Dive Brief:
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The New York City Council has given the green light to four new low- and middle-income housing developments in East Harlem and the Bronx, according to Politico.
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The two largest projects — Lexington Gardens in East Harlem and Lambert Houses in the Bronx — will together bring more than 2,000 affordable and semi-affordable housing units to the market. Lambert Houses will contain 1,665 units in total and includes $12.3 million in transit improvements, the renovation of a nearby park and two elementary schools.
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Although some of the rents at Lexington Gardens are higher than the gentrifying neighborhood’s median rent, they match current rents paid by newcomers and will be stabilized to prevent future increases as the neighborhood attracts more residents.
Dive Insight:
Approval of the latest tranche of affordable housing projects in New York is a boost to Mayor Bill de Blasio’s plan to provide 200,000 new or existing affordable homes in the city over the next 10 years.
New York is among the cities coming up with measures to plug the affordable housing gap. Officials there recently struck a deal to revive the 421-a tax break, under which developers must reserve 20% of a project’s units at below market rates for low- and middle-income residents.
The growth in demand for housing is not expected to ease in the near-term. As a result, construction activity in New York City is booming, with a recent forecast noting that residential spending, including renovation work, is set to hit $13.4 billion in the city this year, up five times from 2010 levels.
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