August 20, 2018
August 20, 2018
Income requirement is one of the most basic and important qualification determining applicant’s eligibility to 421a Affordable Housing. New York City Department of Housing Preservation and Development (HPD) determine income requirements for affordable units using AMI.
AMI, affordability and area median income, is the median income for all cities across the country. HPD has specific standards for affordable housing listed on their website. Housing is considered affordable when a household spends no more than one-third of its income on rent. Landlords also use percentages of AMI to determine how much rent they can charge on affordable units.
Income requirements are different based on family size. To see if you qualify, check out income requirements on 421a affordable housing: 2018 New York City Area AMI.
According to a recent article “Why AMI are the three most controversial letters in New York housing policy” published by City & State NY, an inflated AMI in New York has affected affordability to many renters from the community. Based on a report from Association for Neighborhood and Housing Development, the median is 20 percent higher, when comparing the New York area AMI for a family of four to their actual income median. The article also provided a specific example in East New York. More than one-third of families earn less than 30 percent AMI in this recently rezoned neighborhood in Brooklyn, making affordable housing difficult to afford.
As the City continues to put more effort in making more affordable housing available, the process is still challenging for many who wish to apply. So here is a quick tip to increase your success rate. Make sure you understand the income requirements for 421a affordable housing and actively apply to multiple eligible projects.