Hochul Expects 71K New Homes Built Under 421a Deadline Extension
By Mark Hallum October 16, 2024 2:40 pm
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Gov. Kathy Hochul foresees quantifiable success after she extended the 421a construction completion deadline and is predicting the addition of about 71,000 homes in New York City.
Owners of 650 buildings filed letters of intent to the New York City Department of Housing Preservation and Development to qualify for the 421a extension, the governor announced Wednesday. Hochul’s office estimated that about 21,000 of the estimated 71,000 apartments expected to be created will be deemed affordable for low-income residents.
The breakthrough was the result of a deal between the Hochul administration, Mayor Eric Adams and the New York State Legislature in the fiscal year 2025 budget, according to the governor.
“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,” newly appointed First Deputy Mayor Maria Torres-Springer said in a statement. “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.”
While Adams’s ability to lead the city has been called into question while he fends off a five-count federal indictment for an alleged bribery scheme tied to the Turkish government,, the City of Yes for Housing Opportunity — which will make sweeping changes to the city’s zoning maps to spur housing development — is moving along. The New York City Planning Commission approved the plan in late September.
The plan will soon go before New York City Council, where it may be subject to a number of changes before it can become law.
The state budget includes $25 billion for the creation or preservation of about 100,000 affordable homes across the state, with about 10,000 of those units coming with supportive services. About 50,000 homes will be electrified through the funding as well.
The 421a extension comes as its replacement, 485x, is set to come onto the scene. The replacement measure is expected to grease the wheels to encourage office-to-residential conversions and lift floor area ratio caps deemed “arbitrary” by the Hochul administration.
Mark Hallum can be reached at mhallum@commercialobserver.com.
