Over the past 30 years, the share of renters in the United States spending over 30% of their income on rent, and thereby qualifying as rent burdened, has increased. This trend has particularly affected low-income families. At the same time, owners of thousands of privately owned, publicly subsidized rental housing units have left, or “opted out,” of subsidy programs across the country. The efforts of local governments to preserve these properties as affordable housing are handicapped by a lack of understanding of the underlying factors that drive owners’ decisions to opt out. This paper employs a unique dataset on subsidized properties in New York City and uses hazard models to explore why property owners in the Mitchell-Lama program, a New York State affordable housing program, choose to opt out. Our results suggest that properties located in neighborhoods with high property value growth, those with for-profit owners, and those past the affordability restrictions on all subsidies, are more likely to opt out. While our study focuses on Mitchell-Lama properties, the findings have broader implications for properties around the country that receive supply-side rental subsidies.
Zoning for Affordability: Using the Case of New York to Explore Whether Zoning can be Used to Achieve Income-Diverse Neighborhoods
This article considers the legal limitations on a locality’s ability to regulate land use, in order to evaluate whether mandatory inclusionary zoning can withstand legal challenge. It uses New York City’s recently adopted, ambitious, mandatory inclusionary zoning policy as a case study, and considers how the city might justify the policy in the face of both constitutional and state law challenges. The article concludes that New York City’s policy is likely to survive, but there are open legal questions that make it hard to predict with certainty how the policy will ultimately fare. Inclusionary zoning policies in other jurisdictions are likely to face similar challenges, and the experience of New York City will hold important lessons for other high-cost cities interested in using land use r egulation to foster economically diverse neighborhoods.