The city is implementing new changes to the way it awards apartments through the affordable housing lottery system.
When new apartment buildings are built in the city, a section of units are often designated as affordable and awarded to applicants by tenants through a lottery.
Under current regulations, applicants who already live near a new building received 50 percent of these affordable units first.
But as a result of a federal lawsuit against the Department of Housing Preservation and Development, that figure will now be reduced to 20 percent.
And starting in May 2029, only 15 percent of units will be considered for community preference.
The lawsuit claims that by giving too much preference to residents of the existing neighborhood, the system perpetuated racial segregation and illegally restricted opportunities for people seeking to move outside their current area.
Meanwhile, advocates of the policy say it helps prevent the displacement of longtime residents as new development moves into neighborhoods.
