Good morning, Chair Sanchez and members of the Committee and thank you for holding this hearing today. I am here representing Brooklyn Borough President Antonio Reynoso, a strong supporter of the Community Land Act.
It is important to note that New York City’s housing crisis, as evidenced by our dangerously low vacancy rate, demands new housing development of all types, serving a broad range of incomes and family sizes. Yet the longer we wait to build more housing, the more market pressures increase, and according to the New York Times, families leaving NYC at the fastest rate are people of color who make between $32,000-$65,000 per year. Low- and moderate-income homeowners and tenants who want to stay are increasingly looking to strategies that remove real estate speculation from the equation and provide long-term housing affordability and stability. That’s why social housing models based in community ownership and democratic control of land provide important tools in the toolbox for meeting our city’s housing needs.
On today’s agenda are tools for new development, including:
Intro 78: Public land is our best opportunity to create much-needed deeply affordable housing. For years, HPD has had an informal policy of requiring use of one of its 100% affordable housing term sheets for public land disposition. This bill simply codifies that policy and goes a step beyond, to require a preference for local, mission-driven developers to build that housing. This means the developer will have an interest in keeping the housing affordable in the long-term, and the development’s profits will stay in the community, to be used for other services such as education and job training programs.
Resolution 777: This resolution supports State legislation that would create a Social Housing Development Authority. This new State entity would issue bonds for the purpose of creating and preserving affordable housing throughout the state. Some of our most enduring affordable housing, such as Mitchell-Lama and homes developed by the Urban Development Corporation, were State projects, and this proposal has the potential to revive this power with a social housing mission.
It also includes tools for preservation, such as:
Intro 902 and Reso 374: Preserving existing affordable housing, both regulated and unregulated, is critical for stabilizing communities and fighting the housing crisis. Intro 902, aka the Community Opportunity to Purchase Act (COPA) creates a process for qualified, mission-driven developers to make a competitive offer when a landlord sells a multifamily building. This levels the playing field for these non-profits and increases the chances that existing affordability will endure and that any profits will stay in the community. Reso 374 supports State legislation that would provide the same opportunity, but for tenants rather than third-party organizations. This would keep residents in their homes and create new opportunities for cooperative home ownership.
Intro 570: While there are some technical issues with this bill (the involvement of EDC, for one), a land bank could generally be a valuable tool for holding landlords accountable and preserving existing affordable housing. For example, in updating the Third-Party Transfer program, a land bank could be useful for the City to transfer properties from neglectful landlords to community-based developers, who will stabilize the properties and ensure long-term affordability. A land bank could also replace the Tax Lien Trust for properties with municipal debt – rather than transferring the debt to speculators, a land bank could facilitate property stewardship and long-term affordability.
Borough President Reynoso appreciates your consideration of these bills today. These proposals have been on the table for many years, and it is past time to put them into action. Thank you.