New York City’s voluntary inclusionary housing program, known as the Designated Areas Program, offers 33 percent greater density for properties that contribute 20 percent affordable units. Developers may also access the city’s property tax exemption program, city and state loan programs, tax-exempt bonds and low-income housing tax credits to finance the development of the inclusionary units. As of early 2015, the city’s property tax exemption program exempted property taxes on the net value created through new construction for 20 to 25 years, and applied this exemption to all the units in the building, including the market rate units. If this or other forms of public assistance are used, the inclusionary units must be built on-site. Otherwise developers have the option of meeting their 20 percent affordability obligation off-site. The Designated Areas Program offers no in-lieu fee alternative.
Since 2005, the program has produced more than 4,240 affordable units. Homes must be permanently affordable for households with incomes up to 80 percent of median income.
For More Info:
Howard Slatkin, New York City Department of City Planning
Email: [email protected]