Inclusionary Housing Program (New York City)
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| Inclusionary Housing Program (New York City) | |
|---|---|
| Name | Inclusionary Housing Program (New York City) |
| Established | 1987 (rezoning incentive origin); major revisions 2005, 2016 |
| Location | New York City |
| Type | Housing policy |
| Jurisdiction | New York City Department of Housing Preservation and Development; New York City Department of City Planning |
Inclusionary Housing Program (New York City)
The Inclusionary Housing Program (New York City) is a municipal incentive zoning policy that provides floor area ratio bonuses for residential developers who include below-market-rate housing in projects within designated rezoning areas in Manhattan, Brooklyn, Queens, Bronx, and Staten Island. The program links land use regulation under the New York City Zoning Resolution with affordable housing production administered by the New York City Department of Housing Preservation and Development and implemented through local rezonings led by the New York City Department of City Planning and mayoral administrations such as those of Rudy Giuliani, Michael Bloomberg, and Bill de Blasio.
Overview
The program offers a density bonus under the New York City Zoning Resolution for developers who build affordable housing units or provide payments to fund such units managed by the New York City Housing Authority and other non‑profit partners like Brooklyn Community Foundation and Enterprise Community Partners. It operates within designated Inclusionary Housing designated areas created during mayoral rezoning initiatives including Hudson Yards, East New York, and Inwood. The program's tools intersect with financing mechanisms from entities like the New York State Housing Finance Agency, Federal Housing Administration, and tax programs such as the Low-Income Housing Tax Credit.
History and Legislative Development
Origins of incentive-based inclusionary approaches in New York City trace to 1987 rezonings and earlier municipal efforts influenced by federal precedents like the Community Reinvestment Act and policies pursued in cities including San Francisco and Boston. Major legislative revisions occurred with the 2005 inclusionary housing text amendment under Mayor Michael Bloomberg and a comprehensive overhaul in 2015–2016 during the PlaNYC era and the administration's rezoning of neighborhoods including East Harlem and SoHo. City Council debates involved officials such as Christine Quinn, Scott Stringer, and Letitia James, and advocacy from groups like Association for Neighborhood and Housing Development, Urban Justice Center, and Community Service Society of New York shaped the statute language and affordability requirements incorporated into the Zoning Resolution.
Program Design and Eligibility
Program design ties zoning incentives to affordability thresholds aligned with area median income (AMI) bands set by the U.S. Department of Housing and Urban Development and guidance from the New York State Homes and Community Renewal. Eligible developments typically are new residential or mixed‑use projects within mapped Inclusionary Housing designated areas and participate by either on‑site inclusion, off‑site construction, or payment‑in‑lieu mechanisms. Affordability tiers reference households at percentages of AMI (for example, 40%, 60%, 80%), and selection criteria often require partnerships with affordable housing developers such as RiseBOR or Common Ground to manage long‑term affordability restrictions recorded as declarations and restrictive covenants filed with the New York City Register.
Implementation and Administration
Administration involves coordination between the New York City Department of City Planning, New York City Department of Housing Preservation and Development, the Mayor's Office of Housing Recovery Operations, and private developers including national firms like Extell Development Company and Related Companies. Implementation requires certification of compliance, monitoring of income eligibility by HPD, and enforcement through recorded regulatory agreements; financing frequently layers municipal subsidy programs, tax abatements like 421-a, and private capital from lenders including JPMorgan Chase and Citigroup. Community boards and borough presidents such as Gale Brewer play advisory roles in specific rezoning decisions that trigger Inclusionary Housing designations.
Impact and Criticism
Proponents point to additions of thousands of deed‑restricted affordable units in rezonings like Hudson Square and Jerome Avenue, citing collaborations with non‑profits such as Enterprise Community Partners and outcomes tracked by research institutions like the Furman Center for Real Estate and Urban Policy and NYU Wagner. Critics, including some tenant advocates and policy analysts at New Yorkers for Parks and Coalition for the Homeless, argue the program yields fewer units than commuter and employer‑driven demand requires, can incentivize luxury construction by enhancing profitability for developers like Silverstein Properties, and interacts problematically with tax incentives such as 421-a to reduce net public benefit. Economic analyses by scholars affiliated with Columbia University and Cornell University highlight trade‑offs between density bonuses and displacement pressures in gentrifying neighborhoods like Crown Heights and Willowbrook.
Notable Projects and Case Studies
Notable developments using the program include projects in Randall's Island initiatives, the Atlantic Yards adjacency debates, and inclusionary components in Greenpoint and Red Hook rezonings. Case studies in Lower Manhattan and Inwood provide comparative evidence used by urban planners from institutions such as the Regional Plan Association and the Brookings Institution to evaluate outcomes. Partnerships involving Enterprise Community Partners, Local Initiatives Support Corporation, and municipal agencies yielded mixed signals on on‑site versus off‑site provision in projects led by developers like Tishman Speyer and Related Companies.
Legal Challenges and Revisions
Legal challenges have arisen concerning linkage to discretionary land‑use approvals and State environmental and housing laws, involving litigants represented by groups such as Legal Aid Society and appeals adjudicated in forums including the New York State Supreme Court and decisions shaped by precedents like Mount Laurel doctrine-related jurisprudence. Revisions responding to litigation and policy critique have adjusted mapping practices, affordability tiers, and compliance mechanisms under subsequent mayoral administrations, reflecting ongoing tension between municipal land use powers vested in the New York City Charter and statutory obligations under state and federal housing statutes.