"I think when most people think of 'affordable housing,' they think about helping people making less than $30,000 or $20,000 a year. Why, after all, should tenants with comparatively high salaries get a spot in an affordable rental when so many other New Yorkers are in dire need? Why is there affordable housing for those making a decent income (low six figures), and so few options for the poorest of New Yorkers?Īnother common source of confusion-and frustration-with the city's affordable housing system is the seeming preponderance of listings geared towards renters earning well over six figures. While the cutoff for the low-income tax credit is set firmly at 60 percent of AMI-and therefore determines the most standard set of income ranges you'll see in affordable housing-different programs and tax credits encourage developers to rent to residents at a variety of income levels (and AMI percentages), which is why you'll see different income ranges in affordable housing listings (more on that below). "For example, under an 80/20 building participating in the federal low income housing tax credit and tax exempt bond income, they'd have to restrict incomes for low-income units to no more than 60 percent of AMI." (Right now, 60 percent of AMI in New York shakes down to an annual salary of $38,100 per year for an individual, and $54,360 for a family of four-you can check out other percentage breakdowns here.) "AMI is set at 'X' percentage for different programs," explains HPD spokesperson Melissa Grace. (For this reason, critics have raised concerns that AMI isn't truly representative of NYC's true spread of incomes, let alone the vast differences between city neighborhood income averages.)įrom there, affordable housing brackets are determined by different percentages of the AMI. However, that figure is based on data from the larger New York metro area, which includes wealthy parts of Long Island, New Jersey, and and Connecticut. For example, the AMI for New York City in 2016 is $90,600 for a family of four, according to these guidelines from the New York City Housing Development Corporation (HDC). The longer answer is that the basis for incomes and asking rents is a number called Area Median Income (AMI), a figure set forth each year by the Department of Housing and Urban Development (HUD). Presented by Who's determining the income caps?