Affordable housing providers threatened by economic strain of COVID-19

RiseBoro operates dozens of affordable housing sites, including 21 Desales place in Bushwick. Photo courtesy of RiseBoro.

By David Brand

The head of one of New York City’s largest non-profit affordable housing providers says the economic impact of COVID-19 will strain the ability of organizations like his to make mortgage payments, pay staff and offer key social services.

Scott Short, the CEO of affordable housing and service provider Riseboro, said many tenants will be unable to pay their rent because they have been laid off or furloughed from their jobs amid the coronavirus shutdown. The lack of rental income will likely have an effect on the overall organization, which is headquartered in Bushwick and operates several dozen sites in Ridgewood and Northern Brooklyn, he said.

“Affordable housing buildings are designed to run on very thin margins,” Short said. “The income side of the buildings are set up to pay for debt services, expenses to operate the building, maintenance, utilities, everything it takes to keep buildings well maintained and operated.”

“There’s not a lot of additional space in those budgets that you might find in market rate housing,” he added.

A 20 percent drop in rental revenue could mean that “suddenly that building is underwater,” he said. Over an extended period of time, revenue decreases would force the organization to cut back on social services that it provides for tenants and other community members, Short said.

Short called on the federal government to immediately direct significant monthly payments — he suggested $2,000 — to people who have lost their jobs, particularly the low-wage and middle-class workers who reside in affordable housing. 

He also said the state should include multi-family residential buildings in a utility shut-off moratorium and mortgage forbearance programs.

“It’s not about needing to bail out big corporations, it’s about assisting small businesses and people who have lost their jobs,” he said. “To do it quickly and to make sure they can continue paying their rent and feeding their families because if not, it’s a domino effect that will ripple through the entire economy.”