Release #316-00

710 Units of Housing will be created through "New Foundations" Program

Mayor Rudolph W. Giuliani and Department of Housing Preservation and Development (HPD) Acting Commissioner Jerilyn Perine today announced the designation of 11 residential developers for its "New Foundations" Homeownership Program. New Foundations is a new, streamlined City program that provides developers with maximum flexibility and encourages the participation of small contractors and developers.

The designated developers will construct one- to four-family owner-occupied homes and cooperative/condominium units on 73 sites located in the Mott Haven and East Tremont/Bronx Park South neighborhoods of the Bronx, and in the Brownsville and East New York neighborhoods in Brooklyn. The development of these 710 new residential units will help to complete the City's revitalization efforts in these target areas.

The developers will be responsible for the design, construction and marketing of the homes. Construction is expected to begin in Winter 2000. Developers must have the financial resources and capacity required to construct and sell one- to four-family homes.

"The New Foundations Homeownership Program is another example of the Administration's efforts to develop communities and make homeownership a reality for New Yorkers," said Mayor Giuliani. "Since 1994, the City has helped more than 11,000 New Yorkers become homeowners through its homeownership programs."

Homeownership promotes long term investment in communities. It fosters retail and commercial development and stabilizes neighborhoods because homeowners have a financial stake in a community. Recent research indicates that neighborhood property values increase commensurately with increases in neighborhood homeownership rates. Experts have measured the positive impact of homeownership on everything from educational achievement for children to career advancement for parents.

No direct City subsidies are being offered for the New Foundations Homeownership Program; developers are responsible for obtaining or providing all necessary construction financing from private sources. HPD will work with the developers to obtain all necessary permits.

There are no income restrictions for homebuyers purchasing homes through the New Foundations Homeownership Program. At least one unit in the home must remain owner-occupied for 20 years following the initial purchase of the home from the developer.

HPD's mission is to promote quality housing and viable neighborhoods for all New Yorkers. The department is the nation's largest municipal housing development agency. Since Fiscal Year 1994, the agency has completed the construction or rehabilitation of nearly 58,000 units of affordable housing.