What is the appropriate level of subsidization that affordable housing developers should receive? The article also describes New York City's unique inclusionary housing benefits.
"The shortage of affordable housing in NYT was a big issue in the recent mayor's race; and Mayor Michael R. Bloomberg says he intends to create or preserve 165,000 low-income units by 2013."
"Although the federal government once took the lead in creating low-income housing, federal financing has dwindled. Now, the job falls heavily to nonprofit and private developers."
"But it is the responsibility of government to provide the least subsidy necessary to ensure affordability, housing experts say. The interests of the government and the developer should be in tension...The question arises: What are reasonable - or unreasonable costs?"
"In neighborhoods becoming increasingly prosperous, a developer who builds affordable housing can earn certain inclusionary housing benefits entitling him, or another developer, to build market-rate housing nearby at greater density than would otherwise be allowed." This program also promotes mixed-income housing.
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