3. Reason for selection
NYS Statewide initiative to build
800K new homes over the next
decade presents a case study for
economic impacts of planning and
zoning for bold housing reforms.
Analyzing Social, Environmental,
and Political Influences for
Success and Equity-Building in
NYC.
Objective: Understand impact of
social, environmental, and political
factors on affordability of housing in
NYC and propose economic
project to address crisis.
Affordability of housing in NYC is
influenced by a complex interplay
of factors.
Strategic investments in
infrastructure, education, and
sustainable housing technologies
while implementing affordable
housing policies can reduce socio-
economic disparities, promote
economic growth, and improve
residents' quality of life.
4. Overview of the Current State of Affordable Housing in
New York City
• NYC one-bedroom apartment rent: $3,000/month, impacting low and middle-income
households.
• 200,000 families on NYC Housing Authority's affordable housing waitlist.
• Limited affordable housing supply in NYC due to growing population and increased
competition.
• Many residents spend significant portion of income on housing, limiting budget for
other necessities.
5. New York City’s
homeless problem
isn’t getting better!
Homelessness is a
Mental Health Crisis
Homeless Don't Feel
Safe in Shelters
Strict Rules and
Regulations in
Shelters
NY City Council
Calling for Overhaul
of Shelter System
Many Return to
Streets Within a
Week of Entering
Shelter
The call for a strong
investment in
housing to address
the issue
The goal of the
project to address
the homelessness
and housing crisis in
NYC
6.
7. Proposed Policy Initiative:
Increasing the Supply of
Affordable Housing
Proposal to develop below-
market-rate rental units that
accept full NYC subsidies
The policy initiative to
increase the supply of
affordable housing options
Increasing the supply of
affordable housing, we can
help to address the issue of
high housing prices and
improve the quality of life for
low- and middle-income
households.
8. Proposal Strategies
• Proposal: Affordable Housing Complex in Brooklyn, NY
• Location: Convenient w/ Access to Public Transport & Services
• Units: Priced Below Market Rate for Low to Moderate Incomes
• Amenities: Community Spaces, Playgrounds, Green Spaces
• Financing Options: Government Subsidies, Low-Interest Loans, Tax Credits
• Public Finance Framework: Comprehensive Financing Strategy
• Goal: Maximize Benefits, Minimize Costs.
9. Project:
6020 3rd Avenue, Brooklyn, NY, 11220
Housing Development
Project Proposal Details:
❖ $46M Acquisition Opportunity
❖ Lot size: 0.367 ac
❖ Close interstate 278 proximity + public transit
❖ 200 units, 100 reserved for literally homeless
PROJECT PROPOSAL
10. Project Address: Project Start Date February 1, 2023 Loan-to-Cost 65%
Land Size Project Duration 24 months Interest Rate 5.00%
Zoning Project End Date February 28, 2025 Term 36 months
Existing Building SF Construction Term 18 months Average Sale Price/Rental per Unit 2,500
Buildable SF Vertical Costs 115 Vacancy & Collection 5%
Sellable SF Developer's Fee 6% Operating expense ratio 30%
Units Cap Rate at sale 5% Closing Costs 6%
Total Project Per Unit Per Sellable SF
Development Costs -
Land Acquisition 50,000,000 250,000 3,676
Soft Costs 500,000 2,500 37
Demolition 1,000,000 5,000 74
Site Work 41,000,000 205,000 3,015
Vertical Costs 1,840,000 9,200 135
Interest Carry -
Developer's Fee 5,660,400 28,302 416
Total Development Costs 100,000,400 500,002 7,353
-
Gross Rents 6,000,000 30,000 441
less: Vacancy & collection 300,000 1,500 22
Net Effective Rent 5,700,000 28,500 419
Operating Expenses 1,800,000 9,000 132
Net Operating Income 3,900,000 19,500 287
Yield on Cost 3.90% 3.90% 3.90%
Net Building Sale 8,319,740 41,599 612
Loan Amount 65,000,260.00 325,001 4,779
Equity 35,000,140 175,001 2,574
Equity Multiple 1.24 1.17 1.17
ROE 24% 17% 17%
LTV 83%
Debt Yield 6%
DCR 0.89
200
6020 3RD AVE
0.37 acres
R6B
16,000
13,600
11. Analyzing Social, Environmental, and Political Influences for Success and
Equity-Building in New York City:
METHODOLOGY FOR EQUITY
12. Estimating Total Costs and Benefits
Estimated Total Cost: Factors - Land,
Construction, Financing
Total Cost: $100 Million budgeted for project
Estimated Benefits: Increased Access to
Affordable Housing, Job Creation, Increased Tax
Revenue, Improved Quality of Life, Reduced
Poverty, Increased Economic Activity
13. Creative
Financing
& Funding
• Utilizing $25 billion from the New
York State Housing Plan in the
historic fiscal year 2023 budget
• Applying for Section 8 and NYC
Housing Authority (NYCHA)
project-based vouchers
• Taking advantage of the
opportunity zone designation for
effective development
incentivization
• Pursuing federal and state grants
and exploring various financing
options such as government
subsidies, low-interest loans, and
tax credits
14. Equity and
distributional
results
Policy Initiative:
Improve
Low/Middle-Income
Life in NYC
Positive Spillover
Effects: Increased
Demand, Job
Creation
Negative
Consequences:
Competition,
Gentrification,
Displacement
Risk Mitigation:
Community
Consultation,
Resident Protection
Goal: Positive
Equity and
Distributional
Consequences
Impact: Reduce
Poverty, Improve
Economic Mobility
in the City.
