Who's Left Out of New York City's Mandatory Inclusionary Housing Plan?

By Everic White, Adam Shrier & Doha Madani

The mayor’s mandatory inclusionary housing and zoning plans passed by City Council on March 22 have been hailed as landmark political and social achievements. Supporters of the legislation say the mayor is living up to his inaugural promise to create or preserve 200,000 units of affordable housing by 2024 and has created a blueprint for other cities searching for solutions to the housing crisis. But for many New Yorkers, the mayor’s housing proposals will provide little assistance securing affordable housing as low-income options remain well out of reach.
 

WHAT IS THE MAYOR’S PLAN?

The mayor’s housing proposals mandates that developers set aside housing at below-market rates and creates permanent, affordable housing. If a developer wants to build in an area slated for rezoning, a certain percentage must include affordable housing.

In 2015, the area median income (AMI)** for a three person household was $77,700 and $86,300 for a family of four. The mandatory inclusionary housing plan includes four options. The first establishes 25% of the residential area must be affordable for households making 60% of AMI; the second establishes 30% of the residential area for households making 80% of AMI, the third establishes a workforce option where 30% of the residential area is affordable to households making 115% of AMI, and a fourth deep affordability option which requires that developers price a minimum of 20% of new units at 40% of the City’s area median income** (AMI) or, for a three-person household, an income of at least $31,080 per year.
**AMI is a figure calculated by determining the average incomes of residents in the five boroughs, as well as Westchester, Putnam, and Rockland counties.
 

WHAT DOES THIS MEAN FOR LOW-INCOME CITY RESIDENTS?

Based on our analysis of 2014 American Community Survey data, 982,952 of the city’s 8 million residents fall below the 40% deep affordability threshold and will not qualify for new or preserved affordable housing.

Residents in the lower-income neighborhoods of East Harlem, East New York, the Lower East Side, Chinatown, and the South and Central Bronx will largely be left out of new affordable housing developments. As many as 40 to 60% of residents living in these neighborhoods live below the threshold of affordability. Considering the broad rezoning proposals slated for these areas and the influx of newcomers, many residents in these communities are wary of the looming threat of displacement. 

De Blasio’s plans have many long term implications for lower-income neighborhoods as well. New developments catered towards middle to high income residents will begin to raise the market value for older, apartment units and business real estate. These are neighborhoods that have already given rise to complaints of gentrification. Many argue that this rezoning plan will make it easier to move out lower income residents while under the disguise of affordable housing units.

“We want responsible development that brings benefits to the community in which they are built,” said Alexis Francisco, a community organizer for the Northwest Bronx Community and Clergy Coalition. City officials and community organizations have argued that the 40% deep affordability standard is unrealistic for impoverished areas and do little to stem the tide of displacement.

“The question that keeps coming up is affordable to who?” Francisco said.