Affordable housing seems to be what everyone wants, but fewer and fewer are able to find it in NYC.
The Village Independent Democrats screened the documentary The Vanishing City on February 16, which, along with a table full of handouts and a Q&A session with panelists, presented viewpoints on the ‘hot’ topic of affordable housing in NYC.
One of the handouts offered these solutions for the vanishing affordability. Three main demands were to:
a) Redefine affordable housing by using neighborhood median income in formulas and make subsidized housing permanently regulated;
b) Regulate and tax speculators by ending tax abatements, tax upzoned property to fund public domain improvements, and raise taxes on vacant property; and
c) Change government structures to give more power of local decisions to Community Boards.
Attorney Seth Miller on the panel suggested that the City license residential managers, so that bad managers could be barred for improper practices.
Moses Gates, also a panelist, remarked that taxes and land costs are the greatest development variables area to area, since construction costs are similar in the boroughs.
Author Tom Angotti of New York For Sale was in the film and on the panel, and summarized several ideas from his book, including the importance of preservation of existing (usually affordable) housing stock, and the presence of community planning to provide a comprehensive look at changes to a locale.
A Brief History of Rent Controls
To help understand where we are, we need to know how we got here.
The City’s website (nyc.gov/html/housing info) for the NYC Affordable Housing Resource Center gives highlights of Rent Stabilization Systems history. They quote the Emergency Rent Laws of 1920 as the first of many attempts to alleviate a pressing shortage of housing in the aftermath of WWI. These rent freeze laws were repealed in 1929.
For similar reasons, federal rent controls were adopted in 1943, and when these expired in 1951, New York State adopted them. For a period from 1962 to 1983, rent control powers were transferred to NYC. The City adopted Rent Stabilization (RSS) laws in 1969 and established the Rent Guideline Board (RGB). In 1983 the administration of controls again transferred to the State.
The legal foundation for governmental control of private ownership goes back to European and Magna Carta history, and many principals were carried over to the colonies, and eventually the US Constitution. In the Fifth Amendment to the constitution, the “Takings” clause provides that private property shall not be taken for public use without just compensation. The clause remains controversial due to the changing perceptions of how the terms are defined (private property, taken, public use, just). For rent controls, court challenges have upheld the legitimacy of these measures. What is not settled is whether a government can legally take private property and sell it back to another private entity for development, which is happening in some areas as part of “gentrification.”
Where Are We Now?
According to the City, there are one million rent stabilized housing units in NYC. RSS covers most units in buildings with 6 units or more, and regulates private apartment rents (about 2/3 of all rentals). Rent is not based on household income, and there are no income eligibility requirements. Rents are set by the state RSS.
The Metropolitan Council on Housing (metcouncilhousing.org) states that the NYCHA has 175,000 units, Section 8 Project buildings have 90,000 units, and Section 8 in private units have an indeterminate number. For these programs, tenants pay 30% of the household income for rent.
The Mitchell-Lama program developed 140,000 units. These are typically private building owners that can opt out after 20 years, or rent stabilization contracts can be negotiated. These were meant as middle-income housing. Each building has its own waiting list.
New ‘Affordable Housing’ construction is financed by Low Income Housing Tax Credits (LIHTC) or other programs, such as 80/20, or inclusionary zoning. Eligibility varies from building to building, and usually has an income range for initial acceptance. Some units are offered by lotteries.
A recent report by the Independent Budget Office (Crain’s Feb. 18 by Greg David) shows that over the last 10 years, inclusionary zoning generated 3470 new units, and 421-a program generated 3392 new units of affordable housing. The Bloomberg administration’s goal of 165,000 affordable units built or preserved is targeted to be met by the end of this year. That would mean their goal is met with almost 158,000 preserved units.
(Mayor de Blasio’s goal is 200,000 units over the next 10 years.)
NYU’s Furman Center for Real Estate and Urban Policy (furmancenter.org/institute) states that NYC has 175 affordable housing programs, many obviously for very distinct sub-groups.
What‘s Next?
Just as active, interested citizens came to the VID film screening and discussed these issues, so too are many others participating in community board meetings, landmark preservation and zoning meetings, and many other activities to express their wishes.
Housing laws help protect tenants. Many organizations are actively helping people with housing problems.
There is strength in numbers, and rent regulation is a pluralistic endeavor. History has shown that when neighbors act together, much can be achieved.
Brian Pape, AIA, LEED-AP, LRES
Green Architect & Historic Specialist
Architectural Editor, West View News
