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New York

The City of New York

Mayor Bill de Blasio
Alicia Glen
Deputy Mayor for Housing and
Economic Development
Letter from the Mayor
2 3


Imagine getting up each morning, getting the kids to school, That crisis didnt give way to stability, though. It gave way
putting in eight hours at a tough job and coming home to a notice to an affordability crisis that has left people in every kind of
that your rent is about to swamp your salary. Imagine staring at a neighborhood struggling to make ends meet. Undoing that
sheet of paper telling you that you no longer have a place to live; damage and stabilizing our neighborhoods is not just the work of
that your child will no longer be going to her school; that your one term or even one administration. It will be the work of this
future is now uncertain. city for the next generation.

Wherever I go, I see fear in the eyes of folks who are doing every- We will pass on to our successors the ability to build affordable
thing rightworking hard, bringing in two decent salaries and housing at a record-setting pace for years to come.
dreaming of a better tomorrow. They come up to me and ask a
profound and painful question: Can we still afford to live here? We will build more homes for seniors. We will help non-profits
make smart investments in neighborhoods facing market
We came into office with a clear mandate from the people that pressures to ensure long-term residents can continue to live in
they could no longer watch their homes slip out of their hands. them. We will protect Mitchell-Lama buildings and help them
So, we set out to change the housing situation in New York on a remain affordable. We will fit innovative smaller homes on lots
fundamental level with a plan of unprecedented scope to build or formerly thought to be unusable. We will help New Yorkers of
preserve 200,000 affordable apartments by the year 2024. moderate income buy homes and more.

Now we are going to new and greater heights. We will complete This is how we will keep New York, New York. This is how we will
our initial goal two years ahead of schedule and preserve or build ensure that the greatest city in the world will remain what it is and
another 100,000 homes in the four years that follow. That sets what it was always meant to bea place for everyone. We will take
us on a path to 300,000 affordable apartments by 2026, enough what was already the most ambitious municipal affordable housing
housing for the entire population of Boston, Massachusetts. plan in the history of the country and set it on a pace that we
ourselves couldnt have envisioned when we began four years ago.
This report explains how we plan to get there.
We will leave New York City better, fairer, and stronger than we found it.
The challenges our neighborhoods faced in the 1980s were
profoundly different than todays. We remember the vacant
and derelict buildings. We remember the rubble strewn lots
in the South Bronx. We remember a very different city. Its
almost unimaginable how quickly things changed.

Mayor Bill de Blasio

Executive Summary
4 Tenants in more than one million rent-stabilized apartments saw This updated and expanded Housing Plan will: 5
two consecutive rent freezes. Free legal services are being extended
citywide to protect all low-income tenants from harassment Create more homes for seniors by dedicating underused
and eviction. Bad landlords are facing serious consequences public lots for new affordable senior housing, and make
including jail timefor putting tenants safety at risk. new and preserved affordable housing more accessible to
seniors and people with disabilities.
The promises outlined in the Housing New York Plan
(Housing Plan) are being delivered in real time. Help New Yorkers buy a piece of their neighborhoods
Since Mayor de Blasio launched the Housing New York through new programs to construct new condos and co-ops
for first-time homebuyers and help existing homeowners make
Plan in 2014, New York City has accelerated the Yet New York City still faces a critical shortage of all types of
needed repairs.
housing, especially apartments affordable to low- and moderate-
construction and preservation of affordable housing to income New Yorkers. Harmful speculation, funding cuts to
levels not seen in 30 years. federal housing programs designed to assist the most vulnerable Build a firewall against displacement in fast-changing
households, and the overall failure to supply enough housing to neighborhoods by helping non-profits purchase traditional
rent-stabilized apartment buildings and keep them affordable
We are on track to secure more affordable housing in meet demand has resulted in far too many tenants questioning
to current residents.
whether they can continue to afford the neighborhoods they
the first four years of the Administration than in any call home.
Protect affordability at Mitchell-Lama buildings,
comparable period since 1978. The City has tripled the which represent some of the last already existing affordable
The City can, and will, do more to step in and stem the tide.
share of affordable housing for households earning homeownership opportunities.

less than $25,000. Funding for housing construction With the foundation built these past four years, we
Capitalize on advances in technology and innovative
are now positioned to accelerate and expand on Housing
and preservation has doubled, as have the number of New York.
design to expand modular building and micro-units
that can lower the cost of construction, build new homes
homes in the Citys affordable housing lotteries each faster, and respond to the citys changing demographics.
When the de Blasio administration took office, it inherited an
year. Hundreds of once-vacant lots have affordable impressive public-private engine capable of building and protecting
Unlock the potential of vacant lots long considered too
homes rising on them today. Reforms to zoning and 15,000 affordable homes per year. These past four years, with new
small or irregular for traditional housing stock with inno-
funding and new tools, the City has increased that capacity to
tax programs are not just incentivizing, but mandating 20,000 affordable homes per yearthe goal outlined in Housing
vative smaller homes, and develop more affordable housing
on lots long used for parking at existing Mitchell-Lama and
affordable apartmentspaid for by the private sector New York in 2014.
HUD-regulated complexes.
in new development. The City is in a position to reach a sustained goal of 25,000 We commit to these new goals in full recognition of new pressures,
affordable homes preserved or constructed per yeara rate it has including the risk of losing critical federal resources that serve
never before achieved. the lowest-income households. New York will fight to hold the
line, to gain ground where it can, and to ensure leaders at every
That accelerated pace will result in the Housing Plans level of government understand the housing crisis affecting so
completion of 200,000 affordable homes by 2022, two many New Yorkers and respond with necessary urgency.
years ahead of schedule.
We inherited the worlds greatest city from the generations that
Combining the existing foundation with new programs, tools, came before us, and it is our duty to continue taking decisive
and additional resources to fuel the machinery, we will now action to build a just, equitable, and prosperous city for
enable the Housing Plan to generate a further 100,000 affordable generations to come.
homes over the following four years300,000 total by 2026.
Put in perspective, that is enough housing for the entire Together, we will leave this city stronger.
population of Boston or Seattle.

