One of the more aggressive inclusionary zoning programs in the country has been in place long enough to evaluate for lessons regarding the effectiveness of the controversial affordable housing development tool.
Michael A. Tortorici, co-founder and executive vice president at Ariel Property Advisors, checks in with the Mandatory Inclusionary Housing (MIH) program three years after its inception under the de Blasio administration, with effects beginning to take shape around the city.
"Looking at MIH projects in the pipeline and recent transactions in current or pending MIH areas, it’s becoming increasingly clear where the program is currently delivering, and where it may be falling short," according to Tortorici.
Here are the key findings of the analysis presented in the article:
As of August 15, 2019, city records show approximately 40 new developments underway that will see at least 25 percent of residential floor area allocated to permanent affordable housing. Based on available information, we estimate these projects total approximately 7.3 million square feet of new construction. In terms of gross area being built, approximately 53 percent is under construction in the Bronx, 19 percent is in Brooklyn, 12 percent is in Northern Manhattan, 10 percent is in Queens, and 6 percent is in Manhattan.
While breaking down the development pipeline of the neighborhoods and boroughs around New York in greater detail, Tortorici also presents some conclusions based on the evidence provided by the development market.
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