In a city grappling with an ongoing housing crisis, the challenges faced by landlords of affordable apartments raise pressing concerns. Many are struggling to maintain financial viability due to rising costs, stagnant rents, and pro-tenant policies that hinder timely evictions. This article sheds light on the difficulties encountered by landlords attempting to balance the equation of affordable housing in New York City.
Yves here. While I don’t have definitive solutions for the pressing issue of aging affordable apartments turning into financial liabilities—largely due to pro-tenant policies that prolong eviction processes and delay re-renting vacant units—it’s essential to recognize that THE CITY focuses significantly on the concerns of everyday New Yorkers. This includes addressing abuses at Rikers, the role of ICE, and the organizing efforts by deliveristas. In this challenging landscape, the landlord featured in this story is striving to make affordable housing feasible but is facing significant obstacles.
Some of these challenges are specific to New York City, yet they represent broader issues that Mamdani will have to address in his efforts to reduce rental costs. Increasing the availability of apartments tailored for middle and lower-income renters is the only long-term solution. However, implementing such changes will require time, likely spanning multiple mayoral terms before any substantial impact can be observed.
By Greg David. Originally published at THE CITY on November 19, 2025
BronxProGroup oversees 93 subsidized apartment buildings, housing over 3,300 affordable units, primarily in The Bronx.
Alarmingly, in one-third of these buildings, expenses now surpass the rental income collected. Additionally, one-fifth of the properties are in such dire financial conditions that their owners are forced to renegotiate loans to mitigate the risk of defaulting.
CEO Samantha Magistro, who joined her family-owned company around 25 years ago, reveals that half of the units are in buildings that can no longer provide any payments to their owners.
The reality of managing this type of housing is becoming increasingly untenable.
These structures are not only rent-regulated but were also constructed with stipulations requiring very low rents for residents with particular low income levels. Since the pandemic, these buildings have seen significant increases in costs, rents remain stagnant, and rent collection rates have declined. Owners and managers express concern that Mayor-elect Zohran Mamdan’s pledge for a minimum four-year rent freeze will exacerbate their difficulties.
“My father, who founded the parent company decades ago, would tell you things were worse in the 1970s,” said the 43-year-old Magistro, referring to times when parts of the Bronx experienced rampant arson and abandonment. “But for my generation, this is the toughest it has ever been.”
Magistro’s experiences are echoed throughout New York City in this vital segment of the housing market, as indicated by two new reports on the all-affordable housing sector, which includes approximately 300,000 units.
For residents in these buildings, this is often their only affordable housing option. Without a significant course correction, the potential future scenarios are grim: declining housing stock, abandoned buildings, and a reluctance from investors to inject funds into affordable housing could worsen the city’s affordability crisis.
“Our report shows that the financial strain on affordable housing is not confined to a select few owners, specific locations, or types of buildings,” stated Patrick Boyle, senior policy director at Enterprise Community Partners, an organization dedicated to facilitating housing financing and collaborating with BronxProGroup. “It’s pervasive, and advocates and policymakers urgently need to focus on preservation.”
Efforts are underway to find solutions.
“There is no single easy answer,” Boyle added. “Boosting resources like rental assistance, easing regulatory constraints, and directly addressing escalating costs will all be necessary components.”
All-affordable projects are developed under agreements with either the city or state that dictate eligibility for renting units based on income levels. Most of these projects receive partial financing through low-income housing tax credits. Industry experts estimate that around half are developed and managed by non-profits, while the other half are handled by for-profit developers like BronxProGroup, who specialize in this sector.
Many of these projects rely on various subsidies such as federal or city vouchers to remain financially viable. These programs connect rents to a percentage of tenants’ household incomes, with property owners receiving the difference.
Nearly 60% of affordable projects supported by Enterprise and the National Equity Fund have expenses that now overshadow their income, according to a report released last month. These projects have seen expenses surge by 40% since 2017, far more than the allowable rent increases set by the city’s Rent Guidelines Board for regulated apartments.
The Association for Neighborhood and Housing Development, a coalition of community organizations including non-profit affordable housing groups, discovered that about half of the all-affordable buildings it analyzed—comprising 112,000 apartments—are operating at a loss.