We are on track to secure more affordable housing

in the first four years of this Administration than in
any comparable period since 1978.
The Housing Plan:
6 7
5 8
NEW Mixed-Income Micro: launch a new NEW Tiny Homes in the Big Apple:
At Work In Your Neighborhood program with updated design guidelines to
facilitate the creation of apartments that fit
launch a design competition to build small
homes on otherwise undevelopable City-
changing demographics. owned land.
1 3
Senior Affordable Rental NEW Neighborhood Pillars Program:
6 9
Apartments (SARA): new affordable funding for non-profits to purchase
housing for seniors. rent-regulated buildings and keep them NEW Vacant Land Tax: disincentivize Extremely Low- and Low-Income
affordable to their tenants. speculators from holding land off the Affordability Program (ELLA): new
2 market by taxing it at a higher rate until affordable housing for extremely low-
4 in-demand housing is built. and low-income New Yorkers.
NEW Mitchell-Lama Reinvestment
Program: help aging Mitchell-Lamas Supportive Housing Loan Program
stay affordable and build new (SHLP): affordable apartments with 7 10
affordable and senior housing on on-site services for the most vulnerable NEW HomeFix: financial assistance to Mandatory Inclusionary Housing:
underused campuses. households. low-income homeowners to make repairs areas and buildings rezoned for
and keep their homes healthy and safe. residential growth must include
20-30% permanently affordable


5 7


3 4
Our Progress:
8 9

Laying the Foundation To date, we have preserved and created

homes at a faster clip than ever before.
We have worked with communities to
by 2022two years ahead of the
original Housing Plan. As part of this
effort and recognizing the needs on the
Building on the progress we have
made, we are launching several
new initiatives that will pave the way
plan for future growth that is paired with ground, we are doubling our commitment for another 100,000 affordable
neighborhood investment. We ramped to meet the housing needs of seniors. We homes in the following four years,
up development on public sites, and are further zeroing-in on preservation, from 2023-2026.
fundamentally changed the paradigm which is one of the strongest tools to
for how housing is to be built in this city. combat displacement, especially for our The accomplishments made to date have
In May 2014, the Administration unveiled Housing Affordable housing is now mandatorynot lowest-income residents. We are promoting put us on the right trajectory. Thanks
New York (HNY), a comprehensive plan to create and optionaland permanent in areas rezoned and preserving homeownership, which to the unprecedented collaboration of
for residential growth. We also overhauled builds equity for low- and moderate- multiple City agencies, our counterparts
preserve 200,000 high-quality, affordable homes for the zoning resolution to make it easier to income families, and allows them to own in the Federal and State governments,
approximately 500,000 New Yorkers over ten years. build affordable and senior housing. a piece of their neighborhoods. We will and our many partners in the affordable
use tools we created to increase affordable housing community, we are ready to
The most aggressive housing plan in the country, HNY Four years in, we have set a new pace housing production, and we will fight pick up the pace even further and chart
represents a broad, bold set of strategies to confront and established a new baseline. We are to protect and, against the odds, expand a course for a more affordable future for
accelerating our timeline to create the resources we need from all levels our city.
the citys affordable housing crisis. and preserve 200,000 affordable of government to create the affordable
homes and apartments in eight years, housing opportunities New Yorkers need.

Comparison of Original and Updated Housing Plan


250,000 Actual Housing

200,000 and Updated

Original Targets


2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

The most aggressive housing plan in the country,

HNY represents a broad, bold set of strategies
to confront the citys affordable housing crisis.
10 We achieved these overall numbers while 11
exceeding our commitment to provide
housing for the lowest-income New HNY Production

Yorkers. In 2017, the Mayor dedicated an
additional $1.9 billion in capital funds Preservation New
over the remainder of the HNY plan to 52,309 (67%) Construction
Target: 60% 25,342 (33%)
ensure that 25 percent of our volume is
Target: 40%
for extremely low- and very low-income
New Yorkers. To date, we have exceeded
even this revised commitment: about
one-third of the housing we have created
We are currently ahead of the affordable housing or preserved is for extremely low- and very
low-income New Yorkers.
production goals we set in 2014. As of Fiscal Year 2017,
the New York City Department of Housing Preservation But our work is much more than just
numbers. We are driven by the needs of
and Development (HPD) and the New York City real people. HNY ensures that our invest-
Housing Development Corporation (HDC) have created ments today help individuals and families
Affordability Data
achieve economic stability, live in safe
or preserved 77,651 affordable homes, well surpassing and healthy homes, and enjoy the sense
targets to date. of community that makes New York City Middle Income Middle Income
buildings and neighborhoods unique. As 9.5% 13%
we provide housing opportunities to low- Moderate Income Moderate Income
and moderate-income New Yorkers at 10% 6.5%
an unprecedented scale, we have worked
tirelessly to create a number of tools that 70%
lay the foundation for our city to grow in
a more equitable way. 60%
Low Income Low Income
55.5% 48.5%


Very Low
20% Very Low 17%
10% Extremely Low
Extremely Low

HNY Plan HNY Actual to Date

Annual Income Monthly Rent Required to

Income Band Percentage of AMI
(for a family of three) Prevent Rent Burden

Extremely Low 0-30% $25,770 $644

Very Low 31-50% $25,771-$42,950 $645-$1,074

Low Income 51-80% $42,951-$68,720 $1,075-$1,718

Moderate Income 81-120% $68,721-$103,080 $1,719-$2,577

Middle Income 121 - 165% $103,081-$141,735 $2,578-$3,543

Keeping People Doing More for 13

in Their Homes Special Populations

Over the past four years, the City has made significant In all our work, we have
investments to preserve the quality and affordability of the prioritized the need to Housing for Vulnerable Populations
existing affordable housing stock. At the same time, renters provide pathways to
benefited from limited increases in their rent-stabilized permanent housing for our
Under HNY
January 1, 2014 - July 1, 2017 New Construction Preservation
rents. As tenants saw more relief on their rents overall, we citys homeless, created
also advanced a targeted agenda to protect tenants: more affordable housing 8,000
for our growing senior
Introduced Universal Access to Legal
Representation in 2017 with the City
Council for all low-income tenants facing
40,000 people were able population, and made sure
there is more housing
eviction proceedings in Housing Court.
to stay in their homes in 2016 accessible to New Yorkers
with disabilities:

Launched a Tenant Harassment

Prevention Task Force in 2015 with
the Attorney General and State Tenant as a result of legal services. Launched OurSpace in 2015 to provide
additional capital subsidy to produce

Protection Unit to investigate potential 4,000

affordable housing for homeless house-
harassment and bring enforcement actions
holds without relying on rental assistance.
including civil and criminal charges 2,758
against landlords who harass tenants.
Committed to create 15,000 support-
ive housing apartments over the next
Expanded the SCRIE and DRIE pro- 2,000
15 years in 2015, using a proven, effective
grams in 2014 to freeze the rent for more 3,069
model that saves public dollars and fulfills
of our seniors and people with disabilities Apartments Subject to High-Rent Vacancy the Citys moral commitment to house 2,037
living in rent-regulated apartments. 1,861
Deregulation, 1994-2016 New Yorkers in need.

