The Daily Dirt: How the city will replace voluntary inclusionary housing 

The City of Yes for Housing Opportunity would replace the voluntary inclusionary housing program. 

As I’ve previously reported, developers aren’t crazy about that. 

During a City Planning Commission Review session on Monday, officials clarified how the city will transition from VIH to the new program, dubbed Universal Affordability Preference. 

Both programs provide residential bonuses for projects that include affordable housing, but the new program does not allow this affordable housing to be constructed separately. Meaning, the density bonus must be used on the site where the affordable housing is built. The extra density bump must also be used for units set aside for tenants earning an average of 60 percent of the Area Median Income. The program would also be available in more areas of the city than VIH.  

UAP would provide an off-site option for 10 years after the passage of the City of Yes for Housing Opportunity, but would reduce the bonus provided. Projects under VIH generate a bonus of up to 3.5 square feet per 1 square foot of affordable housing built. During the 10-year transition period, UAP projects will generate 1 square foot of bonus that can be transferred offsite per 1 square foot of affordable housing.

Developers who already built their affordable housing, or have projects underway that were banking on selling their density bonuses at that 3.5:1 ratio, can continue to do so in perpetuity. Department of City Planning staffers on Monday noted that selling these density bonuses can take several market cycles, and they do not want to change the rules on these projects when they relied on the old ratios to help finance their projects. 

After the 10-year sunset, new projects cannot transfer bonus square footage offsite. 

The Real Estate Board of New York does not want the city to do away with the offsite option, but has alternatively asked for a 15-year buffer, instead of 10, and wants the bonuses to remain at the 3.5:1 ratio during that time. For now, it does not seem like officials are budging on doing away with offsite affordable housing. 

What we’re thinking about: Some opponents of the City of Yes for Housing Opportunity say they are fearful the character of their neighborhoods will change if the text amendment is approved. When you first buy a home or move to a neighborhood, what do you consider to be a reasonable amount of change to expect in the near and long term? Send a note to kathryn@therealdeal.com. 

A thing we’ve learned: Lawmakers in Massachusetts reached an agreement last week on a $5.16 billion housing bond bill. It did not include a proposal by the Senate to force landlords to pay residential rental broker fees, according to the State House News Service. 

Elsewhere in New York…

— Judge Jack Stoller says he will issue another arrest warrant for landlord Daniel Ohebshalom for failing to make hundreds of court-ordered repairs to his two apartment buildings in Washington Heights, Gothamist reports. The judge had issued a warrant last month, but did said he would not enforce it until Monday, to give Ohebshalom time to get started on repairs. 

— The state will host the “Future Energy Economic Summit,” next month to bring together state agencies, power providers and experts, the Times Union reports. Gov. Kathy Hochul announced the summit one week after a coalition of more than 50 organizations called on her to assess the impact of the 2019 Climate Leadership and Community Protection Act, and adjust mandate timelines if they find the state cannot meet current rules.  

— ICYMI, Robert F. Kennedy Jr. left a dead bear cub in Central Park in 2014, the New York Times reports. Kennedy, who is running for president as an independent, apparently thought it would be “amusing” to make it look like a cyclist had struck and killed the cub.  ¯\_(ツ)_/¯

Closing Time 

Residential: The priciest residential sale Monday was $6.8 million for a 4,600-square-foot condominium unit at 390 West End Avenue on the Upper West Side. Kim Shepard, Jennifer Kalish and Jamie Safier of Douglas Elliman had the listing. 

Commercial: The largest commercial sale of the day was $34 million for a 230,000-square-foot commercial property at 1630 East 15th Street in Midwood. 

New to the Market: The highest price for a residential property hitting the market was $6 million for a cooperative apartment at 257 West 86th Street on the Upper West Side. Lisa Lippman of Brown Harris Stevens has the listing. 

Breaking Ground: The largest new building application filed was for a 507,119-square-foot ambulatory facility on the New York Presbyterian Hospital campus at 635 West 165th Street in Washington Heights. Studio Gang Architects filed the permit. — Matthew Elo