It is a well known fact right now, that in New York real estate the easy money is in multifamily rental. As the Full Story below points out though, there may be even easier money in the affordable housing subclass. Between federal and city tax credit assistance programs, federal low income housing tax credits and the Community Reinvestment Act, there is a great deal of incentives available to help improve the bottom line of such developments. But how are the numbers quoted in the Full Story related to a baseline such as $/built unit?
It looks like this:
Affordable Housing Preservation Fund- $100M over 1300 units = $77k/unit
Phipps Houses Group:
Units developed since 2007- $650M over 2000 units = $325k/unit
Hobbs Court- $125M over 134 units = $932k/unit
Fordham Bedford Housing Corp
Serviam Gardens- $46M over 243 units = $189k/unit
Clearly L+M's fund numbers are low being strictly reno. Fordham seems a little light at $189k/unit. But what happened at Hobbs Court? $932k/unit development cost? Someone needs to check the published unit count or stop finishing units in gold leaf.
(free registration required at Crain's)
Labels: affordable housing, Fordham Bedford Housing, L+M Development, multifamily, Phipps Houses Group