ANHD New Report: Mandatory Inclusionary Zoning

MANDATORY INCLUSIONARY ZONING: WHAT WILL BE BUILT? New ANHD Report Lays Out the Impact of Expected de Blasio Policy

For further information contact: Moses Gates 212-747-1117 x 15;  Emily Goldstein 212-747-1117 x 11 ANHD released a new report this morning –  NYC Inclusionary Zoning: A District-by-District Analysis of What Was Lost, Gained, and What Remains. With the de Blasio Administration’s important new Mandatory Inclusionary Zoning policy expected to be released soon, the ANHD report finds:

• A total number of 13,800 affordable units could be produced citywide under the type of Inclusionary Housing policy likely to be advanced by the de Blasio Administration.
• 1,200 additional units could be produced if the Administration converts existing Voluntary Inclusionary Zones to Mandatory.
• 8,000 potential affordable units were lost because the existing Bloomberg-era policy was voluntary and limited to small geographic areas.
• The report also proposes that a greater number of additional affordable units could be produced if the Administration considers reforming the R10 voluntary program to make it mandatory, or instituting a citywide Inclusionary Zoning overlay.

A Mandatory Inclusionary policy will be a major step forward for affordable housing in New York. But the question many communities are now asking is, will the rents of the new Inclusionary Housing apartments be affordable at levels that meet the greatest community and citywide need? The affordability question is especially pressing now. Because of the ability to cross-subsidize market rents with affordable ones, Mandatory Inclusionary Zoning is well positioned to serve as a new, cost-effective tool for meeting the housing needs of hardworking low-income New Yorkers, especially at the 50% Area Median Income (AMI) level and below. And new tools are needed. While the city is on course to produce its projected 200,000 units of affordable housing, it is not on pace in its commitment to produce 40,000 units of housing at the 50% AMI level (currently $38,850 for a family of three) and below. And with the 421a Developers Tax Break program recently revised in Albany and now transformed to mainly produce higher-income housing at the 130% of AMI level (currently $112,190 for a family of four) instead of low-income units, a truly affordable Mandatory Inclusionary Zoning policy should be focused on those income levels where the need is greatest. New Yorkers at the 50% AMI level and below are by far the population most in need of affordable housing. The latest data shows that over 80% of those making 50% of AMI or less are rent burdened. And the crisis is even worse among our lowest-income citizens, those making 30% of AMI or less (currently $23,310 for a family of three). Among this population, well over 50% are not only rent-burdened, but pay over half of their income in rent. This is not a small section of the City’s population. More than a fifth of New York City households – over 2 million people – make less than $25,000 a year, and almost a third make less than $35,000. As our housing crisis gets worse, the burden falls most heavily on these low-income households, many of them senior citizens. With the Mayor’s ambitious rezoning agenda rolling out in many diverse communities, a policy of truly affordable housing through the Mandatory Inclusionary program can help with our affordability crisis across the board. Since rezonings lead to higher property values and displacement pressures in lower-income neighborhoods, gearing Mandatory Inclusionary Zoning toward low-income New Yorkers helps slow gentrification and displacement in these communities. At the same time, in higher-income neighborhoods it can support building more income-diverse developments and communities. Done right, this policy can go a long way to making New York a more affordable city. Its goal should be to help stabilize neighborhoods, help turn the tide for those New Yorkers most affected by our growing housing crisis, and take a needed step toward an inclusive city for all.