David Shamshovich Quoted in The Real Deal on Bleecker Street Conversion Project as Part of HPD’s Affordable Housing Fund
In a recent feature by Jake Indursky in The Real Deal, David Shamshovich, partner at Belkin Burden Goldman, LLP and Co-Chair of the Firm’s Tax Exemptions and Zoning Incentives Practice, offered critical insights into the evolving landscape of Mandatory Inclusionary Housing (MIH) in New York City, particularly as it applies to the SoHo/NoHo rezoning.
The article, “A New Path to Affordable Housing Takes Shape in SoHo,” highlights the Caedes Group’s 11-unit condo conversion at 43 Bleecker Street in NoHo—the first project in the area to satisfy MIH by contributing to the Department of Housing Preservation and Development’s (HPD) Affordable Housing Fund instead of building affordable units. Shamshovich, who led the transaction on behalf of BBG, emphasized the importance of this alternative path for developers:
“It’s prohibitively expensive if you don’t have the right project in mind,” he said. “But you may not actually get out of the ground and move forward with a project if this wasn’t available.”
Despite the broader challenges of the SoHo/NoHo rezoning—including limited development potential, high land costs, and landmark constraints—Shamshovich sees promise in this previously unused approach:
“It gives people the understanding we can actually do this and proceed, and our site doesn’t have to be stalled,” he said. “I think it gives a lot of hope, particularly in the SoHo/NoHo area, where MIH hasn’t been very good.”
The 43 Bleecker Street project is the first to utilize a compliance path established under MIH in 2016, proving that the Affordable Housing Fund contribution can serve as a feasible and effective mechanism for smaller projects to meet their MIH obligations while supporting the City’s broader affordability objectives.
The article, and the project itself, underscores how nuanced financial tools and zoning flexibility can unlock development potential in historically constrained neighborhoods. BBG continues to be at the forefront of helping clients navigate these complexities and seize new, or previously untapped, opportunities.
