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
Council member Brad Lander and Gowanus (Credit: Lander by Erik McGregor/Pacific Press/LightRocket via Getty Images, Spencer Platt/Getty Images)

Will Gowanus be the next botched rezoning?

Will Gowanus be the next botched rezoning?
Charles Bendit and Jorge Madruga (Credit: Owen Hoffmann/Patrick McMullan via Getty Images)

Developers throw support behind city’s effort to reinstate Inwood rezoning

Developers throw support behind city’s effort to reinstate Inwood rezoning
City Council member Bill Perkins and Lenox Terrace 484 Lenox Avenue (Credit: Getty Images and Google Maps)

Council drives another nail in coffin of Olnick’s Lenox Terrace project

Council drives another nail in coffin of Olnick’s Lenox Terrace project
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

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

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

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

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

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

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...