Co-ops for Neighborhoods: A Report on the New York City 510 Demonstration

摘要

This report reviews the experience of the 'Co-ops for Neighborhoods' Demonstration, a joint initiative of HUD and New York City's Department of Housing Preservation and Development. The Demonstration tests new approaches to rehabilitating city - owned, multifamily properties and, in particular, the feasibility of converting these properties to cooperative ownership by low - income and moderate - income families. About 150 units in three New York City neighborhoods are undergoing renovation and conversion to cooperatives. A key innovation of the program is the Special Purpose Organization (SPO), which is responsible for all aspects of co - op development. Each SPO is a not - for - profit organization composed of a private developer and a local community group. The idea is to produce an independent development entity capable of handling construction tasks, tenant organizing, and cooperative sales. Rehabilitation and conversion resulted in increased housing costs for existing tenants ranging from 18 percent at one neighborhood to 165 percent at another. As a result, many households will require Section 8 Existing Certificates. Despite these problems, the Demonstration succeeded in forging partnerships, securing financing, and rehabilitating 150 units for eventual cooperatives. Implications of the Demonstration are noted. Footnotes, data tables, and maps are supplied. (Author abstract modified).