August 20, 2018
August 20, 2018
Thousands of applicants apply for an extremely limited number of stabilized affordable units and often overwhelm developers and managing agents. However, sometimes it actually becomes difficult for some projects to find qualifying tenants, because of not understanding tenant eligibility requirements. This is one key issue mentioned by the Real Deal in a recent review of the new 421a program.
According to HPD, approximately 88% of applicants in the housing lottery for a 130% AMI project do not qualify. Therefore, the process of filling affordable units is not ideal due to the immense amount of time and energy it requires. (Check out our first-ever case management system designed for the new 421a program to effortlessly manage the lottery process.) Affordable units reserved for people who earn 130% AMI or higher are particularly difficult to rent. This is due to issues such as marketing method and awareness of tenant eligibility.
First, the Affordable New York program does not seem to be relevant to people who are making decent incomes. Individuals earning around $86,840 are probably not actively looking for affordable units. Also, many people are not willing to go through the lengthy process of applying for affordable units when they are happy with their current place.
Unfortunately, complex housing lottery procedures are due to strict HPD requirements for the program. Therefore, developers should consider different ways to reach families of different income levels to maximum applicant pool results.