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Office&of&Council&Member&Brad&Lander&

Inclusionary,Zoning,in,New,York,City
The!performance!of!New!York!Citys!Designated!Areas! Inclusionary!Housing!Program!since!its!launch!in!2005!

Report!by!Seth!Ullman,!Michael!FreedmanJSchnapp!and!Council!Member!Brad!Lander! !!!!!!
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Office&of&Council&Member&Brad&Lander&

Executive&Summary!
The!transition!to!a!new!mayoral!administration!is!an!important!moment!to!review!the!strengths!and! weaknesses!of!the!first!years!of!New!York!Citys!inclusionary!zoning!policies.!Since!its!creation!in!2005,! New!York!Citys!Designated!Areas!Inclusionary!Housing!Program!(IHP),!has!generated!over!2,700!units! of!permanently!affordable!housing.1!The!affordable!housing!created!by!the!program!is!concentrated!in! Greenpoint/Williamsburg!and!Manhattans!West!Side.!However,!in!the!twoJdozen!other!neighborhoods! included!in!the!program,!very!few!developers!have!chosen!to!participate.!! !

Mixed,success,in,creating,new,,affordable,housing,,
Under,IHPs,Designated,Areas,program,,2,769,units,of,affordable,housing,were,generated,in, 41,developments,in,newlyLdesignated,areas.!! o This!is!more!than!twice!the!number!of!affordable!units!generated!under!the!older!R10! inclusionary!housing!program!since!1987.!

These,2,769,affordable,units,were,approximately,13%,of,the,total,number,of,multiLfamily, units,developed,in,IHP,areas.!! Although,the!IHP!areas!include!many!of!the!fastestJgrowing!parts!of!the!city,!they!collectively! contained!only!13%!of!all!new!multiJfamily!development!citywide.!As!a!result,!the!inclusionary, housing,program,created,less,than,2%,of,all,newlyLdeveloped,multiLfamily,units,in,NYC,during, these,years.! Tenant!advocates!have!also!voiced!concern!about!the!loss!of!rentJregulated!units!through! demolition!as!a!result!of!the!upzoning!in!these!designated!areas.!! !

Disparity,among,neighborhoods,and,between,boroughs,
Most,of,the,inclusionary,housing,units,were,on,Manhattans,West,Side,or,in, Greenpoint/Williamsburg.,! o o On!the!West!Side,!an!impressive!19%!of!total!units!were!inclusionary!housing!(1,441! affordable!units).!! In!Greenpoint/Williamsburg,!13%!of!total!units!were!affordable!housing!created!through! the!program!(949!affordable!units).,,!

Outside,of,those,two,areas,,very,few,inclusionary,housing,units,were,created,,even,where, there,was,significant,development.!In!the!other!two!dozen!designated!areas!where!inclusionary! housing!was!permitted!(in!all!boroughs!except!Staten!Island),!only!6%!of!all!residential! development!was!affordable!units!(379)!through!IHP.! The,type,of,units,created,varied,widely,by,neighborhood.,The!vast!majority!of!developments!in! Manhattan!included!affordable!housing!on!the!same!site!as!the!linked!marketJrate!housing! (onsite!housing).!In!Brooklyn,!about!half!of!the!units!were!created!on!the!same!time,!and!half! on!a!different!site!(offsite).!Most!of!the!offsite!units!involved!the!preservation!of!existing! affordable!units.!Very!few!of!the!inclusionary!housing!units!were!offsite!new!construction.!

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!Inclusionary!Housing,!IHP!and!IH,!as!used!in!this!report,!represents!the!Designated!Areas!portion!of!the!program! which!produced!the!vast!majority!of!the!postJ2005!units!and!excludes!the!older!RJ10!portion!of!the!program,!unless!otherwise! noted!in!the!text.!

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Voluntary,program,limits,participation,
Only!7%!of!the!multiJfamily!buildings!developed!in!the!designated!areas!include!affordable!units! onsite.!Even!allowing!for!offsite!new!construction!and!preservation!(most!of!which!has!taken! place!outside!the!designated!areas!in!the!surrounding!community),!only,a,small,percentage,of, eligible,developers,have,chosen,to,utilize,the,program.!!! Developers!choose!not!to!participate!in!the!program!for!a!number!of!reasons,!including:! o o IHP,is,easier,to,use,in,large,developments,than,in,small,ones.! Under!the!current!program,!coordinating,timing,between,the,affordable,housing,and, marketLrate,sites,is,difficult!for!developers!seeking!to!use!the!offsite!option.!! ! For,rezonings,by,private,applicants,that,largely,contain,one,intended,development,the, voluntary,framework,can,create,uncertainty.!In!several!cases,!the!developer!who!initiated!the! rezoning!made!promises!to!create!affordable!units,!but!later!sold!the!site,!leaving!the!new! developer!without!legallyJbinding!affordability!obligations.!! The!vast!majority!of!affordable!units!created!through!the!voluntary!inclusionary!housing! program!also,utilized,combinations,of,tax,,grant,,and,financing,incentives,from!the!city,!state,! and!federal!government.!Some!developers!and!experts!have!questioned!whether!the!current! uses!of!subsidy!in!tandem!with!inclusionary!zoning!achieve!the!best!value!for!the!public.! ! Public,information,about,performance,of,the,program,is,not,easily,accessible!from!the! Department!of!Buildings!and!limited!information!is!available!from!the!Department!of!Housing! Preservation!&!Development.!As!a!result,!it!is!difficult!to!track!how!much!and!what!type!of! affordable!housing!has!been!created,!how!many!units!are!lost!through!demolition,!and!what! amount!of!subsidy!has!been!required,!etc.! !

Program,performance,is,not,transparent,

Toward,a,Guaranteed,Inclusionary,Zoning,Program,
During!the!2013!mayoral!campaign,!affordable!housing!advocates!have!proposed!moving!to!a! guaranteed!inclusionary!zoning!program,!where!new!developments!(under!some!conditions)!would!be! required!to!include!affordable!units.!Several!candidates!for!mayor!have!expressed!support!or!openness! to!a!mandatory!program.!Mandatory!inclusionary!policies!exist!in!many!cities!and!states!around!the! country!(see!Appendix!5).!A!thoughtfully!crafted,!guaranteed!inclusionary!program!could!address!many! of!the!shortcomings!identified!by!this!review!of!the!voluntary!designated!areas!program.!Regardless,! any!changes!are!made!to!the!program!should!ensure:! 1. More,consistent,use,of,the,program,,possibly!including!a!base!requirement!for!multifamily! developments,!with!incentives!for!additional!units!in!targeted!growth!areas.! 2. More,efficient,use,of,subsidies,!to!avoid!giving!too!much!subsidy!to!80/20!developments!in! highJvalues!areas!(especially!in!Manhattan).!!! 3. Easier,participation,for,smaller,and,midLsized,developers.! 4. Better,protections,to,preserve,rentLregulated,units!in!upzoned!areas.! 5. More,transparent,reporting,of!program!outcomes.!

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Office&of&Council&Member&Brad&Lander&

Introduction&
This!report!examines!the!impact!of!the!early!years!of!New!York!Citys!Designated!Areas!Inclusionary! Housing!Program!(IHP),!a!zoning!incentiveJbased!program!that!since!2005!has!encouraged!developers!to! build!affordable!housing!in!certain!areas!of!New!York!City.2!! Inclusionary!zoning!(IZ)!is!a!housing!and!landJuse!policy!tool!that!encourages!or!requires!the!creation!of! affordable!housing!tied!to!marketJrate!housing!development.!First!introduced!in!suburban!jurisdictions! like!Montgomery!County,!MD,!IZ!has!rapidly!expanded!to!include!many!of!the!largest!cities!in!the!U.S.,! including!Chicago,!Boston,!San!Francisco,!San!Diego,!and!Denver.!! Inclusionary!zoning!programs!have!a!number!of!elements!that!vary!between!programs.!Programs!can!be! mandatory!or!voluntary;!citywide!or!in!designated!areas;!include!a!range!of!potential!incentives! (especially!density!bonuses,!but!also!parking!or!fee!waivers);!require!affordable!units!to!be!developed!or! preserved;!have!options!for!onsite!or!offsite!construction;!and!can!allow!payments!to!a!publiclyJ managed!inJlieu!housing!fund.!The!percentage!of!affordable!units!required,!as!well!as!the!depth!and! length!of!affordability,!vary!as!well.!Most!urban!programs!differ!from!New!York!Citys!program!in!two! key!ways:!they!cover!the!entire!city!(rather!than!only!designated!areas),!and!they!include!at!least!some! mandatory!requirement,!rather!than!being!entirely!voluntary!(see!Appendix!5!for!a!chart!of!urban!IZ! programs!around!the!country).!! New!York!Citys!first!inclusionary!zoning!law!was!passed!in!1987.!It!allows!developers!in!areas!zoned!! RJ10!(the!citys!highest!residential!zoning!designation,!predominantly!in!lower!and!midJManhattan)!or! equivalent!to!receive!a!density!bonus!up!from!10!to!12!FloorJArea!Ratio!(FAR)!if!they!develop!affordable! units.! This!report!focuses!on!NYCs!second!inclusionary!zoning!law,!the!Designated,Areas,program,!which! was!adopted!in!2005.!The!program!is!generally!mapped!where!zoning!is!being!changed!to!allow!greater! residential!development!(from!manufacturing!to!residential,!or!to!a!zone!with!a!higher!FAR),!and!offers!a! 33%!density!bonus3!in!exchange!for!making!20%!of!the!units!affordable,!at!or!below!80%!of!the!area! median!income!($68,720!in!2013).4! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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!Inclusionary!Housing,!IHP!and!IH,!as!used!in!this!report,!represents!the!Designated!Areas!portion!of!the!program! which!produced!the!vast!majority!of!the!postJ2005!units;!excludes!the!older!RJ10!portion!of!the!program,!unless!otherwise! noted!in!the!text.!The!program!underwent!modifications!in!a!2009!Zoning!Text!Amendment,!adding!a!homeownership!option,! updating!the!RJ10!program!and!making!technical!changes!to!the!program.!More!details!are!at:! http://www.nyc.gov/html/dcp/html/inclusionary_housing/index.shtml!!


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!The!exact!percentage!of!the!bonus!varies!slightly!depending!on!the!zoning!district.!

!AMI!calculation!from!NYC!HDC,!Income!Eligibility!http://www.nychdc.com/pages/IncomeJEligibility.html! If!the!affordable!project!is!onsite!and!uses!421Ja!tax!credits!then!the!units!must!be!affordable!to!60%!of!area!median!income! ($51,540!for!a!family!of!four!in!2013).!In!some!districts!the!limit!can!rise!to!125%!or!175%!of!AMI!depending!on!how!the! program!is!applied.!

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& Note:&A&more&complete&and&up9to9date&list&of&areas&in&the&program&is&available&in&the&Zoning&Resolutions&Appendix&F:& http://www.nyc.gov/html/dcp/pdf/zone/appendixf.pdf!

