New York City’s housing lottery program helps residents find affordable housing, including rent-stabilized apartments. The Department of Housing Preservation and Development defines affordable housing as a housing cost not exceeding 30 percent of a single person’s or family’s income.
Under the city’s rent stabilization system, there is a legal limit to the amount of rent a person can be charged per year. The New York Rent Guidelines Board determines the rate at which rent for a rent-stabilized apartment can increase leasehold.
Nkenge applied to the New York housing lottery for three years before getting his one-bedroom apartment in Flatiron.
Mickey Todiwala. Photo from CNBC Do it
Nkenge, who asked to be identified only by her first name for privacy reasons, told CNBC Make It that she started applying for the lottery in 2020 because she was paying around $1,900 for a small apartment in ‘a room Harlem, but she wanted to reduce her rent costs to around $1,000 a month.
“I really want to save for a place to live, something I can call my own and actually own,” Nkenge says. “I had a budget and I wanted to stick to it. That’s when the lottery finally came just in time.”
Nkenge’s annual income had to be between $36,798 and $59,340 to qualify for the lottery. Once selected, she had to submit proof of income, including bank statements, invoices and tax forms.
While awaiting final approvals, Nkenge was shown three apartments – two in Brooklyn and one in Manhattan.
“I first went into these apartments; they were definitely out of this world. It felt like a hotel,” says Nkenge. “I was greeted by a concierge and it was so high.”
Nkenge chose a one-bedroom apartment in the Manhattan building. Her unit is equipped with a washer and dryer and the building has shared amenities including a gym, game room and rooftop.
Nkenge tells CNBC Make It that she spent about $7,000 buying furniture for her apartment.
Mickey Todiwala. Photo from CNBC Do it
The market rate for one-bedroom apartments in the Nkenge building starts at $5,903 per month, according to StreetEasy. There are 58 units in the building that are designated for affordable housing, according to NYC Housing Connect.
“Living in an affordable home has not only made my life easier and less stressful, but it has also allowed me to have more access to things,” Nkenge said. “It has allowed me to save not only for home ownership, but also for retirement and life insurance. It’s never something I’ve had in the past, but now I can afford it too.”
Nkenge’s two-year lease guarantees him rent of $997 per month, which includes an $85 allowance for utilities. She also pays a development fee of $54 and $195 in utilities, for a total monthly housing cost of $1,246.
If she decides to renew her lease in May 2025, Nkenge’s rent will increase by 5%, which is the rate of increase currently allowed for rent-stabilized housing in New York.
Nkenge’s initial costs included the first month’s rent and a security deposit and totaled $1,994.
Before winning his apartment in the real estate lottery, Nkenge lived in a small one-bedroom apartment in Harlem.
Mickey Todiwala. Photo from CNBC Do it
An estimated 27,261,057 New York residents applied for the city’s housing lottery between 1/1/2014 and 6/30/2020, according to the HPD Department’s 2019 NYC Local Law 217 report. .
Nkenge thinks even more people should have access to the program, especially people who look like him.
“Often when you don’t have the ability to access certain spaces, it’s quite difficult to access at first. It’s about who you know, which one,” she says. “Unfortunately, I came from a place where I didn’t really know a lot of people.”
Nkenge’s lifestyle has changed a lot since she was selected in the lottery and moved into her rent-stabilized apartment, which she attributes to “being able to have access to housing, something that you can call home and that is affordable.” “
Nkenge’s apartment has an open kitchen and a living area.
Mickey Todiwala. Photo from CNBC Do it
Nkenge has lived in her apartment for a year now and is taking advantage of her low rent to save up to buy a house she hopes to build in the next five years.
“You can enjoy life more, have a better quality of life and do the things you love and accomplish the things you want to accomplish,” she says.
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