Affordable Housing Preservation Program

The New York City Department of Housing Preservation and Development (HPD) has put into action what it calls the Supportive Preservation Program (SPP), designed to provide greater support for and increase the preservation of affordable housing across the city’s five boroughs, the HPD announced Tuesday.

Supportive housing around the city will see an investment of $1 billion from HPD, with a portion of that funding specifically dedicated to the preservation of New York City’s supportive housing supply, The Real Deal reported. The program is meant to specifically support units that provide services to people in danger of homelessness and facing other complex housing issues. That translates to more than 30,000 units. 

“What we’re announcing here today is a commitment to supportive housing in New York City and the New Yorkers who rely on it,” Patrick Love, deputy commissioner of development at HPD, said on Tuesday announcing the news. “The supportive housing model is a model that works.”

Projects eligible for the SPP must be existing supportive housing projects in New York City and must have existing social service contracts administered by the city, according to the announcement. Through the SPP, the HPD will be able to grant tax exemptions, provide below-market loans and modify existing loans. Details about the timeline of HPD’s investment are unclear.

“Supportive housing plays a critical role in our city, providing stability and services to New Yorkers in need. I am proud to be launching the new Supportive Preservation Program to ensure that providers and residents are able to succeed for many years to come,” Leila Bozorg, deputy mayor for housing and planning, said in a statement. “This program will be an important part of our holistic approach to provide and protect the housing that New Yorkers rely on.”

Since entering office, Mayor Zohran Mamdani has made it his administration’s  mission to supply New York City with more affordable housing. In May, the mayor announced “Block by Block: The Housing Plan for a New Era,” a blueprint for new housing policies meant to promote new construction, as well as protect tenants and workers. 

Block By Block is designed to result in the construction of 200,000 new affordable homes across the city and the preservation of another 200,000 over next 10 years. 

“This plan meets the housing crisis with the urgency it demands,” Mamdani said in a statement in May announcing the plan. “We are setting the most ambitious housing production and preservation targets in the city’s modern history — and backing them up with investments to match — while also protecting tenants and homeowners, investing in public housing and ensuring the workers building that housing have good-paying, safe jobs.” 

Additionally, Gov. Kathy Hochul is expected to announce Wednesday the completion and opening of Utica Crescent, which is part of the $1.4 billion state plan known as Vital Brooklyn. The project brings 322 new affordable apartments and a medical center to East Flatbush, Crain’s New York Business reported.  

Meanwhile, in an effort to increase tenant support in areas around the city that need it most, the New York Apartment Association (NYAA) is calling on state lawmakers to pass the Housing Access Voucher program, which would offer support to households at risk of losing federal rental assistance as a result of changes in eligibility rules or funding cuts. 

“Vouchers provide rent relief for tenants without bankrupting the buildings they live in,” Kenny Burgos, CEO of the NYAA, said in a statement urging Albany to pass the program. “Our members house tens of thousands of New Yorkers with CityFHEPS, Section 8, and other forms of rental assistance every day. A voucher means a stable tenancy, a reliable payment, and a family that can remain housed through hardship.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.