The!Designated!Areas!program!came!about!in!large!part!because!of!a!strong!organizing!campaign!by! citywide!and!communityJbased!organizations.!There!was!an!initial,!unsuccessful!campaign!to!apply! inclusionary!zoning!along!Brooklyns!4th!Avenue,!where!the!zoning!was!increased!as!part!of!the!broader! Park!Slope!Rezoning!in!2003.!Following!that!effort,!community!groups!in!Brooklyn!and!Manhattan,! working!with!citywide!housing!advocates,!led!a!successful!campaign!to!create!the!inclusionary!housing! program!for!nonJRJ10!districts.!The!program!was!first!implemented!in!2005!in!the!large!rezonings!of!the! West!Side!(Hudson!Yards!and!West!Chelsea)!and!Greenpoint/Williamsburg.!! The!program!has!now!been!mapped!in!over!two!dozen!areas!in!all!boroughs!except!Staten!Island.!These! areas!include!many!mediumJ!and!highJdensity!areas!of!the!city!that!have!experienced!recent!growth!or! are!anticipated!to!experience!growth!in!the!near!future.!The!areas!in!the!program!range!from!individual! blocks!to!corridors!to!large!portions!of!neighborhoods.!!

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Office&of&Council&Member&Brad&Lander&

Methodology&
This!paper!reviews!the!performance!of!the!Inclusionary!Housing!Designated!Areas!Program!since!its! creation!in!2005!using!quantitative!and!qualitative!analysis.!The!findings!draw!on!an!HPDJgenerated!list! of!development!projects!with!affordable!housing!units!that!participated!in!the!Inclusionary!Housing! Program.!We!present!the!full!analysis!as!Appendix!2!and!the!full!list!(current!as!of!June!2013)!with! additional!data!as!Appendix!6.!! To!estimate!the!total!amount!of!residential!development!occurring!in!Inclusionary!Zoning!areas!(in!order! to!provide!the!denominator!and!determine!roughly!what!percentage!of!units!developed!in!these!areas! have!been!affordable!through!the!IHP),!we!created!a!database!of!DOB!permit!applications!from!2005!to! June!2013!using!agency!data.5!This!data!is!best!treated!as!an!estimate!even!though!it!is!drawn!from!the! most!reliable!dataset!about!building!activity.6!When!permit!application!data!was!calculated!for! inclusionary!housing!areas,!it!was!filtered!to!include!only!A)!tax!blocks!with!a!whole!or!partial!IHP! designation7!and!B)!applications!filed!within!90!days!of!the!start!of!the!rezoning!that!added!IHP!to!the! area.! We!attempted!to!match!receiver/compensated!development!and!generator!sites!using!available!city! data,!but!a!manual!search!of!DOB!records!is!required!(if!it!is!at!all!possible)!to!conduct!a!comprehensive! analysis!of!the!program.!Therefore,!the!matches!we!were!able!to!accomplish!through!qualitative! research!are!presented!in!the!table!in!Appendix!6.! We!supplemented!the!quantitative!analysis!with!a!literature!review!and!interviews!with!developers,! housing!professionals,!and!policy!experts!who!have!experience!with!the!Inclusionary!Housing!Program.8&

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!The!HPD!(Department!of!Housing!Preservation!and!Development)!and!DOB!(Department!of!Buildings)!databases!do!not! perfectly!correspond.!Two!of!the!32!Designated!Areas!Program!buildings!in!the!HPD!database!!the!Mercedes!House! development!and!Silver!Towers!at!Riverplace!on!Manhattans!West!Side!!do!not!appear!in!the!DOB!database.!For!consistency,! they!have!not!been!included!in!DOB!permit!data!in!this!report.!
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!There!is!limited!data!from!DOB!about!what!buildings!are!actually!built,!so!the!permit!application!database!that!forms!the!basis! for!this!part!of!the!analysis!is!the!most!comprehensive!and!consistent!set!of!data!available.!Therefore,!there!may!be!some! buildings!counted!that!are!in!construction!or!not!built,!as!well!as!permits!disapproved,!withdrawn!or!reJfiled.!However,!we!took! measures!to!check!samples!of!individual!permit!applications!for!the!extent!of!these!issues,!which!were!minimal.!Additionally,!to! avoid!double!counting!of!building!permits,!we!only!drew!unit!counts!from!the!first!document!filing!with!DOB!(as!multiple! documents!can!be!filed!for!a!single!permit)!and!limited!permit!applications!to!new!building!permits!for!multifamily!buildings.!!


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!Matching!at!the!lot!level!was!not!possible!because!new!buildings!often!involve!zoning!lot!mergers,!which!requires!dealing!with! many!sets!of!tax!maps!to!verify!exact!zoning!locations.!
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!The!authors!would!like!to!thank!the!following!for!their!assistance!and!feedback!during!the!process!of!writing!this!report:!Frank! Lang!of!St.!Nicks!Alliance,!Heather!Gershen!formerly!of!Fifth!Avenue!Committee,!Richard!Bearak!of!Brooklyn!Borough!President! Mary!Markowitzs!office,!Martin!Dunn,!Susan!Albrecht!of!Association!of!New!York!Catholic!Homes,!Barika!Williams!and!Moses! Gates!of!ANHD,!David!Tipson!from!New!York!Appleseed,!James!Doggett!from!Cleary!Gottlieb,!Vicki!Been,!Josiah!Madar,!Adam! Eckstein!and!Michael!Williams!from!the!NYU!Furman!Center!for!Real!Estate!and!Urban!Policy!and!Caitlyn!Brazill!of!CAMBA! (formerly!of!the!Furman!Center).!We!would!also!like!to!thank!the!NYC!Department!of!Housing!Preservation!and!Development! and!the!NYC!Department!of!City!Planning!for!providing!data!and!explaining!the!functioning!of!the!program.!

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How&the&Program&Works&
The,NYC,Inclusionary,Housing,Designated,Areas,Program!is!an!optional!program!for!developers!in! portions!of!the!city!designated!in!the!NYC!Zoning!Resolution.9!The!program!incentivizes!the!creation!of! permanently!affordable!rental!or!ownerJoccupied!housing!in!exchange!for!a!density!bonus!(permission! to!build!more!apartments!than!is!normally!allowed).!In!general,!developers!are!eligible!for!a!33%!density! bonus!for!building!20%!affordable!units,!for!households!earning!up!to!80%!of!the!NYC!area!median! income!($68,720!for!a!family!of!four!in!2013).10!New,!multiJfamily!buildings!with!four!or!more!residential! units!are!eligible!to!receive!the!density!bonus.!The!affordable!units!must!remain!permanently! affordable,!often!including!a!large!capital!reserve!for!necessary!future!building!maintenance.! !

Diagram,Illustrating,Use,of,Inclusionary,Density,Bonus,Onsite,vs,Offsite,Under,IHP,

Note:!the!bonus!is!granted!using!square!feet,!so!unit!count!may!vary!slightly!in!reality,!but!housing!units!are!used!here!for!simplicity!of!explanation.!! In!the!offsite!option,!the!bonus!must!be!used!at!a!compensated!development!in!a!district!that!allows!IHP.!

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!They!are!enacted!by!Section!23J90!and!Appendix!F!of!the!NYC!Zoning!Resolution.! !Per!note!4,!some!onsite!projects!are!required!to!meet!60%!of!AMI;!in!some!districts!it!can!create!125%!or!175%!AMI!units.!

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The!affordable!housing11!can!be!generated!in!the!same!building!where!the!bonus!is!being!used!for! marketJrate!housing!(referred!to!as!onsite!affordable!housing),!or!where!the!bonus!is!used!on!another! site!or!set!of!sites!nearby!(referred!to!as!offsite!affordable!housing).!Offsite!affordable!housing!can! consist!of!either!newly!constructed!affordable!units,!or!the!preservation/substantial!rehabilitation!of! existing!affordable!housing.!A!marketJrate!development12!may!make!use!of!bonuses!generated!both! onsite!and!offsite,!and!conversely,!the!bonus!generated!by!an!affordable!housing!project!may!be!split! among!multiple!marketJrate!developments.13!! The!program!involves!the!NYC!Department!of!City!Planning,!the!NYC!Department!of!Housing! Preservation!and!Development!(HPD),!and!the!NYC!Department!of!Buildings!(DOB).!Areas!are!designated! in!the!NYC!Zoning!Resolution,!usually!as!part!of!a!broader!areaJwide!rezoning!that!increases!the!amount! of!allowable!residential!development!(by!rezoning!portions!of!the!area!from!manufacturing!to! residential!zoning,!and/or!by!increasing!the!allowable!Floor!Area!Ratio).!Developers!apply!to!HPD!to! participate!in!the!program!and!to!DOB!for!construction!permits.!HPD!issue!certificates!that!demonstrate! that!the!developer!has!enabled!the!creation!or!preservation!of!a!certain!amount!of!permanently! affordable!housing.!The!HPDJissued!certificates,!in!turn,!allow!the!addition!of!a!proportional!amount!of! additional!square!feet!to!a!marketJrate!development!within!a!qualifying!IH!area!when!filed!with!DOB.14!! These!certificates!can!be!subdivided!among!multiple!marketJrate!projects!or!even!resold.!Once!in! possession!of!the!certificate,!the!marketJrate!developers!use!them!to!receive!COs!for!units!built!with! bonus!square!footage.!The!development!is!considered!onsite!when!the!affordable!and!marketJrate! housing!are!in!the!same!building.!Otherwise,!the!marketJrate!developer!can!use!a!bonus!from! developing!or!preserving!affordable!housing!offsite!themselves!or!through!a!contracted!partner,!or,!can! buy!preJexisting!certificates.!! The!price!of!these!certificates!is!determined!through!negotiation!and!set!in!a!contract!that!is!part!of!the! financing!of!the!affordable!project.!Interviews!indicated!that!the!actual!price!for!certificates!have!varied! widely,!depending!on!the!market!conditions!and!available!buyers.15!! The!older!RJ10!program,!prior!to!2009,!prohibited!developers!from!utilizing!both!an!inclusionary!bonus! and!a!421Ja!tax!exemption!(because!the!amount!generated!by!the!inclusionary!bonus!was!intended!to! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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!Referred!to!in!technical!terms!as!a!Generating!Site!as!its!construction!generates!the!right!to!a!density!bonus,!indicated!by! an!HPDJissued!certificate!at!the!completion!of!the!affordable!housing!development.!
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!Referred!to!in!technical!terms!as!a!Compensated!Development!(also!called!a!Receiving!Site!in!this!document)!as!it! receives!the!right!to!the!density!bonus!from!a!generator!site.!The!developer!of!the!marketJrate!building!files!the!HPDJissued! certificate!with!DOB!to!enable!the!occupancy!of!the!density!bonus!units.!MarketJrate!buildings!may!receive!a!renewable! temporary!CO!until!they!meet!all!final!other!zoning!requirements.!


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!For!the!purpose!of!the!analysis!in!this!paper!that!labels!affordable!housing!as!onsite!or!offsite,!this!represents!HPDJprovided! data!that!listed!generating!sites!as!to!whether!the!bonus!was!used!offsite!or!onsite.!In!this!paper,!where!the!IHPJcreated! affordable!housing!is!labeled!onsite!or!offsite,!it!represents!whether!the!density!bonus!was!used!onsite!or!offsite,!respectively.!


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!The!actual!process!is!more!complex!and!differs!slightly!between!using!bonuses!offsite!and!onsite,!but!the!basic!principles!of! HPDJissued!certificates!being!filed!at!DOB!to!attain!a!density!bonus!is!the!same.!
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!One!developer!sold!affordable!square!feet!from!$50!to!$125!per!affordable!square!foot!at!various!points!in!the!market!cycle.!

