WASHINGTON, DC — The U.S. Department of Housing and Urban Development (HUD) and New York City have announced a five-year plan to preserve affordable housing for 1,500 families that “have fallen prey to unscrupulous lenders and nonprofit organizations in Manhattan, Brooklyn, Queens, and the Bronx.” In addition, HUD and the city will invest nearly $168 million to rehabilitate more than 500 properties as part of the city's overall revitalization efforts in these neighborhoods.
The plan specifically addresses the 514 multi-family properties that were sold under HUD's 203(k) mortgage insurance program. The properties were sold to 54 nonprofit organizations in 1998 and 99, generally at inflated prices, says HUD. Most of the properties involved are currently in or at risk of default.