Contact: Sunny Mindel/Curt Ritter 212-788-2958
Carol Abrams 212-863-5176 (HPD)
NEP, which provides local entrepreneurs with the opportunity to renovate, own and manage previously City-owned buildings, was one of 10 finalists selected out of an original 1,600 applicants from around the country. In addition to this distinguished recognition, the City will also receive $100,000.
"This award from the Ford Foundation, Harvard University's John F. Kennedy School of Government and the Council For Excellence in Government, for the City's Neighborhood Entrepreneurs Program, is one more example of our City's great success in reinventing government," said Mayor Giuliani. "There was a time, not too long ago, when burnt-out buildings served as a symbol of our City's decline. When New York City was known for its out-of-control crime, economic instability and rising welfare rolls. Since 1993, through our innovative government programs, we have seen over-all crime decline by more than 50 percent, welfare rolls drop to their lowest level in more than 30 years, private sector job growth at record levels, and economic revitalization occurring throughout the City. By selling these abandoned buildings to local entrepreneurs to renovate and create housing for local residents, we are effectively removing the City from the realty business and encouraging New Yorkers to invest in the future success of their own neighborhoods. I want to thank Commissioner Roberts for his efforts and thank the local entrepreneurs, who are showing others creative ways to rebuild our most neglected neighborhoods."
By 1994, following the decline in the residential real estate market and widespread building abandonment in the 1960s and 1970s, New York City owned 44,033 occupied and vacant apartments, many of which were in some form of disrepair or abandonment. Facing an estimated cost of $10.6 billion to manage, maintain, and prepare the buildings for sale to private owners, the City created NEP in 1994 in an effort to return these buildings to responsible private ownership. Today the City has reduced the number of City-owned properties by 50 percent, saving the City millions of dollars necessary to acquire, maintain and manage its inventory of properties -- an estimated $2.2 million per building. In addition, since 1994 the City has: renovated 2,000 units of quality, affordable housing; reduced the time buildings remain in City ownership from 6 years in Fiscal Year 1994 to 1.5 years in Fiscal Year 1999; and stimulated private financing in disadvantaged neighborhoods with investments of nearly $230 million.
Through NEP, HPD and the New York City Housing Partnership work with community leaders, businesses, and banks to provide local entrepreneurs the opportunity to renovate, own and manage previously City-owned buildings. By focusing on locally-based entrepreneurs with an allegiance to their neighborhoods for long-term ownership and management of these properties, NEP has been successful in reversing the cycle of building abandonment and lack of investment in local businesses. Though some of the renovated units are available at market rates, the City has used the Low-Income Housing Tax Credit, Federal HOME grants, and City capital funding to promote mixed-income housing, and ensure that current residents are not displaced.
"NEP allows the City to both maintain affordable housing for New Yorkers and increase local investment in the community," said HPD Commissioner Roberts. "The unique component of NEP is its focus on small owners who have a commitment to their neighborhoods."
Earlier this year NEP received the "1999 Best Practices Award" from the U.S. Department of Housing and Urban Development (HUD). Selecting from more than 3,000 nominations, HUD designated NEP as one of the "Best Of The Best" local housing programs.
One of the most successful projects NEP has worked with is West 140th Street in Harlem where, through a combination of government subsidies and $12 million in private financing for local entrepreneurs, 12 buildings are being rehabilitated on what was once deemed by the media to be the worst block in the City. Today the block is one of the safest in the City. In addition to the renovation of these 12 buildings, seven buildings containing 116 apartments will be redeveloped in the same neighborhood.
This is the fourth time since 1994 that New York City has won the "Innovations in American Government Award." The City won in 1994 for its Citywide Central Insurance Program, in 1995 for its Civil Enforcement Initiative and again in 1996 for its Compstat program, two programs that have been instrumental in the City's historic drop in crime.
HPD's mission is to promote quality housing and viable neighborhoods for 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.