Rent stabilized tenants saw two years of rent freezes in 2015 and 2016, and small rent Created the new Senior Affordable 0
increases in 2017. In 2016, we lost fewer rent-stabilized apartments due to high-rent Rental Apartments program (SARA) Homeless Senior Supportive
vacancy deregulation than in any year after 2000.
JOE: Joint in 2014 and other new programs to spur
production of senior apartments. Homeless, Senior, and Supportive counts are non-additive.
Ownership Entity



















JOE NYC is a not-for-profit entity
founded to strengthen the ability
of participating Community
Development Corporations (CDCs)
to secure financing for new -5,000
development and preservation
projects, and to help ensure the
long-term affordability of their Geraldine could no longer afford to pay
properties and the stability of their the rent on her Flatbush apartment. Before
communities. HPD has worked -10,000
with JOE to facilitate the transfer of losing her home, she reached out to 311 and
ownership of initial properties from got connected to NYC Public Engagements
participating CDCs to JOE, and with Rent Freeze Unit. They helped enroll her
Attorney General Schneiderman to
direct settlement funds to JOE to -15,000 in Senior Citizen Rent Increase Exemption
ensure extended affordability for a 1995 2000 2005 2010 2015 (SCRIE) and now shes able to stay put.
number of projects.
Data Source: New York City Rent Guidelines Board
Ensuring Overall Housing
14 HPD worked with other City agencies 15
to develop affordable housing on
other City-owned properties that Summary of HPD-Controlled Land
Supply Increases in an are not already slated for parks,
police precincts, and other essential
services. These properties include
Of the roughly 1,000 vacant lots under HPDs jurisdiction, more than half are
part of an existing RFP or are planned for future development as affordable

Equitable Way
housing; the rest are programmed for non-residential use or face significant
One Flushing in Queens, Spofford
development challenges (odd shapes, small size that requires assemblage with
in Hunts Point in the Bronx, Beach
private owner, infrastructure).
21st in Downtown Far Rockaway,
Inwood Public Library in Upper
Manhattan, Brooklyn Bridge Programmed Designated or
Park Pier 6 in Brooklyn Heights, Non Residential Active RFP/RFQ
The housing market is properly maintain new residential devel- Implemented a Mandatory Inclusionary and several New York City Housing 9% 45%
opments. As those costs escalate at a rate Housing (MIH) policythe most Authority (NYCHA) sites in Brooklyn,
mismatched in multiple higher than expected, developers have aggressive in the nationto require the Bronx, and Manhattan. In short,
ways. The tremendous less incentive to build new housing, or permanent, mixed-income affordable the City is maximizing the public sites
demand for housing to only build for the very high end of the housing in all areas rezoned for that are available and appropriate for
market. While the Housing Plan works to residential growth. Through our housing development, while getting
continues to exceed the address this issue by supplying housing partnership with the City Council, as even more creative about finding new
supply available. Moreover, specifically for lower income households, of March 2016, as New York City grows, opportunities to add to our inventory
the changing composition of the overall extreme shortage squeezes renters are guaranteed that a portion of of sites. Resiliency
everyone by creating more competition homes will be permanently affordable. Planning
New York City households for housing, in which low-income renters 27%
does not match the existing are at a particular disadvantage. Passed Zoning for Quality and
housing stock. Rising land Affordability (ZQA) with the City
For these reasons, it is critical that we Council in 2016the most significant
costs, construction costs, increase the overall housing supply in a overhaul since 1961to remove many
and operating expenses cost effective manner. New housing, both regulatory barriers (e.g. parking
make all but the highest affordable and market rate, is on the way: requirements, impractical height limits)
There were twice as many housing com- that significantly constrained the creation Significant Future Housing
end of the housing market pletions in 2016 as there were in 2014, and of affordable and senior housing projects. Challenges RFPs
financially infeasible. completions in 2017 are on pace to exceed 11% 8%
25,000 new apartments and homesa Fought for, and won, a reformed
The last two decades in New York City pace which if sustained can better enable 421-a program in 2017 that requires af-
are a case study of these trends. While us to keep up with population growth. fordable housing be provided in all rental
the population increased more in the first developments using the exemption and
six years of this decade than in the entire
previous decade, we added only half
And because of our policies to require eliminates tax breaks for luxury condos.
421-a Reforms Resulted in More Affordable Housing Citywide
the number of new homes during that
the private market to include a higher
share of mixed-income affordable housing
Accelerated the Request For
Proposal (RFP) pipeline25 housing
six-year period than we did during the
prior decade. A contributing factor to the
in exchange for local incentives, we are
RFPs issued as of October 2017 for Before After
now assured that as overall production
supply shortage is the cost to build and 62 projects across 139 public sites
growth increases, so too will the share of
will generate more than 9,500 afford-
affordable housing:
able homes.

