City closes on deal to buy cluster apartments for $174M

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City closes on deal to buy cluster apartments for $174M
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New York City and a consortium of nonprofit developers are set to close on the purchase of 17 buildings currently being used as cluster housing for the homeless

The city and a consortium of nonprofit developers are set to close on the purchase of 17 buildings currently being used as cluster housing for the homeless, officials told POLITICO.

"We are able to provide permanent housing to 1,200 children and adults, while at the same time guaranteeing affordable, rent-stabilized housing for the families and the other tenants in these buildings," said Steve Banks, commissioner of the Human Resources Administration, in an interview. As part of the administration's plan to overhaul the shelter system, Mayor Bill de Blasio has pledged to close all of the city's cluster sites — which Banks said will be 70 percent completed with this purchase — while converting a portion of them to permanent housing through purchase or eminent domain.

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