On September 21, 2015, New York City’s Department of City Planning released the preliminary text for a proposed Mandatory Inclusionary Housing (MIH) program. The program was created to ensure continued economic diversity in neighborhoods throughout the boroughs.
The required inclusionary housing would apply in areas that are rezoned to increase local housing capacity. New housing in these areas must make 25 to 30% of their units, depending on the area, permanently affordable for residents. The income level of these residents should average either 60% or 80% of the Area Median Income; the specific percentages again depend on the area. If developers choose to add more than the required amount of affordable housing, they can receive a floor area bonus to compensate for the additional affordable units.
In MIH areas, mandatory affordable units would be required for any new residential development, conversion or enlargement that would create more than 10 residential units. If the development creates 11 to 25 units, the developer may choose to contribute to an affordable housing fund instead of creating affordable units.
If approved, this Mandatory Inclusionary Housing process would be the strongest affordable housing program in any major city in the United States.
No ‘poor doors’
Unless approved by the Department of Housing, Preservation and Development (HPD), affordable units in MIH sites should share a common primary entrance with the market rate homes—or should provide an entrance on the same street frontage as other residential buildings—to prevent a “poor door” situation, where all of the affordable housing units are noticeably separate from the market-rate housing.
Two separate programs
The new MIH program should not be confused with the existing Inclusionary Housing program, which will continue. For the Inclusionary Housing program, residential developments in Inclusionary Housing-designated areas receive a floor area bonus if they choose to provide affordable housing. The floor area bonus is proportionate to the amount of affordable housing provided.
For any additional questions or comments on this topic, please contact Milrose Consultants.
