Busting 10 Myths About the NYC Affordable Housing Lottery

New York City is one of the most expensive places to live in the world, and with rents skyrocketing across the city, finding an apartment that you can afford can be a real challenge. You may have heard of the city’s affordable housing lottery, which gives entrants a chance to score an apartment at a reduced rent. It’s not a myth, and winning it can be like, well, winning the lottery!

Housing Connect helps you find and apply for rental opportunities through New York City’s affordable housing lottery. Many more New Yorkers are eligible to participate than most people realize. Housing lottery units can also be found on StreetEasy, but if you find one you like, you’ll apply through the city’s Housing Connect site.

Getting an apartment through the lottery also means locking in your home’s affordability for the future: these apartments are rent-stabilized, which limits how much your rent can increase each year.

Although the housing lottery itself is not a myth, there are a few myths surrounding it that are worth dispelling. We’re here to clear up 10 of them, with help from the NYC Department of Housing Preservation & Development.

Myth #1: “I probably don’t qualify for anything”

You’d be surprised – Housing Connect has units for households of all different sizes and income levels, ranging from single adults making $75,000 to a family of four who makes $155,090. Rents for these apartments are capped to ensure tenants don’t pay more than approximately one-third of their income. See this page on the HPD website, including a helpful chart, for a comprehensive look at eligible household sizes and incomes.

Myth #2: “The odds are so low. I’ll never get selected”

Many New Yorkers don’t realize they’re eligible for units available through Housing Connect, or don’t bother to apply, so some lotteries have lower amounts of competition. Your chances of getting an apartment on Housing Connect can also vary based on income and rent level, neighborhood, amenities, and other factors. Even if the lottery you’re interested in does have a lot of applicants – you never know!

Myth #3: “The apartments are in older, run-down buildings”

Actually, most of the units available are located in brand new buildings! Many of these are luxury buildings complete with amenities like fitness centers, doormen, roof decks, children’s playrooms, high-end appliances, and more. A monthly fee may be required to use the amenities, but policies vary by building. Lottery units are also located across the city in all five boroughs, including neighborhoods like Williamsburg, Nolita, and Long Island City.

Myth #4: “Applying for the housing lottery is a pain”

The city recently released a brand new Housing Connect website to make signing up for the lottery easier than ever. It only takes about 15 minutes to get signed up, and applying for apartments on the site takes just a few clicks – no need to re-enter all of your information each time. If anything changes about your household information, you only need to update that part of your Housing Connect profile, which then automatically updates all of your active lottery applications.

Myth #5: “I’ll have to constantly check for new lotteries”

As StreetEasy users know, browsing listings can be fun (and addicting!), but having to manually check for affordable housing opportunities you qualify for is not so fun. Housing Connect makes finding an apartment easier by sending you email notifications when apartments you’re eligible for become available.

Myth #6: “I’ll have to pay a lot of application fees and broker fees”

Unlike searching for an apartment on the open market, you don’t have to pay application or broker fees for housing lottery opportunities. However, if your number is reached in one of the lotteries, you may need to pay up to $20 for a background and credit check.

Myth #7: “I’ll automatically get the apartment I’ve been selected for”

Not so fast! If your lottery number is reached, you’ll need to provide documentation to prove that you meet the income and household size requirements. It’s similar to the documentation you’re used to providing when you apply for any apartment. Be sure to have all of this ready so that you can move into your new apartment as soon as possible.

Myth #8: “If I’m rejected for an apartment, I can’t appeal”

If you disagree with the reason you were found to be ineligible for a housing lottery apartment, you can appeal that determination by submitting a written appeal with documentation to prove your eligibility. These mechanisms are in place to ensure all applicants are treated fairly and equally throughout the entire process. 

Myth #9: “My application can be screened based on factors outside the eligibility criteria”

This is no longer the case. Applying for a housing lottery unit is not like buying a co-op, where applicants can be rejected by the co-op board for any number of reasons. The building’s owners are not allowed to screen out applicants for reasons beyond the eligibility criteria, such as debt-to-income ratio, personal references, or using a guarantor. There is also no longer a requirement for an in-person appointment, which often consisted of an interview. For more on screening criteria restrictions, see Policies and Procedures for Resident Selection and Occupancy, pages 58-63.

Myth #10: “I can be kicked out of my housing lottery unit if my income goes up”

There’s a reason winning the housing lottery can be so life-changing: once you’re moved in, your rent is stabilized, even if your income increases. You won’t be kicked out if you start making more money than the initial eligibility criteria allowed. Some buildings do require you to periodically re-certify your income, but don’t fret – it just means the building has to allocate more apartments for affordable housing. In other words, more room for lucky lottery-winning neighbors like you!