City to turn fed-owned land into affordable homes

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Date: 12/6/2005 12:06:52 PM Eastern Standard Time
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November 22, 2005


City to turn fed-owned land into affordable homes
by Catherine Tymkiw

The city today announced plans to buy federally owned properties in distressed areas and turn them into homes for low-income families.

Starting early next year, nonprofit developer Restored Homes will buy and begin restoring up to 360 one-to-three family homes in areas with low home-ownership rates or a high number of foreclosures. The areas include Bedford Stuyvesant and Cypress Hills, Brooklyn, and Jamaica, Queens.

"If all goes well, which it should, it is likely that you will see the city purchase more federally owned properties for the development of affordable housing," said Paul Elliott, a spokesman for Mayor Michael Bloomberg. Families with annual incomes of $30,000 to $70,000 a year, depending on their size, would qualify.

The agreement adds to an earlier plan to renovate 400 properties that were sold under a federal mortgage insurance program, Mr. Elliot said. The mayor pledged to create or preserve 68,000 affordable homes by 2008 and the city has completed or begun work on 28,000 units since 2002, Mr. Elliot said.

Acquisition and construction will be funded through a $145 million pool, including contributions from Enterprise Social Investment Corp., LISC, New York City and major financial firms.

Restored Homes, which is funded by the Housing Preservation Development, will spend up to two years restoring the homes, doing major repairs to heating, plumbing and electrical systems, damaged roofs, kitchens and bathrooms.

The homes will be sold through a city-sponsored lottery system to low-income families, which must occupy them. Military veterans who served since Sept. 11, 2001 will be given preference.

�2005 Crain Communications Inc.