DRAFT May 1, 2017 East Harlem Housing Plan Office of Neighborhood Strategies NYC Department of Housing Preservation & Development Table of Contents 2 About Housing Snapshot 3 01 Preserve Existing Affordable Housing • Finance and Safeguard Affordability • Promote Safe and Healthy Housing • Protect Tenants 5 5 9 10 02 Develop New Affordable Housing 13 03 Increase Access to Affordable Housing 19 04 Promote Economic Opportunity 22 This Housing Plan summarizes the goals, strategies, and actions that the City proposes to undertake in response to a range of needs and priorities in the neighborhood, including those articulated by residents and stakeholders in the East Harlem Neighborhood Plan (EHNP). The Housing Plan is part of a broader community development initiative under Housing New York, which is the Mayor’s plan to build and preserve affordable housing through strategic investments that foster diverse, livable neighborhoods. Introduction East Harlem Housing Plan Visit eastharlemplan.nyc to download the East Harlem Neighborhood Plan. DRAFT Housing Snapshot Manhattan’s Community District 11, which encompasses East Harlem, has one of the largest concentrations of rent regulated housing in New York City. Approximately 75% of all homes in the neighborhood are regulated by a government agency, compared to just one third of all homes across the city.1 This stock of stable affordable housing, which includes over 15,000 apartments managed by the New York City Housing Authority (NYCHA), has served local residents for many decades. However, the city’s population is growing, and increased demand is putting pressure on East Harlem’s housing supply. Between 2002 and 2014, prior to the announcement of any rezoning, the median gross rent in East Harlem increased by approximately 40%, while rents increased only 24% citywide.2 As the demand for housing continues to grow, East Harlem residents have reported that rents are increasing beyond what they can afford. For example, the median household income in East Harlem is $30,973,3 but in order to afford current market rents, one would need to earn about $80,000 for a one-person household or $100,000 for a three-person household.4 As a result, more than half of all CD11 households are considered “rent burdened,” meaning they spend more than a third of their income on rent.5 Regulatory Status of Existing Homes (CD11) Unregulated Government Assisted 25% Rent Stabilized 30% 15% 3 30% NYCHA HPD Research and Evaluation, 2016 Household Income Distribution (CD11) 38% 17% < $24,500 (30% AMI) $24,501$40,800 (31-50% AMI) 19% 14% $40,801$65,250 (51-80% AMI) 11% $65,251$97,920 > $97,921 (120% AMI) (81-120% AMI) Sample incomes are for a three-person household based on 2016 HUD Income Limits; ACS, 2011-15 PD Research and Evaluation, 2016 H NYC Housing and Vacancy Survey, 2002 and 2014 3 U.S. Census, American Community Survey, 2011-15 4 Based on average asking rents from Streeteasy listings on November 29, 2016, and assuming households spend no more than a third of their income on rent. Average asking rents in Manhattan CD 11 ranged from about $1,800 for a studio to $2,600 for a three-bedroom apartment, which are affordable to households earning approximately 130% of the 2016 Area Median Income (AMI) for New York City as defined by the U.S. Housing and Urban Development (HUD). 5 NYC Housing and Vacancy Survey, 2014; does not include households in public housing or with vouchers. 1 2 DRAFT 4 Since 2003, the City has financed the construction or preservation of almost 13,000 affordable homes in East Harlem. Over the past three years alone, CD11 ranked third among all community districts in terms of the number of affordable homes that have been created or preserved. Yet despite these significant investments, more needs to be done to ensure long-term residents are not forced from their homes, and that still more housing is created to meet the intense demand that is driving rents and threatening East Harlem’s character and diversity. Affordable Housing Development and Preservation Activity in East Harlem (CD11) Type 2003-13 2014-16 Total New Construction 2,590 249 2,839 Preservation 7,064 2,908 9,972 Total Units 9,654 3,157 12,811 HPD Performance Management and Analytics, 2017 East Harlem Housing Plan Housing New York: Three Years of Progress In May 2014, the de Blasio Administration unveiled Housing New York, a comprehensive plan to create and preserve 200,000 highquality, affordable housing units over 10 years – enough for almost half a million people. Three years in, the City is ahead of schedule. The Department of Housing Preservation and Development (HPD) and Housing Development Corporation (HDC) have financed the new construction or preservation of 62,506 affordable units – the highest rate of affordable housing production in 25 years. Introduction The Administration also exceeded its commitment to financing unprecedented levels of affordability. A full 27% of our total current production is serving households making less than $40,800 for a family of three. Fourteen percent of those units are serving New Yorkers making less than $24,500 for a family of three. And in February, 2017, the City committed an additional $1.9 billion to increase by 10,000 the number of apartments serving households making less than $40,000, half of which will be dedicated to seniors whose fixed incomes have left them struggling to keep up with rising rents. The City is also doing more to serve New Yorkers with special needs: to date, it has financed 5,160 apartments set aside for formerly homeless households, including 2,431 supportive housing units with on-site social services. And by 2024, the City is aiming to create and preserve a total of 15,000 new homes for seniors, and 500 apartments for veterans. DRAFT 01 Preserve Existing Affordable Housing The Administration is working on multiple fronts to keep New Yorkers in their homes and make sure our housing stock is in good financial and physical shape. HPD preserves affordable housing by rigorously enforcing the Housing Maintenance Code; financing improvements in the quality, physical condition, and efficiency of residential buildings in exchange for restrictions on the rents an owner can charge; and monitoring the condition and long-term financial stability of affordable buildings. Under Housing New York, the City has also worked to protect tenants from deregulation and harassment, expanded and refined its preservation tools to reach a wider range of properties, and created new incentives to preserve long-term affordability in changing neighborhoods. HPD is committed to working with local organizations in East Harlem to facilitate the coordination of preservation activities, including through enhanced support for tenant organizing and strategies targeting buildings at risk. Finance and Safeguard Affordability HPD administers loans and tax incentives to help building owners improve the