How to rent cheap accommodation in New York

The cost of the housing rent in New York is way too high. Those who spend more than 30% of their income on rent may benefit from special state programs allowing leasing the accommodation much cheaper than the market offers.

ForumDaily found out about affordable housing programs in New York, about who might apply, and how the winners of the housing lottery are picked.

The American Dream

Alexander Yurchuk had been always dreaming of living in a New York City skyscraper with an ocean view. It was his personal American dream. Alexander came to the U.S. from Moscow in mid 1990s. Four years ago he finally was able to rent an apartment with a Manhattan view.

Alexander took advantage of the affordable housing program called Mitchell-Lama Housing, currently offering several hundred apartments. Yurchuk’s income was under $45,000, so he could hope for a one-bedroom or a studio.

Alexander started by choosing an apartment from what the program had to offer. Then he filled out a form on its website, printed out his application, bought a Money Order worth $150 (the application fee for the program) and mailed the documents to the management of NYC Mitchell-Lama Connect. As long as the program-participating studios were cheaper than one-bedroom apartments, Alexander picked the former option. He received a response several months after filling the application.

“I remember opening the envelope, and there are these capital letters reading: CONGRATULATIONS, YOU’VE WON THE LOTTERY. I was so happy then. I was assigned a number and started waiting for an interview,” Yurchuk recalls.

The line turned out very long, so he had to wait for three years. Alexander was interviewed by a committee.

“I showed them the documents confirming the information from my application statement, as well as my income over the previous three years,” Yurchuk says.

Alexander was offered three options to choose from. He picked a studio in Brooklyn overseeing the ocean. The rent cost for him was $480 monthly, with the market cost reaching $1,100.

Yurchuk was not able to move in immediately. Information about him was checked and double-checked, and after three months he finally got the keys. The program rules also demanded that Alexander transferred $15,000 to the account of the construction company.

“It’s some kind of a deposit. They explained to me that I am allowed to rent the apartment as long as I want to. However, I cannot appropriate or sell it. If I decide to move out, they will return the $15,000,” Yurchuk elaborated on the matter.

Over the years the rent of this apartment did not increase too much.

“This year, I started paying $500 monthly. Every year they review the rent payment in relation to my income. If the income goes up, so does the rent. It’s good that this amount includes utility payments as well,” he said.

Every year Yurchuk’s apartment is visited by controllers. They check the overall condition of the residency and remind Alexander that he is not entitled to rent out this apartment. In case he violates the program, the authorities might kick him out of the accommodation.

Who is eligible to participate in housing lottery?

The affordable housing programs have been designed for people with low or middle income who spend more than a third of it on rent. The New York City Mayor’s Office believes that more than 30% of income spent on rent is a burden for any citizen.

As a rule, much more people apply for the affordable housing than the number of apartments available. Special lotteries are held to define those who deserve the right to rent an accommodation much cheaper than the market price. This is why matching all financial criteria is not enough — a hint of luck is needed as well.

The Official Website of the City of New York always lists the housing options available. Image by 1.nyc.gov

Recently, the New York City Mayor’s Office has started implementing a special project on construction of new housing in all five boroughs. In 10 years, the authorities plan to construct 200,000 apartments that will be included in the affordable housing programs.

Currently, several affordable housing programs are available in New York implemented by different construction companies. The list of the firms is a subject to change:

• Low-Income Affordable Marketplace Program (LAMP)
• Lamp/Mixed Income Program
• Mixed Income Program
• Mitchell-Lama Program
• New Housing Opportunities Program
• NYC Housing Development Program

Every month, an updated information map on all available renting options is posted on the official website of City of New York. You can also find the accommodation options in all cities of the state of New York on the New York State official website.

To be eligible for a lottery, you must meet the following criteria:

1. Have a certain level income (usually lower than middle). Each program sets its own level. For instance, to participate in the Lamp/Mixed Income, you must earn not less than $18,275 but not more than $24,400 per person. With such income level, you are eligible for a studio in Brooklyn rented for as low as $494 monthly.
2. Spend more than 30% of total income on rent as of the application date.
3. Your credit record should meet the requirement set by constructor.
4. You must have had no issues with paying rent in the past, have no ongoing litigations, nor be a subject of prosecution.

All these facts must be confirmed during the interview.

