New York, NY (April 9, 2024) – A newly formed coalition of mutualist, cooperative, affordable, sustainable, and housing organizations has come together to propose a plan for the next generation of affordable cooperative housing in New York City. The plan integrates existing city initiatives and zoning changes that the Adams Administration already has underway and calls for a small, but impactful carve out of funding to create homeownership opportunities that help to address racial equity disparities in some of the City’s most affluent and segregated neighborhoods.
The Coalition formed in August 2023 following Mayor Adams’ announcement to commit $24 billion for the development of affordable housing across the five boroughs. The Coalition is urging that $3.6 billion (15 percent) of those funds be used to create permanently affordable cooperative housing in Manhattan Midtown South by converting existing vacant office space for residential use.
“By converting unoccupied commercial real estate to affordable, shared equity housing is a win-win for New York City,” stated Casey Fannon, President and CEO, National Cooperative Bank. “Many residents are displaced from living where they work. By providing access to shared equity, affordable housing, residents will help stabilize the local economy, strengthen the civic infrastructure and anchor populations of workers who pay taxes and plan to stay in NYC.”
Office-to-housing conversions are a key component of the Midtown South Mixed-Use Neighborhood Plan and Mayor’s “City of Yes” zoning changes, which address the growing need for residential housing and the economic impact of remote work on commercial real estate in New York City. By taking advantage of these zoning amendments and dedicating a portion of the City’s funding commitment to cooperative, shared-equity models, New York will be able to transform underused space into 20,000 permanently affordable homes for 50,000 residents over the next 10 years. This growth represents one small, but critical step toward the 500,000 additional housing units NYC will need by 2032 in order to meet demand.
“Housing equity is central to cultivating diverse, affordable, safe, and healthy NYC neighborhoods, where neighbors talk to neighbors to build caring restorative, regenerative, and inclusive communities.” April de Simone- Practice of Democracy
New York City has led the development of affordable cooperative housing for over 100 years, providing not only homes but community engagement and support for tens of thousands of families over generations. Cooperative homeownership maintains an essential workforce, an inclusive and representative population, and supports economic wellbeing by using its long-established and proven models. The Coalition has identified inclusion in the Midtown South plan as the best and most efficient way to create and preserve affordable housing through these office-to-housing conversions.
“Share Equity and Housing Cooperative ownership models have been a successful form of affordable housing in NYC for over 100 years,” stated Margy Brown, Executive Director of the Urban Homesteading Assistance Board (UHAB). “Access to additional housing will advance the working class into the ownership class, anchor essential workers to the communities they serve, and uplift those communities to full and fulfilling civic vitality.”
NYC Coalition members include: National Cooperative Bank (NCB), Amalgamated Bank (AMAL), National Cooperative Business Association (NCBA), Cooperative Development Foundation (CDF), Council of New York Cooperatives and Condominiums (CNYC), Urban Homesteading Assistance Board (UHAB), Mutualist Society, Inclusiv, & coordinated by 1worker1vote.
