Agreement Designates Monies From the Battery Park City Authority’s Joint Purpose Fund To Be Spent for Affordable Housing
Builds on Commitment to Address New York’s Housing Crisis by Increasing Housing Stock With Safer, More Affordable, Quality Homes, Reducing Housing Cost Statewide
Governor Kathy Hochul, Mayor Eric Adams and New York City Comptroller Brad Lander have announced a $500 million dollar investment from the Battery Park City Authority’s Joint Purpose Fund to build and maintain affordable housing across New York City. Through an agreement between the BPCA, the Mayor, and the Comptroller, the BPCA will disburse $500 million in excess operating funds to New York City’s Affordable Housing Accelerator Fund for the purpose of building affordable housing.
The agreement builds on commitments by Governor Hochul, Mayor Adams and Comptroller Lander to address the housing crisis, build safer, more stable and more affordable homes, and reduce housing costs for New Yorkers.
“When it comes to building the affordable homes that New Yorkers deserve, my administration is leaving no stone unturned,” Governor Hochul said. “This agreement will turn excess funds from the Battery Park City Authority into a massive $500 million investment to help New York City realize its housing potential. From our landmark budget agreement to tackle the housing crisis to transformative investments that get housing built, I am continuing to work with partners like the BPCA, Mayor Adams and Comptroller Lander and fighting for a more affordable and more livable New York.”
This Joint Purpose Fund agreement succeeds the previous agreement for the disbursement of BPCA’s excess operating revenues, which since 2010 has contributed $461 million in dedicated funding for affordable housing across the five boroughs and helped build or preserve over 10,000 units of affordable housing.
New York City Mayor Eric Adams said, “To solve a generational housing and affordability crisis, every sector has a role in providing relief to working-class New Yorkers. Today’s announcement takes us one step closer to delivering that relief. Our administration and our partners are united by a common cause: building more affordable housing. The only way to solve these dual crises is to simply build more, and with this $500 million commitment, we are coming together to use our dollars to make a difference and better support working-class New Yorkers.”
New York City Comptroller Brad Lander said, “Financing the production of affordable housing remains the City’s most powerful tool in combating the city’s housing affordability crisis. This landmark $500 million investment will help ensure that New York City and State have the resources we need to effectively deliver safe and affordable housing to New Yorkers.”
BPCA Board Chair Don Capoccia said, “I’m proud that as a result of the strong financial stewardship of Battery Park City we’re in a position to recommit to address New York’s affordable housing challenges. I want to thank the Governor, Mayor, and Comptroller for their partnership in this effort and for ensuring this money will all go to building and preserving affordable housing.”
BPCA President and CEO Raju Mann said, “Battery Park City Authority has a legacy of funding affordable housing across New York, and we’re thrilled to build on that legacy today. We’re facing a housing crisis and this $500 million will help create stable affordable housing for thousands of New Yorkers.”
BPCA collects revenue from these ground sub-leases in the form of ground rent, Payments in Lieu of Taxes (PILOT), and other fees. These revenues first fund BPCA’s operating expenses and debt service, with the majority of remaining funds, known as “excess revenues,” annually distributed to the City. The share associated with PILOT (approximately 80 percent of BPCA’s excess revenues) flows to the New York City General Fund and the share associated with ground rent is allocated to a Joint Purpose Fund, the use of which is decided unanimously by the Mayor, New York City Comptroller, and BPCA.
In this way, BPCA has played a direct role in promoting the construction of affordable housing in Battery Park City, as well as contributed money to New York’s City’s affordable housing programs, for decades.
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