Groups Declare Vote by HDC on Liberty Bonds a Sham

Board members not given copies of testimony from New Yorkers who testified at public hearing against deal

New York, NY June 4, 2003 – The Board of the New York City Housing Development Corporation (HDC) yesterday approved $82 million in Liberty Bonds* for a development in Lower Manhattan, but were not provided copies of public testimony opposing the deal given at an official HDC hearing on May 5^th. None of the board members who voted on the deal were present at the hearing.

“The failure to provide board members with copies of testimony makes a mockery of the public hearing process,” said Bettina Damiani, Project Director of Good Jobs New York.

At the May 5^th public hearing held by the HDC, six groups from the Liberty Bond Housing Coalition testified against the deal claiming that Federal resources earmarked for Lower Manhattan should not be used to develop luxury housing, particularly in the midst of a housing crisis.

“It is appalling that the Mayor is retreating on his promise to rebuild Lower Manhattan as a dynamic mixed-income, mixed use community for all New Yorkers,” said Victor Bach, Senior Housing Policy Analyst at the Community Service Society. “In addition, HDC did not provide any evidence that the publicly-subsidized Liberty Bonds were necessary for this development, already under construction, to go forward.”

The HDC, created by the New York State Legislature, has a mission “to help build affordable housing throughout the five boroughs of New York City.” The Board consists of both mayoral and gubernatorial appointees.

The project, located at 90 Washington Street in Lower Manhattan, is the first Liberty Bond project for housing approved by the City. The building consists of 368 studios and 30 one-bedrooms. Six other projects were proposed yesterday to be backed by Liberty Bonds.

Information on the Liberty Bond Housing Coalition and copies of testimony are available at www.goodjobsny.org/rec_liberty_bonds_housing.htm. Additional information on Liberty Bonds is available at www.reconstructionwatch.net.

Good Jobs New York, a project of the Fiscal Policy Institute and Good Jobs First, promotes policies that hold government officials accountable to taxpayers in the allocation of resources.

The Community Service Society is an independent non-profit organization that for more than 150 years has helped New Yorkers in need defeat the problems of poverty and strengthen community life for all.

*Liberty Bonds were approved by President Bush in response to the September 11^th attacks on the World Trade Center as part of the “Job Creation and Worker Assistance Act of 2002.” Of the $8 billion in low-interest, triple tax exempt bonds provided in the legislation, $1.6 billion may be allocated to build or renovate residential rental properties in the Liberty Zone, with half the bonds are controlled by the Governor and half by the Mayor.

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