Governor Hochul Announces 71,000 New Homes in New York City Will Be Built Through Policies Enacted in State’s Landmark Housing Deal
The state of New York is celebrating the creation of about 71,000 apartments in New York City, including 21,000 affordable units, thanks to an extension of a construction completion deadline mandated by a tax incentive.
According to New York State Senator Brian Kavanagh, the celebration comes after letters of Intent were filed with the New York City Department of Housing Preservation and Development from owners representing nearly 650 buildings.
The announcement ensures the creation of significant additional housing options under a state program.
According to the New York State Senate, New York City First Deputy Mayor Maria Torres-Springer said, “This administration is making profound inroads on our housing crisis, wasting no time to use the tools we won in Albany to create affordable housing. Between these numbers, our record housing production in Fiscal Year 2024 and our relentless work to pass ‘City of Yes for Housing Opportunity,’ we’re rising to the moment to meet New Yorkers’ need for affordable housing.”
Beyond safeguarding more than 70,000 new units at risk of missing the 421-a completion deadline, the Enacted Budget’s historic measures also created a new affordable housing tax incentive to replace 421-a (“Affordable Neighborhoods for New Yorkers”, also known as 485-x). The package also encourages office conversions to create more affordable units along with lifting the arbitrary “floor area ratio” cap that held back affordable housing production in the City, and authorizing the City to undertake a pilot program to legalize and make safe basement and cellar apartments.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Extending the 421a program beyond its expiration date so that stalled housing developments can move forward was one of the smartest and most impactful elements of the groundbreaking FY 2025 Budget championed by Governor Hochul. Today we are seeing the results as we open the door to 71,000 homes and create opportunities for people at all income levels. This initiative along with measures included in the Budget that increase supply, promote affordability, strengthen protections for renters and homeowners and combat housing discrimination, will transform lives and bring us closer to solving the housing crisis in New York.”
New York City Department of Housing Preservation and Development Commissioner Adolfo Carrion Jr. said, “The overwhelming response to the 421-a extension speaks volumes about our deep commitment to creating affordable housing. New housing is not just about brick and mortar — it’s about transforming lives and strengthening our communities. Every project and every single apartment we produce through HPD makes a tangible difference for New Yorkers, providing them with the stability and security they deserve. The extension of the 421-a program is a powerful tool that not only supports our developers but also fuels our mission to create affordable housing options that countless families rely on for a better future.”
