NYC plans to build new affordable housing in wealthy neighborhoods

Some rent relief is in sight. New York City’s wealthier neighborhoods may soon see an influx of more affordable housing—much to the relief of the city’s less-affluent residents.

On Tuesday, Mayor Eric Adams and the Department of Housing Preservation and Development announced a new plan that would reward developers with a tax break if they build mixed-income rental projects in neighborhoods where there are typically fewer lower-cost homes.

Dubbed the “Mixed Income Market Initiative” (MIMI), the plan would incentivize projects that include both affordable and market-rate units using the revenue made from the market-rate apartments, according to 6sqft.com.

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“The Mixed Income Market Initiative is an example of how our administration is refusing to accept the status quo, and, instead, is relentless in our efforts to accelerate housing production, cut red tape, and get New Yorkers into safe, quality, and affordable homes,” the mayor said in a statement.

Since June 2022, when the state’s 421-a tax abatement program ended, construction of new housing has significantly slowed, the outlet states.

Proposals under MIMI would need to include 70% affordable housing, including at least 15% for formerly homeless New Yorkers and 10% as income-restricted units, according to the New York Times. Luckily, preference would be given to projects with the most affordability and ones that use the city’s funding the most efficiently, 6sqft.com says.

“Income-restricted housing” would be for tenants making up to 120% of the area median income. This means that a family of four taking home nearly $170,000 would qualify.

All of this is part of Adams’ effort to add 500,000 more homes to NYC in the next 10 years. The mayor has also signed a bill that sets housing growth targets in every neighborhood and has also proposed zoning reforms that go against building dense housing developments, according to amNewYork.

In February, the city will ask developers for input to see where and how it might be deployed, the Times notes.

“We need more housing at all income levels with a focus on affordability and with a focus on generating affordable units in high-opportunity neighborhoods,” City Comptroller Brad Lander told the Times. “This sounds like a potentially useful new tool to help make that happen.”