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They get tax breaks to build affordable units. Some condo developers take advantage of them, some don't.
ok. i guess its rare...browsing through the NYC lottery housing subforum, it seems like its all rental lotteries. my guess is even if a condo is made affordable its still a few hundred thousand , plus condo fees can be expensive and hence not a lot of people going for that.
Last edited by DonaldJTrump; 01-05-2021 at 11:02 AM..
ok. i guess its rare...browsing through the NYC lottery housing subforum, it seems like its all rental lotteries. my guess is even if a condo is made affordable its still a few hundred thousand , plus condo fees can be expensive and hence not a lot of people going for that.
Large number of those seeking "affordable/low income housing" barely can scratch up first months rent and security. Few have kind of money for making a down payment on a condo, and or it would be a stretch for them to do so.
Various projects where city leaned on condo developer to include an "affordable" component it also creates assistance plans to help those chosen to pay down payment and other costs.
Problem with condo developments and affordable housing is that the sales per square foot price. Some way or how the money lost by selling whatever number of units at steep discount has to come from some where, and that usually means others are going to pay more to carry those who cannot afford. No, the tax reductions don't always even things out. Then comes fact sooner or later tax abatement end.
Finally comes fact unlike a rental where low income or affordable units can be kept that way permanently (well long as rent stabilization lasts), most of these condos in market rate buildings will sunset sooner or later. In ten, fifteen or whatever years in future owner of "affordable" unit can cash in by selling. He gets a nice fat return on money others invested (the city), and there goes that affordable unit.
Rentals are not as profitable as condos, so they tax breaks are more valuable to the developers/landlords.
Quote:
Originally Posted by DonaldJTrump
ok. i guess its rare...browsing through the NYC lottery housing subforum, it seems like its all rental lotteries. my guess is even if a condo is made affordable its still a few hundred thousand , plus condo fees can be expensive and hence not a lot of people going for that.
That disgusting out of place tower has affordable units? Or are we taking about the projects across the street? Last I read about that building its 80% empty and the developer is pushing a rent to own scam.
I also heard it’s sinking and already partially tilted. Lol
Rentals are not as profitable as condos, so they tax breaks are more valuable to the developers/landlords.
For years now developers have wanted nothing to do with building rental units, instead focused on condos or co-op multi-family instead.
First obvious reason is GD rent regulation laws that pretty much turn control of a rental building over to state and city. Second giving high costs of land and building anything in this city numbers just are better to build something, get units sold and get the eff out. It's like building single family homes... you develop the property, sell it, get your money and that's that.
Rental housing is a long term investment, it can take years or ages before new construction pays off associated debt and otherwise starts showing a profit. And again much of that depends upon things not in LL's control but whatever nonsense city or Albany cooks up.
Buying a condo is like owning a private house, to some extent you can choose your neighbors. Don't like who or what's in a building, don't move in.... Rental housing is a mixed bag, especially anything that remotely has state or city involved. You've got formerly homeless, drug addicts, low income, criminals, and other people you normally wouldn't be bothered with next door or otherwise as neighbors, and you can't do anything else but move because they can't be touched.
City and everyone else knows this because for a good number of "affordable" buildings they can't fill market rate units. People who earn and have options just won't go near certain buildings, so they don't bother. This or after moving in they look around, realize a mistake was made, then move right back out.
ok. i guess its rare...browsing through the NYC lottery housing subforum, it seems like its all rental lotteries. my guess is even if a condo is made affordable its still a few hundred thousand , plus condo fees can be expensive and hence not a lot of people going for that.
I don't think condos are ever made "affordable" It's ONLY the rentals, BUT some condo buildings get tax breaks for building rental apartments to be affordable
It's done because, naturally, if I'm paying several million plus thousands in monthly fees for a condo with exclusive amenities, I want those amenities to exist only for those who also paid millions. I.e. those who have "skin in the game" and abide by the building rules, keep things clean, etc.
But then you have people like this who have the audacity to complain about not having access to million dollar amenities on an artist's income. She (and anyone else complaining) should be thankful to have ANY affordable unit, even if it has no views and zero amenities. Many would love to have even that much.
Why would they ban it? Maybe for all-rental buildings but I can't imagine who would want to buy a market rate condo in a building that mixes affordable renters with people buying properties worth millions.
Let the buyer beware! Potential purchasers need to investigate everything about any property they are interested in buying or even renting, whether it be a home, condo or co-op. And that definitely includes the surrounding area.
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