quality, physical condition, and efficiency of their properties. In exchange for financial assistance, property owners are required to maintain rents at levels that are affordable to existing tenants, as well as limit rent increases. Over the past three years, HPD has financed the preservation of approximately 3,000 affordable homes in East Harlem, representing almost 8% of all homes preserved across the city. 5 2026 Lexington Avenue, part of the Hope East of Fifth preservation project Strategy 1 Keep existing homes affordable by continuing to offer loans and tax incentives to building owners A large proportion of the existing homes in East Harlem (75%) are rent stabilized, rent controlled, and/or receive some form of governmental assistance that limits the rents that can be charged. Privately owned housing that receives government assistance, whether through HPD, New York State Homes and Community Renewal (HCR), or the U.S. Department of Housing and Urban Development (HUD), comprise approximately 30% of the total housing stock in the neighborhood. These homes have affordability restrictions that are monitored closely by the respective agencies. HPD’s goal is to keep the homes in its portfolio under regulatory protections that restrict rents, and it does so by proactively reaching out to owners to inform them about the financial incentives the City can provide to help them keep the apartments affordable. HPD also meets regularly with HUD and community DRAFT organizers to ensure close coordination on opportunities to keep HUD-assisted buildings affordable after their current restrictions end. Strategy 2 6 Implement an extensive outreach strategy to promote programs that could help owners make repairs and preserve affordability for existing tenants East Harlem Housing Plan HPD has developed an outreach strategy specifically targeting property owners in East Harlem, and we are committed to evaluating and refining this approach. Current efforts include the following: 01 Preserve Existing Affordable Housing For buildings that are not currently assisted or monitored by a government agency, HPD is taking a more proactive and strategic approach to engaging building owners who could benefit from our financing and tax incentives in exchange for maintaining affordable rents. Many owners are either not aware of HPD’s products or do not have experience working with a public agency, but we are piloting new tactics to reach and assist those owners. Recent HPD Owner Outreach Events in East Harlem Owner Outreach Events. In collaboration with elected officials, community-based organizations, and lenders, HPD is hosting a series of events for landlords in CD11 to provide information about resources that allow them to keep their buildings in good physical and financial health in exchange for preserving affordability. Mailings, E-mails, and Calls. HPD is conducting large-scale and targeted mailings, e-mails, and personal and automated calls to building owners to share information about preservation loan and tax incentive programs. The agency is targeting owners who are most likely in need of assistance, including owners of buildings with indicators of distress, those with expiring or recently expired tax exemptions, and/ or those on the tax lien sale list. Information about HPD’s programs is also enclosed with the annual reminder sent to buildings that are required to register with HPD. urveying of Distressed Properties. HPD’s S Neighborhood Planning and Preservation Unit coordinates with the Division of Neighborhood Preservation (DNP) to reach out to owners of distressed buildings to inform them about resources that can help them make repairs and keep rents affordable. DNP conducts “block sweeps” where at least one building is showing signs of distress to proactively identify properties that may need assistance. Depending on the condition of the buildings, the agency will call the owners to familiarize Date Type of Event Co-Sponsors Aug 2015 Owners’ Help Desk El Barrio's Operation Fightback, Enterprise Community Partners, Community Preservation Corporation Mar 2016 Landlord Resource Fair Northern Manhattan Collaborative, Council Speaker Melissa Mark-Viverito, Council Member Inez E. Dickens Oct 2016 Owner Info Session Council Speaker Melissa Mark-Viverito Jun 2017 Landlord Resource Fair To be scheduled DRAFT them with HPD’s loan products or make referrals for further inspection, litigation, or tenant legal services. Strategy 3 If you would like to recommend buildings to be surveyed, please send the building addresses to hpdproactive@hpd.nyc.gov. HPD welcomes all opportunities to speak with property owners interested in preserving the physical and financial health of their buildings. If you own property and want to know whether HPD’s financing programs might be a good fit, please contact Jessica Gomez at 212-863-7809 or gomezje@hpd.nyc.gov. For more information about HPD’s financing programs, visit nyc.gov/development-programs. Pilot a Landlord Ambassadors Program to provide technical assistance to East Harlem property owners In addition to enhanced outreach and education initiatives focused on local property owners, the EHNP identified a need for more sustained technical assistance for missiondriven, faith-based, and small- to mid-sized property owners who are interested in, but unfamiliar with, the process of securing a loan to undertake building improvements. In response, HPD will partner with Enterprise Community Partners to pilot a Landlord Ambassadors Program to contract with community-based organizations who will Project Profile: Hope East of Fifth The Hope East of Fifth resyndication project closed on new financing in 2016 to extend affordability for residents of 506 apartments across 39 buildings in East Harlem. As part of the transaction, eight different entities affiliated with Hope Community, Inc., transferred ownership to Hope East of Fifth Housing Development Fund Company, Inc. (HDFC). In addition, the HDFC purchased a City-owned property, which Hope Community, Inc., operated for 16 years as a 7A administrator. This project will use City financing to rehabilite the properties, including kitchen and bathroom upgrades; roof replacement and/or repairs; window replacement; façade restoration; hot water heater replacement; boiler replacement; plumbing and electrical upgrades; elevator modernization; accessibility upgrades to 26 units for tenants with mobility impairments; and upgrades to 11 units for tenants with hearing and/or vision impairments. PLACE HOLDER PHOTO In addition, the borrower entered into a regulatory agreement with HDC and HPD that restricts rents to 50% of AMI for 106 units and 60% of AMI for 392 units, with eight units reserved for superintendents. The regulatory agreement also requires 102 units to be set aside for homeless individuals and families. DRAFT 7 Strategy 4 Homeowner Hotline Explore interest and develop a strategy around community