State pol mulls 80/20 options for outer boroughs

TRD New York /
Nov.November 13, 2013 05:43 PM

The state’s so-called 80/20 program — which rewards developers with tax breaks in exchange for earmarking 20 percent of their developments for affordable housing — isn’t suited to Brooklyn and the other outer boroughs, according to panelists at the Brooklyn Historical Society’s quarterly real estate roundtable.

Neighborhoods in which firms can demand (and get) higher rents work well with 80/20 developments, while developers have a harder time recouping new development costs in areas with lower annual median incomes, they said.

In such cases, according to Darryl Towns, commissioner of the New York State Homes and Community Renewal agency, which regulates the program, something different is needed. He proposed subsidizing the 80 percent portion, or crafting a new category called 70/30 which offers more tax breaks. Towns told the assembled crowd that he plans to set up a task force to look into additional alternatives, Crain’s reported.

“80/20s have certainly been of value, but I think there is going to be a certain block where the 80/20 is not going to work anymore,” Towns told the panel. “Just having 80/20s and 100 percent affordable is leaving so many New Yorkers with less and less housing.” [Crain’s]Julie Strickland

Related Articles

A rendering of 165 Broome Street (Credit: Handel Architects)

Nonprofit plans affordable housing development near Essex Crossing

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

205 Park Avenue (Credit: Google Maps)

Developer files plans for mixed-use project facing BQE

Inwood has stayed affordable for a remarkably long time. That could soon change. (Credit: Wikipedia)

Inwood braces for gentrification

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Concept plans for 'The Halo' at 289-301 Washington Street and Meridian Capital Investment's David Schechtman - provided by Meridian Capital Investments/ Minno Wasko

Developer seeks $40M for Opportunity Zone site in downtown Newark

From left: Michael Bennett, Joe Biden, Pete Buttigieg, Kirsten Gillibrand and Kamala Harris (Credit: Getty Images)

Presidential debate 2020 Night 2: Here’s where these Democratic candidates stand on housing

Mayor Bill de Blasio and Rikers Island (Credit: Getty Images)

Real estate development not coming to Rikers Island, mayor says