QUESTION
How is the New York City Department of Housing Preservation and Development addressing affordability for earners below $25,000? What is the status of Section 8 voucher expansion?
0:32:32
·
8 min
The New York City Department of Housing Preservation and Development (HPD) is addressing housing affordability through a variety of means, emphasizing a focus on rent-regulated stock, new housing construction targeted towards low-income families, and voucher support, while advocating for flexible zoning regulations and increased availability of low-income tax credits.
- HPD prioritizes protecting and investing in rent-regulated stock to maintain affordable housing.
- Forty-one percent of HPD’s new construction targets families with incomes up to 30% of the Area Median Income (AMI), demonstrating a focus on very low-income households.
- To address several income levels, HPD layers vouchers with financing frameworks that are sustainable in the long term.
- The department advocates for more flexible zoning laws and tax benefits to enable the construction of affordable housing in a wider variety of areas.
- HPD continues to push for the expansion of Section 8 vouchers and efficient utilization of current vouchers to ensure support reaches the most vulnerable families.
Pierina Ana Sanchez
0:32:32
It is this jump in high income households.
0:32:34
And complementary, maybe replacement.
0:32:39
There's been replacement of high income households of low income households by high income income households.
0:32:45
So a policy question, For renters whose income is less than $25,000 and who do not have subsidized housing, you mentioned that 86% are severely rent burden, but the full 90% are rent burden.
0:32:58
What is HPD doing to address this affordability issue?
0:33:02
And in particular, I know the council and the administration are at odds about thefts voucher expansion, but the mayor in the state of the city announced an expansion of section 8 housing vouchers to address the crisis.
0:33:13
Can you tell us what the status of that is?
0:33:16
And can you tell us about any federal advocacy that the agency is doing, particularly as Washington DC is Congress debates lie tech reforms.
Ahmed Tigan
0:33:27
Absolutely.
0:33:28
And thank you for the the question chair.
0:33:30
So first and foremost, I will reiterate that the most critical and largest abundant supply of affordable housing is our rent rent regulated stock and making sure that's protected, making sure that we are ensure investing in buildings that have that rent regulated stock is a major priority for the administration, our preservation work, and the dozen or so different term sheets that we have targeted to different types of rent stabilized and rent regulated apartments ensures that we are helping maintain that.
0:34:08
In addition to making sure that owners are following the rules and regulations attached to rent rent regulation overall.
0:34:18
Separately, we obviously need more housing to meet the need in the city.
0:34:24
HPD is committed to doing its part to build housing, the targets, and helps our most vulnerable New Yorkers.
0:34:30
You can tell just by our calendar 23 figures new construction alone that 41% of our subsidized new construction went to helping extra low income families up to 30 percent AMI, 58% of our subsides new construction went up for 2 families up to 50% AMI.
0:34:54
A household of 3 making $63,000.
0:34:57
And 88% of that new construction amount help families up to 80% MI.
0:35:04
In addition, we level we layer vouchers to help continue to reach the deepest and most in need of support, so rental assistance supplementing that work in addition to ensuring that those buildings have a financing framework that works the long term by including multiple income tiers because not only are we here to help one side, but We also see that there's a need for moderate and middle income families too.
0:35:32
The other the other thing that we need to see is housing production throughout the in industry.
0:35:39
So subsidized housing is one part, but we need to be able to have both as of right and subsidized housing.
0:35:47
We need the state to help us with the as of right tax benefit.
0:35:51
We need to see our ability to have more flexible residential floor area permission at the local level.
0:35:59
So we can build more in areas that have assets and zoning framework that allows us to do more.
0:36:07
We need to allow and have more permissible development in every neighborhood through city of yes, so that every neighborhood is part of the housing solution.
0:36:17
And yes, part of our funding for affordable housing comes from city tax levy.
0:36:22
This administration has put in 23,000,000,000 over its 10 year plan, the most that we've seen in capital investment and affordable housing.
0:36:30
But more so than that, we depend on low income tax credits from federal government.
0:36:34
To make sure that our housing, especially housing for our most vulnerable population is met.
0:36:39
So we are advocating right now.
0:36:41
There's a bill in Congress that would help us tremendously, and we would seek any support from the council to see Congress pass that bill so we can get more flexible.
0:36:51
Low income tax credits to support that work.
0:36:54
So again, subsidized housing is critical.
0:36:57
We continue to use this data and other data.
0:37:00
To target it toward our most vulnerable families.
0:37:02
We're using HPD section 8 vouchers to make sure that our housing continues to reach deep for the most vulnerable families.
0:37:10
But we also need support across the board for as of right and subsidized housing through more flexible regulatory and zoning frameworks.
Pierina Ana Sanchez
0:37:19
Thank you.
0:37:19
And my understanding is that HR 7024, the tax relief for American Families And Workers Act, which is considering LiTech Reform, does not include any changes that would allow the city of New York to provide lower income housing than we do.
0:37:33
So I will support, and I'll ask my colleagues to join, but we need to do more.
0:37:38
You mentioned the AMI levels, the low income levels at which HVD has been targeting production.
0:37:46
What AMI level does a $25,000 per year income correspond to?
Ahmed Tigan
0:37:53
So as I mentioned, our subsides housing for our extra low income households that are very low income households.
0:38:02
So that's around 30% MI lower.
0:38:05
So you can see in our calendar year, in our calendar year 2023 numbers that we were subsidizing down from 30% EMI, 41% of our new construction for 30% EMI lower.
0:38:20
Additionally, and again in partnership with the council, legislation was passed to make sure that we had pathways for homeless New Yorkers as well.
0:38:28
So at least 15% of our term sheets are set aside for homeless New Yorkers.
0:38:35
In addition, we have developer partners who may volunteer more.
0:38:39
And sometimes we have between 15% 30% of our projects have a flex to be able to do that.
0:38:46
So we work closely with those developers and DSS to make sure that we have opportunities in our pipeline to continue to push to help our most vulnerable New Yorkers.
0:38:56
And beyond that, through a combination of financing and rental assistance, we are able to do even more.
Pierina Ana Sanchez
0:39:05
Going to attempt to answer my own question.
0:39:07
Appreciate that reiteration, but an income of $25,000 a year for a household corresponds to much less than 30% of AMI.
0:39:17
And we're talking about 90% of of households that earn less than 25%.
0:39:21
Those are the ones that are suffering the most.
0:39:24
And our policies, our term sheets are producing at a the lowest the lowest AMI that is covered is 30%.
0:39:30
Right?
0:39:31
Complete mismatch.
0:39:32
The only way that we get to those folks is vouchers.
0:39:35
Right?
0:39:35
So what is what is the administration's update on the section 8 voucher expansion?
Ahmed Tigan
0:39:40
So I would say that the section 8 voucher expansion that that that that particular program is being overseen by Nitro.
0:39:50
HVD vouchers continue to be available to support lower income tenants in our in our development supply.
0:40:00
We also have tenant referrals that go through special purpose vouchers like for individuals with disabilities, or we have vouchers that again are focused on homeless and at risk homeless households.
0:40:14
Just recently, we were able to put 7800 vouchers collectively between NYCHA and HPD into our communities through the emergency housing voucher program.
0:40:25
So I would defer to Nitro on the question of the Section 8 rollout, but They have been fully focused on making sure that's a successful program moving forward.
0:40:35
And for HPD, we continue to advocate for more vouchers at the federal but we are almost at a 100% utilization to make sure that we are not wasting any vouchers, and they are in the hands of people who need them.
0:40:48
So they can get a housing in New York City.