land trust models 8 The Center for New York City Neighborhoods (CNYCN), an HPD partner, operates the Homeowner Hotline, which connects homeowners at risk of foreclosure with free housing counseling and legal services. The Center can also provide information about important tax programs and other resources, including HPD’s home repair loans, which help low-income homeowners make critical repairs to their buildings so they can resist pressures to raise rents or sell. In response to growing interest in East Harlem and across the city, HPD recently issued a Request for Expressions of Interest (RFEI) to identify qualified groups who are interested in forming a Community Land Trust (CLT). A CLT is a non-profit organization that maintains control and oversight of affordable housing through ownership of land, and whose primary purpose is the creation and/or maintenance of permanently affordable housing. The CLT’s land ownership, paired with a governance structure that reflects the interests of residents and the broader neighborhood, can offer a unique housing model that empowers communities. Homeowners in need of assistance can reach the Center by calling 855-HOME-456. 01 Preserve Existing Affordable Housing East Harlem Housing Plan conduct outreach and provide technical assistance to owners of multifamily buildings in Upper Manhattan (including East Harlem), South/Central Bronx, and Eastern/Central Brooklyn. The Landlord Ambassadors will work with local property owners to: • • • Provide information about the benefits of using HPD financing programs. Navigate HPD program requirements, including regulatory requirements, and package application materials for HPD review and approval. Access local resources and vendors needed in order to close, construct, and operate their properties, including contractors, property managers, attorneys, and other professionals. The Landlord Ambassadors RFP was released on March 16, and the program will launch in June 2017. HPD has been approached by a number of groups interested in forming land trusts, including the East Harlem/El Barrio Community Land Trust (EHEBCLT), which has been working to organize tenants living in Tenant Interim Lease (TIL) properties located in East Harlem and currently owned by HPD. Properties in the TIL program are intended to be developed through the Affordable Neighborhood Cooperative Program (ANCP) and transferred to tenant-controlled cooperative ownership at the end of construction. Some TIL residents, under the guidance of the EHEBCLT, have requested an alternative development model centered around a CLT Mutual Housing Association. To further explore this and other opportunities for community land trusts, HPD will evaluate RFEI submissions to identify non-profit organizations with capacity to create and operate CLTs that will complement or enhance the City’s extensive affordable housing programs. DRAFT Promote Safe and Healthy Housing appropriate. HLD also has 53 active heat and hot water cases. There are 13 active Alternative Enforcement Program buildings CD11. HPD’s Office of Enforcement and Neighborhood Services (OENS) works closely with other HPD divisions and community partners to identify buildings that are in poor condition; assess and develop appropriate strategies to resolve those problems; and develop plans, with responsible owners, to return buildings to firm financial footing and good physical condition. I f your landlord is neglecting repairs in your building or endangering the health and safety of you or your neighbors, please call 311. Strategy 5 Continue to improve housing quality through rigorous enforcement of the Housing Maintenance Code OENS responds to 311 calls, Housing Court requests, and building referrals by community groups and elected officials by sending inspectors to see if building conditions violate the City’s Housing Maintenance Code. If OENS finds such conditions, they issue violations, which require that the owner correct the condition. The most serious conditions must be corrected immediately, while less serious conditions must be corrected within 30 to 90 days. If owners do not correct violations, buildings may enter into one of HPD’s enforcement programs. Between July 1 and February 28, 2017, OENS conducted 9,853 inspections and issued 6,357 new violations in East Harlem. In addition, 5,725 violations were closed. The agency spent about $38,600 in emergency repair work. HPD’s Housing Litigation Division (HLD) is currently involved in 10 Housing Court cases on comprehensive litigation to both compel a landlord to repair all open violations on the building and to seek civil penalties where Strategy 6 Prioritize the surveying of distressed properties in East Harlem As part of HPD’s focus on East Harlem, and in response to recommendations in the EHNP, OENS has prioritized “block sweeps” throughout the neighborhood. Working with the Steering Committee and community advocates, HPD will continue to identify buildings and blocks that are experiencing issues with maintenance or other housingrelated issues. The Division of Neighborhood Preservation (DNP) then assesses the referred building and all other properties on the same block. HPD takes appropriate action if a building is showing distress, which may include inspections, litigation, loan programs, or referrals to legal services. Between August 2016 and February 2017, based on HPD data about buildings showing signs of distress, HPD visited 191 buildings, and 28 buildings have been added to the Proactive Preservation Initiative for a full survey. DNP conducted detailed surveys at 20 properties in East Harlem under this special initiative. Based on those visits, five have been referred for code enforcement inspection, and litigation has been initiated against two properties. If you would like to recommend buildings to be surveyed, please send the building addresses to hpdproactive@hpd.nyc.gov. DRAFT 9 Protect Tenants 10 Many low- and moderate-income renters, especially seniors, depend on rent regulation, and those who do are poorer and more likely to have a Black or Hispanic head of household than tenants in unregulated units.5 Changes in the state rent regulation laws over the last few decades have resulted in a net loss of over 150,000 rent-regulated units citywide, which means landlords and owners can raise rents to market rates.6 The City has worked with tenants, advocates, and the State Assembly to achieve significant reforms in the laws, but more needs to be done to save critical rentregulated housing. Strategy 7 01 Preserve Existing Affordable Housing East Harlem Housing Plan Continue to provide free legal representation to East Harlem tenants facing harassment To support tenants who are facing eviction or harassment, the City has expanded funding for civil legal services for low-income New Yorkers. This includes more than $60 million in legal services for low-income tenants, which is a tenfold