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Q&A
Comparison of zoning changes and city subsidies for increasing housing supply
0:46:17
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81 sec
Council Member Justin Brannan asks Acting Commissioner Ahmed Tigani about the relative effectiveness of zoning changes versus city subsidies in increasing housing supply. Tigani explains that the effectiveness depends on various factors and emphasizes the importance of both approaches.
- Zoning changes provide predictability and planning opportunities for developers
- City-wide zoning initiatives like City of Yes and neighborhood plans create certainty, which can lower costs
- Tax abatement tools help bring down costs and allow for deeper affordability in projects
- HPD acts as a gap filler, balancing fairness and accessibility in its approach
Justin Brannan
0:46:17
What would you say is more effective for increasing housing supply?
0:46:21
Is it zoning changes or is it more city subsidy?
Ahmed Tigani
0:46:24
I think it's a little bit again, it really is about the area of the city that you're building in and the costs associated.
0:46:30
Changes to zoning and building an envelope allows a certain level of predictability and planning that cannot be understated.
0:46:37
Advancing citywide zoning like City of Yes did, looking at the neighborhood plans that have already been passed, AIM UP, Long Island City, the ones we've done, we are looking ahead in the future creates the ability for developers to work with partners in the financing field to say this is what we can do.
0:46:56
Can we price what it would cost to move a project forward?
0:46:58
It gives them information that they don't already have.
0:47:01
Uncertainty leads to higher cost or no opportunity.
0:47:04
Certainty does the opposite.
0:47:06
And so I think zoning is a really important part of that.
0:47:09
That being said, when approached with what the actual costs are, what people will be faced to it and what people will offer on the private side.
0:47:18
And HPD is a gap filler.
0:47:19
We always do the best we can but we have to do it in a way that creates fairness and accessibility and opportunity for many users.
0:47:27
So the private side is important.
0:47:30
Those tax abatement tools help bring down the cost and allow us to exchange that for deep affordability in those projects.