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Inclusionary&Zoning&in&New&York&City&

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be!sufficient!subsidy!for!the!development).!However,!such!a!combination!is!allowed!in!the!Designated! Areas!program!and!after!a!2009!zoning!text!amendment,!in!RJ10!areas!as!well!(as!is!the!use!of!other! affordable!housing!subsidies).!Thus!far,!inclusionary!housing!in!designated!areas!has!generally!been! used!in!tandem!with!the!421Ja!Tax!Exemption!Program!because!many!of!the!designated!areas!are!also! in!the!421Ja!geographic!exemption!areas!where!including!affordable!housing!is!required!to!receive!the! property!tax!abatement.!In!2006,!the!421Ja!program!was!changed!to!require!affordable!units!onsite,!out! of!concerns!over!the!effectiveness!of!the!offsite!negotiable!certificates!program.!Affordable!units! created!under!IHP!can!also!be!used!to!satisfy!the!affordable!housing!requirements!for!421Ja!if!they!meet! 60%!of!area!median!income,!providing!a!strong!incentive!for!onsite!affordable!units!for!developments! within!the!exclusion!area!(shown!in!the!maps!on!the!following!pages!and!Appendix!1).16!! !

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
16

!While!the!new!requirements!were!made!effective!for!projects!initiated!before!July!2008,!projects!with!building!permits! issued!earlier!were!grandfathered!into!the!older!program.!

9&

Office&of&Council&Member&Brad&Lander&

Inclusionary Housing Program Areas


With Units Created 20052013 by Neighborhood
208 212

207

211 112 205 206

204

203

210

209 109 110

South Bronx 40 Units


201

202

Designated Areas IH Program R10 IH Program 421a Geographic Exclusion Area

Harlem 137 Units


111

107

Riverside South 77 Units West Side 1,441 Units


104 105 106 404 402

R10 (19872013) 1,753 Units

108

401

407

403

411

102

101

Lower East Side 59 Units

103

Greenpoint/ Williamsburg 949 Units


301 405

408 406

302 303

304

Jamaica 33 Units
409 412

306

Rest of BK 83 Units

308 316 309 305

410

413

307 317

312 310 311

314

318

Data:
HPD,
DCP
&
NYU
Furman
Center;
Analysis
&
Mapping
by
Oce
of
Council
Member
Brad
Lander,
August
2013

!
! ! !

&

Inclusionary&Zoning&in&New&York&City&

& 10&

Aordable
Units
Produced
by
Inclusionary
Housing
Programs
By
Number
of
Aordable
Units
in
Each
Building
208 212

207

211 112 205 206

Designated Areas
204 203

# Units 210 2005-13


!

209 109 110

1 - 10 11 - 25 26 - 50 51 - 100 101 - 251 Designated Areas IH Program 421a Geographic Exclusion Area

!
! !
201 202

!
111

107

108

401

407

! ! ! ! ! ! ! ! !
104

403 105 106 404

411

!
102

!
!

402

!!
103

! ! ! !
!

408 406

301

101

! ! ! !
!

405

302 303

304

409 412

306

!
308 316 305 413 410 309

307 317

312 310 311

314

318

&
!

Data:
HPD,
DCP
&
NYU
Furman
Center;
Analysis
&
Mapping
by
Oce
of
Council
Member
Brad
Lander,
August
2013

11&

Office&of&Council&Member&Brad&Lander&

Findings&
The,NYC,Inclusionary,Housing,Program,has,had,mixed,success,in,generating,affordable,housing.,Under! the!program,!2,769!affordable!units!were!produced!in!41!affordable!projects!in!the!seven!years!since! 2005.17!This!compares!favorably!to!1,753!units!produced!in!60!projects!under!the!older!RJ10!inclusionary! housing!program!in!the!25!years!since!1987.18!The!affordable!units!generated!under!the!Designated! Areas!program!represents!13%!of!all!new!building!permits!filed!in!those!areas!during!this!period., !

*Compares&affordable&units&produced&under&IHP&Designated&Areas&Program&from&2005&through&June&2013& &with&multi9family&building&permits&submitted&within&90&days&of&the&start&of&inclusionary&area&eligibility.!

At!the!same!time,!this!represents!a!very!modest!amount!of!new!housing!development!in!New!York!City.! Although!the!designated!areas!include!many!of!the!fastestJgrowing!parts!of!the!city,!they!collectively! contained!only!13%!of!all!new!development!permit!applications!citywide!!21,652!units!out!of! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


17

!These!41!affordable!developments!include!different!phases!of!several!large!projects,!and!are!counted!as!separate! developments.!Multiple!developments!bonuses!were!applied!entirely!toward!a!single,!large!marketJrate!development,!while! others!were!used!for!multiple!marketJrate!developments.!See!Appendix!6!for!a!full!list!of!affordable!housing!projects.! 18 !A!2004!report!by!PolicyLink!and!PICCED!titled!Increasing!Housing!Opportunity!in!New!York!City:!The!Case!for!Inclusionary! Zoning!cites!a!May!2004!comment!from!Richard!Barth,!Executive!Director!of!City!Planning,!asserting!that!600!RJ10!units!had! been!created!to!that!date.!There!is!incomplete!data!for!start!&!completion!dates!to!be!certain!when!the!remaining!1,100!R10! units!were!created,!and!whether!any!were!in!R10!zones!that!overlap!with!Designated!Areas.!However,!a!review!of!the!available! date!information!shows!at!least!887!RJ10Jlinked!units!that!were!likely!created!before!2005.!Therefore,!no!more!than!866!units! were!in!the!RJ10!program!after!the!Designated!Areas!program!started.!The!PolicyLink/PICCED!report!is!available!at:! http://prattcenter.net/sites/default/files/users/pdf/Inclusionary%20Zoning%20Full%20Report.pdf!

! ! ! !

&

Inclusionary&Zoning&in&New&York&City&

& 12&

approximately!160,000!citywide!for!new!multifamily!construction,!between!January!2005!and!June! 2013.19!As!a!result,!the!inclusionary!housing!units!created!in!these!areas!represent!only!1.7%!of!all!units! in!new!building!permits!filed!in!NYC!during!these!years.!

Geography,Findings,
Utilization,of,the,Inclusionary,Housing,Program,has,varied,widely,by,neighborhood!(as!shown!in!the! charts!above!and!below),!with!excellent,usage,on,Manhattans,West,Side,,strong,usage,in, Greenpoint/Williamsburg,,and,very,little,usage,elsewhere.!

! ! On,Manhattans,West,Side,(in,the,Hudson,Yards,and,West,Chelsea,rezoning,areas),,participation,in, the,program,has,been,extremely,strong,!with!1,441!IHP!units!generated!amidst!7,752!total!units.!This! represents!18.6%!of!total!development,!a!high!participation!rate!since!(theoretically)!full!participation! would!yield!20%!affordable!units.!IHP!generated!affordable!housing!in!this!area!was!entirely!onsite!and! generally!part!of!large!luxury!rental!or!condominium!buildings.20!These!projects!averaged!almost!500! total!units!per!development,!with!nearly!100!inclusionary!affordable!units!per!development!!very! large!development!projects!compared!to!the!outer!boroughs.!! The!participating!developments!generally!contained!20%!inclusionary!affordable!units,!allowing!for!a! combination!of!the!Inclusionary!Housing!density!bonus,!a!421Ja!tax!exemption!for!20!years,!and!other! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
19 20

!This!figure!only!counts!permits!filed!within!90!days!of!when!each!area!was!added!to!the!Inclusionary!Housing!program.! !As!noted!above,!these!are!HPDs!unit!totals,!which!in!some!cases!do!not!match!up!exactly!with!DOB!and!PLUTO!totals.!!

13&

Office&of&Council&Member&Brad&Lander&

80/20!financing!incentives!(including!taxJexempt!bond!financing!and!the!use!of!federal!4%!lowJ income!housing!tax!credits).!As!a!result,!some!experts!and!even!developers!expressed!concern!about!the! level!of!public!subsidy!involved!in!these!deals.! In,North,Brooklyn,,participation,was,fairly,strong!(949!inclusionary!units!out!of!7,218!total!units,!or! 13%).!Here,!the!type!of!affordable!housing!was!more!varied:!58%!of!the!affordable!housing!units21!were! on!the!same!site!as!the!marketJrate!housing.!As!part!of!major!development!projects!on!the!waterfront,! 550!units!were!developed!on!the!same!site!(though!not!necessarily!in!the!same!building).22!Like!on!the! West!Side,!the!vast!majority!of!the!deals!involved!other!public!subsidies,!including!a!special!version!of! the!421Ja!tax!exemption!program,!which!allowed!waterfront!developments!to!count!as!onsite!even!if! the!affordable!housing!is!in!separate!buildings,!located!on!the!same!zoning!lot.! An!additional!399!units!were!created!offsite,!of!which,!249!were!preservation!projects23!!existing! affordable!housing!already!owned!by!missionJdriven!organizations!that!required!funding!to!ensure!their! units!continued!affordability.!Preservation!projects!are!easier!to!complete!than!offsite!new! construction,!because!they!do!not!involve!the!additional!cost!and!unpredictable!timeline!of!land! acquisition!and!new!building!construction.! After!the!economy!weakened,!and!421Ja!exemptions!dwindled,!IHP!deals!slowed!significantly!in!North! Brooklyn.!Anecdotal!evidence!indicates!the!pace!of!Inclusionary!Housing!projects!appears!to!be!picking! up.!Over!the!longJterm,!affordable!projects!in!the!neighborhood!are!more!likely!to!be!primarily!onsite,! because!of!the!importance!of!the!421Ja!tax!abatement!and!the!end!of!the!grandfathering!period!for!new! permits!(discussed!below).!! Very,few,eligible,developers,in,other,areas,are,using,the,inclusionary,housing,program.!Most! developments!in!the!remainder!of!the!designated!areas!in!Queens,!the!Bronx,!and!Brooklyn!have!not! used!Inclusionary!Housing.!Outside!of!North!Brooklyn!and!Manhattans!West!Side!there!were!only! eleven!developments!that!generated!Inclusionary!Housing!bonuses!through!the!Designated!Areas! program,!for!a!total!of!5.6%!of!total!units!generated!(379!out!of!6,682!units).! Outside!of!North!Brooklyn!and!the!West!Side,!the!projects!that!utilized!the!IHP!were:!
21

One!project!on!125th!Street!in!Manhattan.& Three!projects!in!the!East!Village!in!Manhattan.& One!project!at!West!59th!Street!and!West!End!Avenue!in!Manhattan.& Two!projects!in!Jamaica,!Queens!initiated!between!2012!and!2013.& Two!projects!in!in!the!Bronx!associated!with!the!Harlem!Waterfront!Rezoning!initiated!in!2012.&

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!Affordable!unit!location!data!for!units!built!after!February!2012!was!not!able!to!be!verified,!but!data!provided!by!HPD!for! units!with!signed!agreements!between!February!2012!and!June!2013!are!included!in!the!numbers!in!the!report.!
22

!This!option!!multiple!buildings!on!the!same!site!!was!established!in!New!York!State!law!for!the!GreenpointJWilliamsburg! area!only,!as!part!of!the!reform!of!the!421Ja!tax!exemption!program.!
23

!The!other!150!units!were!offsite!new!construction!developed!by!missionJdriven!organizations.!