increase in Mayoral funding for tenant legal services since FY 2013. While only one in 100 tenants had lawyers in 2013, one in four was represented as of April 2016. During this period, evictions by City marshals dropped by 24%. In East Harlem, the City’s Human Resources Administration (HRA) launched the tenant legal services program in FY 2015. HRA is investing $4.6 million to serve approximately 1,900 households in East Harlem annually, and funding is fully secured through FY 2021. The program focuses on ensuring that tenants can stay in their neighborhood by providing access to legal representation that is both proactive 6 7 – i.e., working with residents and tenant associations to identify patterns of harassment – and responsive to evictions and other cases tenants may face in court. In February 2017, the Mayor announced that the City will fund universal access to legal services for tenants facing eviction in Housing Court. Through a five-year implementation plan, free legal representation will be available to all tenants with household incomes at or below 200% of the federal poverty line, or roughly $50,000 for a four-person family. Legal counseling will be available to those earning more. The City estimates that approximately 400,000 New Yorkers will be served under the program every year at full implementation. If you feel that you are the victim of harassment and would like to consult with a legal services provider, please call the Tenant Protection Hotline at 917-661-4505 or visit one of the East Harlem walk-in locations at 230 East 106th Street, 2272 Second Avenue, or 159-161 East 102nd Street. If you are falling behind on your rent and at risk of becoming homeless, please call 311 to be connected with a local HomeBase Center, which can provide emergency rental assistance. Strategy 8 Continue to work with the Tenant Harassment Prevention Task Force to investigate and take action against landlords who harass tenants The Administration helped to create an interagency, multi-jurisdictional Tenant Harassment Prevention Task Force to investigate and bring enforcement actions – PD Research and Evaluation, 2017 H Rent Guidelines Board DRAFT including criminal charges – against landlords who are found to be harassing tenants. Through referrals made by HPD’s OENS and community-based organizations, among other sources, the Task Force is investigating landlords that tenants claim are using a variety of tactics, including disruptive and dangerous renovation and construction projects, to force tenants to vacate rent-regulated apartments. HPD will continue to work with the Tenant Harassment Prevention Task Force to take action against landlords in East Harlem who are harassing tenants. Please refer allegations of harassment directly to the Task Force at thpt@hpd.nyc.gov. Strategy 9 Educate tenants about their rights and resources to prevent displacement HPD is committed to working with partner agencies, elected officials, and community groups to ensure tenants are aware of their rights and have access to important housing resources. HPD’s Neighborhood Education and Outreach Unit hosts tenant fairs and coordinates HPD and other agency participation in community events, where they provide information about tenants’ rights, legal services, rental assistance programs, the affordable housing application process, and other topics. The team also coordinates the distribution of multilingual housing resource materials. In addition, through its discretionary awards and Neighborhood Preservation Consultant contracts, the City Council and HPD provide critical funding to community-based organizations to promote tenant resources and deliver services, including financial counseling, legal clinics to prevent eviction, education and advocacy, tenant organizing, and emergency assistance. 11 Community-based organizations can request materials or discuss HPD participation in an event by contacting Pam Glaser at glaserp@hpd.nyc.gov. Tenant Support Unit In East Harlem, many tenants living in rent-stabilized apartments have reported that landlords are trying to push them out by making frequent buy-out offers, neglecting repairs, and/or performing illegal construction work. In response, outreach specialists with the City’s new Tenant Support Unit (TSU) are going door-to-door in East Harlem, informing tenants of their rights, documenting complaints related to harassment and eviction, and making referrals to free legal support whenever necessary. As of February 2017, TSU specialists in East Harlem have talked to 5,212 tenants and referred 166 tenants to legal service providers. Neglecting repairs is a form of tenant harassment (photo: Hiroko Masuike/The New York Times) DRAFT Strategy 10 Continue to explore the creation of a “Certificate of No Harassment” Pilot Program 12 In response to the EHNP and growing interest across the city, the Administration is exploring the feasibility of a citywide Certificate of No Harassment (CONH) or similar type of program to protect rent regulated tenants from being harassed to leave their homes. A Working Group led by Councilmember Brad Lander and HPD has been meeting regularly, and recommendations are expected to be released in Spring/Summer 2017. Code Enforcement: A Guide on What to Expect Inspectors also check for other safety items, such as smoke detectors. If no inspector arrives after 30 days, you can check the complaint status through HPDOnline or call 311 or the Tenant Info Messaging System at 212-863-8307. If English is not your primary language, let the inspector know and they can call an interpreter to help! Hazardous Conditions? also attempts to randomly reinspect certified violations. If re-inspection finds that the condition is not corrected, the case is referred to HPD’s Housing Litigation Division, which may pursue legal action against the owner. 7b. If audit and re-inspection are successful and condition has been corrected If unable to re-inspect and there is no tenant response, the violation closes after 70 days. Class C Violations are hazardous conditions and require emergency repairs by the owner. Fixing! HPD notifies owner “Fix this NOW!” (within 24 hours for most Class C violations) Time’s up? HPD calls the tenant. If still not fixed, the violation is sent to HPD’s Emergency Repair Program. Appointment may be set up with tenant to get a scope for repair. HPD staff visits the apartment to create a scope of work*, contracts a vendor to fix the condition, and bills the owner through the Department of Finance (DOF). *If HPD is unable to access apartment, inspector leaves a card and sends a letter in the mail. Tenant must call to make an appointment, or else no further action is taken. 