Remainder Interest
HPD recently introduced a
new policy that uses a legal
apartments approved through MIH, including
20% 0% 25% 30%
toola remainder interestto

Affordable Affordable Affordable Affordable
ensure future public control in certain outside certain (10% at 40% AMI, 10% at 60% AMI, for moderate-income
of all affordable housing geographic areas geographic areas 5% at 130% AMI) housing (30% at 130% AMI)

developed on its sites. apartments that will be permanently affordable Before our proposed changes, developers could build in We changed the program to provide a stronger incentive to build mixed-
parts of the city without providing any affordable housing. income housing, reach deeper income levels, cut the cost per affordable
apartment, and capture affordable housing in changing markets without
affecting the opportunity to develop new housing today.
Using New Tools and HNY represents a dynamic approach to
the citys housing crisis that allows us
to adjust to meet new challenges and

Strengthening Partnerships needs and embrace advances in new

technologies and other innovations. As
we look to the future and the obstacles
ahead, it is imperative that we use
every tool at our disposal, seize every
opportunity, tap the expertise and
creativity of all our partners, and expand
the pool of development talent we draw
upon. There is no simple formula that
will solve our housing affordability
The production of affordable housing is a complicated enterprise. From crisis. But we can and will continue
the outset of the plan, we have looked at every way to leverage new to deliver on the promise of a more
sources of financing and introduce new tools. At the same time, we equitable city, one affordable home at a
time. The initiatives we propose today
have worked hard to expand the tent to ensure the affordable housing continue to make sure we lay an even
community is as diverse as the city we serve: stronger foundation for the future.

Piloted a new Federal Financing Expanded the capacity of Minority- Advanced the growth of Community
Bank (FFB) partnership in 2014 and Women-owned Businesses Land Trusts (CLTs) by working with Interboro CLTfounded to create affordable homeownership
between the U.S. Treasury and the (M/WBEs) and non-profit community Enterprise Community Partners to opportunities in neighborhoods such as Edgemere in Queensis
Department of Housing and Urban development corporations through our secure funding for emerging and existing one of four new initiatives that received funding from a $1.65 million
Development (HUD) to finance Federal Building Opportunity program, changes land trusts dedicated to preserving Enterprise grant that supports the formation and expansion of CLTs.
Housing Administration (FHA)-insured to our Request for Proposal (RFP) process, and creating affordable housing in
mortgages at very low interest rates, and through the Emerging Developers neighborhoods they know best.
stretching the resources available for Loan Fund at the New York City Economic
affordable housing development. Development Corporation, which provides
low-interest loans for mixed-income,
mixed-use projects.

The initial FFB pilot financed the preservation of Arverne View, a Mitchell-Lama development
in Far Rockaway that was damaged by Superstorm Sandy.

Building Opportunity
HPDs Building Opportunity
Initiative is designed to level
the playing field for M/WBE
real estate professionals
and non-profit affordable
housing developers.

The City now requires developers and

borrowers to allocate at least a quarter of
HPD/HDC-supported costs to certified
M/WBEs over the course of design and
construction of City-subsidized projects,
One of the winning development teams of an M/WBE RFP that resulted in six proposed and has created a pre-qualified list of
developments that will result in the creation of 441 affordable apartments in neighborhoods M/WBE developers to compete for an
across Brooklyn, the Bronx, and Manhattan. affordable housing RFP.
Building on Our Progress: Put Seniors First 19

The Next Eight Years The population of city residents who are at least 65 years
old is projected to increase by 40 percent between 2010
To reach more of our growing senior pop-
ulation, the Administration committed
to create or preserve 15,000 senior homes
and 2040. This means that we will need to house more than and apartments through HNY. We are
400,000 additional seniors in the coming years. Our seniors now doubling our efforts on senior housing
to serve 30,000 senior households
are more likely to be low-income, to be rent-burdened, and over the extended 12-year Plan. To
We have learned from the lessons of the past four years to live on a fixed income than other city residents. meet this additional commitment, we are
launching Seniors First, a three-pronged
and are continually reforecasting to determine how we strategy to make more homes accessible
can produce results better, faster, and more effectively to seniors and people with disabilities;
build new 100 percent affordable senior
for New Yorkers. As a city, we have always, and must developments on underused NYCHA land
continue to adapt to changing conditions and challenges as well as other public and private sites;
and preserve existing senior housing
we see on the horizon. developments such as those created
through HUDs 202 program. The City
To meet our accelerated goals, the City will establish will also examine creative ways to provide
new programs and partnerships that will help thousands housing opportunities for seniors seeking
communal living situations.
more families each year afford their rent, buy a first
home, and stay in the neighborhoods they love. Projections for the Population 65 and Over
by Borough
New York City, 2010 and 2040 The Bronx
New York City 228,476
Manhattan 56.6%
1,002,208 214,153
2040 277,444
1,409,708 29.6%
% Change

Staten Island

Brooklyn Queens
294,610 288,219
Chart Source: DCP Data
428,845 377,060
45.6% 30.8%
Own a Piece of Your
20 Make homes accessible Build new senior housing Support seniors through 21

