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In light of the shifting implementation of the $700 billion financial bailout legislation, the Partnership to Preserve Affordable Housing wants to renew our call to federal legislators to address the more than 60,000 units of affordable multi-family re!ntal housing that have been overleveraged in New York City.

We are recommending that Congress use its regulatory authority and monetary resources to rescue affordable developments that have been overleveraged by predatory equity and are now at high risk of default and foreclosure.

Specifically, we urge government to implement three concrete steps:

1. Require all lending institutions to follow responsible underwriting standards when issuing new loans:

• This will prevent more overleveraging of buildings and the loss of more affordable housing

2. Require transparency in all loan modifications and mandate long-term sustainability:

• Regulators must ensure that building maintenance, preservation of affordability for current tenants, and continued affordability of the building are priorities in underwriting any loan modification.

• Residents and community partners must have a seat at the table at the time these deals are negotiated.

3. Create guidance and incentives for preservation short sales to transfer ownership of overleveraged properties to preservation purchasers at responsible prices:

• The federal government should set aside funds from the Troubled Asset Relief Program to enhance “preservation short sales” to tenant endorsed purchasers who are committed to long term affordability.

• Legislators should explore providing exit tax relief to landlords who agree to financially responsible preservation sales.

We believe that directing federal resources to at-risk buildings is the most effective way to address the housing crisis. Read our October 8, 2008 Memo on this proposal.

Please join us in calling your elected officials to take immediate action.

The Partnership to Preserve Affordable Housing:

Community Services Society
• Legal Aid Society
• Pratt Area Community Council
• South Brooklyn Legal Services
• Tenants & Neighbors
• Urban Homesteading Assistance Board