Louise Carroll Interviewed in Law360 on New York City's Evolving Housing Landscape

Real Estate Partner Louise Carroll, Affordable Housing and Community Development Co-Chair, was interviewed by Law360, sharing insights on the large number of policy changes that have impacted housing and affordable housing in New York City over the last few years, the city’s Mandatory Inclusionary Housing (MIH) program and Universal Affordability Preference initiative, ballot measures that provide a fast track for affordable housing, Article XI exemptions and current macroeconomic factors impacting affordable housing finance.

Louise, who has previously served in numerous government roles developing and implementing affordable housing policy, including as New York City Housing Preservation and Development commissioner and chair of the New York City Housing Development Corporation, reflected on the wave of recent policy changes reshaping the city’s housing landscape. She discussed the enthusiastic reception of the City of Yes for Housing Opportunity initiative, how the new citywide Universal Affordability Preference (UAP) interacts with the decade-old MIH program, and the messaging and political factors that made City of Yes more palatable than MIH was in its day. She also touched on 485-x tax exemption, formerly 421-a, characterizing it as more of a wage bill than a housing bill and noting the resulting market distortion of 99-unit projects being built to avoid prevailing wage triggers.

Louise also addressed the recent charter revision ballot measures, praising both the new fast-track for affordable housing and the elimination of member deference as tools that reduce cost and time in the land use process. On Article XI tax exemptions, which can be used for both new construction and rehabilitation of distressed properties, Louise said they should similarly be made as-of-right, “as opposed to this tax exemption that has to go to the council for approval,” pointing to properties’ unaddressed repairs and inability to pay debt service during the member deference process. Finally, she turned to macroeconomic headwinds, such as higher interest rates and rising labor, materials, insurance and utility costs, which make it “difficult for regular developers to build market-rate residential housing” and create “a strain on the city’s capital budget.” To bridge the gap for the lowest-income tenants, Louise advocated for a return to project-based rental assistance tied to buildings rather than tenant vouchers. “Instead, you'd have these buildings that would always have units at a certain level, and be bound by the regulatory agreements and the rental assistance attached to it, so that tenants know they can always be served by those buildings,” she said.

“Katten Real Estate Pro On NYC's Evolving Housing Landscape,” *Law360, April 27, 2026

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