New York City Reaches Landmark Settlement Agreement on Fair Housing Practices

person A.J. Johnson today 10/06/2024

In a significant development for fair housing in New York City, Parkchester, a major residential complex in the Bronx, has entered into a comprehensive settlement agreement to address allegations of discriminatory rental practices. The deal, reached with the New York City Commission on Human Rights, outlines extensive reforms to Parkchester's rental policies and procedures, mainly focusing on the treatment of applicants with rental assistance.

Key Provisions of the Settlement:

  1. Non-Discrimination in Rental Assistance: Parkchester has agreed to consider all rental assistance types when evaluating sponsor units' applications. This includes Section 8 vouchers, Housing Choice Vouchers, HASA, CityFHEPS, and Olmstead programs. The complex is prohibited from giving preference to one type of rental assistance over another.
  2. Elimination of Minimum Income Requirements: Parkchester will no longer impose minimum income requirements for applicants using rental assistance. This change aims to increase housing accessibility for low-income individuals and families.
  3. Credit Score and Housing History: The agreement prohibits Parkchester from requiring minimum credit scores or verifiable housing history for applicants with rental assistance. Credit history will not be considered in the application process for those whose rent is fully covered by assistance.
  4. Fair Chance Housing: Parkchester has committed to complying with the New York City Fair Chance Housing Act, which will take effect on January 1, 2025. This includes performing individualized assessments of applicants' criminal histories.
  5. Application Process Reforms: The settlement mandates changes to Parkchester's application and screening materials to ensure compliance with federal, state, and local laws. It also requires Parkchester to provide reasonable accommodations for applicants who need assistance with the digital application process.
  6. Set-Aside Units: In a significant move, Parkchester has agreed to a quota system where two out of every three available sponsor units will be rented to applicants with rental assistance until 850 such applicants have moved in. This includes the 257 that have moved in since August 1, 2022.
  7. Advertising and Outreach: The agreement requires Parkchester to include specific language in its advertisements and website, welcoming applicants with rental assistance and explaining the non-discrimination policies.
  8. Training and Monitoring: Parkchester staff will undergo comprehensive fair housing training. The agreement also establishes a monitoring system, requiring Parkchester to maintain detailed records and provide regular reports to the Commission on Human Rights for five years.

This settlement represents a significant step forward in ensuring equal access to housing in one of New York City's largest residential complexes.

The agreement aims to create more inclusive and diverse communities within Parkchester by addressing systemic barriers that have historically disadvantaged applicants with rental assistance.

The reforms outlined in this agreement could serve as a model for other large residential properties in New York City and beyond, potentially influencing fair housing practices on a broader scale.

Latest Articles

Impact of the Election on Affordable Rental Housing Production

While it is too early to predict with any certainty what the election of Donald Trump will mean for the affordable housing industry, we can make some assumptions based on the policy positions he has outlined so far. Trump s election will likely significantly influence the development of affordable rental housing in the United States. His administration s policies will likely focus on deregulation, immigration control, and using federal lands for housing development. Deregulation and Housing Development Trump has consistently advocated for reducing regulatory barriers to stimulate housing construction. He argues that excessive regulations increase construction costs and impede affordable housing development. By streamlining permitting procedures and relaxing zoning laws, the administration will encourage private developers to build more housing units, potentially increasing the supply of affordable rentals. Immigration Policies and Housing Demand The administration has linked housing affordability issues to immigration, suggesting that reducing the number of immigrants will decrease housing demand and, consequently, lower prices. This perspective claims that mass deportations could free up housing units, making them more accessible and affordable for American citizens. However, such measures may disrupt the construction industry, which relies heavily on immigrant labor, potentially exacerbating housing shortages and increasing costs. Utilization of Federal Lands Trump has proposed opening federal lands for large-scale housing construction, aiming to address housing shortages by increasing the availability of land for development. This initiative would create zones with reduced taxes and regulations to incentivize builders to develop affordable housing projects. While this approach could expand the housing supply, its effectiveness would depend on the implementation details and the willingness of developers to participate. Potential Challenges While the goal of these policies would be to increase the supply of affordable rental housing, they are likely to face several challenges: Labor Shortages: Immigration restrictions could lead to labor shortages in the construction industry, slowing housing development and increasing costs. Environmental and Community Concerns: Utilizing federal lands for housing will almost certainly encounter opposition due to environmental concerns and community resistance to large-scale developments. Market Dynamics: Deregulation alone may not ensure affordability. Developers may prioritize higher-end projects for greater profits, leaving a gap in affordable rental options. In summary, the incoming Trump administration s affordable rental housing development approach focuses on deregulation, immigration control, and leveraging federal lands. While these strategies aim to increase the housing supply and reduce costs, their success will depend on careful implementation and consideration of potential economic and social impacts.

