Down Payment Assistance Fund is part of City’s Neighborhood Pillars Program, dedicated to affordable housing preservation
NEW YORK--(BUSINESS WIRE)--The New York City Department of Housing Preservation and Development
(HPD) and New York City Housing Development Corporation (HDC) announced
today the City’s Neighborhood Pillars Program with a $2 million
commitment from the Wells Fargo Foundation. As part of Housing New York
2.0, the mayor’s plan to finance 300,000 affordable homes by 2026,
the Neighborhood Pillars Program will help finance acquisition and
rehabilitation of existing rent-stabilized and unregulated buildings to
preserve affordability in neighborhoods across the city.
“Through our new Neighborhood Pillars Program, we’re giving
community-based organizations the tools they need to compete in a
fast-changing market,” said HPD Commissioner Maria Torres-Springer.
“Now, pre-qualified non-profits will have greater access to the capital
and technical assistance they need to purchase, and finance, quality
affordable housing for generations to come.”
With the Wells Fargo Foundation’s commitment, and $2 million from the
Community Preservation Corporation (CPC), the city has established the
Neighborhood Pillars Down Payment Assistance Fund, a first of its kind
fund, that will require at least 30 percent of homes be permanently
affordable and at least 20 percent of homes be set aside for formerly
homeless households.
Low-cost housing affordability in NYC has declined 12 percent since
2014
Changes in the state rent laws over the last few decades, combined with
the surging demand for housing, have led to aggressive real estate
speculation in rent-stabilized buildings, which provide a critical
source of housing for low-income New Yorkers. Although there has been no
significant net decline in rent-stabilized units over the past decade,
the city has experienced a substantial decline in the number of low-cost
units. Since 2014, the number of units with contract rents less than
$1,500 has declined more than 12 percent or about 160,000 units.
Neighborhood Pillars is the latest in a series of efforts to address
these issues, and both improve the quality and preserve the long-term
affordability of the city’s housing stock.
“The Wells Fargo Foundation is focused on making housing more
affordable, achievable, and sustainable as we work to build stronger
communities,” said Martin Sundquist, executive director of the Wells
Fargo Foundation housing philanthropy. “In many neighborhoods access to
credit, and to safe, sustainable and affordable housing continue to be
critical needs. This collaboration will help revitalize communities
throughout New York City and is an example of the positive impact that
can be achieved with thoughtful public-private collaboration.”
Program will fund acquisition and preservation of nearly 7,500 homes
The Neighborhood Pillars Down Payment Assistance Fund will be
administered by Restored Homes Development LLC, an affiliate of
Neighborhood Restore HDFC. Restored Homes will offer
assistance to nonprofits in sourcing, underwriting, and negotiating
potential acquisitions.
Pre-qualified nonprofits, mission-based organizations, and certified
Minority- and Women-Owned Business Enterprises were identified for the
program last spring. Potential buyers can apply on a rolling basis. The
program will fund the acquisition and preservation of nearly 7,500 homes
over the next eight years.
“Our efforts to secure more affordable housing are key to our work in
removing barriers and increasing the number of minority and low- to
moderate-income homeowners in New York,” said Fred Bertoldo, Wells Fargo
New York region bank president. “We are thrilled to support Mayor de
Blasio’s housing plan through Neighborhood Pillars and look forward to
the progressions that will be made in affordable housing as a result of
this effort.”
About the New York City Department of Housing Preservation and
Development (HPD)
As the nation’s largest municipal housing preservation and development
agency, HPD’s mission
is to promote quality housing and diverse, thriving neighborhoods for
New Yorkers through loan and development programs for new affordable
housing, preservation of the affordability of the existing housing
stock, enforcement of housing quality standards, and educational
programs for tenants and building owners. HPD is tasked with fulfilling
Mayor de Blasio’s Housing New York Plan which was recently expanded and
accelerated through Housing New York 2.0 to complete
the initial goal of 200,000 homes two years ahead of schedule—by 2022,
and achieve an additional 100,000 homes over the following four years,
for a total of 300,000 homes by 2026. For regular updates on HPD news
and services, follow @NYCHousing on Facebook, Twitter, and Instagram.
About the Wells Fargo Foundation
In 2017, the Wells
Fargo Foundation donated $22.7 million in support of affordable
housing initiatives serving low- and moderate-income households –
including for seniors, veterans and families – through community
revitalization efforts. Since its inception 25 years ago, the Wells
Fargo Foundation has invested more than $212.7 million in such efforts,
along with mobilizing more than 4.75 million team member volunteer hours
to build and rehabilitate nearly 7,600 homes and counting. Wells Fargo &
Company was ranked No. 26 on Fortune’s 2018 rankings of America’s
largest corporations. News, insights and perspectives from Wells Fargo
are also available at Wells
Fargo Stories.