For available affordable housing options, please visit nyc.gov or call 311. Always pay attention to the deadline date for application to each lottery.

For instance, you would like to live in a one-bedroom apartment in Williamsburg at 356 Bedford Avenue. To participate in a lottery for this facility, a family of two must earn between $20,490 and $27,640 per year. The deadline for the application was April 29, 2016. If you won the lottery, you would pay $532 monthly for the rent. On average, this is two times cheaper than the market price for such accommodation in this area.

How to become a participant of an affordable housing program

Step 1. Registration

First, you need to register at nyc.gov. More than 700,000 people have registered at the portal so far. Then you need to file an application that includes personal information about you and your family, your job, your family income, and current housing situation. It is recommended to respond in full to all the questions in the application. False or incomplete answers will lead to cancellation of your application.

Each program has its deadline set for filing lottery applications. The forms can be submitted both online and via regular mail.

The city mayor’s office cooperates with several civil organizations that help filing the documents and applying for the lottery participation. Full list of organizations can be found here.

Step 2. Processing of applications

Separate lotteries are held for each real estate facility. The number of participants is not limited, so the competition is tough. You will receive information about your application status on the website 2-10 months after the deadline for submissions.

Step 3. Interview and the package of documents

If you win the lottery, you will be contacted by the constructing company and invited for an interview. It is highly recommended to confirm your participation straight away. If you would like to postpone the meeting, it’s better to inform them about it right after you receive an invitation.

You must bring the copies of the following documents for the interview:

• Your birth certificate;
• Your social security number;
• Your ID;
• Your federal and state tax returns for the previous year;
• Your confirmed address of residence (lease contract);
• Receipts for rent and utility payments;
• Certificates of all your family members’ school/college enrollment.

This is the basic list of documents. Depending on the program you choose, you might need to provide more personal data. Please visit the official website of the City of New York for more information.

Step 4. Signing a contract

If you provided complete and reliable information, you will get invited to sign a lease contract. You might also be put on the waiting list. You should be informed in the case of the latter. Every six months you would need to reconfirm with the constructor your desire to continue participating in the program or refuse it.

If your application is rejected, you will receive an official letter of rejection. You have the right to appeal the decision within 10 days. The document should be filed with the construction company in writing.

You have advantages if:

• You have a disability;
• You reside in the same district where the real estate facility is located;
• You work for the city municipal authorities;
• You permanently reside in New York.

Russian roulette with American property

Moscow-born Natalya Lyutova arrived in New York two years ago with her daughter. Initially, she rented a room in the borough of Queens. In summer of last year Natalya’s friends told her of the residential lottery. The woman perused the internet and chose several programs for affordable housing.

“During the registration process, I had to fill in my personal data, my family members, and annual income. Back then I was earning very little, around $1,000 monthly. So I wrote ‘$12,000’ in the income box,” says Lyutova.

Natalya didn’t pay a cent to participate in the lottery. She says she picked the options that didn’t require any filing fees. She didn’t have to mail in any copies of her documents. The woman was waiting for the results when she realized she wouldn’t win.

“I made a mistake. Of course, my English back than made it more complicated. It turns out that the minimum income to participate in the lottery should be $25,000 if you’re aiming at a modest studio. And I put in two times less amount. I think I wasn’t even considered by the system,” Natalya says.

Currently Lyutova rents a one-bedroom apartment for $1,750 monthly. She has a permanent job, but spends most of her salary on the rent payments. So the woman kept thinking of the lottery, and decided to give it another try.

“Sadder but wiser, I opened my profile and change the family income data. I put in ‘$25,000’ and added my daughter’s income of about $5,000. I also noticed several new addresses, so I filed a few more applications,” Lyutova elaborates.

The woman is anxious to win but doubts her chances. In Manhattan’s Harlem, where Natalya currently resides, she says she is unlikely to win because local programs focus on U.S. citizens’ applications first.

“But I keep dreaming and believing. I would be more than happy to rent a $800-$900 apartment. This is a great price for Manhattan,” Lyutova says hopefully.

One thing Natalya is right about is the competition among the lottery applicants, which is fierce. For instance, in September of last year, 200 apartments were allocated in Brooklyn, at 7 Dekalb Avenue, with more than 90,000 people having applied.

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