In areas where the Voluntary Inclusionary Housing (VIH) Program, enacted in 1987, is applicable (R-10 Districts, IH Designated Areas and Special Districts), a development may receive a density bonus in return for the new construction, substantial rehabilitation, or preservation of permanently affordable housing.

The density bonus generated can be utilized to increase residential floor area on-site and/or off-site. An on-site project is one where the density bonus is located in the same building as the affordable units that generate the bonus. An off-site project is one where the density bonus is not located in the same building as the affordable units that generate the bonus. For off-site projects, the density bonus must be located on a zoning lot either: 1) within the same Community District as the zoning lot containing the affordable units, or 2) within an adjacent Community District and within ½ mile from the zoning lot that contains the affordable units.

In R10 Districts, the amount of density bonus that a project produces varies by type of construction (new construction, substantial rehabilitation and preservation) and funding source (public vs. private financing). While in IH Designated areas and Special Districts, density ratios are the same regardless of type and funding source. Generally speaking, Inclusionary units must be affordable to low income households earning up to 80% of Area Median Income (AMI) and rents capped at 30% of 80% of AMI. However, in some Special Districts, depending on the district, a density bonus may be granted for moderate and/or middle income units (125% - 175% AMI).

VIH Development Process

• Applicants must submit a completed Inclusionary Housing Program Affordable Housing Plan Application and Checklist and all information required as stated on the Inclusionary Housing Program Application Checklist (which is included in the Application).
• Once an Application is complete, based on all necessary review, the developer or owner may enter into a regulatory agreement with HPD. The fully executed, regulatory agreement must be recorded against the property containing the affordable units, for as long as the density bonus is in use, as a restriction running with the land.
• Upon full execution of the regulatory agreement, HPD will generate a Permit Notice, commonly referred to as the "DOB letter", for delivery to the NYC Department of Buildings (DOB). The Permit Notice states the amount of affordable floor area that a project will generate and allows DOB to issue a permit, to the bearer, to build the additional density created pursuant to the IHP.
• Upon completion of the affordable housing, HPD will issue certificate(s) that state the amount affordable floor area generated. Thereafter DOB may issue a certificate of occupancy for a project using density bonus generated by this affordable floor area.
• A single affordable development may generate a density bonus for multiple Compensated Developments. See Section 23-911 of the Zoning Resolution for a definition of the term "Compensated Development."

VIH Fee Payment

• A one hundred dollar deposit ($100) is required upon submission of an Application, to be applied towards the following filing fee;
• A one thousand, one hundred dollar ($1,100) filing fee per affordable unit.

The total filing fee must be paid upon execution of the regulatory agreement.

Additional Materials

• VIH Fact Sheet
• VIH Architect Affidavit
• Inclusionary Housing Program Affordable Housing Plan Application and Checklist
• Income Limits and Maximum Rents
• VIH Stacking Charts
• 2009 Inclusionary Housing Text Amendment – Frequently Asked Questions
• Inclusionary Housing Term Sheet: Preservation Projects
• Community Board Notification

Mandatory Inclusionary Housing (MIH), enacted in March 2016, requires a share of new housing in medium- and high-density areas that are rezoned to promote new housing production—whether rezoned as part of a city neighborhood plan or a private rezoning application—to be permanently affordable.

Within geographies established as MIH areas, the text amendment requires permanently affordable housing set-asides for all developments over 10 units or 12,500 zoning square feet, or, as an additional option for developments between 10 and 25 units (or 12,500 and 25,000 square feet), a payment into an affordable housing fund. MIH requires permanently affordable housing within new residential developments, enlargements, and conversions from non-residential to residential use within subsequently mapped MIH areas. Developments, enlargements or conversions that do not exceed either 10 units or 12,500 square feet of residential floor area are exempt from the requirements of the program. HPD is responsible for the administration of MIH Program.

MIH Development Process

• Applicants must submit a completed Mandatory Inclusionary Housing Application and Checklist:
  
  • MIH Online Application
  • MIH Paper Application and Checklist
  • Income Limits and Maximum Rents
• Once an Application is complete and approved, the developer or owner will sign a Restrictive Declaration, which must be recorded against the property containing the affordable units, as a restriction running with the land.
• Upon execution and recordation of the Restrictive Declaration (or proof that the document was submitted to the Office of the City Register for recordation), HPD will generate a Permit Notice, for delivery to the NYC Department of Buildings (DOB). The Permit Notice will state the amount of affordable floor area in the project and will allow DOB to issue a New Building permit.
• Upon completion of the affordable housing, HPD will issue a Completion Notice to DOB that states the amount affordable floor area constructed. Thereafter DOB may issue a Certificate of Occupancy for a project.

MIH Fee Payment

Please see the Mandatory Inclusionary Housing Application checklist.

Additional Materials

• MIH Fact Sheet
• MIH Online Application
• MIH Paper Application and Checklist
• Income Limits and Maximum Rents
• MIH Architect's Affidavit
• MIH Distribution and Stacking Charts
• MIH Income Averaging Calculator
• MIH Fee in Lieu Application
• Affordable Housing Fund Contribution (Fee in Lieu) Schedule FY 24-25
• Community Board Notification

Important notice regarding HPD's privately financed affordable senior housing ("PFASH") term sheet

Please note that HPD rescinded the privately financed affordable senior housing ("PFASH") term sheet on June 30, 2021. Developers who still are interested in producing affordable independent residences for seniors should consult other HPD programs,such as Senior Affordable Rental Apartments("SARA").