Density won’t spur developers to build in low-rent areas

Report says that without government help, areas like East New York won’t see towers rise

TRD NEW YORK /
Mar.March 26, 2015 09:33 AM

In low-rent neighborhoods where the city is planning rezonings to allow developers to build taller towers, the math won’t pencil out without government subsidies, according to a report by the NYU Furman Center for Real Estate and Urban Policy.

The city has proposed changing the zoning laws in neighborhoods including East New York, East Harlem and Cromwell-Jerome in the Bronx to allow for more density and spur development of affordable housing.

But the report finds that in neighborhoods like these, developers will only be able to set aside about 4 percent of units as affordable even with the new zoning laws, whereas in a high rent neighborhood, they might be able to justify the costs of setting aside 30 percent of units as affordable, according to the Wall Street Journal.

The report also found that even without an affordability requirement in the new zoning laws, developers are unlikely to build in low-rent neighborhoods without subsidies like 421a, which is up for renewal in Albany this June.

The administration has doubled the Department of Housing Preservation and Development to $2.5 billion over the next five years. [WSJ] — Tess Hofmann


Related Articles

arrow_forward_ios
A rendering of The Dime at 209 Havemeyer Street in Brooklyn (Credit: Fogarty Finger)

New city rule requires luxury rental buildings to house homeless families

City Council member Bill Perkins and Lenox Terrace 484 Lenox Avenue (Credit: Getty Images and Google Maps)

Is Olnick bluffing on Lenox Terrace? History says no

New York City Councilmember Carlos Menchaca and Industry City (Credit: Getty Images, Industry City)

Sunset Park Community Board divided on Industry City

Rafael Salamanca and the Bronx (Credit: Getty Images, iStock)

Bronx councilman snuffs out another de Blasio rezoning

From left:  Council member Rafael Espinal, Mayor Bill de Blasio and Council member Antonio Reynoso (Credit: Getty Images, iStock)

Bushwick rezoning impasse puts de Blasio’s housing plan at risk

Council Member Antonio Reynoso and a map of Bushwick Planning Framework (Click for more info)

Bushwick rezoning faces deadlock amid local opposition

RXR CEO Scott Rechler and an aerial view of the site (Credit: Getty Images, Google Maps)

RXR plans 21-story LIC office building with manufacturing incentives

From left: Taconic Investment Partners' Charles Bendit,  Maddd Equities' Jorge Madruga and Slate Property Group's David Schwartz

Developers call Inwood ruling another blow in war against them

arrow_forward_ios
Loading...