HONDA Act May Increase Affordable Housing Public-Private Partnerships
Hameer Vaid, Senior Director with Alvarez & Marsal Private Equity Performance Improvement, told Commercial Observer New York’s Housing Our Neighbors With Dignity Act (HONDA) creates the potential for $7.1 billion of trading inventory. He also said real estate lenders see HONDA as a means to rid their balance sheets of distressed assets.
“Landlords for office space see themselves in the middle of recapitalization events, restructuring events and adopting collaborative workspace designs, stemming from the demand of the tenant to either continue rent forgiveness programs or early termination requests,” Vaid said. “[HONDA] will solicit interest not just from the financial institutions, but on the buy side, either from the city itself or a joint venture environment between the city and private investors, who have operating models already established within affordable housing.”
