A much better proposal is in the speaker’s legislation, which would establish a commission to review the lines of the exclusion zone every two years. The commission would ensure that affordable housing is required in neighborhoods where the market can support it, without going too far and threatening the strength of the middle-income housing market. Regular review of the exclusion zone lines will ensure that we can harness strong markets to help create affordable housing without shackling the market by writing legislation today that tries to predict housing prices in five or 10 years’ time.
Last year, the city authorized housing permits for 31,599 new units, the largest number of permits since 1972, and we expect to do even better this year. Three-quarters of those permits are for development outside of Manhattan. Forty-one percent of the outer borough units supported by 421-a are affordable to families earning less than ninety-five percent of the Area Median Income, which is equivalent to $67,400 for a family of four. Under Mayor Bloomberg we have seen a strong middle-class housing expansion that is providing housing for working families who want to realize the dream of homeownership in places like the south Bronx, central Queens and many parts of Brooklyn.
Extreme changes to 421-a would halt construction of housing and of our progress in reducing the city’s housing shortage. The proposal supported by the mayor and speaker would create the right balance between the maximum amount of affordable housing and ensuring that new housing construction will continue at a strong pace.
Shaun Donovan is commissioner of the city's Department of Housing Preservation and Development.
This story has been updated.
