Letter to the Editor: De Blasio And Affordable Housing

In a letter to the editor of Gotham Gazette article, “De Blasio Pins Affordable Housing Hopes On Mandatory Inclusionary”, Leonard Grunstein advises Mayor-elect Bill de Blasio, that mandating the construction of middle-income housing only to city-owned land, could be an alternative.

He notes the article correctly highlights the challenges of requiring affordable housing. The highlights include: a possible domino effect that would create less affordable housing, due to slowing of new development of market-rate housing; tenants facing extra construction costs so that owners can make up for loss incurred by the affordable units; and lastly building to accommodate more people puts more strain on public service, who would need to plan for more schools and better infrastructure.

The policy would require developers to have a percentage of their building’s units as permanent affordable apartments. Developers who participated, would receive increased building heights and tax breaks.  Currently there is similar version that is optional.  Many developers have chosen to opt out of this policy; does this foreshadow what is to come if the policy became mandatory?

In his alternative solution, Grunstein suggests:

“One alternative de Blasio should consider is to mandate the construction of middle-income housing only in the development of city-owned land.  The city successfully took this tact with Seward Park, a strip of city-owned land on the Lower East Side, by obligating RFP respondents to make at least half of the housing units there affordable. Refining the requirements to be more capital market friendly may have enabled an even greater amount of middle-income units.”

If de Blasio followed through, it would strengthen New York’s middle class.  It would create a need to work together with the real estate industry.

Read Leonard Grunstein’s full letter here.

Leonard Grunstein: Bill De Blasio Should Mandate Affordable Housing

Leonard Grunstein gives insight on Mayor-elect Bill de Blasio‘s plan to increase the amount affordable housing in NYC.  While de Blasio’s plan is praiseworthy, Grunstein points out the plan is also creating apprehension within the real estate industry.  Grunstein stresses there is a vital need for more more middle-income housing in NYC, but current efforts offer small incentive to developers to build affordable housing.

“More can be done in terms of zoning bonuses or overrides for these sites to foster the creation of middle-income affordable housing.”

Grunstein goes on to explain that under the Bloomberg administration, their is a lack of focus on the creation of middle-income units and as a result, the city is missing big opportunities:

“If similar requirements had been in place for the massive Hudson Yards development, there would be an additional 5,000 units of affordable housing constructed. The thousands of people who will eventually work in that new neighborhood could have filled these apartments rather than having to commute from long distances.”

That’s an unnecessary burden for those workers as well as a loss for the city’s economy”

Grunstein advises that de Blasio should foster his relationship with the real estate industry; show that he is willing to work with them.  Choosing to mandate construction of middle-income housing would add to the long-term sustainability and vitality of NYC.  Residents of all income levels will not to be forced leave, they can continue to thrive in the city.

“The city should not leave the decision to include affordable housing up to the developer. Instead, it should have required the construction of affordable housing as part of the RFP and guaranteed the creation of a place where middle-income New Yorkers could live.”

Read Leonard Grunstein’s full article on Gotham Gazette