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FOR IMMEDIATE RELEASE
April 7, 2016

DC 37 Analysis: Newly-built East New York housing will be more affordable than the status quo

Action Needed: Rents in East NY rose 26% between 2000 and 2013

• DC 37 East NY Housing Analysis (PDF)

NEW YORK CITY – District Council 37, the city’s largest union of municipal employees, today released an analysis of the de Blasio administration’s plan for East New York housing that shows proposed rent levels for new affordable housing to be significantly less expensive than apartments renting there today.

“The status quo is just not working — it’s leaving East New York without the tools or investments needed to protect against rising rents,” said DC 37 Executive Director Henry Garrido. “We looked hard at the facts. And the facts are that under the City’s plan, East New York will become more affordable for working men and women such as our members.”

The DC 37 analysis shows union members and other working families who live in East New York today are being hurt by rising rents:

• Between 2000 and 2013, rents in East New York spiked 26 percent.
• The average two-bedroom apartment there now rents for $1,400 per month. But many of DC 37 members earn less than $39,000 year — for their housing to be truly affordable, rent should be no higher than $985 a month.
• Approximately 40 percent of East New Yorkers are currently ‘severely rent burdened’ — paying more than half their income on rent.

By contrast, more than 80 percent of the affordable housing the City has committed to build will have rents below $1,200 per month for a two-bedroom apartment. And 40 percent of new affordable housing will be priced at less than $1,000 per month for a two-bedroom home. These rents are more affordable to East New Yorkers than current market rates.

“DC37 represents city employees whose families are working their way into the middle class,” Garrido said. “Among others, we represent school cafeteria, maintenance and clerical workers. These are families of modest means, and precisely the New Yorkers in need of affordable housing.”

• The average salary for a DC 37 Office Aide: $30,644 (affordable rent = $766/month)
• The average starting salary for a Custodial Assistant: $33,363 (affordable rent = $834/month);
• Average starting salary for a Patient Care Associate: $39,934 (affordable rent = $998/month)

In just the first two years of the de Blasio administration’s affordable housing plan, the city has pledged to build 1,200 affordable apartments serving a diverse range of families (rents given range from one-to-three person households):

• 10% of units will be less than 30% of a family’s Average Monthly Income (AMI), up to $485-$583/month
• 15% of units will be between 31% and 40% AMI, up to $647-$777/month
• 15% of units between 41% and 50% AMI, up to $810-$971/month
• 40% to 60% of units between 51% and 60% AMI, up to $970-$1,165/month
• Up to 20% of units between 60% and 90% AMI, up to $1,458-$1,748/month

The New York City Council is currently considering the plan, which also includes significantly improved services for neighborhood’s residents.