7c. If the owner doesn’t certify the violation remains OPEN on building record. Tenants can check on HPDOnline to see all open violations or call 311. Tenants should seek legal counsel and initiate a Housing Court Action, and may contact local elected officials for help if conditions are not corrected. If you are in a rent regulated apartment, you may be able to file for rent reduction with NYS Homes and Community Renewal (NYS HCR) call 718-739-6400. For information on your tenant rights, visit nyc.gov/tenantsrights If you suspect corruption or collusion involving a code inspector, please report to the NYC Department of Investigation (DOI) at 212-3-NYC-DOI Updated: 7/27/2016 DRAFT Seek Legal Assistance! 311 can help refer you to legal services and provide information on Housing Court support and proceedures. Mayor de Blasio has created a program to provide free legal assistance to low-income tenants who are harassed. the inspector will issue the owner a Violation and send a notice to fix it. The time frame will depend on the violation class. Tenants can go to Housing Court if any of the above forms of harassment occur. 5. HPD sends a Code Inspector The timeframe depends on severity of the case, but should be within 30 days. If the inspector cannot access the unit, they leave a card for the tenant to call and make an appointment within 10 days. If it is a heat complaint, they try to inspect another unit. 6. If a violation is found 7a. If the violation is certified but not corrected, the tenant can challenge as instructed in the letter. HPD “No!” or no response Timeframe depends on severity of the issue. More serious, life threatening complaints will be prioritized. 3. Physical intimidation or lock outs (abuse, threats, etc.) - call 911 NYPD “Did they fix it?” “Please fix!” Keep your service request number so you can check the status of your complaint on HPDOnline or call 311. “Yes!” 4. Other forms of harassment (buy outs, not offering leases or lease renewals, not accepting rent checks, racial/ethnic discriminination, etc.) - depending on type, potentially to legal services, NYS Homes and Community Renewal (NYS HCR) if in a rent-stabilized building, or NYC Human Rights Commission, etc. condition was corrected, and the tenant will receive a notice of certification in the mail from HPD. 4. HPD calls back tenant 2. Failure to provide necessary repairs or utilities (turning off heat, etc.) - to HPD Know your rights! Your immigration status does not matter! 3. HPD notifies owner 2. 311 will send the complaint to the Dept. of Housing Preservation and Development (HPD). 1. Deliberate construction-related problems (working after hours, failure to repair plumbing fixtures or stairs, etc.) - to HPD or the Dept. of Buildings (DOB) 1. Issue in your apartment? Whether heat/hot water, roaches, leaks, or other needed repairs-- contact your landlord first to fix it. If they are unresponsive, contact 311 (call, online, or mobile app) to make a complaint. HPD and DOB will protect tenants facing harassment types 1 and 2 by enforcing building and housing code compliance. Tenants can use the reporting of a complaint and issuance of any subsequent violations to support either a Housing Court or NYS HCR action regarding harassment. For these types, tenants can also email the Tenant Harassment Prevention Task Force (THPT) at thpt@hpd.nyc.gov. THPT was created to investigate and bring enforcement actions - including criminal charges - against landlords who harass tenants by creating unsafe living conditions through illegal construction. Include your contact info, building address, and description of conditions in your email. A General Guide for Tenants on What to Expect When a tenant calls 311 about harassment, the complaint is routed to different agencies/ groups depending on the type of harassment: Calling 311 about a Housing Quality Issue 7. Owner must certify to HPD that the 01 Preserve Existing Affordable Housing also created an online survey for tenants to report their experiences with the HPD code enforcement team. More information can be found on HPD’s website: www1.nyc.gov/site/hpd/renters/complaintsand-inspections.page Calling about tenant harassment? East Harlem Housing Plan To help demystify the code inspection process, HPD recently released a one-page, visual guide describing what happens when a tenant calls 311 to complain about a housing quality issue. The guide is available in English, Spanish, Chinese, and Korean. And in an effort to continue improving customer service, HPD 02 Develop New Affordable Housing Protecting residents who want to remain in East Harlem is our number one priority. However, to accommodate a growing population and ensure that a shortage of housing does not drive rents higher, we must ensure that the supply of housing also increases, and that any new housing built includes permanently affordable homes. The City has made enormous progress in creating new affordable housing. Since the release of Housing New York, we have financed or incentivized the construction of 20,854 homes – representing the largest number of affordable units created over any three-year period in the city’s history. Yet despite this headway, only 249 new affordable homes, or 1% of those citywide, started construction in East Harlem during the same three-year period. In order to meet the intense demand for new affordable housing in East Harlem, the City will finance the construction of approximately 2,400 affordable homes and other community resources on publicly owned land. In addition, the implementation of Mandatory Inclusionary Housing (MIH) along the major neighborhood corridors has the potential to facilitate the construction of approximately 1,200 to 1,800 more permanently affordable homes on privately owned sites. Finally, HPD will continue to seek out partnerships with non-profit and for-profit developers interested in developing affordable housing on privately owned land, but only where they commit to exceeding the minimum MIH requirements. Sendero Verde, a 100% affordable, mixed-use development in East Harlem, is expected to be the nation’s largest residential Passive House Strategy 1 Prioritize the development of over 2,400 affordable homes on publicly owned land The City will expedite the construction of over 2,400 units of affordable housing on publicly owned sites in East Harlem over the next several years. A few of these projects – such as the MEC Center and NIHOP/NCP RFQ Clusters – have been in development for some time, while others are being prioritized based on feedback from the community. In response to the EHNP, the City is committing to deeper levels of affordability for the Lexington Gardens II, Sendero Verde (SustaiNYC), and MTA Bus Depot sites, where at least 20% of all units will be set aside for households earning up to $19,050 for an individual or $24,480 for a three-person family (30% of AMI). The Acacia Gardens DRAFT 02 Develop New Affordable Housing EA ST EA ST EA ST 102 ST 106 ST 110 ST EA ST 116 2ND AVE AVE KA VE PAR ST EA ST 119 Project Name DRAFT 125 Agency Approx. Affordable Units* Projected Start Date Acacia Gardens HPD 179 Under construction