! ! ! !

&

Inclusionary&Zoning&in&New&York&City&

& 14&

One!project!in!BedfordJStuyvesant,!Brooklyn!constructed!as!part!of!HPDs!Cornerstone!Program! that!is!entirely!composed!of!Inclusionary!Housing!affordable!units!with!the!resulting!bonus!used! onsite,!and!a!density!bonus!in!another!associated!offsite!project.!&

One!project!in!Park!Slope,!Brooklyn!where!a!small!preservation!project!had!its!funding! completed!as!part!of!an!unorthodox!negotiated!settlement!with!a!building!on!4th!Avenue!that! had!built!beyond!its!asJofJright!density.&

Buildings,&,(Units),in,nonLR10,, Inclusionary,Housing,(IH),Areas,
,
Affordable,Housing, Created,through,, June,2013, Eligible,4+,Unit, Building,Permits,Filed, 24 through,June,2013 , IHP,Units,as,Percent, of,Permits,Filed, Greenpoint, Williamsburg, IH,Areas, Other, Brooklyn, IH,Areas, West,Side, IH,Areas, Other, Bronx,&, Manhattan, Queens,IH, IH,Areas, Areas, Total,IH, Areas,Since, 2005, Citywide,, Jan,2005,, Jun,2013,

15! (949)& 211! (7,218)& 13.1%! !

2! (83)& 75! (1,447)& 5.7%!

15! (1,441)& 40! (7,752)& 18.6%!

5! (233)& 24! (3,598)& 6.2%!

4! (73)& 32! (1,637)& 4.5%!

41! (2,769)& 387! (21,652)& 12.8%!

na! 4,669! (160,003)& !!!1.7%25!

None,of,the,remaining,designated,areas,,such,as,Woodside,,Flatbush,,Astoria,,Tribeca,,Dutch,Kills,, Upper,West,Side,,etc.,,have,been,used.!It!is!not!simply!that!development!in!these!areas!is!not!as!hot!as! on!the!West!Side!and!North!Brooklyn,!since!nearly!6,000!total!units!have!been!generated!in!these!areas.! Certainly,!most!of!the!affordable!housing!generated!by!the!program!is!in!the!areas!that!have!seen!the! most!development,!and!many!of!the!unused!areas!entered!the!program!later!and!may!have!been! impacted!by!the!severe!recession,!or!lack!of!sufficient!demand!for!largeJscale!development.!However,!at, least,131,eligible,marketLrate,projects,have,applied,for,new,construction,building,permits,in,the,other, areas,covered,by,the,program!(this!includes!Harlem!and!the!Lower!East!Side/East!Village,!neither!of! which!is!a!stranger!to!large!residential!developments).26!Developers!and!housing!experts!offered!a! number!of!reasons!for!the!low!utilization!in!other!areas.!Many!of!these!developments!consisted!of! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
24

!As!noted!above,!this!analysis!is!derived!from!permits!filed!with!DOB!for!new!buildings!with!4!or!more!units!on!tax!blocks! intersecting!with!the!designated!areas!program!between!January!2005!and!June!2013.!The!permit!numbers!only!include!those! that!were!submitted!within!90!days!of!the!start!of!inclusionary!area!eligibility.!Tax!blocks!were!used!because!lot!numbers!often! change!when!new!building!permits!are!filed,!making!it!difficult!to!include!all!relevant!permit!applications.!


25

!Per!note!18,!no!more!than!866!units!were!created!in!the!RJ10!program!in!the!20052013!period.!If!all!of!these!the!RJ10!units! were!assumed!to!be!during!this!time!period!(which,!given!the!consistency!of!date!information!available,!is!unlikely)!added!to! the!numerator,!this!percentage!would!only!increase!slightly!to!2.2%.!


26

!Development!size!is!not!a!significant!contributor!to!the!lack!of!participation!as!these!areas!had!34!permits!for!50+!unit! buildings,!compared!to!37!in!Greenpoint/Williamsburg!and!25!on!the!West!Side.!

15&

Office&of&Council&Member&Brad&Lander&

smaller!multifamily!buildings,!where!the!inclusionary!housing!program!is!more!difficult!to!use.!More! clearly,!outside!of!the!421Ja!geographic!exclusion!area,!there!is!less!financial!incentive!to!include! affordable!housing!(only!five!of!29!onsite!bonuses!were!used!outside!the!exclusion!zone).27!Some! speculated!that!more!attention!!and!therefore!more!subsidy!!were!focused!on!the!major!rezoning! areas!by!the!Bloomberg!Administration.!!

Program,Findings,
Developers,of,midLsized,buildings,are,largely,not,using,the,program.!Every!marketJrate!project!using! the!IHP!bonus!(receiver!sites)!that!we!were!able!to!identify!(see!Appendix!6)!has!had!more!than!fifty! units.!Most!of!these!projects!contain!hundreds!of!units!and!one!has!more!than!one!thousand!units.! Developers!of!midJsized!buildings!have!opted!not!to!use!the!program.! The!transaction!costs!for!and!information!barriers!to!using!IHP,!the!risks!created!by!timing!uncertainty,! and!the!challenges!of!working!with!an!affordable!development!partner!and!city!agencies!are!all! significant.28!Offsite!affordable!projects!generally!require!prearranged!buyers!of!the!bonus!certificates!in! order!to!finance!new!construction!or!preservation.!As!noted!below,!square!footage!is!unfortunately! often!not!readily!available!for!marketJrate!developers!to!purchase!in!most!areas.!In!addition,!in!some! cases!it!can!be!difficult!to!fit!the!density!bonus!into!a!smaller!building!envelope,!especially!in!some!of! the!smaller!contextual!districts!(especially!the!R6B!zone!in!Greenpoint/Williamsburg).!! Smaller,or,less,savvy,developers,have,difficulty,using,the,program.!It!is!clear!from!our!interviews!that! IHP!is!perceived!as!difficult!to!use,!particularly!for!smaller,!less!experienced!developers!working! primarily!in!the!outer!boroughs.!ForJprofit!developers!that!lack!experience!working!with!HPD!or! affordable!developer!partners!may!lack!the!knowledge!and!knowJhow!to!effectively!use!the!program,! even!if!they!are!aware!of!it.!Experts!we!interviewed!repeatedly!speculated!that!there!is!a!lack!of! awareness,!expertise,!and!interest!in!working!with!HPDs!affordable!housing!programs!among!the! developers!who!are!most!likely!to!be!working!in!the!less!expensive!IHP!areas!farther!from!the! Manhattan!CBD.!To!entice!developers!into!the!program,!they!need!knowledge!of!the!programs! existence,!easy!ways!to!analyze!its!potential!use!for!their!sites,!knowledge!of!potential!partners,!and! confidence!in!the!process!of!partnering!with!affordable!housing!developers!and!city!agencies.!Each!of! these!has!presented!a!challenge.29!! Inclusionary,Housing,,even,for,those,familiar,with,city,agencies,,is,difficult,and,timeLconsuming,to, navigate.,Developers!noted!that!working!with!HPD!was!timeJconsuming,!and!that!coordinating!between! DOB!and!HPD!was!not!easy.!Developers!(as!they!are!similarly!required!for!all!HPD!or!HDCJinvolved! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
27

!The!two!buildings!in!the!Bronx,!two!buildings!in!Queens!and!the!one!allJaffordable!Cornerstone!building!in!BedJStuy!were!the! only!onsite!bonuses!used!outside!the!2008Jeffective!exclusion!zone.!There!were!some!offsite!bonuses!used!outside!the! exclusion!zone,!including!RJ10Jlinked!buildings!but!all!receiver!sites/compensated!developments!we!identified!were!within!the! new!421Ja!exclusion!zone!


28

!This!timing!issues!also!adds!a!degree!of!risk!for!the!affordable!developers!as!well.!Even!with!a!signed!contract!of!sale!for!the! inclusionary!certificates,!bankruptcy!or!even!a!significant!delay!for!the!marketJrate!bonus!project!can!deprive!the!affordable! project!of!obtaining!the!expected!inclusionary!funds!needed!to!close,!which!our!interviews!indicated!happened!at!least!once.!


29

!Some!have!also!speculated!that!contextual!zoning!envelopes!applicable!on!small!midJblock!sites!may!present!a!problem!in! utilizing!the!full!inclusionary!bonus.!

! ! ! !

&

Inclusionary&Zoning&in&New&York&City&

& 16&

developments)!are!required!to!reJfile!all!organizational!paperwork!with!HPD!for!every!project!and!create! separate!reserve!accounts!with!HDC!(the!citys!affordable!housing!finance!agency).!Further,!buildings! stabilized!under!the!7A!program!(which!often!does!not!include!significant!public!investment),!are!not! eligible!to!use!the!program.!! Use,of,offsite,bonuses,from,new,construction,of,affordable,housing,has,been,very,limited,(though, perhaps,this,is,a,good,thing).!Very!few!of!the!affordable!units!generated!by!the!program!have!been! offsite!new!construction.!In!Manhattan,!the!overwhelming!bulk!of!units!have!been!built!offsite.!Even!in! North!Brooklyn,!where!42%!of!the!units!have!been!offsite,!the!vast!majority!of!these!have!been! preservation!of!existing!affordable!housing.!As!noted!below,!using!the!programs!offsite!option!is!risky! for!both!affordable!and!marketJrate!developers.!The!price!of!land!and!the!high!likelihood!that!the! timeline!of!any!given!affordable!Inclusionary!Housing!project!is!different!than!cooperating!marketJrate! projects!are!major!challenges!to!offsite!Inclusionary!Housings!longJterm!viability.!! An!important!question!beyond!the!scope!of!this!report!is!whether!units!preserved!in!IHP!were!genuinely! at!risk!of!loss,!although!using!existing!funding!programs!for!preservation!would!draw!on!limited! resources,!affecting!other!city!preservation!projects,!without!providing!permanent!affordability.!An!ideal! program,!if!it!allowed!any!offsite!preservation,!might!require!a!higher!number!of!affordable!units!to!be! preserved!than!new!construction.!Some!make!an!argument!that!onsite!new!construction!is!generally! preferable!to!offsite.!Onsite!units!promote!integration!in!changing!neighborhoods!(e.g.!children!in!the! same!building!will!be!zoned!for!the!same!school).!Preservation!units!do!not!necessarily!promote! integration;!however,!they!insure!the!ability!of!longerJterm!residents!of!the!neighborhood!to!stay,!which! is!often!a!challenge!in!rapidly!gentrifying!communities.!New!offsite!construction!can!sometimes! promote!integration,!but!under!the!current!program,!it!can!be!located!in!other!neighborhoods!with!very! different!housing!markets!as!the!marketJrate!site!within!the!same!community!district.!Further,!there! needs!to!be!a!reexamination!of!the!utilization!of!the!421Ja!tax!break!(which!now!tops!$1!billion!in! annual!tax!expenditures),!including!the!geographic!areas!in!which!affordable!housing!is!required!and!its! relationship!to!IHP.30! Making,IHP,work,requires,tight,coordination,between,marketLrate,developers,,affordable,housing, developers,,and,HPD,that,can,too,often,be,a,barrier,to,success.!New!marketJrate!construction!tends!to! be!completed!more!quickly!than!new!affordable!construction!because!of!the!added!challenges!of! coordinating!multiple!subsidies!and!additional!cost!of!new!construction.!This!introduces!a!timing! concern!for!marketJrate!developers!who!want!to!use!an!offsite!bonus!from!affordable!developers,! because!they!need!the!affordable!units!to!be!complete!to!receive!COs!for!their!new!marketJrate!bonus! units.!This!tension!creates!complex!coordination!challenges!between!incongruent!developments! timelines.!All!offsite!affordable!projects!must!coordinate!their!timing!with!both!the!marketJrate!projects! and!HPD,!all!of!which!require!coordination!and!work!on!different!timelines.!Affordable!developers! typically!found!marketJrate!partners!by!reaching!out!to!developers,!developers!referred!to!the! affordable!developers!and!word!of!mouth!among!developers.! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
30

!NYC!Dept!of!Finance.!FY!2013!Tax!Expenditures!Report.!

