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Monday, February 22, 2010

Tough times for affordable housing units

The affordable housing projects in the country have been facing tough times in the last couple of years. The price differences between affordable units and market-rate properties along with the tough-to-get mortgages have resulted in the decline of affordable housing in the country.
The condition is more severe in Far Rockaway, N.Y. where the projects are dragged as the existing units are affected by the slow sales. This makes the New York city housing officials and developers face a tough time.
Even though prices have been cut for almost 30 percent, the city subsidized housing in Far Rockaway and in other parts of the city selling for $250,000 to $350,000 has been remaining on the market for as long as 18 months without being sold.
According to City Housing Commissioner Rafael E. Cestero, when the projects were planned, these units were deeply affordable compared with what was then on the market. ''We had no idea what was going to happen,'' he said.

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1 Comments:

  • At February 23, 2010 6:19 AM, Blogger Chack said…

    This is not too much unlike of what happened in California! Some tough times ahead...

    Chack Pesh
    www.freedomhabits.com

     

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