Affordable Housing Crisis in Harlem

Harlem's rapid gentrification has lead to the displacement of many residents. While Harlem has become a primary destination for middle class families earning over six figures, the area median income is below $30,000, over 25% of the population lives below the poverty line. While the average two-bedroom apartment rents for $1,500 per month our average household can only afford to pay $742 per month. This average rent is barely affordable for households earning the state area income of $54,400.

Government funding policies, particularly at the federal level, has resulted in significant cut backs in housing subsidy such as Section 8 and funding such as Community Development Block Grants. Key to the preservation of affordable housing in predominantly low income communities such as Harlem, will be other project based subsidies such as Low Income Housing Tax Credit (LIHTC) that provide substantial long term housing subsidies to low income households. There are many city based affordable housing projects such as the Tenant Interim Lease programs that are approaching or have surpassed their 20th year anniversaries. Throughout their existence limited resources have offered only moderate fiscal and physical maintenance. Extensive financial, legal and physical restructuring will be required to stabilize and foster longer term success in these cooperatives.

WHGA Affordable Housing Development Overview

WHGA affordable housing portfolio is comprised of nearly 1,200 units of housing. WHGA self-manages over 800 units. 116 units function as emergency housing for homeless families, and 167 units provide affordable housing for seniors.

In most cases WHGA utilizes Low Income Housing Tax Credits to fund its housing development projects.

Recent Developments (2000 – Present)

Neighborhood Revitalization Program

In partnership with the City of New York Department of Housing Preservation and Development (HPD), the Neighborhood Revitalization Program has enabled WHGA to complete substantial renovation of 136 units totaling over $22 million in construction costs.

For over a decade the Neighborhood Redevelopment Program (NRP), has worked with Community Based Organization’s (CBO) throughout the five boroughs to renovate distressed city owned properties utilizing Low Income Housing Tax Credits (LIHTC).

The development usually involves a synchronized construction of several buildings scattered throughout the CBO’s catchment area. Due to relocation needs these projects are often completed in two phases. In 2004, NRP projects began receiving funds for supportive service programs such as workforce development, job training and after-school programs.

WHGA currently has 95 additional NRP affordable units in phases of pre-development and construction with costs totaling over $18 million.

WHGA - Phipps Houses Development Partnerships

WHGA has partnered with Phipps Houses, Inc. a non-profit development corporation on two new construction projects, utilizing city owned land. These projects will utilize LIHTC and will create a total of 85 affordable housing units.

The development of Hancock Place will create 52 units of affordable housing. Total development costs are approximately $11 million. The development of this vacant land is significant in that it will complete the revitalization of Hancock Place, a historically blighted block that runs parallel to the major thoroughfare of 125th Street, between Morningside Avenue and Manhattan Avenue. Renovation will be completed by March 2007.

Development costs of 21-27 West 128th Street total approximately $4 million and will create 33 units of housing. This project is also within close vicinity to the extensively revitalized 125th Street area. Construction is scheduled to begin September 2007.

Portfolio Preservation Projects

The 15 year LIHTC compliance period has ended for three developments that were completed in the early 1990’s. HPD, Local Initiative Support Corporation (LISC) and Housing Development Corporation (HDC) have worked closely with CBO’s to develop a strategy to exit the LIHTC while ensuring the preservation of the assests while maintaining affordability.

WHGA’s earliest substantial renovation projects, First WHGA Development Associates and WHGA Amsterdam II Associates, and Third West Harlem Renovations Associates have reached the end of their compliance periods. Funded by HPD, HDC and LISC WHGA will purchase the property from the limited partnership investors and complete $4 million in moderate rehabilitation in the 18 buildings and 204 units that comprise these three developments.

WHGA is also in the process of renovating, the Mannie L. Wilson Towers, one of its low income senior developments which was also built over 20 years ago. This building is funded through the U.S. Department of Housing and Urban Development (HUD) Section 202 program for low income senior housing. 

WHGA is also in the process of improving some of its oldest existing units that have not been renovated since the mid 1980s when most distressed NYC properties received minimal government rehabilitation funding. To improve conditions of older deteriorating buildings WHGA has taken out a Participation Loan Program financing with HPD that has enabled WHGA to rehabilitate 86 units.

Learn More About Our Affordable Housing Partners

HPD : www.nyc.gov/housing

DHCR: www.dhcr.state.ny.us/

HUD: www.hud.gov

LISC: www.lisc.org/new_york/

  Building Portfolio