17&

Office&of&Council&Member&Brad&Lander&

Many!affordable!preservation!projects!in!North!Brooklyn!were!initiated!at!the!height!of!the!housing! boom!between!2006!and!2008.!Often,!a!missionJbased!organization!(nonJprofit!or!forJprofit)!with!an! existing!affordable!site!in!need!of!additional!funds!to!maintain!its!affordability!partnered!with!one!or! more!marketJrate!developers.!The!marketJrate!developers!committed!funds!to!ensure!the!sites! permanent!affordability!in!exchange!for!the!affordable!projects!bonus!FAR!certificate.!In!some!cases,! surplus!certificates!were!further!resold!and!subdivided!among!marketJrate!developers.!! Tenant,advocates,have,expressed,concern,that,rentLregulated,units,are,often,lost,through,demolition, in,rezoned,Inclusionary,Housing,areas,,still!potentially!leading!to!a!net!loss!of!affordable!units,!even! after!units!are!created!or!preserved!through!IHP.,The!areaJwide!rezonings!that!apply!Inclusionary! Housing!have!typically!added!substantial!marketJrate!density!(even!before!the!inclusionary!bonus)!to! many!existing!residential!buildings,!creating!substantial!development!pressure.!Tenant!advocates!report! that!this!pressure!has!led!to!the!harassment!of!rentJregulated!tenants!out!of!existing!buildings,!so!that! buildings!can!be!demolished!to!make!way!for!new!developments!that!take!advantage!of!the!full!market! potential!of!the!site.!The!end!result!can!be!a!net!loss!of!existing!affordable!housing,!whether!or!not!the! developer!includes!affordable!units!through!the!Inclusionary!Housing!Program.!, For!example,!the!Fifth!Avenue!Committee!(FAC)!documented!the!harassment!of!rentJstabilized!tenants! at!150J158!4th!Avenue!following!the!Park!Slope!Rezoning,!and!the!buildings!subsequent!sale!for!luxury,! higher!density!redevelopment.31!These!fourJstory,!oldJlaw!tenement!buildings!contained!40!rentJ regulated!units!which!housed!lowJincome!and!workingJclass!tenants.!In!just!the!three!years!following! the!rezoning,!the!units!were!vacated!(with!substantial!harassment!in!the!process!reported!to!FAC)!and! the!buildings!were!demolished.!The!buildings!were!replaced!by!the!Arias,!a!95Junit!luxury!building.! Because!the!Inclusionary!Housing!Program!was!not!applied!to!4th!Avenue!(and!at!the!time!the!building! was!not!within!the!421Ja!geographic!exclusion!area),!no!affordable!units!were!included,!resulting!in!a! net!loss!of!40!affordable!housing!units.!Even!if!the!IHP!had!been!utilized,!it!would!only!have!generated! 19!affordable!units!(20%!of!95),!still!resulting!in!a!net!loss!of!21!units!of!affordable!housing.!, We!do!not!know!precisely!how!many!rentJregulated!units!were!demolished!in!the!designated!areas! following!their!rezoning.!Citywide,!between!January!2005!and!October!2011!there!were!845!demolition! permits!submitted!for!buildings!in!IHP!areas!after!the!rezonings,!but!we!do!not!know!how!many!rentJ regulated!units!were!in!these!buildings.!According!to!the!NYC!Rent!Guidelines!Board,!there!were!7,960! units!removed!from!rent!regulation!citywide!between!2005!and!2012!due!to!demolition,!condemnation,! or!related!reasons,!but!these!are!only!tracked!by!borough!(see!Appendix!4).!If!these!were!spread!across! the!city!in!the!same!proportion!as!new!development!permits!during!this!time,!then!13%!of!these!units,! or!approximately!1,000!rent!regulated!units!(which!seems!potentially!conservative,!given!845!demolition! permits),!would!have!been!demolished!in!the!IHP!designated!areas,!reducing!the!net!affordable!housing! generated!in!those!areas!by!36%!to!around!1,700.!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
31

!Fifth!Avenue!Committee.!A!Fair!Exchange:!Balancing!Private!&!Public!Development!When!Rezoning!Gowanus.!September! 2010.!Page!14.!!

! ! ! !

&

Inclusionary&Zoning&in&New&York&City&

& 18&

New!York!Citys!affordable!housing!policy!toolbox!contains!several!strong!tools!to!address!the!issue!of! tenant!harassment!in!the!face!of!development!pressure!created!through!zoning,!but!the!Bloomberg! Administration!refused!to!apply!them!in!most!of!the!IHP!designated!areas.!AntiJharassment!provisions,! originally!established!in!the!Special!Clinton!District!(ZR!96J110,!mapped!in!1974),!were!applied!to!the! Hudson!Yards!and!Greenpoint/Williamsburg!rezonings.!These!provisions!require!developers!to! demonstrate!that!there!has!been!no!history!of!tenant!harassment!before!a!building!permit!is!issued.!If! tenants!or!tenant!advocates!establish!a!history!of!harassment,!the!developer!is!required!to!include! additional!affordable!housing!to!cure.32!Affordable!housing!advocates!requested!that!these!provisions! be!applied!generally!where!inclusionary!zoning!was!mapped,!but!the!Department!of!City!Planning! stopped!including!them!after!the!2005!rezonings!(and!no!analysis!has!been!done!of!their!effectiveness).! In!addition,!the!Special!Clinton!District!also!includes!strong!relocation!provisions!in!case!of!demolition,! under!which!developers!are!required!to!work!to!relocate!existing!rentJregulated!tenants!to!other! affordable!units!in!the!area.!However,!these!provisions!were!not!applied!to!any!of!the!IHP!designated! areas.!Further,!as!Borough!President!Marty!Markowitz!and!other!elected!officials!have!advocated,!even! if!the!city!continues!on!a!neighborhoodJbyJneighborhood!expansion!approach,!applying!IHP!to!already! upzoned!areas!like!4th!Avenue!should!not!be!off!the!table.! For,developerLspecific,rezonings,(i.e.,rezonings,by,private,applicants,that,largely,contain,one,intended, development),the,programs,voluntary,framework,can,create,uncertainty.!The!original!developers!of! the!New!Domino!project!and!the!Toll!Brothers!Gowanus!project!promised!to!participate!in!Inclusionary! Housing!and!exceed!the!maximum!bonusJeligible!affordable!housing!during!negotiations,!as!part!of!their! efforts!to!win!the!rezonings!they!proposed.!However,!both!the!base!level!of!the!Inclusionary!Housing! Program!and!the!higher!amounts!of!affordability!promised!remain!voluntary.!If!upzoned!sites!with! voluntary!agreements!are!sold!to!other!entities,!there!are!no!guarantees!that!any!affordable!units!would! be!built.!In!both!of!these!two!cases,!the!subsequent!developers!(Two!Trees!in!the!case!of!New!Domino,! Lightstone!Development!in!the!case!of!Toll!Brothers!Gowanus)!have!promised!to!build!affordable!units.! However,!they!are!under!no!obligation!to!do!so!or!to!meet!the!voluntary!promises!of!the!original! rezoning!applicants!because!the!city!did!not!write!the!affordable!promises!into!the!rezoning.! The,results,of,the,Inclusionary,Housing,Program,are,difficult,to,track.!The!use!of!the!bonus!certificates! is!not!systematically!tracked!!they!are!merely!on!file!with!DOB!for!each!individual!marketJrate!project! and!HPD!is!not!informed!about!their!use.!HPD!maintains!a!list!of!inclusionary!housing!generating! projects!(i.e.!the!affordable!units),!and!quickly!and!willingly!provided!it!for!this!report!twice.!However,! in!most!cases!the!receiving!site!details!are!not!available,!making!it!very!difficult!to!evaluate!the! program!overall.!A!better!system!is!needed!that!would!allow!the!city!and!researchers!to!easily! understand!not!just!which!developers!opt!into!the!program,!but!also,!which!opt!out,!and!that!could! easily!track!the!square!footage!generated!as!it!is!sold,!and!potentially!resold.!Such!a!system!could!also! be!developed!as!a!resource!to!developers!in!designated!areas,!allowing!them!to!identify!potential! partners.! & !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
32

!e.g.!in!the!Special!Clinton!District,!they!are!required!to!make!affordable!an!additional!20%!of!the!new!building!or!28%!of!the! demolished!building,!whichever!is!more.!

19&

Office&of&Council&Member&Brad&Lander&

Conclusion:&Toward&a&Guaranteed&Inclusionary&Zoning&Program&
The!mixed!success!of!the!Inclusionary!Housing!Designated!Area!Program!shows!that!inclusionary!zoning! is!a!promising!strategy!for!increasing!the!citys!supply!of!affordable!housing!if!taken!to!scale.!However,! the!programs!serious!limitations!!especially!the!extremely!limited!use!outside!of!Manhattans!West! Side!and!Greenpoint/Williamsburg,!the!failure!to!generate!any!affordable!housing!from!the!vast! majority!of!new!development!that!took!place!outside!the!designated!areas,!and!the!loss!of!rentJ regulated!units!through!demolition!!demand!attention.!!! During!the!2013!mayoral!campaign,!affordable!housing!advocates!have!proposed!moving!to!a! guaranteed!inclusionary!zoning!program,!where!new!developments!(under!some!conditions)!would!be! required!to!include!affordable!units.!Several!candidates!for!mayor!have!expressed!support!or!openness! to!such!a!program.!Based!on!this!earlyJstage!review!of!the!voluntary!IH!program,!a!thoughtfully!crafted,! guaranteed!inclusionary!program!could!address!many!of!the!shortcomings!this!report!identified.! Mandatory!inclusionary!policies!exist!in!many!cities!(including!Boston,!Chicago,!Denver,!San!Diego,!and! San!Francisco)!and!some!states!(including!California,!Massachusetts,!and!Connecticut)!around!the! country!(see!Appendix!5).!The!urban!programs!generally!require!10,,15%,affordability,for,all, multifamily,development!(over!some!minimum!unit!threshold,!most!commonly!10!units).!Some!of!these! programs!offer!incentives!(e.g.!density!bonus),!and!some!offer!incentives!for!additional!affordability! (e.g.!Boston!and!San!Diego!offer!density!bonuses!for!20%!affordability!in!smart!growth!areas).!Most!of! the!programs!offer!developers!either!an!offsite!or!inJlieu!fee!option.!! Opponents!might!argue!that!a!guaranteed!program!could!dampen!development!overall.!However,! studies!have!not!shown!a!significant!negative!impact!on!development.33!In!addition,!given!the!evidence! that!significant!new!construction!in!New!York!City!during!the!2000s!decade!has!not!brought!down! housing!costs!overall,!and!that!a!significant!number!of!affordable!units!have!been!lost!(not!only!through! demolition,!but!also!through!vacancy!decontrol)!in!areas!of!the!city!where!substantial!development!has! taken!place,!there!is!a!strong!argument!that!more!should!be!done!to!require!increased!affordability.!In! any!case,!even!opponents!of!guaranteed!affordability!who!want!to!see!inclusionary!zoning!succeed!in! New!York!City!would!have!strong!reason!to!address!the!shortcomings!identified!in!this!report.!! ! !

