Publications
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The Landscape for Commercial Property Conversions in New York City
Two years into the COVID-19 pandemic, the conversion of commercial space to long-term housing (especially, but not only, affordable housing) remains a topic of discussion amongst New York City policymakers. Repurposing under-utilized commercial space as housing might appear as a rebalancing of land uses in response to shifting demand—as well as a way to build new housing with fewer neighborhood objections over bulk and height. To better understand these opportunities and to supplement its prior research on the issue, the Furman Center held a workshop with leading architects, land use lawyers, housing providers, and policy experts. This brief addresses some of the most important barriers to commercial-to-residential
conversions, with a particular focus on hotels, and the options for policy interventions to promote additional conversions. -
The Latest Legislative Reform of the 421-a Tax Exemption: A Look at Possible Outcomes
This report explores the possible impacts of the new 421-a legislation on residential development in New York City’s neighborhoods. The legislation has set in motion three possible outcomes; the outcome should be determined in December 2016. Through financial modeling, this study details the effect each outcome will have on production of housing in different parts of the city. We find that the expiration of the 421-a benefit would likely lead to a disruption in the supply of housing by market rate builders, while a revised program without any increase in construction costs could result in the development of more rental units in many parts of the city compared to what the existing 421-a program would have created.
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The Latest Reform Proposal for the 421-a Program
This report analyzes the potential impact of the most recent reform proposal for the 421-a program on housing development in New York City, which is currently under consideration by the New York State Legislature. In evaluating the proposal, the report finds that the proposed 421-a program’s increase in tax exemption exceeds the additional affordable housing benefit by $2.6 to $5.7 million for a 300-unit building. The report also finds that the higher tax break for developers may support a 10-18% rise in hard construction costs without affecting long-term financial returns.
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The Price of Resilience: Can Multifamily Housing Afford to Adapt?
This report explores the challenges of retrofitting New York City’s existing multifamily rental buildings to be more resilient to future storms. After summarizing our key findings, we provide background about the current regulatory requirements existing building owners who wish to retrofit must navigate. We then discuss the results of a design workshop the Furman Center convened in January 2014 with the help of our partners at the New York Chapter of the American Institute of Architects (AIANY) and Enterprise Community Partners.
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Unlocking the Right to Build: Designing a More Flexible System for Transferring Development Rights
This report details the untapped potential for NYC’s transferable air rights program, a critical tool for high-density housing development in New York City. Using case study examples, the report outlines limitations to the city’s current TDR policies and suggests a policy approach that could unlock millions of square feet of unused air rights to help produce more affordable housing.
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What Can We Learn about the Low-Income Housing Tax Credit Program by Looking at the Tenants?
This policy brief examines LIHTC tenant income to assess the extent to which the program’s target demographic is served. The brief finds that forty percent of LIHTC units house extremely low-income (ELI) households. In addition, the report finds that of ELI households living in LIHTC units, more than 70 percent receive some form of rental assistance, which suggests that additional subsidies are crucial to the functionality of the program. In terms of rent burden, LIHTC tenants, particularly those without rental assistance, have higher rent burdens than HUD tenants. Since it was created in 1986, the LIHTC program has created over 2.2 million units of affordable housing and today it is the largest affordable housing program in the U.S. This study is the first rigorous, national analysis of the incomes of LIHTC tenants.