Lexington Gardens II HPD 400 2017 Sendero Verde (SustaiNYC) HPD 655 2018/19 NIHOP/NCP RPQ Clusters HPD 80 2019 125th Street MEC Center EDC 760 2018 126th Street Bus Depot EDC 365** 2020 Actual unit counts may vary depending on final approved design at project closing. ** Affordability levels have not been finalized for this project. For assumption purposes, the Draft Environmental Impact Statement projects that at least 50% of all units will be affordable for households earning less than 80% of AMI. The actual number of affordable units will be determined after an RFP is issued and a developer is designated. AVE AVE ON DIS MA EA * 1ST TO N ING LEX East Harlem Housing Plan City-Owned Development Sites in East Harlem ST 14 ST ST project, which is already under construction, will primarily serve low-income and formerly homeless households. The EHNP identified additional publicly owned sites that are currently in use by City agencies but may be appropriate for redevelopment with affordable housing. While many of these properties serve critical community functions, HPD is actively working with its partner agencies to evaluate whether they can be relocated and/or incorporated into new affordable housing development on-site. Strategy 2 Implement Mandatory Inclusionary Housing to require that all new residential development include permanently affordable homes The Mandatory Inclusionary Housing program (MIH) requires developers to provide permanently affordable housing in new buildings whenever land is rezoned for increased or new residential development. By creating housing for people earning a range of Project Profile: Sendero Verde The City recently announced the designation of the publicly owned SustaiNYC development site on East 111th Street to a team led by Jonathan Rose Companies and L+M Development Partners. The 100% affordable project, Sendero Verde, will include 655 affordable homes, of which 79 will be set aside for seniors and 163 will be permanently affordable under the MIH program. The project will also include a Harlem RBI/Dream Charter School, Union Settlement community programs, a new YMCA, a Community Health Center operated by Mount Sinai, a grocery store, and community gardens. Sendero Verde will be the largest residential Passive House project in the nation and, when complete, is projected to use up to 70% less energy than a standard building of its kind. The original Request for Proposals (RFP) was created through a collaborative outreach effort organized by HPD, Speaker Melissa Mark-Viverito, Borough President Gale Brewer, and Manhattan Community Board 11 to engage community members around their vision for development on the site. Consistent with the goals outlined in the Community Visioning Workshop Report and the EHNP, approximately 20% of the apartments in this development will serve extremely low-income households earning up to $19,050 for an individual and $24,480 for a household of three. The development plan offers deeper affordability by guaranteeing 60% of the apartments will serve low-income households with an individual earning no more than $38,100 and a household of three earning no more than $48,960 annually. The remaining units will be affordable to middle-income households earning up to $82,550 for an individual and $106,080 for a household of three.9 8 Incomes shown are for one- and three-person households to help illustrate a sample range of incomes according to the 2016 HUD Income Limits. DRAFT 15 incomes in every new building, MIH ensures that neighborhoods remain diverse as they grow. 16 Depending on the MIH option(s) selected for East Harlem, residential developments in the rezoning areas along Lexington, Park, Second, and Third Avenues, as well as East 116th Street, will be required to set aside 20% to 30% of all units as permanently affordable, and at levels that are much more affordable than current asking rents. For example, a typical two-bedroom apartment listed on the market today in East Harlem costs about $2,600 per month. In order to afford this rent, a family of three would need to earn at least $106,000 per year.10 MIH Option 1, on the other hand, requires developers to Acacia Gardens will include 179 affordable homes for low-income households and the formerly homeless 02 Develop New Affordable Housing East Harlem Housing Plan Mandatory Inclusionary Housing Area Median Income (AMI) Maximum Annual Income (example for a family of three, 2016) Sample Rent (for a 2-bedroom unit, 2016) 25% 60% of AMI (on average) $48,960 (on average) $1,121 with 10% required at: 40% of AMI $32,640 $713 2 30% 80% of AMI (on average) $65,250 (on average) $1,591 3 20% 40% of AMI (on average) $32,640 (on average) $713 30% 115% of AMI (on average) $93,840 on average) $2,305 with 5% required at: 70% of AMI $57,120 $1,387 with 5% required at: 90% of AMI $73,440 $1,795 MIH Affordable Option Housing Set-Aside 1 4 When new housing capacity is approved through land use actions, the City Planning Commission and City Council can choose to impose either one or both of the first two options above (1 and/or 2). In addition, the City Planning Commission and City Council may add one or both of the second two options (3 and/or 4). If multiple options are imposed, the development team can select whichever option best meets its needs. Based on average asking rents from Streeteasy listings on November 29, 2016, and assuming households spend no more than a third of their income on rent. 9 DRAFT rent comparable two-bedroom apartments at an average of about $1,100 per month, which would be affordable to a family of three earning up to $48,960. It also requires some units to be set aside at even lower rents: 10% of all homes would rent for $700 per month for a twobedroom unit, which would be affordable to a family of three earning up to $32,640.11 Strategy 3 Continue to offer financing to incentivize the development of affordable housing that exceeds minimum MIH requirements Developers who request HPD financing are expected to present their proposals to the local community board for review as part of the predevelopment process – regardless of whether or not they will require zoning approvals. Community members can consult Community Board 11 meeting agendas or call the Community Board 11 office at 212-831-8930 for information about upcoming presentations. Strategy 4 HPD aims to affirmatively further fair housing and economic diversity by financing the development of housing that is affordable to families with a range of incomes and needs. HPD’s financing programs have options that provide for extremely low- to middleincome households, as well as for seniors and households with special needs. HPD’s new Our Space program, for example, creates housing for homeless families where rents can be set as low as the public assistance shelter allowance. HPD is committed to working with owners of privately owned property in East Harlem who may be interested