Inclusionary Housing Program Overview

Please note:  If you are seeking housing please visit our Affordable Housing Hotline.

In areas where the Inclusionary Housing Program is applicable, a zoning bonus allows increased floor area for multiple dwelling developments in return for the new construction, substantial rehabilitation, or preservation of permanently affordable housing.  The Program is designed to preserve and promote affordable housing within neighborhoods where zoning has been modified to encourage new development.

Inclusionary Housing Text Amendment:

On July 29^th, 2009, a zoning text amendment was adopted by the City Council and is now in effect.  The text amendment:

• Adds a permanently affordable homeownership option; 
• Extends some of the provisions of the Expanded Inclusionary Program into the R10 Program; 
• Makes technical and administrative improvements to the program.

2009 Inclusionary Text Amendments Overview and FAQ

Affordable Housing Requirements:

• Affordable housing must be affordable for the life of the development utilizing the bonus.
• Lower-income units must be affordable to households at or below 80% of AMI. 
• Under special regulations for Hudson Yards, West Chelsea and the Greenpoint- Williamsburg waterfront, the bonus may also be generated by providing a portion of the affordable units for moderate- or middle-income households, with a larger overall number of affordable units.

Zoning Bonus Ratios:

For detail please consult the applicable Zoning Resolution Section

• R10
  • 2.0 square feet of bonus for 1 square foot of privately-financed preservation affordable housing.
  • 3.5 square feet of bonus for 1 square foot of privately-financed substantial rehabilitation or new construction affordable housing. 
  • 1.25 square feet of bonus for 1 square foot of publically-financed preservation, substantial rehabilitation or new construction affordable housing.
• Hudson Yards, West Chelsea, Greenpoint-Williamsburg Waterfront
  • A floor area bonus is available for developments providing a flat percentage (at least 20 percent), of total residential floor area for affordable housing.  See applicable zoning resolution sections for more information.
• Expanded Inclusionary Housing Program
  • 1.25 square feet of bonus for 1 square foot of publically-financed preservation, substantial rehabilitation or new construction affordable housing,

Where Inclusionary Housing is Applicable:

• R10 and equivalent commercial districts 
• Expanded Inclusionary Housing Program (see rezoned areas list below as of 7/20/10):

Affordable units may be located:

• “onsite” – within the building where the zoning bonus is being utilized. 
• “offsite” – within the same Community Board or within ½ mile of where the zoning bonus is being utilized.

The Inclusionary Homeownership Option:

The Inclusionary Housing homeownership option fosters the creation of permanently affordable homeownership in neighborhoods across the city where the Inclusionary Housing Program applies through new construction, substantial rehabilitation and/or preservation.  The components of the affordable homeownership option include the following:

• Restricted sales price of the units will be allowed to increase annually by an established appreciation rate; however 
• Each unit will be capped at a maximum price to preserve affordability over time.

Development Process:

• Applicants must submit a completed Inclusionary Housing Program Affordable Housing Plan Application  and all information required by the Inclusionary Housing Program Affordable Housing Plan Application Checklist. 
• Upon HPD approval of the application, based on all necessary review, the developer or owner will enter into a regulatory agreement with HPD that will ensure affordability of the Inclusionary housing units in perpetuity. 
• After execution of the regulatory agreement, HPD will generate a document that informs the NYC Department of Buildings (DOB) that bonus will be generated.  This will enable the user or purchaser of the bonus to submit DOB plans for a project that uses bonus. 
• Upon completion of the affordable housing (receipt of a TCO and approved inspection by DACE), HPD will issue certificates for the amount of qualifying affordable floor area.  Thereafter DOB may issue a certificate of occupancy for a project using bonus generated by this affordable floor area. 
• A single affordable development may generate the bonus for multiple compensated developments.

Fee Payment:

• A one hundred dollar deposit ($100) is required at the time of submission of the Application, to be applied toward the following filing fee; 
• One thousand dollars ($1,000) per affordable unit to be created for the first fifty (50) units and five hundred dollars ($500) for each additional affordable unit. 
• The total fee must be paid prior to execution of the regulatory agreement.

This page contains general information about changes to the Inclusionary Housing Program adopted in the New York City Zoning Resolution (the “Zoning Resolution”)  and is not intended to provide legal advice or to be relied on in any way by any persons or entity.  It is important to rely only upon the actual text of the Zoning Resolution and to consult with an attorney as to its meaning.

Additional Materials

Inclusionary Housing Application (PDF)

Income Limits and Maximum Rents  (PDF)

Inclusionary Housing Text Amendment – Frequently Asked Questions (PDF)

Final Inclusionary Housing Guidelines  (PDF)

Inclusionary Housing Privately-Financed, New Construction Term Sheet  (coming soon)

Inclusionary Housing Subsidized, New Construction Term Sheet  (coming soon)

Inclusionary Housing Preservation Term Sheet  (coming soon)

This page contains general information about changes to the Inclusionary Housing Program adopted in the New York City Zoning Resolution (the “Zoning Resolution”)  and is not intended to provide legal advice or to be relied on in any way by any persons or entity.  It is important to rely only upon the actual text of the Zoning Resolution and to consult with an attorney as to its meaning.

For More information contact:

Alisha Ozeri
Director, Inclusionary Housing Program
212-863-5641
ozeria@hpd.nyc.gov

  Or

Sara Levenson, LEED AP BD+C
Deputy Director, Inclusionary Housing Program
212-863-6394
levensos@hpd.nyc.gov 

More Info:

DCP Inclusionary Housing Overview 

NYC Department of City Planning

HPD Housing Finance Programs

NYC Housing Development Corporation

Division of Housing & Community Renewal

U.S. Department of Housing and Urban Development       

New York State Housing Finance Authority