A Shared Goal: Financing New York City Affordable Housing

Authored by Desiree Francis, Managing Vice President of Community Finance at Capital One. This story was originally published in Crain’s New York Business.

Housing is considered affordable if a household spends no more than 30% of its monthly gross income on housing costs. If your housing costs exceed 30% of your monthly income, then you are considered “housing burdened.” Experiencing housing burden can impact individuals’ and families’ overall financial health, in particular the ability to save, weather short- and long-term hardships and build wealth.

In New York City, more than half of renters are housing burdened, according to a 2022 report from NYU’s Furman Center. While housing affordability impacts New Yorkers across the income spectrum, the report indicates that housing burden is more acute among low-income, very low-income and extremely low-income households.

Statistics from the latest NYC Housing and Vacancy Survey (NYCHVS) show the net housing stock has increased by about 60,000 units since 2021, which is relatively high compared to previous NYCHVS data, which has been collected every three years since 1965. 

Both the City and State of New York have invested significant resources to create more affordable units, which has contributed to the net increase in housing stock. Advancing affordable housing goals requires intentional engagement and focused effort across public, private and non-government organizations. 

Over the course of nearly two decades, Capital One has provided debt and equity investments through the Low Income Housing Tax Credit (LIHTC) program on properties financed through the New York City Housing Development Corporation (HDC), the New York City Department of Housing Preservation and Development (HPD), the New York State Housing Finance Agency, and the New York State Division of Housing and Community Renewal programs. 

One LIHTC property in West Harlem, Castle Gardens, has been home to 114 households for over 10 years. Sixty-three apartments are set aside for individuals with criminal legal history and formerly unhoused, who have the opportunity to access The Fortune Society’s programs that support returning citizens. New York City and New York State government agencies, alongside Community Development Financial Institutions and Capital One, provided financing for the development of Castle Gardens. We have also made philanthropic investments in The Fortune Society’s peer-to-peer programs, workforce training, entrepreneurial programs and financial literacy.

More recently, between 2020-2023, Capital One has provided more than $2.1 billion in community development financing in the New York City market. The vast majority of this financing has brought affordable, high-quality housing to thousands of New Yorkers across the five boroughs.

In Brownsville, Brooklyn, the newly constructed Simba Simbi Seniors recently completed its initial lease-up. The property was co-developed by Dunn Development Corp. and Fish Plate Development LLC and financed by HDC, HPD and Capital One. Simba Simbi sets aside 30% of its 157 apartments for seniors 55 and older who have been formerly unhoused, with the remainder of the units for seniors 62 and older who make 50% or less of the area median income. Simba Simbi also hosts a large community facility space occupied by a local nonprofit performing arts organization. The group runs programming for area youth and will include intergenerational programming opportunities for building residents.

Late in 2023, West Side Federation for Senior and Supportive Housing broke ground on Fischer Senior Apartments in the Highbridge neighborhood of the Bronx. When it opens, Fischer Senior Apartments will provide 105 new units of affordable housing with about half the units set aside for seniors formerly unhoused. The property will offer a range of onsite services that support residents in managing their finances and accessing healthcare. Financing was provided by HPD, the New York State Office of Temporary & Disability Assistance, Freddie Mac and Capital One. 

In addition to financing the development of affordable rental communities, Capital One also invests in an ecosystem of community partners, such as the New York Mortgage Coalition (NYMC) homeownership counseling program that helps families build the financial management skills to build credit, establish a budget, and qualify for and access mortgages through counseling. The NYMC has provided mortgage counseling to thousands of families and helped to originate over $1 billion in mortgages.

Through collaboration with government agencies, customers and community partners in the City and State of New York, we will continue to pursue our shared goal of achieving housing affordability in New York City.