T
he City Council is considering amendments to the Universal Affordability Preference (UAP) program, which aims to replace the city's Voluntary Inclusionary Housing program. One potential change is adjusting affordability requirements, with some council members and housing groups suggesting lowering the threshold for affordable units from 60% of the area median income (AMI) to 40%. This could impact the density bonus provided under UAP, which currently offers a 20% increase in building space if the extra space is dedicated to permanently affordable housing. Developers are concerned that deeper affordability levels would make projects less financially viable and potentially require more city subsidies.
The Association for Neighborhood and Housing Development has recommended requiring a percentage of affordable units to go to renters earning at or below 40% of the AMI, as well as applying UAP to "town center" and transit-oriented developments with 10 or more housing units. City Planning estimates that UAP could create more housing in its 15 years than VIH has created since 1987, but projections may be deflated if affordability levels are changed.
Real estate attorney Patrick Sullivan warned that altering the affordability requirements would "be disastrous" and make the UAP bonus unusable. He noted that UAP is already less generous than its predecessor, which allowed developers to build affordable housing offsite to meet density bonuses. City officials expect developers to take advantage of UAP alongside a property tax break with similar affordability requirements.
Council members are considering adding deeper affordability to UAP, but also want to balance this against the risk of disincentivizing participation. Brooklyn Borough President Antonio Reynoso supports deeper affordability but cautions that it must be balanced against the potential consequences. He urged the City Council to pass the text amendment in its entirety and threatened to withdraw his support if a provision to legalize accessory dwelling units is removed.
