What does affordable mean ThE city following federal guidelines assumes that a person or family can afford to pay 30 of their income for housing So housing is affordable if the rent will be 30 of the tenants Income ID: 524911
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Slide1
Can Rezoning CREATE affordable housing?Slide2
What does affordable mean?
ThE
city, following federal guidelines, assumes that a person or family can afford to pay 30% of their income for housing
So housing is affordable if the rent will be 30% of the tenant’s Income
When the City promises affordable housing, affordable for WHOM? Slide3
Affordable for Whom?
The city uses Area median Income (AMI) to show FOR WHOM the housing is affordable
The 2016
AreA
Median income for the Greater Metro Area of NYC is $90,600 for a family of four.
So if a project includes apartments affordable to people who make 60% of Area median income, that means its affordable to people who make $54,360 for a family of 4. Slide4
WhAt’s
the income Mix in CB4 & 5?
45% of residents make $25,900/year or less.
78% makes $50,000 or less. Slide5
what affordable housing exists now in CB 4 and 5?
If you make more than $50,000, and are looking for an apt in CB4 and 5, there are more than 20,000 local apartments you can afford.
If you make less than $50,000/year, chances are you won’t find an apartment that’s affordable.
W
e need more than 15,000 affordable apartments to fill the need for families making less than $50,000.
Almost 30,000 households pay more than 30% of their income for rent – 63% of CB 4 and 5. Slide6
The Mayor Says Rezoning will create more affordable housingSlide7
Affordable for whom?Slide8
Mandatory Inclusionary Zoning (MIH)
Overall, new Housing in the rezoned Area will follow the Mayor’s Mandatory inclusionary Housing (MIH).
Mih
requires that landlords set aside 20-30% of the new housing they build as affordable housing. But affordable for who?
The City can require EITHER:
Option 1: 25% of the units will be for people making an average of 60% of AMI ($51,780), with 10% of the UNITS for people at 40% of AMI ($34,520) OR
Option 2: 30% of the units for people making an Average of 80%
AMI
($69,040)
The City can also offer the Developer the option of doing greater affordability instead of either option above:
20% of the units for people making an average of 40% ($34,520);
The
REST OF THE
NEW UNITS
WILL BE MARKET RATE HOUSING
. (Market rate means rents aren’t regulated at all and the landlord can charge the highest rent he can get.) Slide9
What would MIH mean for our neighborhoods?
Under Option 1,
78%
of community residents will not be able to afford the affordable housing
Under Option 2
,
64%
of community residents will not be able to afford the affordable housing.
Although there is an option that provides affordability at 40% AMI, The City
can’t force
a developer to Choose it, they can only offer it as an
option
. Slide10
Is that all? That Ain’t
Right!
No. in addition to MIH, the city will use public money (tax payer dollars) to subsidize some development, and require lower rents in return
The city lays out their requirements for a subsidy in something called a
TERM Sheet
The best term sheet the city has for low income New Yorkers is called
ELLA
(extremely
low and low
income) Slide11
But ELLA isn’t that great for the
bronx
With
ella
, a developer can choose 1 of 2 options
Option A: 30% formerly homeless families (at any income level). The rest of building at up to 60% of AMI
Option B:
10% 30% of AMI ($27,180)
45% of Community Board 4 & 5
15% 40% of AMI ($36,240)
19% of Community Board 4 & 5
15% 50% of AMI ($45,300)
14
% of Community Board 4 &
5
60% 60% of
ami
($54,360)
12% of Community Board 4 &5
There are no requirements for local hire or worker safety. Slide12
Is this enough?
Is
this Fair? Slide13
We are working with non-profit developers to propose a better
TERM SHEET than ELLASlide14
To do this, we have to cover the same basic costs as any other project:
Purchase price of the land
+
Construction cost of building the building with union labor
+
Maintenance and Operation of the Building once its built Slide15
OUR PROPOSAL for a new term sheet
25% of apartments at 27% of AMI, ($24,462 or less)
25% at 37% of AMI, ($33,522 or less)
25% at 47% of AMI, ($42,582 or less)
25% at 57% of AMI, ($51,642 or less)
The cost of construction reflects a cost that the building and construction trades have approved.
We also have term sheets that include housing for people at 80-100% of
ami
($72,480-$90,600), in addition to an equal distribution of all of the above with a set aside for seniors.Slide16
OUR PROPOSAL for a new term sheet
Mixed income does not need to mean rich people.
Affordable for 78% of current residents in
cb
4 and 5.
Requires greater City Subsidy ($50-60,000/unit more than
ella
)
Expensive but worth it (plus it’s our money and we should decide how it’s used in our neighborhoods!)
More cost effective than housing homeless families temporarily
It promotes safe, career-oriented union jobs