And although the poor-door is routine in London, it’s a recent addition to the NYC luxury housing market.
The idea is to construct an expensive cooperative building in a wealthy neighborhood with apartments set aside for cheaper rentals.
The building enjoys a tax break and the city gains new affordable housing: regular folks of modest means can now live in a luxury tower in a wonderful neighborhood they could not otherwise afford.
40 Riverside Boulevard
A $3m apartment needs about $600K down, so the mortgage on $2,400,000 costs about $16,000 per month.
A submarket 2 bedroom in the same building will rent for $1099 a month.
So to maintain market value, a second entrance was incorporated at 40 Riverside Blvd.
The submarket rentals on the back side of the building have their own lobby and elevator service.
The de Blasio administration is fuming at this financial apartheid and has announced a change to the zoning rules so this can never happen again, and that seems fair.
But for a mayor committed to affordable housing,
it is also a pyrrhic victory.
Developers will just stop building affordable housing and pay the higher tax rate instead, passing it on to the wealthy who will also pay it to retain the exclusivity luxury housing is intended to provide.
The result? DeBlasio wins.
Developer still gets rich.
Wealthy shareholders still control their own buildings.
But the regular guy can’t find an affordable apartment.
So next up should be the airlines!
To be fair they would not be allowed to charge cheap rates in coach and $4500 in First Class and then:
1) separate the fliers into better airport lounges and
2) provide earlier boarding and far better seats in a separate section on the plane and then
3) give them better quality everything throughout the flight.