2025 Theses Master's

From Policy to Practice: How Mandatory Inclusionary Housing Shapes Housing Development in Moderate Market Area

Kharimah, Anisa Chandra

This thesis explores the implementation of New York City’s Mandatory Inclusionary Housing (MIH) policy in moderate-market neighborhoods, focusing on East Harlem and East New York as case studies. While MIH was designed to generate affordable housing through private development in rezoned areas, most MIH projects in these neighborhoods are delivered by nonprofit or mission-driven developers producing 100% affordable housing.

Using a mixed-methods approach, this study analyzes housing production data, project financing strategies, and semi-structured interviews with developers and policymakers. Findings show that MIH projects in moderate markets rely heavily on layered public subsidies, including Low-Income Housing Tax Credits (LIHTC), city financing programs, and state tax exemptions such as 421 a tax incentive, Article XI, and 420 c tax incentive.

The study also highlights the limited role of MIH as a standalone tool and the need for stronger coordination between zoning mandates and funding mechanisms. This research contributes to a better understanding of how affordability policies function in less profitable markets and offers recommendations to improve MIH implementation in similar contexts.

Keywords: Mandatory Inclusionary Housing (MIH), Affordable Housing, Moderate-Market Neighborhoods, East Harlem, East New York