(Inclusionary Housing) definition of Public Funding
Proposed Rules: Closed to Comments
Statement of Basis and Purpose
Under the lnclusionary Housing Program, in return for agreeing to keep the housing permanently affordable, owners receive a "bonus" in the form of additional developable floorarea that the owner can sell or transfer for construction on. other sites. In certain high value areas, properties that have received Public Funding within 15 years before agreeing to provide permanent lnclusionary Housing are eligible for a smaller bonus than those that have not.
Proposed Rule Summary:
• Excludes Mitchell Lama tax exemptions from the definition of "Public Funding" contained in Section 23-911 of the Zoning Resolution, thereby making properties with such exemptions eligible to receive more bonus floor area than is currently allowed.
• Permits preservation projects with Mitchell Lama tax exemptions to be treated the same as preservation projects with other tax exemptions that the Zoning Resolution already excludes from the definition of "Public Funding."
• Provides an incentive for the owners of Mitchell Lama housing companies to keep existing affordable housing developments permanently affordable rather than convert them to market rate housing.
• Decreases the need for public subsidies to preserve Mitchell Lama units.