in affordable housing development. However, subsidies will only be offered where the developer agrees to exceed the minimum MIH requirements by providing additional affordable units, additional units targeting the lowest incomes, or additional permanently affordable units. HPD welcomes any opportunity to talk or meet with property owners interested in developing affordable housing. For more information about HPD’s financing programs, including contact 10 information for program managers, visit nyc.gov/development-programs. Support mission-driven groups interested in developing affordable housing on underutilized sites The EHNP expressed a desire to see more participation by mission-driven organizations in affordable housing development and preservation. To assist those interested in affordable housing, a number of resources are available: • HPD recently published a Pre-Qualified List of Owner’s Representatives to help mission-driven organizations who may have underutilized land but little to no real estate experience. In creating the list, HPD evaluated each organization’s technical expertise, experience, and capacity to represent owners in the development of affordable housing. • LISC NYC, in partnership with HPD, launched the New York Land Opportunity Program, which will provide dedicated technical assistance to mission-driven owners with development sites. Rents and incomes are examples based on MIH program requirements and 2016 HUD Income Limits. DRAFT 17 18 • The New York City Acquisition Fund offers preferred rates and terms to organizations, including non-profits, to acquire existing buildings and development sites. • The NYC Office of Environmental Remediation offers grants to mission-driven organizations to study redevelopment options for vacant sites. Strategy 5 02 Develop New Affordable Housing East Harlem Housing Plan Explore opportunities to finance the development of affordable artist housing As part of Housing New York, the City committed to building 1,500 affordable apartments for artists. Consistent with goals of the EHNP, HPD will review proposals from private and mission-driven developers in East Harlem seeking to build or preserve artist housing, live/work spaces, or traditional affordable housing integrated with studio and performance spaces. The City will also explore artist housing on future public sites if desired by the community. DRAFT Workshop participants share their vision for the East 111th Street site (SustaiNYC) 03 Increase Access to Affordable Housing Over the last several years, HPD has worked with community partners to better understand the needs of affordable housing applicants and made improvements to the overall application process. • HPD is working with local groups to distribute a new brochure – Ready, Set, Apply! – created in partnership with the NYC Department of Consumer Affairs’ Office of Financial Empowerment (DCAOFE) and the Center for Urban Pedagogy, to guide tenants on how to prepare for the affordable housing application process. • HPD recently created a Video Guide on how to apply for affordable housing. • HPD is in engaging in a large-scale project to redesign the Housing Connect website to improve the marketing process from advertising through lease-up. Improvements are expected to include: a tailored applicant experience, strategies to help residents complete more accurate applications, and the creation of a more streamlined, efficient application process. HPD recognizes that the affordable housing application process can be time-consuming, and we continue to take steps to help residents become better prepared to submit complete and accurate applications. HPD already has several initiatives underway: • The agency has made changes to the project advertisement template to include information for those with rental subsidies and about new asset limit policies. • Better advertise open housing lotteries HPD is committed to continually improving access to affordable housing, such as by making it easier for residents to complete the application process, better advertising open lotteries, and refining marketing guidelines to qualify a broader range of applicants. Strategy 1 Make it easier for residents to understand, prepare for, and complete the affordable housing application process HPD’s Housing Ambassadors Program trains local community groups to provide free technical assistance to residents who wish to apply for affordable housing. HPD staff or Housing Ambassadors can also be available to participate in community events to assist residents with general questions about the affordable housing lottery and application process. Current Housing Ambassadors in East Harlem include the 116th Street Block Association, Inc., and Wheeling Forward/The Access Project (for people with disabilities). Strategy 2 Community groups and elected officials can be alerted to open lotteries and help spread the word to their constituents. If you are an organization interested in receiving notifications for open lotteries, you can sign up on Housing Connect. HPD also advertises the lotteries on Facebook and Twitter (@NYCHousing). Advertisements are available in English, Spanish, Chinese, Korean, Arabic, Russian, and Creole. DRAFT 19 20 In addition to digital notifications, developers are required to advertise open lotteries at the construction site. The Department of Buildings requires developers to post a phone number that interested applicants can call in order to be placed on an inquiry list. Once the lottery is open, HPD requires the developer to post the marketing ad on the construction site and alert all applicants on the inquiry list. Instructions on how to apply online or receive a paper application in the mail are also provided in seven languages. HPD continues to explore ways to improve language access for advertisements and is open to community suggestions. • HPD’s new Tenant Selection Criteria do not allow for applicants to be rejected based on credit score alone, but rather developers must review a more complete credit history and follow strict rules if using the information to disqualify an applicant. • DCA-OFE offers free financial counseling to help applicants prepare for housing searches and applications. When applicants are denied on the basis of credit history, they receive a letter that connects them to OFE’s resources. • Applicants cannot be disqualified simply because they have been involved with Housing Court. Only in certain serious circumstances, involving for-cause eviction and judgments of possession, can Housing Court history be used for disqualification. • HPD has worked with community groups to better understand local needs and continues to accept feedback in order to update marketing guidelines appropriately. HPD and developer partners must comply with all federal and local fair housing laws. Strategy 3 03 Increase Access to Affordable Housing East Harlem Housing Plan Continue to