New NYC Nonprofit Aims To Shake Up Affordable Housing
A new organization will seek to upset the affordable housing food chain by creating an ownership pool of thousands of units, becoming one of the biggest organizations involved in the ownership of affordable housing.
The Joint Equity Ownership Entity, also called JOE NYC, plans to officially launch this spring, taking ownership of 3,000 affordable units in about 50 developments, Crain’s New York Business reports.
The former owners of the units will each get a seat on the organization’s board and payouts based on the value of the property they have given up. The idea is for the properties to be managed more efficiently so the stipends paid out end up eclipsing what the would-be owners could rake in on their own.
"What groups are really getting is our ability to manage the assets of this citywide portfolio," JOE NYC executive director Peter Madden told Crain’s.
Managing assets, in this case, could mean refinancing mortgages or investing in capital improvements that smaller entities might have trouble affording on a smaller scale.
The wheels on the idea are already turning. Next week, St. Nick Alliance, a Brooklyn-based community development corporation, will close on the purchase of a 248-unit portfolio in partnership with JOE.