The City’s Mandatory Inclusionary Housing program sets forth a number of options for providing required affordable housing in a development subject to its regulations. Each of these options sets forth differing percentages of units subject to different AMI bands. While the development currently anticipates providing affordable housing pursuant to Option 1, this is subject to change upon further discussion.

Below is a summary of the affordable options. 1 In reviewing this summary, it will be helpful to understand what different AMI’s mean for income and rent. The clearest summary can be found on NYC HPD’s website: http://www1.nyc.gov/site/hpd/about/what-is-affordable-housing.page

In sum, pursuant to federal standards, in 2017 “AMI” for a family of four is $95,400. So 80% AMI for a family of four would be $76,320. For a family earning no more than this 80% AMI, the maximum rent for a 3-bedroom apartment would be $1,910 if the tenant pays electricity. This rent cost translates to 30% of a family’s income.

Option 1

  • 25% of residential floor area provided as affordable housing
  • Max weighted average of all income bands qualifying for affordable units = 60% AMI (i.e. $761/month for a studio, $963 for a 1-bdrm, $1,166 for a 2-bdrm, $1,339 for a 3-bdrm)
  • Minimum 10% of the affordable floor area = 40% AMI
  • No income band shall exceed 130% AMI

Option 2

  • 30% of residential floor area provided as affordable housing
  • Max weighted average of all income bands qualifying for affordable units = 80% AMI (i.e. $1,091/month for a studio, $1,375 for a 1-bdrm, $1,660 for a 2-bdrm, $1,910 for a 3-bdrm)
  • No income band shall exceed 130% AMI

Deep Affordability Option

  • 20% of residential floor area provided as affordable housing
  • Max weighted average of all income bands qualifying for affordable units = 40% AMI (i.e. $475/month for a studio, $605 for a 1-bdrm, $736 for a 2-bdrm, $843 for a 3-bdrm)
  • No income band shall exceed 130% AMI
  • No public funding may be utilized for such development

Workforce Option

  • 30% of residential floor area provided as affordable housing
  • Max weighted average of all income bands qualifying for affordable units = 115% AMI
  • Minimum 5% of the affordable floor area = 70% AMI
  • Minimum 5% of the affordable floor area = 90% AMI
  • No income band shall exceed 135% AMI

 

1 Note the rents indicated are examples only and subject to refinement based on payment of utilities and other factors