New York City’s housing lottery program helps residents find affordable housing, including rent-stabilized apartments. the Department of Housing Preservation and Development Affordable housing is defined as housing costs no more than 30 percent of an individual or family’s income.
Under the city’s rent stabilization system, there is a legal limit on the amount of rent a person can receive in a year. The New York City Rent Guidelines Board sets the rate at which rent in a rent-stabilized apartment can increase the rent for rental purposes.
Nkenge applied for the New York City housing lottery for three years before landing her one-bedroom apartment in the Flatiron.
Mickey Todiwala. Photo by CNBC Make 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 about $1,900 for a small one-bedroom apartment in Harlem, But she wanted to reduce her rental costs to about $1,000 a month.
“I really want to save money to buy a place, something I can call my own and actually own,” Nkeng says. “I had a budget and wanted to stick to it. That’s when the lottery ended up being the right time.”
Nkenge’s annual income must be between $36,798 and $59,340 to qualify for the lottery. When selected, she had to provide proof of income, which included bank statements, invoices and tax forms.
While awaiting final approvals, Neng was offered three apartments — two in Brooklyn and one in Manhattan.
“I first walked into those apartments; they were definitely out of this world. They felt like a hotel,” says Nkeng. “I was greeted by the concierge and felt uplifted.”
Nikeng chose a one-bedroom apartment in the building in Manhattan. Her unit comes with a washer and dryer, and the building has shared amenities including a gym, game room and deck.
Nkeng told CNBC Make It that she spent about $7,000 on furniture for her apartment.
Mickey Todiwala. Photo by CNBC Make it
The market price for one-bedroom apartments in the Nkeng Building starts at $5,903 per month, according to StreetEasy. There are 58 units in the building zoned for affordable housing, according to NYC Housing Connect.
“Living in an affordable home not only made my life easier and less stressful, it also allowed me to have more things,” Nkeng said. “It has allowed me to save not only to own a home but also for retirement and life insurance. That’s not something I had in the past, but now I’m able to afford that as well.”
Nkenge’s two-year lease guarantees her rent of $997 a month, which includes an $85 utility allowance. She also pays $54 in building facilities and $195 in utilities, for a total of $1,246 in monthly housing costs.
If she decides to renew her lease in May 2025, Nkenge’s rent will increase by 5%, which is the current percentage increase allowed for rent-stabilized units in New York City.
Nkenge’s initial costs included the first month’s rent and a security deposit and totaled $1,994.
Before she won the housing lottery apartment, Nkeng lived in a small one-bedroom apartment in Harlem.
Mickey Todiwala. Photo by CNBC Make it
An estimated 27,261,057 New York City residents applied for the city’s housing lottery between 1/1/2014 and 6/30/2020, according to HPD New York City Local Law Report No. 217 of 2019.
Nkeng believes more people should have access to the program, especially people who look like her.
“A lot of times, when you don’t have the opportunity to be in certain places, it’s hard to get in there to begin with,” she says. “It’s about who you know.” “Unfortunately, I came from a place where I didn’t know a lot of people.”
Nkeng’s way of life has changed a bit since being selected for the lottery and moving into her rent-stabilized apartment, which she attributes to “being able to have access to a place to live, something you can call home that is affordable.”
Nkenge apartment has an open plan kitchen and living room area.
Mickey Todiwala. Photo by CNBC Make it
Nkeng has been living in her apartment for a year now and is taking advantage of her lower rent by saving to buy a house that she hopes to do in the next five years.
“You’re able to enjoy life better, have a better quality of life, and be able to do the things you love and accomplish the things you want to accomplish,” she says.
Do you want to make extra money outside of your day job? Enroll in CNBC’s new online course How to earn passive income online To learn about common sources of passive income, and tips for obtaining artistic and real-life success stories. CNBC Make It readers can use special discount code CNBC40 to get 40% off through 8/15/24.
Plus, Sign up for the CNBC Make It newsletter For tips and tricks for success in business, money and life.
“Web maven. Infuriatingly humble beer geek. Bacon fanatic. Typical creator. Music expert.”
More Stories
Bank of Japan decision, China PMI, Samsung earnings
Dow Jones Futures: Microsoft, MetaEngs Outperform; Robinhood Dives, Cryptocurrency Plays Slip
Strategist explains why investors should buy Mag 7 ‘now’