to seniors and those with on underused NYCHA land preservation

Many seniors prefer to age in place
and stay in their homes and their
NYCHA is allocating a pipeline of un-
derused sites to create new senior housing
in order to expand its commitment to
New York City has an existing inventory
of affordable senior housing, and preserving
this stock is critical to meeting the needs
affordable housing development above of our aging population. Historically,
communities. Individuals with disabilities
the 10,000 affordable apartments already the federal government made funds
also struggle to find accessible housing
planned through NextGen NYCHA. HPD available for the development of new
Moderate-income homeownership stabilizes
in their neighborhoods. In order to
will finance these projects through its senior housing under the HUD Section neighborhoods and helps families build assets and
facilitate aging in place, and to help create
inclusive neighborhoods for people with
SARA program, coupling City capital with 202 program. However, Congress has equity. But the white-hot real estate market has
Project-Based Section 8 vouchers to serve not provided new resources for new
disabilities, HPD will enhance its needs
seniors on fixed incomes. Through op- 202 buildings since 2012, and current
led many working families to give up the dream
assessment process for preservation
erating funding from the New York City funding is used primarily to renew of ever owning their own home. Creating new
projects to focus on accessibility to people
of all ages and abilities. As building
Human Resources Administration (HRA), underlying rental assistance contracts programs and modernizing existing ones will help
the program will support best-in-class and existing contracts for on-site Service
owners scope preservation projects, they
on-site support services and high-quality Coordinators. This new initiative would
families struggling to maintain their homes and
will be required to identify necessary
programming to these communities. target approximately 170 buildings make necessary repairs, and will offer more New
improvements to make the building
more accessible. Such assessments will be
created through the 202 program with Yorkers the opportunity to buy their first home. Jie Ying Gao grew up in
14,000 apartments as well as other
factored into HPD rehabilitation projects. Gravesend with her family,
existing senior housing developments.
Simple changes ranging from lever door
handles to shower bars to slip-resistant
HPD and HDC will increase outreach Help low-income Launch Open Door, a and has recently become a
and focus to protect the affordability and
floors can make staying in ones home a homeowners stay in their first-time homebuyer homeowner through HPDs
improve the quality of this critical stock
viable option for seniors and create a more New Infill Homeownership
accessible city for all New Yorkers.
for the long term. homes program
Opportunities Program
Funding for home repairs is often hard Homeownership is a critical tool for
to find for low-income homeowners, families to move up the economic (NIHOP) program with a
especially for families struggling to make ladder. Owning a home can help newly constructed home in
mortgage payments. Making repairs can households build the assets they need
Coney Island.
contribute to the health and safety of to send children to college, save for
ones home, as well as keep up property retirement, and put down roots in a
values. Often, aggressive speculators will community. However, with median
barrage owners with cash offers, knowing condo sales prices reaching nearly $1
John and Jacqueline are that owners with significant maintenance million, the opportunities available
issues will be tempted to accepteven if to first-time homebuyers and other
born-and-raised New
it means leaving the neighborhood they households seeking to purchase a
Yorkers whove been helped to build, and being left without a home are extremely limited. Zombie Homes
married since 1960 and viable housing alternative.
resided in Stuyvesant Town HPD is introducing Open Door, HPD will also pursue
To meet these needs, HPD will create a new program to finance the
for decades. Recently, they reforms to the 2016 New
HomeFix, a program to help low- and construction of co-ops and condos
were at the verge of leaving moderate-income homeowners in small, for households earning between York State Zombie Property
after their rent increased one-to-four family properties fund home approximately $69,000 to $112,000 and Foreclosure Prevention
repairs. Leveraging the services of multi- (80% to 130% AMI for a family of
dramatically and Johns Act to strengthen the
ple community and non-profit partners, three). Homes will be marketed
income dropped after the new program will pair financial coun- to first-time homebuyers who enforcement of bank
retirement. But through seling with financial assistance. have participated in homeowner requirements to maintain
education training. Through the
the Citys intervention to Zombie propertiesvacant
program, owners will build limited
preserve affordability at equity in their homes over time, homes in which owners
Stuy Town, they were able balancing the goal of asset building have been in default on their
with the citys need for ongoing
to stay in Stuy Town in an mortgage payment for more
affordability for future generations.
affordable, rent-regulated than 90 days.
Develop Neighborhood-Based
22 The citywide housing market has shown 23
signs of stabilizing since 2015, but many Change in Mean Gross Rent by PUMA
neighborhoods across the city continue New York City, 2000 to 20112015

Anti-Displacement Strategies
to experience extraordinary market Rents are rising throughout the city. In all areas, but particularly ones where
pressures that are largely the result incomes are flat or declining, renters feel the pressureespecially lower
of the citys tremendous economic income households. Our initiatives are designed to increase the availability of
success. Between the end of the housing while supporting the stability of residents to stay in the neighborhoods
housing bust in 2011 and 2016, citywide they call home.
The core tenet of our anti-displacement strategy is to Level the playing field with home prices grew at an average of
six percent a year, without adjusting
ensure that residents have the choice to stay in their a Neighborhood Pillars New York City
for inflation. Between 2015 and 2016,
homes and neighborhoods. But the slow erosion of Program to help community average growth in home prices slowed +26.2% Manhattan
tenant protections provided pursuant to State rent laws, to just one percent, and the median +22.8% The Bronx
organizations acquire Change +24.3%
combined with the surging demand for housing, has led gross rent increased by just less than
to aggressive speculation in rent-stabilized buildings.
rent-stabilized buildings three percentthe smallest increase
in several years. However, these
Meanwhile, low- and moderate-income homeowners HPD and HDC are launching a new citywide trends mask the experiences
continue to struggle with maintaining their homes in the Neighborhood Pillars program to finance
of individual neighborhoods across
the acquisition and rehabilitation of
wake of the foreclosure crisis. While the Administration existing rent-regulated buildings to protect
the city.
has worked and is working on multiple fronts to address current tenants and stabilize communities. In each local market, no neighborhood
lost overall real estate value between 2011
these trends, a more coordinated and targeted approach, In fast-changing neighborhoods, the sale
and 2016, and over 20 neighborhoods
of a rent-regulated apartment building
in partnership with community-based organizations, is is often a harbinger of rising rents and across Brooklyn, Manhattan, and Queens Staten Island
needed in neighborhoods facing displacement pressures. tenant turnover. However, non-profit appreciated faster than the citywide average. +16.7%
and other mission-based organizations This is a consequence of homeowner and
that want to purchase buildings in order investor confidence in New York City. Home
The City is introducing new programs Brooklyn Queens
to keep them affordable often lack the values in Bushwick grew the fastest over
and initiatives that will help build +34.9% +25.6%
capital and financing to compete in this period (20 percent per year, on average),
a firewall against displacement. We
those transactions. In response, the new followed by Bedford-Stuyvesant (18 percent
will launch a new financing program Map Source: U.S. Census Bureau, U.S. Census of Population 2000 SF3; 2011-2015 American Community Survey-Summary File Population
Division-New York City Department of City Planning
program will use a data-driven approach per year, on average). Even neighborhoods
for community-based non-profit
to identify opportunities, and work with that started with higher-than-average home
organizations to acquire and rehabilitate
prices in 2011 experienced stronger-than-
more buildings so that New Yorkers can neighborhood-based organizations well
average growth. For example, during the same Change in Mean Household Income by PUMA
stay in their communities for the long positioned to identify the buildings most
at risk of speculation and rapid turnover. period, Upper Manhattan neighborhoods saw New York City, 2000 to 20112015
haul. And in neighborhoods most at
The City will double the capacity of the average home values increase by ten percent
risk of rapidly losing affordable housing,
we will work with local organizations Acquisition Loan Fund, leveraging funding a year, and prices in Sunnyside and Woodside New York City
to develop tailored, comprehensive contributions from private sector banking in Queens similarly grew by nine percent a +2.9% Manhattan
partners and philanthropic organizations year on average. +8.2%
anti-displacement strategies, with the The Bronx
goal of deploying all of the tools at the to enable non-profits and mission-based However, this rapid growth threatens
Change -9.5%
Citys disposal to aggressively combat organizations to acquire buildings that are renters who want the choice to stay in their
harassment and disrepair, protect rent-regulated, but not otherwise part of neighborhood. Because incomes in many
tenants, and preserve affordability. an existing affordable housing program. of these neighborhoods were stagnant
or declining, local households who want
the choice to stay must pay a significantly
higher portion of their paycheck in order
to do so. For affected neighborhoods, the
combination of rapidly increasing value
and stagnant incomes demonstrates why
we must take a more strategic approach
Olivia Carothers has lived in her apartment at New Staten Island
to support stability in neighborhoods -5.3%
Settlement Apartments in the Bronx for 22 years, where experiencing the most rapid change.
she raised her 29-year-old daughter. Thanks to HPDs recent
preservation work on her building, owned by non-profit Map Source: U.S. Census Bureau, U.S. Census of Population 2000 SF3; 2011-2015
Brooklyn Queens
Settlement Housing Fund, she can use her newly renovated American Community Survey-Summary File Population Division-New York City
Department of City Planning
+9.2% -2.4%
kitchen to celebrate holidays with her two grandchildren.
Crack the Code:
24 Launch a new Partners in Save the remaining the program will restructure properties 25
existing debt and fund critical capital
Preservation initiative to Mitchell-Lamas repairs. The program will also extend, and

