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Rezoning East New York

January 8, 2016

An overflow crowd packed into Brooklyn Borough Hall today for the City Planning Commission's public hearing on the de Blasio Administration's proposal to rezone East New York/Cypress Hills. This is the first major rezoning of the de Blasio era, and the first concrete test of the comprehensive, neighborhood-based planning approach that this Administration has committed to taking.

Listening to the Community Vision for Rezoning East New York
 
An overflow crowd packed into Brooklyn Borough Hall today for the City Planning Commission's public hearing on the de Blasio Administration's proposal to rezone East New York/Cypress Hills. This is the first major rezoning of the de Blasio era, and the first concrete test of the comprehensive, neighborhood-based planning approach that this Administration has committed to taking. This should be an opportunity for the City to show that that the priorities of local residents, business owners, and workers can be met through the City's planning process. The local Coalition for Community Advancement  developed its own detailed plan to address local needs through with zoning and other legal tools.
 
But today the Coalition asked the City Planning Commission to vote "No, unless..." on the City plan because many of the community recommendations were excluded from plan certified by the Department of City Planning, which is now working its way through the final stages of the land use process.
 
One of the key concerns of the Coalition is that the new housing created under the rezoning will be largely unaffordable to existing residents, given the levels of income within the East New York study area relative to the levels of affordability the city is proposing. The City's plan says it will provide affordable housing in two ways: through subsidies and through the new proposed Mandatory Inclusionary Housing program. However, neither of these methods, as currently proposed, would meet the needs of the local area's current residents.
 
At the same time, the rezoning is likely to increase displacement pressure in the neighborhood's existing affordable housing stock. The majority of housing units within the study area are in small un-regulated buildings, where tenants have very few rights or protections if rents increase. In addition, there are approximately 3,000 units of rent-regulated housing in the area, which represent a vital commodity for any neighborhood. Absent strong, proactive anti-displacement policies to protect these existing affordable units, and the people living in them, the local community fears it will lose more than it gains in the rezoning in terms of housing affordable to the local population.
 
The Administration did unveil a new aspect of their zoning plan this week, with a focus on integrating economic and workforce development into the plan for East New York. . A Workforce1 center that provides job training for local residents is certainly a much-needed and long-overdue resource. Likewise, we commend SBS and EDC for collaborating with local community groups in an effort to create vibrant commercial corridors while preserving existing small businesses and increasing support for business growth and capacity; improving access to capital for small business owners; and minimizing red tape through the Small Business First initiative. However, despite the first steps the administration has taken toward economic development and job growth, these initiatives do not replace the need for truly affordable housing for current East New York residents. These programs, though vital, will have little value if the residents they aim to serve can no longer afford to stay in their community.
 
Within the study area, over half of the residents in Community Board 5 make less than 50% of AMI, with a median income of $34,146.  Of the 50,704 total households, 26,869 (53.0%) pay more than 30% of their income in rent or costs associated with homeownership.  Nearly 30% of households (15,096) experience Severe Cost Burdened (pay more than 50%+ in rent or homeownership costs).  Within Community Board 16 the median household income is just $27,866.
 
The current MIH proposal does not guarantee housing for households making less than 60% of AMI, or $51,780 for a family of 4. The subsidy proposed by the City, while welcome, does not fully solve the problem. Under the ELLA program, 60% of the units constructed would be available for families making 60% of the Area Median Income or $50,000 a year.  15% of the units would be for families making $42,000 a year, another 15% would be for families making $33,500 per year, and 10% of the units would be marketed to people making $25,000 per year.
 
Furthermore, the local Coalition is concerned that there is no way to guarantee that private developers will take city subsidy. Unlike affordable units that will be required under MIH, which will be guaranteed across the board for new developments in the area, developers can choose case by case whether to participate in HPD subsidy programs. While many developers might be likely to because the current local market makes it difficult to construct housing without government assistance, this could also change as the market changes.
 
While units created under MIH will be permanently affordable, those built under HPD subsidy programs will be only for a particular period of time. Under the current proposed plan, there is no way to guarantee that the subsidy commitment will remain into the future, as any new administration's priorities shift.
 
ANHD has been proud to work with the local community groups in the Coalition for Community Advancement. We support their goals, and hope to see the thoughtful proposals outlined in the Coalition's plan included in any final plan.
 

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