NYC Announces Program To Turn Unsold, Unfinished Condo Complexes Into Affordable Rental Housing

In New York City, The Wall Street Journal reports:

• New York City announced Wednesday a pilot program to turn empty or stalled condominium developments into affordable housing, an idea consumer advocates have been pushing for years. The program, which aims to convert as many as 400 units, is designed to provide grants to real-estate developers and lenders to subsidize the completion of developments if the owners agree to turn the building into rental units for middle-income families, which in New York means an income of up to $126,720 for a family of four.(1)

***

• Other cities will be watching New York's effort closely as they deal with rising numbers of developments that are heading into foreclosure. Housing advocates say that several cities are considering similar programs using funds from a federal grant program designed to restore abandoned homes and complexes.

For more, see New York City Seeks to Turn Condos Into Affordable Housing.

(1) The program is designed to speed along the completion of developments such as 23 Caton Place, a 107-unit luxury condo complex in Brooklyn that stands unfinished after the developer filed for bankruptcy and the lender moved to foreclose on the project.