Day: October 16, 2024
There’s no need to travel to Rome… https://t.co/jS2KQ1OrZU
— Brooklyn Eagle (@BklynEagle) October 16, 2024
Gov. Kathy Hochul announced Wednesday that an estimated 71,000 new apartments will be added to New York City’s housing stock after she extended the deadline for the 421-a affordable housing tax break. The extension allows for an additional six years to complete projects already in the pipeline, which includes more affordable units.
Speaking at a press conference in Williamsburg on Oct. 16, Hochul said the Department of Housing Preservation and Development had received letters of intent from owners representing nearly 650 buildings after announcing during the summer that the construction deadline for eligible projects had been extended to June 15, 2031. This ensures developers can continue projects stalled by pandemic-related market volatility, according to Hochul. Initially, the program was set to expire in 2026.
Gov. Hochul added that 21,000 of the new units will be earmarked for affordable housing amid the ever-worsening shortage of available and affordable homes in the city.
“By extending the 421-a construction completion deadline, we are able to put more than 70,000 new homes back on track and create affordable options to live in New York City,” Hochul said. “This extension is a key piece in our ongoing efforts to combat the affordability crisis statewide.”
“If we didn’t extend the deadline for applications for 421-a, projects would dry up and come to a screeching halt,” she added. “And we could not lose anymore, not during a nationwide housing crisis, not with vacancy rates in the city of New York hovering around 1.4% – the lowest since the 1960s.”
Mayor Eric Adams also issued a statement celebrating the extension, highlighting the need for intergovernmental collaboration in solving the housing crisis.
“At the beginning of this year, Governor Hochul and I stood together and promised New Yorkers real solutions to deliver affordable housing. Today, I’m proud to say: promises made, promises kept,” the mayor said.
In addition to the 421-a extension, Adams added that his administration is advancing zoning reforms through the “City of Yes for Housing Opportunity” proposal, which is expected to be voted on by the City Council later this year. The plan aims to create 108,850 new housing units over the next 15 years by easing zoning restrictions across neighborhoods.
It also would allow for apartment buildings to go up in areas zoned for single-family homes, legalize basement and garage apartment conversions and center new housing around mass transportation to reduce reliance on cars, among other aspects.
At Wednesday’s press briefing, Hochul was hopeful that once the 421-a expires, its replacement, dubbed 485-x, will continue to bolster construction rates. To qualify for 485-x, developers will have to devote at least 20% of the units in a new construction project to tenants making 80% of the area median income.
The city is set to release detailed data on the Letters of Intent through its Open Data platform later this fall.
“With a 1.4 percent rental vacancy rate, we must do all we can at every level of government to create more housing. The extension of 421-a will allow for the construction of thousands of homes that will make a real difference in the lives of New Yorkers,” said New York City Department of City Planning Commissioner and City Planning Commission Chair Dan Garodnick. “Now, with ‘City of Yes for Housing Opportunity,’ we can keep up the momentum and take a big bite out of housing crisis by adding a little more housing in every neighborhood.”