According to NYC Housing, “New York City’s shortage of affordable housing has reached a crisis point.” The problem of affordable housing has different causes, including increase in New Yorkers’ purchasing rate in the housing marketplace. Salaries of city’s renters have not changed much in the past 20 years, but “the average monthly rent for an apartment in New York City increased by almost 40 percent.” (NYC Housing) In addition, the mismatch between supply and demand also lead to the problem of shortage in affordable housing. The 2011 U.S. Census states that there are 979,142 households that are either low-income or extremely low-income, but there are only about 424,949 affordable units available to rent. Therefore, affordable housing is a top priority of Mayor Bill de Blasio’s administration. In 2014, he released his plan to create 200,000 units of affordable housing by introducing two policies, mandatory inclusionary housing (MIH) and zoning for quality and affordability (ZQA).
In class, we had discussed one of solutions to increase the amount of affordable housing, which is to encourage developers to build bigger buildings and include a specific percentage of apartments with cheap rent. This seems like a good policy and would attract developers who want to build giant buildings. However, is it really beneficial to people who are looking for affordable housing? Since only 20% of apartments in a building are affordable and the rest are expensive, the stores around the building would tend to sell products that are affordable for people with high incomes. The rent of the place determines the prices of products sell in the store and the monthly rent of the store. No one is willing to pay for a high rent and selling five apples for two dollars. Business owners need to sell the goods at prices that can support their monthly rent, the wages of employees and themselves. So, are government also going to provide services in the neighborhood, for 20% of the population, by opening stores for these families? Although MIH provides affordable housings in the city to low-income families, these families are not getting the sense of community in the neighborhood they are living in.
Another problem of MIH policy is many developers chose not to participate in the inclusionary zoning program, because “implicit subsidy for the affordable units is so high.” “As a result, inclusionary zoning generated fewer than 3,000 new affordable units from 2005 to mid-2013, according to an analysis from Brad Lander, a New York City councilman.” (Barro, 2014) The statistic shows the ineffectiveness of the inclusionary zoning program and makes me think implementing this program might not be beneficial people. First of all, the hidden cost of sustaining cheaper units discourages developers from participating in the program. Secondly, residents living in affordable housing units would have a hard time finding a sense of community in the area they live in, because stores in the neighborhood are possibly all targeting the rich customers. Finally, low-income communities are the targets of upzoning programs and since often of time residents are not included in the decision-making process, more people will be displaced rather than getting helped.
Nathan Newman, a housing activist, suggested that instead of including affordable units in the large building, government should sell density to developers for cash. The government can then use the money to improve low-income communities by constructing buildings with affordable housing and allow the residents in the community to decide what to do in order to best benefit the community and its people.
Work Cited:
Barro Josh (2014). Affordable Housing That’s Very Costly. https://www.nytimes.com/2014/06/08/upshot/affordable-housing-thats-very-costly.html(last accessed 5 May 2017)
NYC Housing. Our Current Affordable Housing Crisis – Affordable Housing For Every New Yorker. http://www1.nyc.gov/site/housing/problem/problem.page (last accessed 5 May 2017)
Oscar Perry Abello (2016). How East Harlem Wrote Its Own Development Plan. https://nextcity.org/features/view/east-harlem-neighborhood-plan-upzoning-affordable-housing (last accessed 5 May 2017)