Lala Move July 2026
Love Local
Borough President Eric Adams has approved three Brooklyn affordable-housing projects. Photo: Paul Frangipane/Brooklyn Eagle
Brooklyn Borough President Eric Adams. Photo: Paul Frangipane/Brooklyn Eagle
Copy Link
Facebook
X
WhatsApp
Print

2 Responses

  1. Adams support of the Dumbo project is short-sighted and ill-advised. Projects designed to help the homeless secure housing should use public funds in a fiscally responsible manner. The purchase of a facility in a zip code that is reputed to have the highest housing costs in the state does not meet this criterion. The developer who sold this property made a sizable profit on the sale of building, all of which will be made at taxpayer’s expense through government financed bonds and other arcane tax breaks. The Breaking Ground program — which is funded mostly by taxpayers — will be paying luxury prices to meet the basic housing needs of the people it serves. Furthermore, because Breaking Ground is a nonprofit corporation, it will not pay property taxes, another ongoing cost to the city. As taxpayers, we must ask, “Is this the most prudent expenditure of current and future tax dollars?” I think not.

    At the present time, the city has a balanced budget, as required by law, but its fiscal outlook is not that certain. We will need to spend billions – under court order – to repair public housing and a similar, but unknown amount to close Rikers Island and build community-based jails. All of this is occurring at a time of rising interest rates which means higher long-term costs to the City. The Health and Hospitals Corporation – the primary source of medical care for the poor in New York City – is running an enormous deficit. I could provide many more examples, such as the rapid rise in the city’s workforce and its impact on future costs, but it is suffice to say that our City’s budget is destined to spiral upwards.

    As our city’s costs increase, we must also consider the potential impact of a downturn in the economy, something that is destined to happen. The social service agencies involved in this project depend heavily on taxpayer subsidies. In 2017, Breaking Ground received $31 million in government support and the Center for Urban Community Services received $36 million. Both organizations are highly dependent on their government funding sources. If and when the city’s tax base decreases, they will have to tighten their fiscal belts and cut services. I doubt that they will able keep any verbal promises made at public meetings when this happens.

    While Breaking Ground has many years of successful management, the same can be said of Federated Employment Guidance Services (FEGS) which, at one time, was the largest nonprofit (excluding medical centers) in New York City and was highly regarded throughout the nation. It closed several years ago, largely because of bad real estate decisions that drained its resources. As investment advisors are required to say, “Past performance does not guarantee future results.”

    Adams wants to take credit for promoting affordable housing in Brooklyn in support of his bid to become mayor. But if he wants to become mayor, he needs to take a course in economics and learn to become more fiscally responsible.

Leave a Reply

Your email address will not be published. Required fields are marked *