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In continuing our series on How
To Find An Affordable Apartment In NYC, we will share how you can
get a fabulous apartment in some of the city's hottest new buildings for a
fraction of market rent. Sound too good
to be true? Well, it's not. Under New York City's 80/20
Program, the
government grants real estate developers tax exempt financing for building
multifamily rental developments in exchange for 20% of the units being set
aside for low and moderate income households.
Thanks to this program, apartment seekers can nab a 500-square foot
one-bedroom unit in Battery Park
City for just $650, or a
two-bedroom in Tribeca for only $2,700.
Finding an 80/20 apartment requires some
research, persistence, a bit of luck and the right salary. To qualify for a "20 apartment",
you need to earn no more than 50% of the
area median income, meet all program requirements, win an application
lottery, and pass an interview process.
The income guidelines are calculated annually and vary from building to
building. To ensure the available
apartments are equally distributed, they are rented through an open lottery
system. Since these
are new construction units, the competition is fierce. But if you fall within the specified income
levels and program requirements, are diligent, and are willing to take your
shot at lady luck, you just might win a windfall. Below are the ins and outs of the 80/20
Program. Heed them and you could find
yourself living out a real estate dream.
How to find available
80/20 affordable housing units
The 80/20 Program is sponsored by the New York State Housing
Finance Agency, the New York City Department of Housing Preservation &
Development (DHPD), and the New York City Housing Development Corporation
(HDC). Each agency generates a list of
their subsidized buildings. You can find
open lotteries, the applicable income restrictions, and instructions for how to
apply on the HDC and
DHPD
websites or by calling 311 or 212-863-5610.
You can also register for emails of updated properties at http://www.nyc.gov/hpd. The properties are sometimes advertised in
the local papers; however, we don't recommend relying upon those ads. It is
very important that you frequently visit both websites or consistently call as
the lotteries fill up quickly.
Harlem River North 1951 Park Avenue
How to
apply for 80/20 units
Once you find an apartment you are interested in, you must carefully follow the application process.
Make sure that you meet the income guidelines for the property you are
applying for. Until this past week, applicants submitted separate forms for each property. However, a new pilot program that started
on June 5th should streamline the lottery system. It allows applicants to fill out a single
application for multiple new housing lotteries across both the HDC and DHPD
using an automated only system. This new
pilot phase, called NYC Housing
Connect, will be available for a development in East Harlem
and another in the Richmond Hill
section of Queens.
If all goes well, it should hopefully expand to all properties.
Emerald Green 320 W. 38th Street
How the
80/20 lottery process works
While applicants are randomly selected, preference is
given to residents living in the same community board district. If you meet the income and individual program
requirements, you will be notified and offered an interview. The interview is very thorough. Each application and all income supporting
documents are carefully checked. We
recommend that you start keeping all of your bank statements for at least the
past six months and make sure you have copies of your tax returns for the last
five years. It is also important that
you include assets in your income calculations, as a percentage of them is
applied to your annual income. You
should also make sure you have photo ID, social security card, proof of rental
payments, recent paystubs and employer contact information. If you make even the slightest amount over
the income requirement, you will lose out on the apartment. So do your homework before you apply. There is no application or broker fee, but if
you pass the interview, the developer may charge a fee for a credit check. The developer has the right to refuse your
application on the grounds of bad credit or a bankruptcy.
89 Murray Street, TriBeCa
20s vs. 80s
On the whole, "20 apartment" tenants are treated
like any other tenants in the building, i.e., same access to amenities, etc.
There is, however, one caveat: "20 apartment" tenants are subject to
annual income re-certification, as the "20 apartments" become part of
the rent stabilization system. The program seems to be well received. The
"20 apartment" renters, who are well vetted, are solid people and
good neighbors. They have simply chosen
worthwhile, but lower paying professions.
Final Advice: Be prepared. Be persistent. Be patient.