GO
Loading...

Enter multiple symbols separated by commas

New York City's De Blasio to spend $41B for cheaper housing

Bill de Blasio
Getty Images
Bill de Blasio

New York City mayor Bill de Blasio has unveiled a 10-year plan—that will cost $41 billion—add 200,000 apartments to one of the most expensive and crowded housing markets in America.

The plan aims to create enough housing to serve more than half a million New Yorkers. About 40 percent of the units will be newly built, while the remaining 60 percent will be "preserved"—which can mean anything from repairing and renovating existing affordable housing to protecting tenants from rising rents or eviction.

It will also double the budget of the city's Housing Preservation and Development agency, and will be funded through taxes, loans and money from private investors.

Read MoreManhattan apartment sales hit a high

More than three quarters of these units will go toward households considered "low income" or poorer. About the 22 percent of the remaining apartments will go to moderate and middle-income New Yorkers, (which includes families of four making anywhere from $68,000 to nearly 140,000 annually).

More than half of all New Yorkers pay more than 30 percent of their income toward rent, and about 35 percent of the city's poorest—those who make less than about $42,000 a year—pay more than half of their income, according to figures cited in the plan.

The complex plan will not just involve construction. The other initiatives include securing affordable housing in neighborhoods at risk of rising rents, providing tax incentives for building owners and subsidizing energy efficiency retrofits in existing buildings.

Contact Real Estate

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.
  • Diana Olick

    Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

Home prices and supply map

  • Track the latest moves in sales, prices and inventory in some of the largest housing markets across the country.

Latest Special Reports

  • Financial Advisor

    CNBC looks at how technology, product development, succession plans and client relations impact financial advisory firms.

  • Waitress tablet

    Trailblazers leveraging the power of technology and innovation to grow their business—and disrupt the competition.

  • Is an active twist on passive investing the right portfolio move? An inside look at the rise of ETF strategists.