NYC Developer Really, Really Doesn't Want Affordable Housing in Its New Chelsea Building

CHELSEA, NY — The developer hoping to build at 42 W. 18th St. evidently has a strong aversion to including affordable housing in its own development. So strong is this aversion that the developer, Acuity Capital Partners, has offered to create a separate fund where it would dedicate a portion of its profits to affordable housing elsewhere in the neighborhood, Crain's reported.

Acuity, a Midtown-based developer, proposed at a Wednesday City Council subcommittee meeting donating 25 percent of its profits from six apartment units in its project toward building affordable housing outside of its development, according to Crain's.

In other words, it will give money to affordable housing, it just doesn't want the affordable housing within the walls of its own building.

A vote by the Subcommittee on Zoning and Franchises was "laid over" at Wednesday's meeting, meaning it will be addressed again at the next meeting.

The proposed 66-unit development at 42 W. 18th St. has been at the center of controversy since the Department of City Planning decided Mayor Bill de Blasio's new affordable housing mandate need not apply to it because of a small legislative loophole.

Acuity issued a statement Thursday evening, saying it was caught in a legislative storm through no fault of its own, and that it offered to contribute to affordable housing in the community despite the fact that it was not required.

This legislative wrangling is a bit confusing, so let's break down the timeline.

In mid-August, the City Planning Commission argued de Blasio's new Mandatory Inclusionary Housing policy did not apply to Acuity's development because of the loophole — Acuity asked for a change in height and shape rules of the building, not the maximum permitted floor area of the building.

The mayor's new rule requires new developments to include at least 30 percent affordable housing when they take advantage of zoning changes. But the DCP argued Acuity had asked for a "rejiggering" of the zoning rules as opposed to an "enlargement," so they were exempt.

But Manhattan Borough President Gale Brewer wanted none of that loophole business.

Brewer argued in an op-ed in the Daily News on Aug. 10 that the distinction between expanding floor area and height was merely "splitting hairs."

Moreover, Brewer argued, if 42 W. 18th St. is not subject to the new affordable housing mandate, it will set a precedent for developers to utilize the loophole when proposing projects in Manhattan.

On Aug. 15, Brewer invoked a rare provision called the "triple no" to force the City Council to vote on Acuity's special permit application. Now City Council has the power to stop Acuity's development in its tracks if Acuity doesn't follow the affordable housing mandate. With the subcommittee delaying the vote, the date for a full Council vote is still unknown.

"With respect to the issues raised by passage of the Mandatory Inclusionary Housing Program, we are caught in a dilemma that is not of our own making," Acuity said in a statement Thursday evening. "The City Planning Commission had determined that the new Mandatory Inclusionary Housing program does not apply to this application. In fact, this 74-711 application process began over three years ago, well before any discussion of MIH. Nevertheless, Acuity understands the City’s need for affordable housing and is willing to make a
voluntary contribution to help address this important issue."

Acuity would like for the city to establish guidelines for its affordable housing fund, a spokesperson for the developer told Patch.

It remains to be seen whether Acuity's proposal for the tentative affordable housing fund will be the compromise needed to end this whole debacle.

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