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
33

!Brunick,!Nicholas.!The!Impact!of!Inclusionary!Zoning!on!Development.!Business!and!Professional!People!for!the!Public! Interest.!2003.! Basolo,!Victoria!and!Nico!Calavita.!2004.!Policy!Claims!with!Weak!Evidence:!A!Critique!of!the!Reason!Foundation!Study!on! Inclusionary!Housing!in!the!San!Francisco!Bay!Area.!!Working!paper.! Calavita,!Nico!and!Kenneth!Grimes.!1998.!Inclusionary!Housing!in!California:!The!Experience!!of!Two!Decades.!Journal!of!the! American!Planning!Association!64(2):!150J170.!

! ! ! !

&

Inclusionary&Zoning&in&New&York&City&

& 20&

Any!changes!made!to!the!program!should!ensure!the!following:! More,consistent,utilization,in,a,wider,range,of,neighborhoods.!A!guaranteed!inclusionary! program!could!include!a!base!requirement!for!multifamily!developments!citywide,!with! incentives!for!additional!units!in!designated!areas.! Increasing,participation,in,midLsized,buildings,(20100,units).!While!a!legal!requirement!would! obviously!increase!participation,!more!should!be!done!to!make!participation!easier!for!smaller! developers.!This!could!begin!with!focus!groups!of!developers!of!midJsized!buildings,!to!identify! additional!changes!to!IHP!administration!that!would!help!them!to!participate.!! More,efficient,use,of,subsidies,!to!avoid!giving!too!much!subsidy!to!80/20!developments!in! highJvalue!areas!(especially!in!Manhattan).!As!noted!in!this!report,!the!high!rate!of!participation! on!Manhattans!West!Side!has!come!from!an!extremely!generous!package!of!incentives,!often! including!a!substantial!density!bonus,!20Jyear!421Ja!tax!exemptions!(an!expensive!resource!for! the!City!over!time),!taxJexempt!bond!financing!(a!scarce!resource),!4%!lowJincome!housing!tax! credits,!and!other!subsidies.!In!particular,!advocates!and!policy!experts!worry!that!(a)! inclusionary!housing!deals!that!only!achieve!20%!affordability!are!not!a!good!use!of!the!City!or! States!taxJexempt!bond!volume!cap,!since!highJpriced!development!leads!to!an!extremely! high!perJunit!cost,!compared!to!allJaffordable!deals,!and!(b)!that!the!application!of!the!421Ja!tax! exemption!is!too!expensive!for!the!city!over!time,!exceeding!$1!billion!annually!for!the!first!time! in!FY!2013.34!!!!! Better,protections,to,preserve,rentLregulated,units,in,rezoned,areas.!As!noted!in!this!report,! the!application!of!the!Special!Clinton!District!antiJharassment!and!relocation!requirements!in! cases!of!demolition!could!assist!in!preserving!existing!affordable!housing!in!designated!areas.! The!antiJharassment!provisions!were!applied!only!in!the!Hudson!Yards!and! Greenpoint/Williamsburg!areas,!the!two!areas!where!the!program!succeeded!best!and!that!saw! a!high!rate!of!marketJrate!development,!so!they!do!not!appear!to!present!a!burden!for! developers.!These!provisions!should!be!included!wherever!inclusionary!zoning!is!mapped.! More,transparent,reporting.!The!city!should!adopt!a!better!system!for!tracking!and!reporting!on! inclusionary!housing!units,!that!enables!a!clearer!understanding!of!the!link!between!affordable! units!and!marketJrate!units.!Such!a!system!would!be!easy!to!establish,!and!beneficial!to!the!city,! developers,!and!the!public!at!large.!! !

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
34

!421Ja!is!now!the!most!expensive!real!estate!tax!expenditure!program!the!city!has,!at!250%!the!cost!of!property!tax! exemption!for!NYCHA!properties.!NYC!Department!of!Finance.!Annual!Report!On!Tax!Expenditures,!Fiscal!Year!2013,!p.!1.!

21&

Office&of&Council&Member&Brad&Lander&

Appendix&1&&Additional&Maps&

Aordable
Units
Produced
by
Inclusionary
Housing
Program
Osite
vs
Onsite
Inclusionary
Housing
for
Designated
Areas
IH
Program
208 212

207

211 112 205 206

Designated Areas IH Program


204 203

Aordable
Unit
Loca on
210

!
209

Osite Onsite Both Designated Areas IH Program 421a Geographic Exclusion Area

! !

109 110

! !
201

202

!
111

107

108

! ! !! 104 ! ! ! ! !
105 106

401

407

403

411

404

!
102

402

!!
103

! ! ! ! ! !!
301

408 406

101

! !! ! !
304 303

405

302

409 412

!
306 308 316 305 413 410

!
307

309

317

312 310 311

314

318

Data:
HPD,
DCP
&
NYU
Furman
Center;
Analysis
&
Mapping
by
Oce
of
Council
Member
Brad
Lander,
August
2013

! ! ! !

&

Inclusionary&Zoning&in&New&York&City&

& 22&

Aordable
Units
Produced
by
Inclusionary
Housing
Program
By Type of Project for Designated Areas IH Program
208 212

207

211 112 205 206

204

203

Designated Areas IH Program


209

210

Type of Project
! New
Construc on Preserva on/Substan al
Renova on Unknown Designated Areas IH Program 421a Geographic Exclusion Area !

109 110

! !
201

202

!
111

107

108

! ! !! 104 ! ! ! ! !
105 106

401

407

403

411

404

!
102

402

!!
103

! ! ! ! ! !!
301

408 406

101

! !! ! !
304 303

405

302

409 412

!
306 308 316 305 413 410

!
307

309

317

312 310 311

314

318

Data:
HPD,
DCP
&
NYU
Furman
Center;
Analysis
&
Mapping
by
Oce
of
Council
Member
Brad
Lander,
August
2013

23&

Office&of&Council&Member&Brad&Lander&

Aordable
Units
Produced
by
Inclusionary
Housing
Programs
By
Number
of
Aordable
Units
in
Each
Building
208 212

207

211 112 205 206

204

203

210

Designated Areas
#209 Units 2005-13
!

R-10
# Units 1987-2013
!

109 110

! !
201

202

1 - 10 11 - 25 26 - 50 51 - 100 101 - 251 Designated Areas IH Program 421a Geographic Exclusion Area

1 - 10 11 - 25 26 - 50 51 - 100 101 - 251 R10 IH Program

! ! ! ! !! ! !! ! ! !!

!
111

107

! ! ! ! ! ! ! ! ! ! 104 ! ! ! ! ! 105 ! ! ! ! ! ! ! ! ! ! 106 ! ! ! ! ! !! ! !


! ! !! ! ! ! !

! ! ! ! ! ! !
108 ! ! ! !

401

407

!!
!

!
403 411

404

!
!

402

!
102

!!
103

408 406

! ! ! !
!

301

101

! ! ! !
!

405

302
! !

304

409 412

303

306

!
308 316 305 413 410 309

307 317

312 310 311

314

318

Data:
HPD,
DCP
&
NYU
Furman
Center;
Analysis
&
Mapping
by
Oce
of
Council
Member
Brad
Lander,
August
2013

! ! ! !

Inclusionary!Zoning!in!New!York!City!

! 24!

Appendix!2!!Full!Analysis!of!HPD!&!DOB!Data! !! ! ! !
Affordable)Housing)Buildings) Onsite! Offsite! New!Construction! Preservation! Substantial!Rehab! Unknown! Affordable)Units)Created) Onsite! Offsite! Avg.!Affordable!Units/Development! Eligible)4+)Unit)Building)Permits) Units!

Buildings)&)Units)in)Inclusionary)Housing)(IH))Areas)During)Eligible)Dates) Greenpoint) West)Side) Other) Total)IH) ! Citywide) Other) Bronx)&) Williamsburg) Manhattan) Manhattan) Areas))))))))))))))))) Brooklyn)IH) Queens)IH) Since)2005) IH) IH) IH) Since)2005!)

! R10)Since)
1987)

15! 5! 10! 5! 8! 0! 2! 949! 550! 399! 63! 211! 7,218!

2! !!1*! 1! 1! 1! 0! 0! 83! 14! 69! 42! 75! 1,447!

15! 15! 0! 14! 0! 0! 1! 1,441! 1,441! 0! 96! 40! 7,752!

5! 4! 1! 3! 0! 0! 2! 223! 189! 34! 45! 24! 3,598!

4! 4! 0! 0! 0! 0! 4! 73! 73! 0! 18! 32! 1,637!

41) 29) 11) 23) 9) 0) 9) 2,769) 2,267) 502) 68) 387) 21,652)

!! !! !! !! !! !! !! !! !! !! !! 4,669! 160,003!

57! 47! 10! 45! 3! 0! 9! 1,703! 1,587! 116! !! !! !!

! *IH!used!for!bonus!floor!area!both!onsite!and!offsite! !! !

25!

Office!of!Council!Member!Brad!Lander!

! Appendix!3!!Understanding!the!Recessions!Impact! !

! The!recession!severely!reduced!new!residential!construction!in!New!York!City.!The!above!chart!illustrates!the!decline!of!new!building!permits! citywide,!in!the!designated!areas,!and!in!Greenpoint/Williamsburg.!2011!saw!the!beginnings!of!a!recovery,!and!thus!far!anecdotally,!2012! appears!to!provide!evidence!of!increased!development.!The!designated!areas!phased!in!since!2005,!with!some!not!becoming!active!until!the!low! point!of!new!construction!in!20092010.!It!is!possible!that!the!program,!as!it!exists,!will!see!somewhat!increased!use!as!the!development! increases.!However,!the!timing!coordination!problems,!and!many!of!the!other!issues!explained!above!will!remain!regardless!of!the!point!in!the! economic!and!development!cycle.! !

! !

Inclusionary!Zoning!in!New!York!City!

! 26!

! Appendix!4!!Demolition!of!RentPRegulated!Units! !

Losses)to)NYC's)Rent\Stabilized)Stock)via)Demolition,)Condemnation,)Etc.)
)
2006! 2007! 2008! 2009! 2010! 2011! 2012!
! !

Bronx)
92! 135! 171! 133! 62! 36! 39!

Brooklyn)
302! 371! 370! 290! 142! 143! 161!

Manhattan)
571! 605! 668! 980! 522! 368! 272!

Queens)
162! 193! 109! 152! 697! 106! 90!

Staten)Island)
12! 0! 3! 2! 1! 0! 0!

