Including inclusionary zoning : the case of New York City

Abstract

This thesis aims to lay a foundation for a more informed discourse on including inclusionary zoning as a mechanism for creating affordable housing in New York City. To this end, it provides a brief history of inclusionary zoning, and explores the general legal, economic, social, and political arguments for and against this policy tool. It examines the New York City housing crisis, and the issues of gentrification and displacement that are confronting the city. Interview responses of stakeholders, and the varied positions articulated in policy briefs and public hearing testimonies regarding the renewed inclusionary zoning debate in New York City, are presented. A case study of the rezoning proposal by the Department of City Planning for the neighborhood of Park Slope, Brooklyn and the inclusionary zoning debate that accompanied it, is used to frame the positions for and against inclusionary zoning. It also highlights the ideological and political pressure surrounding the public hearing process and the policy decisions that were ultimately reached in this New York City case. Recommendations are given for elements that should be included in a new inclusionary zoning program in New York City, as are suggestions for future research and policymaking strategies. This thesis postulates that inclusionary zoning is a viable policy tool for incenting the development of affordable housing in New York City and maintains that the housing landscape of New York City in 2003 is ripe for a new inclusionary zoning program. It argues that a strong housing market, especially in certain gentrifying neighborhoods, combined with a continued crisis regarding the affordability and availability of housing, sets the stage for a new inclusionary zoning program. Furthermore, it contends that not only do the rezoning and upzoning proposals by New York City's Department of City Planning (DCP) provide an environment of increased development capacity in several of the city's neighborhoods conducive to the application of inclusionary zoning density bonuses, but that these proposals also exacerbate the trends of gentrification and displacement. This thesis proposes that by leveraging the financial capacity and development efficiency of for-profit developers, New York City can ensure a low-cost, high quality housing product for working families. Further, it suggests that the application of a new inclusionary zoning program will allow developers the benefit of increased density, and when combined with other financial and tax-based incentives, can achieve an even higher profit margin than with as-of-right development.