Luxury apartments for pennies: what is affordable housing in New York

When we hear the phrase “subsidized housing,” we immediately imagine a shack with dripping faucets and mold in the corners. But the truth is that the subsidized apartments that are awarded in New York's housing lottery often look better than market-rate housing, he notes. New York Post.

IN THE USA "affordable housing” is a term that covers various types of government-subsidized housing for low-income families. Such houses are offered for rent or ownership at reasonable prices throughout the country. Often we are talking about new houses - it is profitable for developers to build such apartments, because if they subscribe to “affordable housing” programs, they are given loans below market value, provided with subsidies and tax breaks. In exchange, apartments must be rented or sold exclusively to persons whose income is below certain parameters.

Affordable housing is chic

When Merete Munter says she pays $623 a month for a studio in an affordable housing complex in New York City, many assume a run-down dump in a crime-ridden area. In fact, her subsidized apartment is much nicer than any of the market-rate ones she's rented before.

“My subsidized apartment is located in a luxurious building with amenities that I could not even dream of,” Munter noted. – The house has a doorman, a gym, a roof terrace, and a courtyard. And the washing machine and dryer are in my apartment.”

Munter won this miracle in the 2014 housing lottery.

Mike Halden has lived in a subsidized one-bedroom apartment in New York City since 2011. He pays $689 per month.

On the subject: How to Increase Your Chances of Winning the New York City Housing Lottery

Affordable housing - not public

Many people confuse affordable housing with public housing, although they are fundamentally different concepts. Public housing includes homeless programs and Section 8 housing vouchers. These are for people with no or very low incomes. Under these programs, people actually get beds in shelters or not very presentable apartments.

And affordable housing is always private. Developers agree to rent or sell housing to people with a certain level of income (not always low) in exchange for tax and credit benefits. This program is called “Section 42.” At the same time, the building may have only a few apartments participating in the affordable housing program - the rest are rented at market value.

Developers must apply and generally qualify to receive Section 42 tax credits. To make the bid competitive, developers include amenities in the projects, such as in-unit washers and dryers, dishwashers, community rooms and picnic areas. So subsidized apartments turn out to be very comfortable and luxurious.

Affordable housing is not just for the poor

Section 42 housing is designed for families that are not considered poor. In New York, renters with an income of 80% of the regional average are allowed to participate in housing lotteries. Such people can easily be classified as having an average income by American standards.

Affordable housing is not only being built in disadvantaged areas

Another common misconception is that affordable housing is built in dangerous areas. And again no. Such facilities are located in a wide range of socioeconomic areas, including wealthy neighborhoods. Sometimes zoning conditions require a developer to convert several units in his building into subsidized housing. That is, even if he wants to build a luxury skyscraper in the center of Manhattan and does not need tax breaks, city zoning obliges him to allocate several apartments to the affordable housing program.

Winning the housing lottery is just the beginning: you may be denied accommodation in a subsidized apartment

Most affordable housing programs receive more applications than they have available housing, so they use a lottery system to select the lucky winners. But winning the lottery does not mean that you will definitely get an apartment.

You must then go through a very strict process to verify the financial information included in your application. Many people, after winning the lottery, do not go further because they cannot collect all the necessary financial documents.

You won't be kicked out of affordable housing if your income goes up.

As a rule, affordable housing cannot be taken away if its occupant suddenly has more money. However, many of these complexes require residents to present proof of income every year. This is so that the house can prove that it complies with the conditions for providing affordable housing. In some homes, a higher income can increase your monthly rent if you occupy an affordable unit.