refine marketing guidelines to reach New Yorkers most in need HPD is working to remove barriers to qualifying for affordable housing, such as poor credit or prior experience with Housing Court. For example: Recruiting Housing Ambassadors! Housing Ambassadors are community-based organizations and service providers, trained by HPD, who help people prepare and apply for affordable housing. HPD is recruiting more organizations to serve as Housing Ambassadors in East Harlem and throughout the city. If you know of a group that might be interested in becoming a Housing Ambassador, please contact ambassadors@hpd.nyc.gov. Visit nyc.gov/housing-ambassadors for a list of current Housing Ambassadors. DRAFT Ensuring Fair and Equal Opportunity Developers creating City-sponsored affordable housing are required to follow HPD/HDC marketing and tenant selection guidelines and procedures to ensure that the process is fair and provides equal opportunity to all applicants, regardless of race, color, religion, gender, sexual orientation, gender identity or expression, national origin, age, genetic information, disability, or veteran status. In addition, the process should affirmatively further fair housing by promoting racial, ethnic, income, and geographic diversity among residents and within the neighborhood, and by providing applicants with mobility, vision, or hearing disabilities who require accessible/adaptable design a priority for those units. 21 HPD or HDC must approve each developer’s plan to advertise and market available affordable apartments. If marketing plans are found to be insufficient or do not follow the rules for fair housing marketing, the agency will require the developer to modify. Please refer questions or issues related to the marketing process directly to HPD at hpdcompliance@hpd.nyc.gov. Please note that individuals wishing to appeal a lottery rejection must follow the instructions on the rejection letter, which specifies whom to contact and how. DRAFT 04 Promote Economic Opportunity HPD is committed to leveraging its investments in affordable housing to create local jobs and strengthen small businesses. 22 In partnership with the Department of Small Business Services (SBS) and Economic Development Corporation (EDC), HPD is implementing a host of new programs and requirements. Strategy 1 East Harlem Housing Plan Connect residents to good jobs in the building trades through the Upper Manhattan Workforce1 Career Center One of the largest and most impactful targeted hiring programs in the nation, HireNYC enables the City to use its investments to connect more New Yorkers to good jobs and help local businesses find skilled workers. HireNYC now requires that any housing development receiving $2 million or more in HPD subsidy post open positions with the Workforce1 system and consider qualified candidates. East Harlem residents will be able to apply for jobs through the City’s HireNYC program at the Upper Manhattan Workforce1 Center located at 215 West 125th Street. 04 Promote Economic Opportunities Strategy 2 Expand local hiring incentives in HPD-financed developments In all HPD Requests for Proposals for the development of City-owned property, respondents must demonstrate a plan for outreach to residents of the local community district related to employment opportunities generated by the proposed project. Outreach East 116th Street between Second and Third Avenues may be demonstrated by activities such as training programs, job placement activities, the applicants’ own staffing practices, and/or the applicants’ contracting practices. Applicants will be required to comply with their outreach plans and report regularly on outreach activities. Strategy 3 Expand opportunities for Minority and Women-Owned Business Enterprises (M/WBEs) in the affordable housing development industry HPD is committed to promoting the participation of M/WBEs and non-profit organizations in the development and management of City-subsidized affordable housing. Through the Building Opportunity Initiative, HPD seeks to: DRAFT • • Build the capacity of M/WBE and nonprofit developers through professional development, networking, and mentoring programs. The Building Capacity Workshop Series introduces M/WBE and non-profit developers to best practices in affordable housing development, from site selection and project financing to construction and property management. Improve access to capital for M/WBE developers with low-cost financing options for site acquisition and predevelopment costs through the New York City Acquisition Fund, which offers flexible bridge loans for the purchase of vacant sites or occupied buildings, predevelopment, and moderate rehabilitation. • Enhance the ability of M/WBE developers to compete more effectively for HPD support by providing targeted new construction and preservation opportunities. For example, in January 2017, HPD designated six sites to M/WBE developers through the M/WBE Building Opportunity RFP. • Expand the use of M/WBE construction contractors and professional service providers on HPD-financed development projects through the M/WBE Build Up Program. This new program requires that developers of projects where HPD contributes $2 million or more in subsidy must spend at least a quarter of all HPDsupported costs on certified M/WBE construction, design, or professional service firms. Strategy 4 Ensure affordable housing development contributes to a healthy and diverse retail environment in East Harlem SBS worked in partnership with the New Harlem East Merchants Association, Union Settlement Association, and Hope Community Inc. to conduct a Neighborhood 360˚ Commercial District Needs Assessment (CDNA) of East Harlem commercial corridors along 106th, 110th, 116th, and 125th Streets, as well as First, Third, and Lexington Avenues. The Neighborhood 360˚ CDNA includes analysis of the existing business landscape, consumer characteristics, physical environment, and unique character of East Harlem to help SBS and its partners better understand the needs of the local commercial corridors and develop recommendations to foster a healthy retail mix. HPD will share the assessment with anyone proposing to develop affordable housing in East Harlem and ask that they consider the retail and community facility needs of the community in selecting tenants for groundfloor commercial or community space. In addition, on March 13, 2017, SBS announced $1.49 million in Neighborhood 360° grants to Union Settlement Association and its local partners to staff, plan, and implement customized commercial revitalization programs informed by the CDNA over the next three years. Initial projects will include sidewalk cleaning services, banner and planter installations, a business marketing campaign, business support workshops, shop-local events, merchant organizing, and cultural programming to promote small business growth and quality of life in East Harlem. DRAFT 23