| What Triggers Each |
Participation in voluntary
Triggered when developer is willing to provide affordable housing in exchange for a density bonus |
Participation in mandatory
Triggered when a site is rezoned and mapped with MIH
Affordable housing become required for development |
| Affordability Requirements |
Developer must provide affordable housing to receive density bonus
The provided affordable housing must be permanently affordable in compliance with HPD standards |
Developers must comply with one of the options.
The provided affordable housing must be permanently affordable in compliance with HPD standards.
Options:
Opinion 1: 25% at 60% AMi
Option 2: 30% at 80% AMI
Deep Affordability: 20% at 40% AMI
Workforce: 30% at 115% AMI |
| Density Bonus Available |
Yes
Developers may receive additional residential floor area if they provide affordable housing
Exact bonus may depend on coning district and regulation |
No
Developers may not receive additional residential floor area due to capacity being created though the rezoning that established the MIH area. Affordability requirements are attached to the new capacity |
| WHich Zoning Districts Apply |
Applies in designated Inclusionary Housing areas
Commonly mapped in high and medium density residential districts
May apply in certain mixed- use districts where Inclusionary Housing has been mapped |
Applied only in MIH- mapped areas
Implemented though rezoning action that increases capacity of residential development
Founding in rezoned residential and mixed- use districts |
| How each affects a Developer’s Underwriting |
Developers compare the value of bonus residential floor area against the cost of providing affordable housing
Participation is seen when the density bonus improves project economics
May increase land value due to the creation of additional development potential
Common developer question:
Can I make more money by volunteering? |
Affordable housing requirements incorporate into underwriting from day one
A portion of units will generate below- market rents, thus reducing projected revenue
Developers will adjust land value and acquisition pricing to account for MIH obligations
Common developer question
How much does the requirement reduce what I can pay for the land? |
| What an owner selling a site needs to understand about buyer demand |
Buyers may view as an upside potential rather than requirement
Site that generate larger bonus FAR may attract stronger developer interest
Having the ability to obtain additional density can increase land value
Buyers may evaluate whether the density bone makes economic sense |
Obligations may reduce residual land value compared to unrestricted site
Developers may lower acquisition bids to cover for affordability requirements
Buyer demand may rise when the rezoning creates enough additional density to offset the affordability burden |