Promoting Innovation in New

often deepen, Mitchell-Lama property
develop comprehensive The Mitchell-Lama portfolio, which is both
tax exemptions, resulting in a significant
supervised by the State of New York and the
anti-displacement City of New York, is under unprecedented
reduction to operating costs that will help
keep rents and maintenance fees low for
strategies in changing
Construction Methods
pressure to convert to market-rate housing.
residents. In exchange, properties lock
Since 1989, more than 19,600 City-super-
neighborhoods vised apartments reached the end of their
in affordability for the next generation,
ensuring that Mitchell-Lamas remain
While HPD has ramped up outreach to regulatory periods and chose to opt-out of
affordable for the long term.
building owners in order to make them the Mitchell-Lama program. The challeng-
aware of our preservation programs and es of maintaining an aging housing stock With rising land and construction costs, the City must find Advance Modular
the City has launched numerous programs and rising property values are putting more Lien In: Fix and protect ways to get more from every dollar invested in affordable Construction
to protect tenants citywide, we will make of the entire Mitchell-Lama portfolio at housing, and to deliver that housing faster to families in
more intentional efforts to develop and risk. Of the approximately 100 remaining
distressed affordable Modular construction can significantly reduce
execute anti-displacement strategies in City-supervised developments with over homes need. There are two strategies ready to move from their development time and cost, increasing the
targeted neighborhoods. HPD will pair 45,000 homes, approximately two-thirds experimental phase to broader application: micro-units efficiency of the Citys affordable housing
HPD has expanded proactive code en- investments and bringing new affordable
its available data with the on-the-ground are affordable cooperatives, representing and modular building.
forcement and worked with other City and homes to the market faster. The City is
experience and work of community-based a significant source of affordable home-
State agencies to bring criminal charges currently piloting modular construction
organizations to advance comprehensive ownership for New York City. In addition,
against landlords who willfully create through the Build-It-Back program,
anti-displacement plans in neighborhoods there are another 70 Mitchell-Lamas with Launch Micro-Mix: In highly transit-accessible areas, the
unsafe conditions for tenants. Housing constructing nearly 100 single-family modular
identified as most at risk of losing afford- nearly 55,000 homes and apartments in the City will seek to enable the develop-
ability. Representing our most aggressive States portfolio, many of which face similar
Court civil penalty judgments, which are A multifamily housing ment of mixed-income buildings that homes, and achieving cost savings of roughly
imposed against owners who have neglect- 25 percent per home. Through this process,
and targeted efforts to date, Partners in conditions and risks that must be addressed program for small apartments meet the needs of small households
ed to make repairs or provide services at City construction managers have gained
Preservation will tailor strategies to each in order to preserve this valuable stock of which in some cases can include
their properties, present another critical The construction of small apartments first-hand experience navigating the logistical,
neighborhood included in the initiative. affordable housing. well-designed methods to build a range
enforcement tool to ensure that violations designed for the needs of smaller house- jurisdictional, and permitting issues involved.
Those strategies are expected to combine of apartment types (for example, not
are corrected. Yet, too many landlords do holdsoften called micro unitscan
new and existing tools to address harass- Through aggressive outreach and only studios, and in some cases making
ment and disrepair; provide tenants with investment, HDC is launching a Mitchell- not respond to this legal action. increase housing options for individuals cooking spaces shared), and to relax The City will now seek to expand this model,
anti-eviction legal services; protect home- Lama Reinvestment Program to and small households who face a com- zoning restrictions on apartment size and release an RFP for multifamily affordable
owners from foreclosure and predatory offer the low-cost, long-term financing To give those penalties more teeth, HPD petitive market for small apartments, where necessary to do so. In addition, housing developments that use modular con-
activities; and help building owners access needed to anchor the affordability of is supporting a new State law that will and often end up living with roommates HPD will launch a new program with struction to further test whether the benefits
HPD financial resources to improve their many of the remaining Mitchell-Lamas. convert those Housing Court judgments in larger apartments that could other- updated design guidelines to facilitate of modular construction are achievable at
buildings and preserve affordability. By leveraging an array of financing tools, into City tax liens, which will allow wise accommodate families. A recently creation of these micro units. scale in the citys dense urban environment.
stronger and quicker enforcement in the completed pilot project suggests that a
future. This law would both improve building made up of smaller apartments
collections and motivate property owners can serve this segment of the population
to respond to Housing Court enforcement in harmony with the surrounding neigh-
and correct conditions more quickly to borhood, and this method theoretically
avoid further enforcement and penalties. reduces building costs on a per unit basis.

