Mandatory Inclusionary Housing: Financial Feasibility and the Current City Proposal

This white paper provides first public analysis of the key Market and Financial Study for New York City’s proposed Mandatory Inclusionary Housing (MIH) program. This study, prepared by a consultant hired by the City, provided the basis for the MIH proposal released by the City in September, which is now working its way through the land use review process.

Our analysis finds:

Many scenarios which would lead to stronger affordability, including lower AMI levels and greater density bumps, were not studied.

In markets where MIH is financially feasible, most affordable housing can be expected to be built offsite

The proposal does not add any significant affordability over the new 421a rules

Stronger affordability requirements than those currently proposed by the City could be supported at part of the MIH program, especially in stronger markets.