This time it's different. In past real estate downturns, builders of affordable housing have managed to stay busy, as the demand for below-market apartments is constant. With a $14 billion budget gap, however, the state is cutting back its allocation to low-income housing (like Glenmore Gardens in East New York, at right) by 2/3, from a little over $300 million last year to $105 million this year, reports The Observer. This on top of a decline in federal incentives. “It’s certainly the most challenging time that I’ve seen in the affordable-housing business,” said Bernie Carr, executive director of the New York State Association for Affordable Housing, an industry group. “Generally, we’ve weathered recessions pretty well—it’s a countercyclical business.” To make matters worse, Governor Patterson is trying to raid a key affordable housing trust for the city. More evidence that, certain people's schadenfreude notwithstanding, the housing bust and associated heavy-duty recession aren't just knocking down brownstone buyers a few pegs, they're hurting those on the bottom rungs as well.
Why Low-Income Housing Can't Afford the Recession [Observer]
Photo from Apartment Therapy
