The Lower East Side Cross Subsidy program was the product of an agreement between New York City’s Department of Housing Preservation and Development (HPD) and Manhattan Community Board 3. In order to maintain affordable housing, the two entities negotiated a plan in which the sale of city-owned vacant lots to private developers would go into a revolving fund that would subsidize the development of permanently affordable housing for low- and middle-income residents of the neighborhood. At the time, low- and middle-income was defined as a family earning less than $23,000 a year. The agreement led to the creation of the Mutual Housing Association to oversee the construction of affordable housing as a part of the plan and to select tenants for the affordable housing. Now known as the Lower East Side Peoples Mutual Housing Association (LESPMHA), the organization functions as a non-profit 501(c)(3), rehabilitating vacant multi-family buildings owned by the city, as well as constructing new multi-family buildings on the Lower East Side.