How to Win the NYC Housing Lottery and What to Expect

Olin, who was born and raised in the Bronx, New York City, grew up in a one-bedroom apartment with five siblings, just one block away from her current home.

After graduating from college in 2019, the 26-year-old preschool teacher moved back in with her family. However, by the end of that year, she had started planning to find her own apartment, as told to CNBC Make It.

In 2019, after returning from school, Olin realized he was struggling with his mom and decided to move out.

In 2020, she submitted her first application to the city's housing lottery after realizing the high cost of living alone or with a roommate. By 2022, she had submitted over 100 applications and finally heard back.

The New York City housing lottery program assists residents in obtaining affordable housing, such as rent-stabilized apartments, by defining affordable housing as housing that does not exceed 30% of a single person's or family's income, as determined by the Department of Housing Preservation and Development.

"The city of New York utilizes a housing lottery to provide affordable apartments to income-qualified New Yorkers, as explained by Emily Osgood, associate commissioner of housing opportunity and placement services, in an interview with CNBC Make It. With a high demand for housing and limited supply, a lottery process is the most equitable way to allocate apartments to those in need."

The city's rent stabilization system sets a legal limit on the amount of rent that can be charged in a year. The Rent Guidelines Board in NYC determines the rate at which rent in a rent-stabilized apartment can increase lease-to-lease.

According to Osgood, New York City's approach to funding affordable housing makes it accessible to individuals with varying incomes.

The AMI, unit size, household size, and annual household income are used to determine the income requirement.

For every available unit in HPD's housing lottery, there are an average of 50 applications.

Osgood advises that it may not occur immediately, but persistence is necessary. It's not an instant success. The duration is likely to be extended, but remain steadfast.

Osgood emphasizes that after lotteries end, paper applications are incorporated into the system, and the process becomes randomized and organized into batches. Each applicant is given a log number, which can be accessed in their Housing Connect account.

"Coming up soon in one of those batches is better when the log number is lower," she says.

Osgood recommends updating the Housing Connect profile and having specific documents handy, such as pay stubs and IDs, to expedite the process.

Olin reveals to CNBC Make It that she knew she wanted to remain in the Bronx because it's the location of her entire life.

Over the years, Olin received responses from various housing lottery properties in Brooklyn but remained optimistic about finding an apartment in her own borough.

In 2022, her determination was rewarded when she received an email stating that she had been placed on the waiting list for a one-bedroom apartment in a building situated in the Williamsbridge neighborhood of the Bronx.

I thought I'd land in a studio because I couldn't afford a one-bedroom apartment on my own," she says. "But as soon as I viewed it, I fell in love with it and wanted it. I could see myself living there and was completely obsessed.

In May 2023, Olin secured a two-year lease on a one-bedroom apartment for $881 a month, which is significantly lower than the average rent for a one-bedroom apartment in the Bronx, which is $2,230, according to Apartment's List.

The amenities available at Olin's building include a laundry room, gym, and free Wi-Fi.

In order to be eligible for the lottery, Olin's annual income had to fall within the specified range of $33,086 to $46,700, as stated in the reviewed documents by CNBC Make It. Upon selection, Olin was required to provide proof of income, which encompassed bank statements, invoices, and tax forms.

Living down the block from the apartment I grew up in is a moment I'll never forget.

Her siblings and mom, who cried the first time she saw the apartment and told Olin how proud she was, are hosted by her as a hostess.

"My family is content to remain where they are now. My mother is pleased to see that I am financially stable and not struggling to make ends meet like many others. She understands how challenging it was for me to relocate and find suitable housing at my age and with my income. Despite the difficulties, she is proud of me, and I am proud of myself."

Over a year has passed since Olin moved into her apartment, and she has no intentions of leaving anytime in the near future.

"I'm not ready to leave yet because I feel like it's my responsibility and I haven't done it before," Olin says. "If I never do, I'll be sad."

To follow in Olin's footsteps, it's crucial to understand that you don't have to reside in New York City to participate in the NYC housing lottery. However, Osgood emphasizes that residents of NYC are given priority, regardless of their log number.

Osgood stated that being a U.S. citizen or having a specific immigration status is not necessary to qualify for the job.

"If your household lacks documentation of income or rent history, proving eligibility can be difficult, but it's not impossible. We want to ensure that you have access to housing, so please provide the necessary information."

In 2023, many New Yorkers, including Olin, were chosen for the housing lottery.

Nkenge, who was born in the Bronx but raised in Harlem, began her housing lottery journey in 2020. In 2023, she was chosen for a one-bedroom apartment after submitting over 120 applications.

Nkenge, who requested anonymity for privacy reasons, reveals to CNBC Make It that she began applying for the lottery because she was spending approximately $1,900 a month on a small one-bedroom apartment in Harlem and aimed to reduce her monthly rent to $1,000.

"Nkenge says, "I really desire to own a place that I can call my own." She had a budget and intended to adhere to it. However, it was the lottery that arrived at the last minute and saved her."

Nkenge's annual income had to fall within the range of $36,798 to $59,340 to be eligible for the lottery. Meanwhile, Nkenge was shown three apartments, two in Brooklyn and one in Manhattan, while waiting for final approval.

"As I entered those apartments, I knew they were otherworldly. They reminded me of a hotel," Nkenge remarks. "I was welcomed by a concierge and it felt like I had arrived at a luxurious destination."

Nkenge opted for a one-bedroom apartment in the Manhattan building, which includes a washer and dryer, as well as shared amenities such as a gym, game room, and rooftop.

According to StreetEasy, the starting monthly market rate for one-bedroom apartments in Nkenge's building is $5,903.

"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, save for owning a home and even retirement, life insurance, which I never had in the past but can now afford."

Nkenge's lease agreement ensures that she will pay $997 in rent each month, with an additional $85 allocated for utilities.

If Nkenge renews her lease in May 2025, her rent will increase by 5%, which is the current increase percentage rate allowed for rent-stabilized units in New York City.

According to the NYC Local Law 217 of 2019 report, approximately 27,261,057 NYC residents applied for the city's housing lottery between 1/1/2014 and 6/30/2020.

Nkenge strongly believes that more individuals should have access to the program, particularly those who resemble her.

"Unfortunately, not being given the opportunity to enter certain spaces can make it difficult to get in there to begin with. It's all about who you know, which can be a challenge when you come from a space where you didn't know many people."

Nkenge has been residing in her apartment for a year and is utilizing her low rent to save for purchasing a home, which she intends to accomplish within the next five years.

She claims that you can experience a higher level of enjoyment in life, improve your quality of life, and achieve your passions and goals.

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