Carmel Place, New Yorks first micro-unit

apartment building, opened in 2016 in Kips
Bay, Manhattan. The buildings 55 micro-
units were designed to optimize space and
provide a sense of openness. The apartments
measure between 260 and 360 square feet
and have 98 floor-to-ceiling heights and
expansive 8 high windows. While the
foundation, utilities and ground-floor were
built using traditional construction methods,
Carmel Places micro-unit apartments were
Masaryk Towers, a 1,105-unit Mitchell-Lama built with prefabricated modules that were
cooperative located in the Lower East Side transported from a Brooklyn warehouse and
of Manhattan, is working with the City to stacked on the development site.
finance a new boiler plant and cogeneration
system and lock in affordability.
Unlock the Lots: Activating 27

Underutilized Sites for New Housing

HPD has moved aggressively through its inventory of vacant and
underutilized City-owned land, developing thousands of affordable
homes in the process. Without adding sites to the pipeline, the City will
face challenges maintaining the current pace of new construction. The
City will therefore look to build on vacant and underutilized private land,
and consider unique design options to develop housing on small lots.

Launch Housing+ Create [tiny homes] in the

Many affordable developments Big Apple
constructed a half-century ago were built
Tiny homes and other unique infill
as islands in a sea of parking and vacant
buildings present an opportunity to
lots. Yet many of these lots are not used
make use of small land parcels that may
by residents. Those underused parking
otherwise be undevelopable as well as
lots and vacant spaces are an opportunity
create housing that adapts to changing
not only to provide new housing and
demographics. Homes as small as 400
reconnect neighborhoods by improving
square feet can be a solution for some City-
urban design, walkability, and enlivening
owned lots unsuitable for the development
the streetscape, but also to help stabilize
of traditional affordable housing. The City
and sustain the older affordable buildings
will identify suitable sites in its portfolio,
alongside them.
and launch a design competition for tiny

In partnership with the owners of current

home and infill development proposals that Borinquen Court in the Bronx is a HUD
are feasible for this category of lots.
HUD-assisted properties, Mitchell- project that preserved 145 low-income
Lamas, and developments financed
senior homes and in the process carved
through past City disposition programs, Reform how vacant land
the City is launching Housing+, an out a parcel for new construction.
initiative designed to add new housing
is taxed Now, the Tres Puentes project is
on underutilized land while addressing The opportunity cost of leaving land
under construction on what had been
the rehabilitation and financing needs undeveloped is high, however landowners
of existing developments. Through the across the city leave land vacant. This a parking lot and underused space.
enactment of ZQA, which opened up Administration will be addressing property Tres Puentes will provide 175 new
opportunities to build new senior and tax reform in the coming years. As part
affordable apartments for seniors, 53
affordable housing on existing underused of that effort, the City will explore how
parking lots, and by unlocking potential the tax classification and assessment of which will be for homeless seniors,
on other regulated affordable housing methodologies of privately-owned vacant new commercial space and a new
sites, the City can work with owners land can be changed to incentivize owners
senior center in two new buildings. The
to create hundreds of new affordable to make their sites productive. Currently,
housing residences. many owners of vacant land have a buildings will be connected through
financial incentive not to develop their enclosed walkways.
As part of this new initiative, the City will sites in order to keep their property tax
proactively identify sites suitable for new af- bill low. Reclassifying residentially zoned
fordable housing development and conduct vacant lots would increase their tax bills to
outreach to current owners. At the same an appropriate level, possibly motivating
time, the agencies will evaluate modifica- owners to develop these sites. Potential
tions to existing preservation term sheets to changes could spur the development of
facilitate the construction of additional and underused property, thereby increasing the
deeper levels of new affordable housing. overall housing supply.
Leading the Charge Partner with the State
28 29

The City has committed unprecedented resources

to addressing the affordable housing crisis, but we
cannot do it alone.
As we push forward on the broad goals of HNY, we do so
Many of the housing achievements of the
in the face of very real threats on the horizon. This will Pursue new State Fight for strengthened
past three years have had a significant
require us to be vigilant in fighting for every dime and State component. In 2015, we worked legislation that allows rent regulation
hard to eliminate the old and broken
using every resource as efficiently as possible to protect us to offer financing in In 2015, we secured several significant
version of the 421-a program, which
reforms such as increasing vacancy
the hard-working New Yorkers who are struggling to find provided subsidized luxury housing exchange for extended decontrol limits and enhancing
without enough affordable housing
and keep their place in our city. affordability harassment penalties, but we must
in return, and secured some hard-
go further. That is why in the coming
fought rent regulation reforms such as Our loan authority for preservation proj-
It will require collaborationwe need every level of increasing vacancy decontrol limits. ects is antiquated, so we will be pursuing
years we will be strongly advocating for
additional rent regulation reforms to
government, and every partner from every sector to We also took a major step forward in State legislation that will allow us to
keep New Yorkers in their homes and
creating more opportunity for M/WBE offer financing in exchange for extended
come together to solve the very real, and very complex developers by securing State authority affordability even in projects that are not
curb predatory landlord practices. Rent
regulation ensures New York Citys
problems that we face. to designate development sites only to in need of rehabilitation.
neighborhoods remain economically
M/WBE firms. The expansion of the
diverse, and is critical to the continued
Rent Freeze Program for seniors and
Work with the State to affordability of our projects, so we will
people with disabilities in 2014, followed
propose an aggressive rent stabilization
by property tax relief for senior and convert housing court agenda to Albany in 2019.
disabled homeowners in 2017, were key
judgements to liens
examples of leveraging City resources to
keep the city more affordable. The States We will work with the State Legislature Continue our financial
allocation of $2.5 billion in affordable to allow the City to convert housing court
judgments to liens in order to provide
partnership with the State
and supportive housing funding in the
FY 2018 State Enacted Budget will also stronger and quicker enforcement when Finally, a continued financial partnership
complement City efforts to invest in owners fail to appear in court. This will with the State, from private activity
affordable housing for low-income New motivate owners to correct conditions bonds to supportive housing funding,
Yorkers, senior housing, and housing and more rapidly to avoid future penalties. will also be crucial in addressing the citys
services for homeless individuals. affordable housing crisis. The City and
State have worked together to finance
Strengthen Zombie supportive housing in New York City for
Many aspects of HNY 2.0 will require
additional legislative changes in Albany. property regulations many years. Now, with more tools than
ever before, it is essential that the City
HPD will also advocate for strengthening
and State continue to work together to
the 2016 New York State Zombie Property
produce even more housing with on-site
and Foreclosure Prevention Act to
services for homeless individuals and
increase penalties on banks that fail
families with special needs.
to maintain Zombie properties.
Protect and Expand Federal 31

Resources for Affordable Housing

The affordable housing shortage is not just a problem
here in New York, or even a challenge unique to big
cities. According to the National Low Income Housing
Coalition, in no state in the country can a person working
full-time at the federal minimum wage afford a two-
bedroom apartment at the Fair Market Rent. And yet the
federal government has been pulling back from public
and affordable housing for decades.

