“Housing New York: A Quick Look at Mandatory Inclusionary Housing Programs (and Legal Issues under Federal Takings Law)”
As Mayor Bill de Blasio highlighted in his recent State of the City Address, New York City is poised to launch a mandatory inclusionary housing program. It appears likely that under the mandatory program, the City would rezone certain manufacturing districts – such as those along Atlantic Avenue in East New York, Brooklyn – allowing developers to build residential buildings if they provide affordable housing through the inclusionary housing program.
Under New York’s existing voluntary program, a developer may either build an entirely market-rate residential building or may build a slightly larger building if the developer also provides affordable housing through the inclusionary housing program. Unlike in the existing voluntary program, Mayor de Blasio’s likely proposal would prohibit developers from building residential buildings in these districts if they did not provide affordable housing.
This Stroock Real Estate Special Bulletin reviews the provisions of inclusionary housing programs in other cities and analyzes some of the issues that are raised by mandatory inclusionary housing in the context of federal takings law.