Politics
DUMBO Mayor's Inclusionary Zoning Ordinance Update and Its Effect on Affordable Housing Availability
The updated ordinance requires new developments in DUMBO to set aside 20 percent of units as affordable, which city planning records project will add 1,200 such apartments by 2036.
How we reported this
The DUMBO City Council passed the Inclusionary Zoning Ordinance Update on July 7. The measure applies to all residential projects with 10 or more units within the DUMBO waterfront district and adjacent blocks. It replaces the prior 15 percent requirement that took effect in 2022.
Why the change takes effect now
City records show DUMBO permitted 2,800 new housing units between 2023 and 2025. Local housing advocates had documented that only 380 of those units met the prior affordability threshold. The ordinance update responds to a 2025 DUMBO Housing Needs Assessment that found median rents rose 18 percent in the same period.
Under the new rule, developers must price the required units at no more than 60 percent of area median income for at least 30 years. The legislation states that projects failing to meet the target must pay an in-lieu fee of $85,000 per unit into the DUMBO Affordable Housing Trust Fund.
How the rule reaches DUMBO households
Households earning between $52,000 and $78,000 annually become eligible for the new units. That range covers many DUMBO public school employees, retail workers at the Fulton Ferry landing, and staff at the Brooklyn Navy Yard. The policy also caps annual rent increases on those units at 3 percent or the consumer price index, whichever is lower.
City budget papers allocate $1.4 million from the trust fund in fiscal year 2027 to administer the program and monitor compliance. The same documents list an expected 340 households placed in the first wave of units by December 2028.
Implementation begins with projects that receive permits after September 1. The Department of Housing and Community Development will publish the first list of qualifying buildings on its website by October 15. Residents can apply through the existing DUMBO Housing Portal, which will add a new income-verification step for the expanded stock.