Governor Hochul Announces 71,000 New Homes in New York City Will Be Built Through Policies Enacted in State's Landmark Housing Deal

 

New York City’s Department of Housing Preservation and Development Received Letters of Intent From 650 Building Owners Representing Approximately 71,000 New Homes and Including 21,000 Affordable Apartments

Governor Hochul and Legislature Passed the Most Significant Housing Deal in Generations in the FY25 Budget; Included an Extension of Construction Completion Deadline for 421-a Projects

Governor Kathy Hochul today celebrated the creation of about 71,000 new apartments in New York City, including 21,000 affordable units, thanks to an extension of the construction completion deadline for the 421-a tax incentive program. This celebration comes after letters of Intent were filed with the New York City Department of Housing Preservation and Development from owners that represent nearly 650 buildings. The 421-a construction completion deadline extension was part of a joint effort between Governor Hochul and the Adams administration to secure new tools to address the City’s housing crisis.

“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,” Governor Hochul said. “My administration is committed to combating the affordability crisis in every region of the State, and I want to thank Mayor Adams and his team for their partnership and advocacy as we tackle the housing crisis by ensuring that there are more and more opportunities to live and thrive in New York State.”

This announcement ensures the creation of significant additional housing options under the 421-a program by extending the construction completion deadline, which was made possible by Governor Hochul as part of the FY25 Enacted Budget. The FY25 Enacted Budget included numerous bold initiatives to address New York’s housing crisis by increasing the housing supply, promoting affordability, strengthening protections for New York renters and homeowners and combating bias, and discrimination in housing. A key element of the Governor’s housing agenda was extending the construction completion deadline for projects in the now expired, 421-a program from June 15, 2026, to June 15, 2031, for eligible projects that commenced construction after Dec. 31, 2015, and on or prior to June 15, 2022.

The extension enables these housing projects that were at risk of missing the construction completion deadline due to factors such as market volatility in the wake of the pandemic to move forward without interruption, saving approximately 21,000 affordable units. By facilitating a longer timeline, the 421-a construction completion deadline extension allows for the thoughtful, sustainable development of housing that meets New Yorkers’ diverse needs.

New York City Mayor Eric Adams said, “At the beginning of this year, Governor Hochul and myself stood together and promised New Yorkers real solutions to deliver on affordable housing. Today, I’m proud to say: promises made, promises kept. The 421-a tax incentive extension, which our administration successfully advocated for last session, has proven to be a success. We have received Letters of Intent from approximately 650 buildings, representing 71,000 new homes, including 21,000 affordable units. Our administration and the State came together to meet this generational crisis head-on, and now, the City Council has their moment in front of them. The City Council has an opportunity to join New Yorkers in saying ‘yes’ to our ‘City of Yes for Housing Opportunity’ proposal — the most pro-housing change in the history of the city's zoning code. To deliver the affordable housing New Yorkers need and deserve, every level of government has a role to play, and we look forward to working with our partners in the City Council to build our way out of this housing crisis.”

Governor Hochul’s Housing Agenda

Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on state-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners.

As part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with supportive services for vulnerable populations, plus the electrification of 50,000 homes. More than 45,000 homes have been created or preserved to date.

Last August, Governor Hochul also announced the Pro-Housing Communities Program. Pro-Housing Community certification is a requirement for localities to access up to $650 million in State discretionary funding. To date, more than 200 communities have been certified, including New York City.