NEW YORK CITY-Two new reports on affordable housing creation around the city call developers on the carpet for not creating enough units. The research recommends ending the voluntary nature of the city's inclusionary zoning program and making it guaranteed, s well as expanding the program citywide. The information was put forth Friday by City Council member Brad Lander and the Association for Neighborhood and Housing Development.

Inclusionary zoning has produced the construction or preservation of over 2,769 affordable housing units since New York City's IZ program was created in 2005, the data reveals, but just two neighborhoods have reaped the majority of those benefits. While many other US cities' IZ programs require 10, 15 or 20% of new multifamily housing to be affordable, New York City's voluntary, incentive-based inclusionary zoning program has only generated 2% of all multifamily units built since 2005.

Lander's report, “Creating Affordable Housing through Inclusionary Zoning in New York City,” reviews the performance of the program from its inception in 2005. Meanwhile, ANHD released a white paper, “Guaranteed Inclusionary Zoning: Ensuring Affordability is a part New York City's Future,” that lays out a road map for the next administration to create significant affordable housing through a citywide, guaranteed inclusionary zoning program.

“As New York City housing prices continue to rise, many of our low-and middle-income neighbors are struggling to find affordable housing,” says Lander. “On Manhattan's West Side and in North Brooklyn, our report found that inclusionary zoning has made a real difference by building thousands of new affordable units. But other neighborhoods have been left behind, seeing mostly development of more expensive new housing. We need to make inclusionary zoning a citywide program and ensure that affordable housing is a guaranteed part of new developments.”

Adds ANHD executive director Benjamin Dulchin, “When the city rezones a neighborhood to include an allowance to build taller and denser, it means the value of a developer's land is increased dramatically with the stroke of a pen. Many communities have asked that these types of rezonings include assurances that create housing affordable to the local community – especially since they can lead to secondary displacements pressures and the loss of rent-regulated housing. Zoning is a public tool that creates private value – it can, and should, be an effective tool for permanently affordable housing as well.”

Lander's report's revealed that other than Mahattan's West Side and the Greenpoint/Williamsburg section of Brooklyn, very few inclusionary housing units were created, even where there was significant development.In the other two dozen designated areas where inclusionary housing was permitted, only 6% of all residential development was affordable housing created through the program. That inventory was in Brooklyn's Bedford-Stuyvesant; on 125th Street in Harlem; the Lower East Side; on the Harlem River waterfront; Riverside South; and in Jamaica, Queens.

While the areas eligible for inclusionary zoning include many of the fastest-growing parts of the city, the report continues, they collectively contained only 13% of all new multi-family development citywide. Overall, inclusionary zoning represents less than 2% of all multifamily building permit applications in New York City during these years. The program must be improved to ensure that affordable housing is created in communities undergoing new development, Lander states in the paper.

ANHD's guaranteed inclusionary zoning report suggests the new Mayor require that all large and medium sized developments set 20% of units as affordable housing without accessing City funds. And developers who seek city or state subsidies for affordable housing or who request a zoning change could be required to expand affordability beyond the 20% baseline or affordable to lower-income levels.

ANHD's report also looks out for developers' interests. The report lays out inclusionary zoning program changes designed to streamline the building process, and allow for a variety of alternate options making it easier for developers to use. Additionally, the ANHD report calls both for improved tracking of inclusionary zoning development and regular reports on the impact of the expanded policy. Lander plans to introduce legislation in the City Council that requires the city to report regularly on the inclusionary zoning program's results.

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.