Total)
1,139! 1,304! 1,321! 1,557! 1,424! 653! 562!

Total)

668)

1,779)

3,986)

1,509)

18)

7,960)

Source:!NYC!Rent!Guidelines!Board!Reports:!Changes!to!the!Rent!Stabilized!Stock,!2006!D!2012!

27!

Office!of!Council!Member!Brad!Lander!

Appendix!5!!Other!Guaranteed!Inclusionary!Housing!Programs! ! INCLUSIONARY)ZONING:)COMPARISON)CHART)FOR)LARGE)CITIES)WITH)GUARANTEED)INCLUSIONARY)PROGRAMS) Developed(by(New(York(Appleseed(


MUNICIPALITY) Minimum) Units)for) Inclusion)
9!or!more! units!

UNIT) %)

OFFSITE)

FEE\IN\ LIEU)

INCENTIVES)

OTHER)FEATURES)

Sacramento,)CA)

15%!

Yes!

No!

Fee!waivers!or!deferrals;! Modified!public!works!&!planning! standards!(e.g.!minimum!lot!size)! Interior!finish!reductions!for!IZ!units;! Density!bonus! Local!Public!Funding! None!found!

Limited!to!new!growth!areas!

San)Diego,)CA)

10!or!more! units! 10!or!more! units!

10%!

Yes!

Yes!

Began!with!a!pilot!in!North!City!Future!Urbanizing! area!that!did!not!allow!feedindlieu.!

San)Francisco,)CA)

15%!

Yes!! (20%)!

Yes! (20%)!

None!found!

Allows!for!a!combination!of!onsite,!offsite,!and!feed indlieu!! Mayors!Office!of!Housing!performs!study!every!5! years!of!impact!on!market!and!demand!for! affordable!housing!

Denver,)CO)

30!or!more! units!

10%!

Yes!

Yes!

Cash!per!affordable!unit!from!special! revenue!fund;! Density!bonus;! Parking!reduction;! Expedited!processing!

Chicago,)IL)

10!or!more! units!

10%!

No!

Yes!

None!found,!but!see!limited! applicability!in!Other!

o o o o

Applies!to!projects!that:! Benefit!from!certain!zoning!changes;! Include!land!purchased!from!the!city;! Receive!financial!assistance!from!the!city;!or! Are!part!of!a!Planned!Development!downtown!! Allows!for!combination!of!units!and!feedindlieu! !The!city!also!provides!a!voluntary!system!for! including!20%!affordable!units!in!certain!Smart! Growth!Overlay!Districts!!

Boston,)MA)

10!or!more! units!

15!

Yes!

Yes!

Allows!for!cost!offsets!such!as! density,!height,!setback,!and! coverage!through!the!redzoning! process!

! !

! !

Inclusionary!Zoning!in!New!York!City!

! 28!

Appendix!6!!Full!List!of!Known!Inclusionary!Housing!Developments!in!New!York!City! ! Includes!Designated!Areas!&!RD10!generator!sites.!Site!data!provided!by!HPD.!Receiving!site/compensated!development!details!based!on! affordable!housing!developer!interviews,!data!from!Brooklyn!Borough!Presidents!office!and!news!stories/releases!found!online.!


Closed)or)Completed)Inclusionary)Housing)Projects)Per)HPD)as)of)2013)
Project)Name) Morris!Court! Apartments! Morris!Court! Apartments! Borough) Address) 250!EAST!144! STREET! 253!EAST!142! STREET! Block) Lot) IH)Type,) Area) Harlem! Waterfront! Harlem! Waterfront! Construction) Type) Total)Units) IH) Units)

Receiving)Site/Compensated)Development)(if)known))
Receiving)Name) Siting) Generator) Developer)

Bronx!

2334!

38!

Unknown!

Unknown!

20!

Unknown!

Onsite!

Bronx!

2334!

43!

Unknown!

Unknown!

20!

Unknown! The!Garvey!generated!55,000!sq/ft! and!used!9,700!(17.6%!onsite),!the! Bradford!(nearby!dev,!105!units)!used! 22,000.!Remainder!unused,!but!will!be! offsite!by!definition.!14!counted! onsite,!63!offsite! Unknown! 4!buyers,!all!lined!up!beforehand!180!d! 10,000!sq!ft.!

Onsite!

The!Garvey! Eastern!Light!d!II! II!d!Morgan!d! 586A!Morgan! Ave.!

Brooklyn! Brooklyn!

1594d1604! Fulton!Street! 19!Humboldt! Street! 586A!Morgan! Avenue! 293!and!301! Hooper!Street! 124!Graham!Ave! 176!South!Eighth! Street! 101!d!105!South! Eighth!Street! 157!Graham! Avenue!

1699! 3127!

24! 22!

BeddStuy! South! GPW!Upland!

New! Construction! Preservation!

78! 12!

77! 12!

On!and! Offsite! Offsite!

BRP! Companies! St.!Nicholas! NPC! St.!Nicholas! NPC! M.!Lax!(at! least!for!301)! or!UJO! St.!Nicholas! NPC! Progress!of! Peoples! Progress!of! Peoples! Progress!of! Peoples!

Brooklyn!

2691!

71!

GPW!Upland!

Preservation!

8!

8!

Offsite!

Hooper!Street! Eastern!Light!d!I! 176!South!Eighth! Street!d!POP! 101!d!105!South! Eighth!Street!d! POP! Most!Holy!Trinity! SRO!

Brooklyn! Brooklyn! Brooklyn!

2463! 3080! 2139!

21! 5! 7!

GPW!Upland! GPW!Upland! GPW!Upland!

Preservation! Preservation! Preservation!

68! 9! 30!

68! 9! 30!

Unknown! Unknown! 95!Bedford!

Offsite! Offsite! Offsite!

Brooklyn! Brooklyn!

2131! 3061!

32! 18!

GPW!Upland! GPW!Upland!

Preservation! Preservation!

25! 77!

25! 76!

95!Bedford! Northside!Piers!(Possibly!some!resold! to!others)!

Offsite! Offsite!

29!

Office!of!Council!Member!Brad!Lander!

Closed)or)Completed)Inclusionary)Housing)Projects)Per)HPD)as)of)2013)
Project)Name) Reverend! Donald!J.!Kenna! Court! Borough) Address) 21!Cook!Street! aka!40!Varet! Street! 306!Union! Avenue! Block) Lot) IH)Type,) Area) Construction) Type) New! Construction! Total)Units) IH) Units)

Receiving)Site/Compensated)Development)(if)known))
Receiving)Name) Siting) Generator) Developer) L&M/Dunn! Development! Corp! St.!Nicholas! NPC! L&M/Dunn! Development! Corp!

Brooklyn!

3113!

9!

GPW!Upland!

89!

88!

Northside!Piers!and!six!others! 4!total!buyers,!3!of!which!were!lined! up!before!project!launch!

Offsite!

Union!Court! Reverend! Donald!J.!Kenna! Court!

Brooklyn!

2791!

1!

GPW!Upland!

Preservation! New! Construction!

21!

21!

Offsite!

Brooklyn!

9!Cook!Street! 1133! MANHATTAN! AVENUE! 50!NORTH!5! STREET! 27!North!6th! Street! 20!North!5th! Street! 34!North!6th! Street! 55d57!Flatbush! Avenue! 236!Livingston! Street! 15d21!Quincy! Street! 89d91!Carlton! Avenue!

3113!

32!

GPW!Upland!

63!

62!

Northside!Piers!and!six!others!

Offsite!

1133!Manhattan! Avenue!

Brooklyn!

02482!

0026!

GPW!Upland!

Unknown!

Unknown!

44!

Unknown!

Onsite!

50!North!5th! Edge!Community! Apartments! Building!1!

Brooklyn!

2341!

0009!

GPW!Upland! GPW! Waterfront! GPW! Waterfront! GPW! Waterfront! Rd10! Rd10! Rd10! Rd10!

Unknown! New! Construction! New! Construction! New! Construction! Substantial! Rehabilitation! New! Construction! New! Construction! New! Construction!

Unknown!

46!

Unknown!

Onsite!

! Douglaston! Development! L&M/Dunn! Development! Corp! Douglaston! Development! ! ! ! !

Brooklyn!

2332!

7501!

96!

96!

The!Edge!

Onsite!

Palmer's!Dock! Edge!Community! Apartments!Bldg! 2! 96!Rockwell! Place! 236!Livingston! 15!Quincy! 89!Carlton!

Brooklyn!

2340!

1!

113!

113!

Northside!Piers!

Onsite!

Brooklyn! Brooklyn! Brooklyn! Brooklyn! Brooklyn!

2324! 2106! 165! 1969! 2044!

7501! 7! 17! 33! 23!

252! 36! 271! 48! 22!

251! 1! 8! 48! 23!

The!Edge! Unknown! Unknown! Unknown! Unknown! 639!4th!Avenue,!was!sold!an!extra! 2,000!sq/ft.!Unknown!whether!resold,! but!doubtful.!Per!Oasis,!46!units!

Onsite! Onsite! Onsite! Offsite! Offsite!

713!Third! Avenue!

Brooklyn!

713!Third! Avenue!

645!

67!

South!Park! Slope!

Preservation!

6!

6!

Offsite!

! !

Inclusionary!Zoning!in!New!York!City!

! 30!

Closed)or)Completed)Inclusionary)Housing)Projects)Per)HPD)as)of)2013)
Project)Name) Borough) Address) Block) Lot) IH)Type,) Area) Clinton! District! Clinton! District/! Private! Rezoning! 125!Street! Rezoning! Hudson! Yards! Hudson! Yards! Hudson! Yards! Hudson! Yards! Hudson! Yards! Lower!East! Side! Lower!East! Side! Lower!East! Side! Private! Rezoning! Rd10! Rd10! Rd10! Construction) Type) New! Construction! Total)Units) IH) Units)

Receiving)Site/Compensated)Development)(if)known))
Receiving)Name) Siting) Generator) Developer)

Studio!City! (Gotham!West)! Two!Trees! Clinton!Park! Phase!II!

Manhattan!

550,!530,!&!510! West!45th!Street! 550!West!54th! Street!or!770! 11th!Avenue! 235!East!124th! Street! 330!West!39th! Street! 505!West!37th! Street! 310d320!West! 38th!Street! 350!West!37th! Street! 453d455!West! 37th!Street! 9,!11d17!Second! Ave! 101!Avenue!D! 250!EAST!4! STREET! 770!11th!Avenue! New!York,!NY! 10019! 439!West!53rd! Street! 331!East!29th! Street! 505!West!51st! Street!

1073!

1!

1238!

137!

Studio!West!

Onsite!

Manhattan!

1082!

1008!

New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction!

480!

96!

Mercedes!House!

Onsite!

Tapestry! 330!West!39th! Street! 505!West!37th! Street! Emerald!Green! The!Townsend! fka!Tower!37! 455!West!37th! Street! 9,!11d17!Second! Ave! Lower!Eastside! Girls!Club! 250d254!EAST! 4TH!STREET! Two!Trees! Clinton!Park! Phase!1! 439!West!53rd! Apartments! Phipps!Plaza! North! 505!West!51st! Street!

Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan!

1789! 762! 709! 761! 760! 735! 456! 377!

16! 60! 25! 10! 67! 1! 27! 1203!

185! 199! 835! 569! 208! 394! 65! 78!

