HUD’s $31 Million Reallocation Will Benefit 5 World Trade

Development of 5 World Trade Center in Lower Manhattan is gearing up. The firms behind the project could soon see a boost to their financing.

Last month, the Department of Housing and Urban Development approved a proposal from the Lower Manhattan Development Corporation to redirect $31.7 million designated for job creation and waterfront funds to affordable housing initiatives, The City reported. While the funds — designed to help Lower Manhattan emerge from 9/11 — aren’t earmarked towards a specific purpose, 5 World Trade Center appears to fit the criteria.

LMDC’s push for the funding could prove to be its swan song. The post-9/11 agency is winding down operations and the state’s Empire State Development is expected to absorb the agency by March.

Disputes between the LMDC and the Port Authority of New York and New Jersey delayed progress on 5 World Trade. The agency wanted a mixed-use project with a residential component, while the transit authority wanted a primarily office project. Developers were ultimately able to pitch either use in their proposals for the site.

In July, Gov. Kathy Hochul announced the development of the skyscraper at 5 World Trade, moving the project in motion towards its endgame. The tower will include 1,200 units, a third of which will go to low- and moderate-income New Yorkers, as well as 9/11 survivors and first responders. It’s the only residential project in the World Trade Center’s redevelopment.

The rubber stamp came despite activists pushing for 100 percent affordability for the project, which critics said would be financially unfeasible and inhibit the creation of affordable housing elsewhere in the city.

The 900-foot supertall is being developed by a venture that includes Brookfield Properties, Silverstein Properties, Omni New York and Dabar Development Partners. The Hochul administration is providing $40 million, the state legislature is providing $20 million, $5 million is coming from the Battery Park City Authority and some additional funds may come from the Port Authority.

— Holden Walter-Warner