The music school, one of the most important art institutions in the borough for over a century, will be creating a 20,000-square-foot facility as part of the proposed development.
Of the affordable apartments, there are four studios, another four one-bedroom units and nine two-bedroom units.
It will have affordable housing as well as market rate apartments, office and retail space.
The lottery is set at an area median income range of 130 percent and eligible incomes range from $75,806 to $124,930.
Of the affordable apartments, there are 21 one-bedroom units, 18 two-bedroom units and two three-bedrooms.
Rents are set at 60 percent of median income, which is beginning to become a rarity in Brooklyn.
Monthly rents start at $2,100 for a one-bedroom and top out at $2,300 for a two-bedroom.
Across the street from the Franklin Avenue station in Bed Stuy, the exterior of a 10-story mixed-use building in the works for a number of years is nearly finished.
The buildings are part of Hudson Companies' controversial redevelopment of the Cadman Plaza Library in Brooklyn Heights.
Recently landmarked after years of advocacy work by local preservationists, Empire State Dairy is noteworthy for its unusual architectural style and tile murals.