In a recent development, the New York City Department of Housing Preservation and Development (HPD) has unveiled an innovative financing initiative named the Mixed-Income Market Initiative. This program is strategically designed to target ‘mostly-affordable projects,’ with a primary goal of catalyzing housing construction within the city.
As reported by our source, the initiative extends its benefits to projects that encompass a minimum of 70 percent affordable units, offering developers a combination of tax abatement and city subsidies.
A notable feature of the initiative is its inclusivity, as it welcomes projects not dependent on federal Low-Income Housing Tax Credits (LIHTC), which is a conventional financing mechanism for affordable housing. However, it is important to note that the approval of the tax break is contingent on the nod from the New York City Council.
City officials are optimistic about the positive impact of this program, emphasizing its potential to generate more affordable housing in neighborhoods characterized by higher living costs. The strategy involves leveraging a limited number of market-rate units to cross-subsidize lower-income affordable housing options. In adherence to the program’s guidelines, projects participating in the initiative are required to allocate 15 percent of their units for individuals transitioning from the shelter system. Additionally, a minimum of 25 percent of units must be reserved for residents falling under the category of ‘extremely low-income.’ This strategic approach aims to address the pressing need for diverse and affordable housing solutions in the dynamic landscape of New York City.