Hudson Yards/Garment Center Inclusionary Housing Program

The Hudson Yards/Garment Center Inclusionary Housing Program must be used in conjunction with the District Improvement Bonus (DIB) within the Special Hudson Yards District and Special Garment Center District. Properties within the outlined areas below, Subdistricts C, D1, and D2 of the Special Hudson Yards District and Preservation Area P-2 of the Special Garment Center District, can take advantage of the Inclusionary Housing Program (please see the map for reference).  Affordable housing may be generated on-site or off-site, either within Community District 4 or within an adjacent Community District if it is within ½-mile of the market-rate development.

Floor Area Bonus

Floor area beyond the base amount may be obtained if BOTH of the following bonus requirements are satisfied:
(1) Utilization of the DIB;
AND
(2) Provision of affordable housing through the Inclusionary Housing Program, either on-site or off-site.

In order to build to an increased floor area ratio (FAR), owners/developers must first enter into an Inclusionary Housing Lower Income Housing Plan Written Agreement with the Department of Housing Preservation and Development (HPD) or purchase Inclusionary Housing Bonus (IHB) certificates.  They must also submit an application for the DIB with the Department of City Planning (DCP).  When both requirements have been met, the site will be eligible for the floor area increase.

All sites eligible for a density bonus have a residential as-of-right FAR of 6.5.  An owner or developer may obtain up to an additional 5.5 FAR of residential space, but only through BOTH the contribution to the DIB and the provision of Inclusionary Housing.  For every 6.0 square feet of bonus floor area from the provision of Inclusionary Housing, 5.0 square feet of DIB must also be obtained.

The portion of the bonus deriving from the DIB (5/11 of the total bonused floor area) is obtained by contributing a certain amount per square foot ($106.48, as of July 1, 2006).  The other portion of the bonus (6/11) is obtained with an Inclusionary Housing Bonus, which is obtained through the Inclusionary Housing Program.  The amount of lower-income floor area required varies depending on whether the affordable housing is provided for lower-, moderate-, or middle-income households.  

Financing & Tax Benefits

•80/20  and other public subsidy programs may be used in conjunction with the construction or rehabilitation of Inclusionary Housing.  The affordable units are permitted to carry debt.
• A project receiving tax credits that is at least 50% non-profit (501(c)(3)) ownership, may be eligible for a 420-c  tax exemption. 
• A project undergoing moderate or gut rehabilitation or conversion from a non-residential building may be eligible for a J-51  tax exemption.
• A project owned by a Housing Development Fund Corporation (HDFC) may be eligible for full or partial tax exemption pursuant to Article XI  of the Private Housing Finance Law, subject to the approval of the New York City Council.
• Hudson Yards is part of the 421-a  Geographic Exclusion Area:  Newly constructed projects in Hudson Yards are not eligible for as-of-right 421-a tax exemption benefits unless they receive substantial governmental assistance, purchase off-site 421-a certificates from another developer, or dedicate at least 20% of their on-site units to affordable housing.  Purchase of off-site certificates allows for a 10-year partial tax exemption, while substantial governmental assistance or providing on-site units allows for a 20-year partial tax exemption.

For More Information Contact:

Arden Sokolow
Director, Inclusionary Housing Program
(212) 863-6196

Additional Materials:
Hudson Yards/Garment Center Inclusionary Housing Program Brochure
Inclusionary Housing Guidelines Addenda-Hudson Yards/Garment Center

More Info:

Department of City Planning :
Hudson Yards Rezoning website
Inclusionary Housing Program website