Addressing the affordable housing crisis - The New York Community Trust

February 1, 2024 | By The New York Community Trust

Addressing the affordable housing crisis

Photo depicting people participating in courses focused on digital literacy.

Neighborhood Housing Services of Queens offers courses in digital literacy—an essential skill for navigating the affordable housing process—and provides laptops to program graduates.

For many New Yorkers, the American dream—where working a good job eventually leads to homeownership—feels out of reach. And some who already own homes struggle to keep them.

While typical annual household incomes in New York City are well above the national average, so are the costs of homeownership. For lower-wage earners, the prospect of owning a home can feel unrealistic due to high interest rates, widespread real-estate speculation, and an extremely limited supply of affordable housing.

“Black and Latinx homeowners are particularly vulnerable,” said Chantella Mitchell, program officer for community development, housing, and human services at The Trust. “They have lower incomes on average than white homeowners, and they tend to pay higher interest rates and financing fees, all of which causes them to be more burdened by housing costs.”

One stark example: 22,700 Black homeowner households in Queens lost their homes between 2002 and 2017. Many were victims of predatory lending practices or tax lien sales that disproportionately target Black communities, allowing investors to profit from the financial struggles of older Black homeowners.

As rising housing costs push out homeowners of color, investors are moving in, making it more difficult for New Yorkers to reap the benefits of homeownership—such as creating a stable living environment and building equity.

To make ends meet, many homeowners opt to rent out space, which can provide affordable rents for tenants while helping pay owners’ mortgages.

“Owner-occupied small homes are a critical part of the rental housing stock in New York City,” Mitchell said. “In fact, landlords are a significant source of affordable rent as we face an unprecedented housing affordability crisis.”

But when landlords default on their mortgage, tenants may face the burden of either being displaced or paying significantly higher rent if the home is resold at an inflated price.

The Trust helps nonprofits like the Center for New York City Neighborhoods and Neighborhood Housing Services of Queens address these issues.

The Center is using a recent Trust grant to advocate for a statewide program to provide one-time financial assistance to homeowners.

With a track record of successfully distributing $279 million in federal funds to help homeowners tackle hardships related to COVID-19, the nonprofit will use a new Trust grant to work with advocates, homeowners, and elected officials to draft and champion legislation for a permanent mortgage assistance program.

Neighborhood Housing Services of Queens is using a Trust grant to provide homeowners and renters in central and western Queens with one-on-one counseling and financial incentives to prepare for emergency home expenses.