USDA Proposes Mandatory Deed Recording Requirements for Section 538 Rural Rental Housing Program

The Rural Housing Service (RHS) of the U.S. Department of Agriculture has proposed a new rule requiring separate deed restrictions to be recorded for properties financed under the Guaranteed Rural Rental Housing Program (GRRHP). This proposed change aims to ensure affordable housing remains available for low and moderate-income households in rural areas even after mortgages are paid off. Key Changes The proposed rule would amend 7 CFR 3565.352(b) to require: A separate deed restriction must be recorded containing specific restrictive use language. The deed restriction must be recorded before other transaction documentation. The restriction must state that the housing will remain available for low- and moderate-income households for the original loan term. Background Section 538 GRRHP, administered under the Housing Act of 1949, provides loan guarantees for developing housing and related facilities in rural areas. While current regulations require properties to remain affordable for the original loan term, they don't specifically mandate recording a separate deed restriction. This has created a potential loophole: Restrictive use provisions could be released upon loan prepayment if only included in the mortgage or deed of trust. Significance The proposed change addresses a critical preservation issue. Without recorded deed restrictions: Affordable housing requirements could be terminated early through loan prepayment. RHS would have limited ability to enforce continued affordability. Rural communities could lose vital affordable housing resources. Implementation Details The rule would allow three exceptions to the deed restriction requirement if the RHS determines: There is no longer a need for low- and moderate-income housing in the market area; Housing opportunities for low-income households and minorities won't be reduced, or Additional federal assistance won't be needed. Public Comment Period Interested parties can submit comments on the proposed rule through January 6, 2025, via: Federal eRulemaking Portal (regulations.gov) Docket Number: RHS-24-MFH-0016 RIN: 0575-AD34 Contact Information For more information, contact: Tammy DanielsFinance and Loan AnalystMulti-Family Housing Production and Preservation DivisionRural Housing Service, USDAPhone: (202) 720-0021Email: tammy.daniels@usda.gov

IRS Announces Historic Increases for 2025 Tax Credit Multipliers and Small State Minimums

On October 22, 2024, in Revenue Procedure 2024-40, the Internal Revenue Service (IRS) revealed significant increases for key tax credit multipliers and minimum thresholds for 2025, setting historic highs in several areas. These changes impact the Low-Income Housing Tax Credit (LIHTC) and Private Activity Bonds (PABs), vital funding sources for affordable housing and community development projects. Critical Updates for 2025: 9% Tax Credit Multiplier Increase: The per capita multiplier for 9% tax credits will rise to $3.00 in 2025. This adjustment represents a notable increase, providing enhanced opportunities for affordable housing development. Private Activity Bonds Multiplier: The per capita multiplier for PABs will reach $130, a $5 increase from 2024. This marks the highest level recorded, further supporting the financing of essential infrastructure and housing initiatives. Historic Highs in Small State Minimums: Both the per capita multiplier for the 9% credit and PABs are at record levels. The small state minimums will also be unprecedented in 2025, with $3,455,000 set for the 9% credit and $388,780,000 for PABs. LIHTC Rehabilitation Minimum Increase: The minimum rehabilitation cost for the LIHTC will be $8,500 per low-income unit in 2025, reflecting a $200 rise over the previous year. This adjustment helps ensure that housing rehabilitation projects maintain adequate standards for quality and affordability. Effective Date: All updated minimums and multipliers will take effect starting January 1, 2025.

HUD Issues New Guidance on Solar and Rooftop Leases for Multifamily Housing

The U.S. Department of Housing and Urban Development (HUD) has released new guidance on solar, cell tower, and rooftop leases for HUD-assisted and HUD-insured multifamily housing projects. This guidance aims to streamline the process for property owners to enter into these commercial lease agreements while protecting HUD's interests. Key Points Applicability: The notice applies to owners of HUD-insured or HUD-subsidized multifamily projects subject to a HUD business agreement requiring approval for encumbrances, including commercial leases. Types of Leases Covered: Solar leases and Power Purchase Agreements (PPAs) Cell tower leases Other rooftop commercial leases Ground-mounted solar electric systems Required Documentation: Owners must submit a package to their HUD Account Executive, including: Unexecuted lease agreement Estimated annual lease payments Signed HUD Multifamily Rooftop Lease Owner Self-Certification Unsigned HUD Multifamily Solar, Cell Tower, and Rooftop Lease Rider Recent roof inspection records (for rooftop systems) Mortgagee approval (for FHA-insured properties) Estimated electricity cost savings (for solar systems) HUD Review Process: HUD will review the owner's standing and compliance Local HUD counsel will review the legal aspects of the lease The Multifamily Asset Management Division Director will grant approval Post-Approval Requirements: Execute and submit the HUD Multifamily Solar, Cell Tower, and Rooftop Lease Rider Ensure adequate property insurance coverage Increase Reserve Fund for Replacements deposits if necessary Perform utility consumption and emissions benchmarking (for solar on HUD-assisted projects) Adjust utility allowances if applicable (for solar on HUD-assisted projects) Key Considerations: Roof condition and remaining useful life The project's capacity to support rooftop equipment Financing plan for equipment removal/reinstallation during roof replacement Insurance coverage for potential damages Implications for Property Owners This guidance clearly outlines a pathway for multifamily housing owners to leverage their rooftop space for additional income or energy cost savings. By outlining specific requirements and processes, HUD aims to facilitate the adoption of solar energy and other rooftop uses while safeguarding the interests of the properties, tenants, and HUD's investments. Property owners should review the entire notice carefully and consult with their HUD Account Executives when considering entering these lease agreements. The potential benefits of reduced energy costs and additional income should be weighed against the responsibilities and requirements outlined in the guidance. Due to potential tax ramifications, owners of LIHTC properties that are layered with the relevant HUD programs should consult tax counsel before executing any agreements for the use of roof space. Conclusion HUD's new guidance represents a significant step in supporting the adoption of clean energy technologies and maximizing the utility of multifamily housing properties. By providing a clear framework for approval and implementation, HUD enables property owners to explore innovative ways to reduce costs and generate income, ultimately contributing to the sustainability and financial health of the multifamily housing sector.

Want news delivered to your inbox?

Subscribe to our news articles to stay up to date.

We care about the protection of your data. Read our Privacy Policy.