Today, potential policy changes could

Protect, expand, and Protect and increase
dramatically impact the budget for federal
housing programs as well as our ability enhance the Low-Income the use of Private Activity
to leverage private capital through the
Housing Tax Credit (LIHTC) Bonds
Low-Income Housing Tax Credit (LIHTC)
and Private Activity Tax-Exempt Bonds. LIHTC is the largest driver of affordable One of the biggest constraints to building
Any loss of these tools would be devas- housing development and preservation more affordable housing in New York City
tating. in the country. It is often used in is the limitation on Private Activity Bond
conjunction with Private Activity (PAB) volume cap, the supply of bond
The City is working hard to make sure Tax-Exempt Bonds to make affordable lending that the federal government allots
Washington knows how important hous- housing development feasible. In 2016, to each state. In addition to expanding
ing programs are to New York. According LIHTC and Private Activity Bonds LIHTC, New York City is part of a
to the Partnership for New York City, generated $2.7 billion in financing and growing coalition calling for an increase
the City contributes $56.1 billion more in equity to help create or preserve more in PAB volume cap to allow additional Create a national pool to
tax revenue to the federal government than 10,000 affordable homes in New financing for new construction and reallocate Private Activity
than we receive in federal grants and York City. Nearly all of that figure, $2.6 preservation. These proposals include
Build on Successful Partnerships
other support. We need funds in return billion, comes from tax-exempt bonds technical changes to bond regulations
to create housing choices for low- and and the 4 percent credits they generate. and the creation of a national reallocation While a growing number of states (like The City is looking to expand strategies and partnerships
moderate-income renters that want to live pool for unused PAB volume cap. New York) use nearly their full allotted
New York City is not the only place that
that have been particularly successful at reducing costs
in our great city. volume cap, other states do not need their
benefits from using these tools, so we are The Housing and Economic Recovery Act entire share. This leaves approximately and achieving savings to fund more affordable housing.
That is why we are working with a nation- working with partners across the country of 2008 (HERA) introduced the ability to $10 billion in volume cap abandoned each These strategies include FHA risk-sharing and the Treasury
wide coalition of cities, states, and hous- to advance legislation in both houses recycle tax-exempt multifamily housing year nationwide, according to the Council
of Congress to protect and expand this bonds, which allows housing finance
Departments FFB program, which provide multifamily
ing advocates not just to protect, but to of Development Finance Agencies.
expand the federal resources we need to critical resource. The Affordable Housing agencies six months to re-use volume lending platforms with greater underwriting flexibility, lower
build and preserve affordable housing. But Credit Improvement Act is bipartisan cap bonds that have been repaid within HDC is working to advance a proposal interest costs, and increased returns. HDC also seeks to
the threats to affordable housing are real, legislation in both the U.S. Senate and a four year window and use the proceeds to create a national pool of unused PAB
House that would expand LIHTC, make to make a new loan for another housing
work with government-sponsored enterprises Fannie Mae
and we must continue to work together volume cap. This would allow states that
to make sure that no level of government changes to the program to reach families project. HDC currently issues more than have used a substantial amount of their and Freddie Mac (or their successors) to provide capital at
walks away from its obligation to ensure at a wider range of income levels, and $300 million per year in recycled bonds, existing cap and need additional resources reduced interest costs, and will continue to work with the
that safe, good, affordable homes are bring more financing to reach deeper and is now proposing to expand recycling to finance the preservation of federally
levels of affordability. The passage of to allow for $100-$200 million more to be
Citys private banking partners as well to achieve efficiencies,
within everyones reach. -assisted properties by accessing unused
this legislation would mark the first spent on affordable housing in New York cap from other states. increase savings, and stretch resources further to create
meaningful expansion of affordable State each year. and preserve more affordable housing.
housing resources in decades.
32 33

We inherited one of the

strongest affordable housing
engines in the nation.
The past four years, we have been under the hood, seeing how we
could retool the machinery to get more mileage and cover more
road faster and more efficiently than ever before. We have primed
that engine with new policies, programs, and investments, and
charted a course for the next eight years. Now is the time to press
on the accelerator and take advantage of the Citys unprecedented
capacity to create and preserve affordability for future generations
of New Yorkers.

This accelerated and expanded Housing Plan reflects the urgency

of the needs on the ground, and a vision for the kind of city we
want to be. This path forward is about doubling-down on our
commitment to tackle the affordability crisis that threatens the
health and well-being of families and the competitiveness and
equity of our city. It is about prioritizing our seniors so that they
can age in place in safe, affordable, and accessible housing. It is
about ensuring residents have the choice to stay in their homes
and communities and even have a shot at owning a piece of their
neighborhood. It is about unlocking land, public and private, to
develop even more new affordable housing than before. It is about
scaling-up innovative methods of construction to reduce costs
and speed up the delivery of homes for New Yorkers.

This is an extraordinary moment in New York Citys history.

Working together, we have made incredible progress, and while
far from the finish line, the goal is within our grasp. We will leave
this engine in better shape than when we found it for the next
generation of city builders, and we will leave New York a stronger,
more affordable, and more just city.
Housing New York 2.0

Image Credits

Video by NYC Mayors Office
(Arverne View Mitchell-Lama)
Photo by Kevin Laccone
Photo by Jonathan Patkowski
(M/WBE RFP designation announcement)
Photo by Ed Reed, Mayoral Photography Office
(Stuyvesant Town seniors)
Photo by Arturo Olmos
Photo by Arturo Olmos
(Masaryk Towers Mitchell-Lama)
Photo by Gary Sloman
Photo by Jonathan Patkowski
(Tres Puentes)
Renderings courtesy of Redtop Architects
(Carmel Place)
Rendering courtesy of nARCHITECTS
Photo by Kevin Laccone
Photo by Jonathan Patkowski

Report design by Bellweather Agency


The City of New York

Mayor Bill de Blasio

Alicia Glen
Deputy Mayor for Housing and nyc.gov/AffordableHousing
Economic Development #NYCAffordableHousing