NYC Council Approves Inclusionary Housing Expansion, Matching Rules in Chicago and Boston

The New York City Council voted 35-12 on July 7 to expand the Mandatory Inclusionary Housing program, requiring developers to set aside 20 to 30 percent of units as affordable in rezoned areas. The measure applies to new construction projects receiving city subsidies or zoning changes, directly affecting parcels in Community District 6 that includes Park Slope.

The update responds to the city's 2025 Housing Production Report, which documented a shortfall of 150,000 affordable units citywide. Council members tied the vote to ongoing compliance with the 2022 Housing Our Neighbors Act, which sets production targets through 2030. Local advocates note that Park Slope's proximity to the Fourth Avenue corridor makes several sites eligible for the new thresholds.

Comparison to Other Cities

Under the revised program, New York now requires deeper income targeting than Chicago's 2024 ordinance, which sets aside 15 percent of units for households at 60 percent of area median income. Boston's 2023 rules cap the set-aside at 25 percent but apply only to projects above 15,000 square feet. Policy analysts say the New York version extends coverage to more mid-sized developments than either city, including conversions along Union Street and Garfield Place in Park Slope.

Department of Housing Preservation and Development data from the 2025 annual report shows 4,800 units have been produced under the prior inclusionary rules since 2016, with 620 located in Brooklyn Community District 6. The expansion is projected to add 1,200 additional units annually across the five boroughs, according to the legislation's fiscal impact statement.

Property owners in Park Slope will face new compliance filings with the Department of Housing Preservation and Development starting in the fourth quarter of 2026. Tenants in existing rent-stabilized buildings are not directly affected by the vote, though the legislation states that any future rezonings on Fourth Avenue could trigger the higher set-aside percentages.

Next Steps for Implementation

The Department of City Planning will release updated zoning maps by September 2026 identifying the affected parcels. The government says the policy will increase the supply of units priced for households earning up to 80 percent of area median income, currently set at $78,000 for a family of three in New York City. Residents seeking information on eligibility can contact the local district office beginning in August.