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Q&A
Discussion on IBO report findings regarding density bonuses for developers
0:45:17
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61 sec
Council Member Justin Brannan inquires about an IBO report suggesting that developers rarely consider density bonuses alone as sufficient financial incentive for projects. Acting Commissioner Ahmed Tigani responds by discussing the historical context and the need to pair tax abatements with building envelope changes to create viable affordable housing projects.
- Tigani mentions that this issue has been discussed since 2014-2015
- The effectiveness of density bonuses depends on the market and project costs
- There's a strong connection between tax abatements and building envelope changes, especially in higher-cost areas
Justin Brannan
0:45:17
IBO released a report last year that found in practice developers rarely consider a density bonus alone as sufficient financial benefit to proceed with a project.
0:45:28
Does HPD agree with IBO's assessment?
Ahmed Tigani
0:45:31
I actually think that this is something that we've been talking about since 2015, '20 '14.
0:45:38
So the original study for coming out of voluntary and considering things like mandatory inclusionary housing is that study suggested that in many markets you need to pair both a tax abatement assistance with building envelope in order to get a strong output of affordable housing and viable projects.
0:45:58
And as we continue discussions about both City of Yes and different abatements over that time, we have seen a strong connection.
0:46:06
It depends, it really depends on the market that you're in.
0:46:08
It depends on what the cost of the projects are.
0:46:11
But there is a strong connection between the both especially in our stronger markets, higher cost areas.