Last fiscal year (FY 2023) HPD financed more than 26,000 units of affordable housing. Recent data released on NYC Open Data allows us to provide more context about affordable housing production in New York City last year compared to previous years.
In FY 2023 the City financed 26,682 units of affordable housing – both through new construction and preservation. This includes 2,592 units preserved through NYCHA PACT, and this is included in the total housing production for the first time.
But to compare apples to apples over time, we looked at just HPD production and left out NYCHA units. In FY 2023 HPD financed 24,090 affordable units, with 11,812 HPD units preserved and 12,278 HPD units of new construction. The number of HPD units financed for new construction in FY 2023 was the second most since 2000 according to our analysis of historical production. According to the mayor’s press release, half of the new construction units in 2023 relied on the 421a tax benefit.
Two years ago (FY 2022) HPD produced just 16,767 units of affordable housing, a significant decrease from past years due to a staffing shortage at HPD that started during the pandemic and continued through last fiscal year. HPD had projected to produce just 18,000 units in FY 2023. We applaud HPD for exceeding their low target and producing more than 24,000 units – 43% more than last year and closer to the average from 2017 – 2021 of nearly 28,500 units per year.
HPD production of new affordable housing for the lowest income households was close to the highest production in recent years. In FY 2023 HPD financed 2,492 units of new construction affordable housing for extremely low income households (ELI – 30% of AMI or less), the second most since 2014, and 1,832 units of new affordable housing for very low income households (VLI – 31% – 50% AMI), the most since 2014.
Another factor boosting affordable housing new construction numbers last year was a record number of units built for middle income households – which is affordable housing for households earning between $152,520 and $209,715 for a family of three. Last year the city financed over 4,000 units for middle income households, more than any year since at least 2014. Most of these middle income units were produced through 421a according to HPD. We will release a more detailed look at city affordable housing production, comparing 421a and HPD capital subsidy later this fall.
The detailed data does not identify housing for households experiencing homelessness or supportive housing, but the mayor’s press release said that the units financed in 2023 – 3,574 units for homeless households, with 1,923 supportive housing units – is the most since 2014.
In 2023 HPD preserved 11,812 units of affordable housing. While this is a welcome increase from last year, when HPD preserved just 6,448 units of affordable housing, it is still well below the average from 2017 – 2021 of 19,000 units preserved per year. Nearly 2,500 of the units preserved in 2023 were from one project – Flatbush Gardens – which received an Article XI tax exemption.