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July 17, 2009

Would 40% of AY affordable units be above market? Market-rate studios in Brooklyn's tallest building offer evidence

Atlantic Yards Report

Seems like some 40% of Atlantic Yards promised "affordable" housing units are slotted to be more expensive than market-rate rents charged in other buildings. And you can't chalk up the premium to a "Frank Gehry design" anymore.

Three years ago, in July 2006, Forest City Ratner projected that "affordable" studios for the highest "band" (141%-160% of Area Median Income, or AMI) of those gaining access to subsidized units would cost $1861 a month. Given that AMI has gone up since then, the rent would be higher now, and likely would rise when and if units are built.

However, reports the New York Observer, when the 51-story Brooklyner opens next year, studios are expected to start at about $1550 per month. The studios will be small, 350 to 400 square feet. The affordable Atlantic Yards studios would average 400 square feet.

In other words, a significant slice of the subsidized housing--perhaps 900 of the 2250 units, as I wrote in April--would track or exceed market prices.


Posted by eric at July 17, 2009 10:10 AM