New York City will have 200,000 new affordable housing units over the next 10 years — at least according to the plan set forth by newly inaugurated NYC mayor, Bill de Blasio. New York City will commit $8.2 billion in public funds to the project which, coupled with another expected $30B in private investment, will transform the landscape of the New York City housing market.
Mr. de Blasio’s plan will require developers, not just encourage (as was the case under Bloomberg’s administration), to included afforable units in their buildings being constructed in the newly rezoned areas of NYC. In exchange for bigger buildings, developers will be required to included a percentage of rent-controlled, affordable units. If that sounds very vague, it’s because it is. The specifics of the plan have yet to be revealed (or even determined) but this ambitious 10-year plan is a bold move for the mayor, who just recently tackled another huge issue the city faced – teachers’ contracts.
The social underpinnings of this plan is to help create affordable housing options for middle and lower-income families, who are currently struggling to make rent in a city where housing costs have been steadily increasing. Mr. de Blasio, a democrat, promised to remain tough on developers to enforce the requirements. Put simply, the government of New York City will incentivize the inclusion of affordable units in their high-rise developments. Housing data shows that almost one third of the city’s households spend over 50% of their income on housing costs. For those families, this plan comes as very good news.
Mr. de Blasio’s plan was received well by both affordable housing advocates and members of the real estate industry. It would be a very hard thing to slow the growth of New York City’s real estate market, but under Mr. de Blasio’s plan, many of New York City’s most at-risk citizens will be able to breath a little easier.