In earlier discussions about landlords’ challenges, the focus has primarily centered on owners of older buildings with virtually all units subject to rent regulations. These properties have suffered significantly due to changes in rent laws instituted in 2019. One crucial alteration ended the ability of landlords to renovate vacant units and subsequently charge much higher rents, which enabled them to keep pace with rising costs, even when increases in regulated rents remained stagnant. (Rent freezes for regulated units were enacted three times during the de Blasio administration, in 2015, 2016, and 2020.)
This has precipitated a crisis for older buildings where nearly all apartments are rent-regulated, an issue highlighted by the Furman Center and discussed in stories in THE CITY.
Tenant advocates have concentrated on the influence of speculators who purchased rent-regulated buildings at inflated prices, betting on significant future rent increases.
However, BronxProGroup’s affordable buildings were never subjected to that kind of speculation, illustrating the increasingly untenable financial situation of a much broader category of buildings.
“They exemplify a family-owned and operated business that is committed to the need for more affordable housing in the city,” explained Carlina Rivera, a former Council member from Lower Manhattan, now the CEO of the New York State Association for Affordable Housing, which collaborates with for-profit developers. “Yet they are indicating they are barely breaking even.”
The Enterprise study revealed that collections for the buildings analyzed now amount to just 90% of the expected rental income, a decrease from approximately 95% before the pandemic. These buildings were initially financed based on the expectation that collections would remain at 95%.
“I call them workouts because I can’t cover my expenses and mortgages even at 95%,” stated Magistro. Before 2019, she was collecting 98% of the rent. This year, she has managed to collect 93%, which is an improvement over 2022 and 2023.
Both Enterprise and ANHD highlighted escalating costs for insurance, utilities, and maintenance as a significant part of the problem.
Magistro’s insurance costs in The Bronx, where her properties are concentrated, have surged from $600 per unit annually to $1,600 since 2019.
Another crucial issue for her involves paying overtime to staff, partly due to changes in trash collection regulations that now require workers to dispose of garbage at night.
Both Enterprise and ANHD note that when building finances are under strain, landlords often have no choice but to delay maintenance, which leads to a decline in the quality of housing.
This year, Magistro laid off 10 employees, reducing her staff to 143.
One of her buildings exemplifies how these financial pressures can undermine operations. In a 30-unit building on Mapes Avenue in the Bronx, built in 2021, she has managed to collect only 81% of potential rent. Insurance costs for that building have nearly doubled since its opening, reaching $2,500 annually. To ensure the building’s long-term viability and prevent default, she will need a cash infusion to decrease the mortgage.
“Smaller projects are particularly vulnerable to economic shocks, such as surging insurance costs,” she explained.
Mayor-elect Mamdani has vowed to assist landlords in reducing operating costs to navigate the impending rent freeze. A key focus will be revising the city’s property tax system, which imposes the highest taxes on rental properties.
Yet, most all-affordable projects are exempt from property taxes. Previous administrations have struggled to make significant progress on property tax reform, a complex issue that necessitates collaboration with Albany.
Mamdani has also promised to modify bureaucratic processes to improve efficiency. Magistro argues that when one of her apartments becomes vacant, it typically takes an average of five months for the city to approve a new tenant if a city subsidy is involved, leading to lost rent during that period. Evicting non-paying tenants averages 12 to 16 months, primarily due to the sluggish pace of Housing Court.
ANHD advocates for the state to establish a fund for forgivable loans to stabilize the finances of these buildings, increase voucher and rental assistance programs, intervene in insurance markets to reduce costs, and provide new financing for rehabilitation initiatives.
Enterprise also calls for emergency funding, enhanced rental assistance, and measures to lower insurance costs. They stress that resolutions “cannot come at the expense of renters.”
For now, Magistro cannot rely on these potential measures, as property management is operating at best break-even. Accordingly, she has devised a five-year plan focusing on expanding her role as a developer, using the development fees she earns to sustain the business.
With ongoing discussions about the urgent need to build new housing to alleviate the city’s housing crisis, she emphasizes the importance of how officials perceive landlords like her.
“Significant efforts in previous decades went into creating affordable housing, and it’s crucial to ensure it remains financially sustainable and preserved,” she remarked.
Magistro added, “Yes, I am a developer and a landlord, but I also view myself as an employer. I live in New York City and have chosen to operate my business in The Bronx. Seventy percent of my employees are from The Bronx. That aspect is crucial to the narrative as well.”
