A Review of Ideas to Revive the Market
The Real Deal has published an article that looks at 8 ideas (4 good, 4 bad) whose goal is to get the NYC real estate world back on its feet.
Some notables in the good ideas column:
Condo to Co-op Conversions – The Real Deal lavishes praise on Herrick’s own Doug Heller for his idea to convert troubled condo projects to co-ops. The idea is for buyers to take on a share of the development’s debt. This basically allows the buyer to obtain an apartment at cost, while allowing the developer and its lenders to break even.
Developer Bailouts – Two government programs, Housing Asset Renewal Program and Recover NYC, have been used (and have funds available) to stimulate development.
The HARP program invests in stalled developments and turns them into affordable housing.
Recover NYC, utilizing funds from the Federal stimulus plan, provides tax-exempt bond financing for shovel-ready projects with commercial or industrial components.
It seems to me that these two approaches are a great way to keep our collective head above water while the market stabilizes. Your thoughts, as always, are welcome in the comments section below.
Very interesting ideas!