In continuing our series on How To Find An Affordable Apartment In NYC, we will share how you can get a fabulous apartment in some of the city's hottest new buildings for a fraction of market rent.  Sound too good to be true?  Well, it's not.  Under New York City's 80/20 Program, the government grants real estate developers tax exempt financing for building multifamily rental developments in exchange for 20% of the units being set aside for low and moderate income households.  Thanks to this program, apartment seekers can nab a 500-square foot one-bedroom unit in Battery Park City for just $650, or a two-bedroom in Tribeca for only $2,700.   

  Finding an 80/20 apartment requires some research, persistence, a bit of luck and the right salary.  To qualify for a "20 apartment", you need to earn no more than 50% of the area median income, meet all program requirements, win an application lottery, and pass an interview process. The income guidelines are calculated annually and vary from building to building.  To ensure the available apartments are equally distributed, they are rented through an open lottery system.  Since these are new construction units, the competition is fierce.  But if you fall within the specified income levels and program requirements, are diligent, and are willing to take your shot at lady luck, you just might win a windfall.  Below are the ins and outs of the 80/20 Program.  Heed them and you could find yourself living out a real estate dream.  

  How to find available 80/20 affordable housing units  

The 80/20 Program is sponsored by the New York State Housing Finance Agency, the New York City Department of Housing Preservation & Development (DHPD), and the New York City Housing Development Corporation (HDC).  Each agency generates a list of their subsidized buildings.  You can find open lotteries, the applicable income restrictions, and instructions for how to apply on the HDC and DHPD websites or by calling 311 or 212-863-5610.  You can also register for emails of updated properties at http://www.nyc.gov/hpd.   The properties are sometimes advertised in the local papers; however, we don't recommend relying upon those ads. It is very important that you frequently visit both websites or consistently call as the lotteries fill up quickly.

  How to apply for 80/20 units  

Once you find an apartment you are interested in, you must carefully follow the application process.  Make sure that you meet the income guidelines for the property you are applying for.  Until this past week, applicants submitted separate forms for each property.  However, a new pilot program that started on June 5th should streamline the lottery system.  It allows applicants to fill out a single application for multiple new housing lotteries across both the HDC and DHPD using an automated only system.  This new pilot phase, called NYC Housing Connect, will be available for a development in East Harlem and another in the Richmond Hill section of Queens.  If all goes well, it should hopefully expand to all properties. 

  How the 80/20 lottery process works   

While applicants are randomly selected, preference is given to residents living in the same community board district.  If you meet the income and individual program requirements, you will be notified and offered an interview.  The interview is very thorough.  Each application and all income supporting documents are carefully checked.  We recommend that you start keeping all of your bank statements for at least the past six months and make sure you have copies of your tax returns for the last five years.  It is also important that you include assets in your income calculations, as a percentage of them is applied to your annual income. You should also make sure you have photo ID, social security card, proof of rental payments, recent paystubs and employer contact information.  If you make even the slightest amount over the income requirement, you will lose out on the apartment.  So do your homework before you apply. There is no application or broker fee, but if you pass the interview, the developer may charge a fee for a credit check.  The developer has the right to refuse your application on the grounds of bad credit or a bankruptcy. 

  20s vs. 80s   

On the whole, "20 apartment" tenants are treated like any other tenants in the building, i.e., same access to amenities, etc. There is, however, one caveat: "20 apartment" tenants are subject to annual income re-certification, as the "20 apartments" become part of the rent stabilization system.  The program seems to be well received.  The "20 apartment" renters, who are well vetted, are solid people and good neighbors.  They have simply chosen worthwhile, but lower paying professions.

Final Advice: Be prepared. Be persistent. Be patient.