NEW YORK CITY-A top state housing official says that state incentives for developers to build affordable housing are more attractive to those building properties in Manhattan than they are to those looking to build below market rate rental apartments in sections of Brooklyn and other outlying boroughs of the city.
Darryl Towns, commissioner of the New York State Homes and Community Renewal agency, was one of the speakers at Brooklyn Historical Society's quarterly Real Estate Roundtable on Tuesday.
The state's Homes and Community Renewal agency currently offers two main programs for developers looking to build affordable residential units. One allows developers to secure tax breaks for constructing an 80/20 building, where 80% of the apartments are market rate and 20% are affordable. Another state incentive for a 100% affordable project can provide developers upfront incentives and numerous tax breaks, according to Crain's New York Business. Commissioner Towns said at the roundtable event that places like Brooklyn need some different type of incentive.
"I think that it's time to talk about what that next thing will be," Towns said. "80/20s have certainly been of value, but I think there is going to be a certain block where the 80/20 is not going to work anymore." He later added, "Just having 80/20s and 100% affordable is leaving so many New Yorkers with less and less housing.” See story in Crain's New York Business.
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