37! 42! 168! 120! 42! 80! 13! 12!

Tapestry! Unknown! 505W37! Emerald!Green! Townsend! Unknown! Unknown! Lower!Eastside!Girls!Club!

Onsite! Onsite! Onsite! Onsite! Onsite! Onsite! Onsite! Onsite!

Two!Trees! Jonathan! Rose! Companies! Glenwood! Management! Rockrose! Glenwood! Management! ! Rockrose! ! !

Manhattan!

386!

11!

Unknown! New! Construction! New! Construction! Preservation! New! Construction!

Unknown!

34!

Unknown!

Offsite!

Manhattan! Manhattan! Manhattan! Manhattan!

1082! 1063! 935! 1080!

1002! 11! 13! 25!

222! 10! 208! 10!

44! 10! 208! 10!

Mercedes!House! Unknown! Unknown! Unknown!

Onsite! Offsite! Offsite! Offsite!

Two!Trees! ! ! !

31!

Office!of!Council!Member!Brad!Lander!

Closed)or)Completed)Inclusionary)Housing)Projects)Per)HPD)as)of)2013)
Project)Name) Phipps!Plaza! South! 1330!First! Avenue! 210!West!102nd! Street! 110!Fulton! 58!West!109th! Street! 351!East!61! Street! 1831!Second! Avenue! 206!East!87th! Street! 123!West!104th! Street! The!Victory! 306d308!East! 38th!Street! 202!West!108th! Street! 417!and!438!East! 76th!Street! 33!West!End! Avenue! 1115d1119!First! Avenue! 141!East!23rd! Street! West!Side!Y!II! Borough) Address) 323d329!East! 25th!Street! 1330!First! Avenue! 210!West!102nd! Street! 110!Fulton! Street! 58!West!109th! Street! 351!East!61st! Street! 235!East!95th! Street! 206!East!87th! Street! 123!West!104th! Street! 501!West!41st! Street! 306d308!East! 38th!Street! 202!West!108th! Street! 417!and!438!East! 76th!Street! 33!West!End! Avenue! 1115d1119!First! Avenue! 141!East!23rd! Street! 5d15!West!63rd! Street! Block) Lot) IH)Type,) Area) Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Construction) Type) New! Construction! New! Construction! New! Construction! Substantial! Rehabilitation! New! Construction! New! Construction! New! Construction! Preservation! New! Construction! Substantial! Rehabilitation! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! Total)Units) IH) Units) 56! 13! 24! 28! 7! 48! 19! 17! 32! 16! 3! 5! 25! 120! 45! 19! 67!

Receiving)Site/Compensated)Development)(if)known))
Receiving)Name) Siting) Generator) Developer) ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan!

931! 1466! 1873! 1902! 1844! 1436! 1540! 1532! 1859! 1070! 943! 1879! 1471! 1171! 1436! 879! 1116!

17! 1! 39! 19! 155! 122! 29! 45! 17! 29! 52! 136! 10! 160! 24! 26! 1705!

56! 343! 24! 28! 7! 48! 19! 20! 56! 417! 97! 5! 25! 120! 45! 466! 67!

Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown!

Offsite! Onsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Onsite! Onsite! Offsite! Offsite! Offsite! Offsite! Onsite! Offsite!

! !

Inclusionary!Zoning!in!New!York!City!

! 32!

Closed)or)Completed)Inclusionary)Housing)Projects)Per)HPD)as)of)2013)
Project)Name) 773d777!10th! Avenue!&!501! W.!52nd!Street! 521!West!42nd! Street! 321!East!21st! Street! 307!East!54th! Street! 334!East!96th! Street! 385!Third! Avenue! 250!East!60th! Street! Joseph!I.!Blum! Apartments! 160!East!100th! Street! 211!West!105th! Street! 1!East!35th! Street! 231!East!77th! Street! 228!East!46th! Street! 171d173!West! 107th!Street! 1865!Second! Avenue! Riverwalk! (Roosevelt! Island)! Dyer!d!R10! Borough) Address) 773d777!10th! Avenue!&!501! W.!52nd!Street! 521!West!42nd! Street! 321!East!21st! Street! 307!East!54th! Street! 334!East!96th! Street! 385!Third! Avenue! 250!East!60th! Street! 235!East!14th! Street! 160!East!100th! Street! 211!West!105th! Street! 1!East!35th! Street! 231!East!77th! Street! 228!East!46th! Street! 171d173!West! 107th!Street! 1865!Second! Avenue! 425!Main!Street,! Roosevelt!Island! 440!West!42nd! Street! Block) Lot) IH)Type,) Area) Construction) Type) Substantial! Rehabilitation! New! Construction! New! Construction! Substantial! Rehabilitation! Substantial! Rehabilitation! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! Total)Units) IH) Units)

Receiving)Site/Compensated)Development)(if)known))
Receiving)Name) Siting) Generator) Developer)

Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan!

1081! 1071! 927! 1347! 1558! 908! 1414! 896! 1627! 1877! 865! 1432! 1319! 1862! 1646!

1201! 20! 13! 52! 33! 56! 29! 17! 46! 28! 5! 12! 37! 1002! 1002!

Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10!

27! 72! 22! 8! 16! 49! 42! 17! 12! 11! 91! 12! 18! 25! 18!

27! 72! 22! 8! 16! 49! 42! 17! 12! 11! 91! 12! 18! 25! 18!

Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown!

Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite! Offsite!

! ! ! ! ! ! ! ! ! ! ! ! ! ! !

Manhattan! Manhattan!

1373! 1051!

5! 1!

Rd10! Rd10!

25! 590!

25! 33!

Unknown! Unknown!

Offsite! Onsite!

! !

33!

Office!of!Council!Member!Brad!Lander!

Closed)or)Completed)Inclusionary)Housing)Projects)Per)HPD)as)of)2013)
Project)Name) Riverplace!II!(Rd 10)! 965!Columbus! Avenue! 28!East!29th! Street! 351!East!54th! Street! 1850!Second! Avenue! 300d306!East! 39th!Street! 10!East!29th! Street! 334!East!92nd! Street! 800!Avenue!of! the!Americas! 171!Lexington! Avenue! 346!East!21st! Street!d!Sub! Rehab! 246!East!77th! Street! 346!East!21st! Street!d! Preservation! 400!Third! Avenue! 332!East!22nd! Street! 501!West!51st! Street! Borough) Address) 601!West!42nd! Street! 965!Columbus! Avenue! 28!East!29th! Street! 351!East!54th! Street! 1850!Second! Avenue! 300d306!East! 39th!Street! 10!East!29th! Street! 334d336!East! 92nd!Street! 800!Avenue!of! the!Americas! 171!Lexington! Avenue! 346d348!East! 21st!Street! 246!East!77th! Street! 346d348!East! 21st!Street! 400!Third! Avenue! 332!East!22nd! Street! 501!West!51st! Street! Block) Lot) IH)Type,) Area) Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Rd10! Construction) Type) New! Construction! New! Construction! Substantial! Rehabilitation! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! New! Construction! Substantial! Rehabilitation! New! Construction! Total)Units) IH) Units) 83! 18! 7! 12! 42! 11! 4! 23! 8! 41!

Receiving)Site/Compensated)Development)(if)known))
Receiving)Name) Siting) Generator) Developer) Silverstein! Properties! ! ! ! ! ! ! ! ! !

Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan! Manhattan!

1089! 1843! 858! 1347! 1558! 944! 858! 1554! 829! 886!

5! 3! 56! 122! 50! 45! 8! 37! 3! 62!

83! 18! 7! 12! 42! 259! 404! 23! 269! 41!

Silver!Towers!at!Riverplace! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown! Unknown!

Offsite! Offsite! Offsite! Offsite! Offsite! Onsite! Onsite! Offsite! Onsite! Offsite!

Manhattan! Manhattan!

926! 1431!

41! 31!

Rd10! Rd10!

30! 18!

8! 18!

Unknown! Unknown!

Offsite! Offsite!

! !

Manhattan! Manhattan! Manhattan! Manhattan!

926! 884! 927! 1080!

41! 42! 37! 25!

Rd10! Rd10! Rd10! Rd10!

Preservation! New! Construction! New! Construction! Substantial! Rehabilitation!

30! 30! 14! 12!

22! 30! 14! 12!

Unknown! Unknown! Unknown! Unknown!

Offsite! Offsite! Offsite! Offsite!

! ! ! !

! !

Inclusionary!Zoning!in!New!York!City!

! 34!

Closed)or)Completed)Inclusionary)Housing)Projects)Per)HPD)as)of)2013)
Project)Name) Borough) Address) 500!W!42nd! Street! 240! MANHATTAN! AVENUE! 110!MADISON! AVENUE! Block) Lot) IH)Type,) Area) Construction) Type) Total)Units) IH) Units)

Receiving)Site/Compensated)Development)(if)known))
Receiving)Name) Siting) Generator) Developer)

Victory!

Manhattan!

1070!

7501!

Rd10!

Unknown!

Unknown!

25!

Unknown!

Onsite!

240!Manhattan! Avenue!

Manhattan!

01846!

0001!

Rd10!

Unknown!

Unknown!

7!

One!Morningside!Park!

Onsite!

110!Madison! 21!West!End! Avenue!(15!West! End!Avenue)!

Manhattan!

859!

0069!

R10!

Unknown!

Unknown!

18!

Unknown!

Offsite!

Manhattan!

21!WEST!END! AVENUE!

1171!

0165!

Riverside! South! West! Chelsea! West! Chelsea! West! Chelsea! West! Chelsea! West! Chelsea! W.!Chelsea! and!Hudson! Yards! W.!Chelsea! and!Hudson! Yards!

Unknown! New! Construction! New! Construction! New! Construction! New! Construction!

Unknown!

127!

Unknown!

Onsite!

! The!Atlantic! Development! Group! AvalonBay! The!Related! Companies! Douglaston! Development!

303!10th!Avenue! Avalon!West! Chelsea! Caledonia! Ohm! 500!West!30th! Street!

Manhattan! Manhattan! Manhattan! Manhattan!

303!10th!Avenue! 517d525!West! 28th!Street! 450!West!17th! Street! 316!11th!Avenue! 502!WEST!30! STREET! 440!West!42nd! Street! 600!West!42nd! Street! 148d19!90! AVENUE! 90d04!161!st! Street!

699! 700! 714! 701!

33! 1! 1182! 62!

89! 690! 229! 369! 391!(from! permit)!

18! 114! 59! 80!

Port!10! Avalon!West!Chelsea! Caledonia! Ohm!

Onsite! Onsite! Onsite! Onsite!

Manhattan!

701!

43!

Unknown! New! Construction! New! Construction!

77!

Unknown!

Onsite!

! The!Related! Companies! Silverstein! Properties!

Dyer!d!WC/HY! Riverplace!II! (HY/WC)! Rufus!King!Court! Apartments!

Manhattan!

1051!

1!

590!

130!

MiMA!

Onsite!

Manhattan!

1089!

3!

1169!

234!

Silver!Towers!at!Riverplace!

Onsite!

Queens!

9681!

91!

Jamaica!

Unknown!

Unknown!

13!

Unknown!

Onsite!

161st!St!Jamaica!

Queens!

9757!

18!

Jamaica!

Unknown!

Unknown!

20!

Unknown!

Onsite!