New York City
Mandatory Inclusionary Housing Program
As President of BAE, Janet conducted an extensive feasibility study of potential Mandatory Inclusionary Housing policies under consideration by the De Blasio administration. BAE worked with a large staff Working Group comprised of department representatives from three agencies: NYC Housing & Preservation Department, NCY Department of City Planning, and NYC Housing Development Corporation. The Study commenced with an extensive demographic and market analysis of NYC’s housing market by neighborhood, utilizing DCP’s Neighborhood Tabulation Areas (NTAs). During this initial period, BAE also facilitated two large stakeholder meetings, with private sector residential and mixed‐use developers, and with affordable housing advocates and experts. Additional personal interviews with developers, lenders, and appraisers were also conducted. The analysis for this phase resulted in a categorization of all NYC neighborhoods by market condition across a range of market strength from Very Strong to Weak. BAE also researched a comprehensive set of financial model inputs including construction costs, 421a program parameters, and rents/sale prices by building type and market area.
For the second part of the Study, BAE formulated a detailed cash flow model to accommodate and test an array of changes in zoning along with requirements for various levels of inclusionary housing affordable to low income households. The cash flow model was then used to test over 1,000 scenarios with variables by building type, market area, presence of 421a tax benefits, and available affordable housing subsidies (Low Income Housing Tax Credits). NYC’s landmark Mandatory Inclusionary Housing program was adopted in early 2016.
Report available for download here.