Governor Hochul and Mayor Adams Announce Major Office-to-Housing Transformation at 5 Times Square to Create Up to 1,250 Homes, Including 313 Affordable Homes

Made Possible by Governor’s Action To Change 60-Year-Old State Law To Lift 12 FAR Cap and Incentivize Major Office-to-Housing Conversions in New York City

Since Governor’s Action Last Year, Approximately 10,000 New Homes Completed or Under Construction in New York City Through Office Conversions

Governor Also Delivered $1 Billion This Year To Secure New York City’s “City of Yes for Housing Opportunity,” Which Will Create up to 18,000 New Homes Through Conversions

Continues Governor's Commitment To Build More Housing Statewide

Governor Kathy Hochul and Mayor Eric Adams today announced the Empire State Development (ESD) Board of Directors voted to enable a massive office-to-housing conversion at 5 Times Square, transforming underused office space into a mixed-use development with up to 1,250 new homes, including up to 313 permanently affordable homes. This project was made possible by Governor Hochul’s historic move last year to change 60-year-old state laws and lift the 12 Floor Area Ratio (FAR) cap on residential development in New York City, which had blocked new housing development since 1961. The 313 permanently affordable homes at 5 Times Square are a result of the Governor’s enactment of the Affordable Housing from Commercial Conversions Tax Incentive program (467-m).

As a result of these and other actions, approximately 10,000 new apartments have been completed or begun construction through office-to-housing conversions in New York City since last April. Additionally, the Governor’s FY26 budget includes $1 billion in State funding to secure the City of Yes for Housing Opportunity, an initiative that has made changes to New York City's Zoning Code that are expected to allow for up to 120 million new square feet for conversion and up to 18,000 new homes.

“We took bold action to unlock major office-to-housing conversions in New York City, and transforming 5 Times Square from underused offices into 1,250 new homes — including over 300 permanently affordable apartments — is a prime example of how we’re getting it done,” Governor Hochul said. “As I’ve made clear, the only way to address our housing crisis is to build more of the homes New Yorkers need — and I’ll never stop working to make that a reality.”

New York City Mayor Eric Adams said, “Confronting a decades-long housing crisis requires creating new housing in every neighborhood at an accelerated pace — even here at the ‘Crossroad of the World’ in Times Square. The transformation of 5 Times Square from an underutilized office building into 1,250 new homes capitalizes on hard-fought Adams and Hochul administration victories while fulfilling my plan to build 100,000 new homes in Manhattan over the next decade. Thank you, Governor Hochul, for your continued partnership in delivering the affordable housing New Yorkers need and for proving, once again, what can be accomplished when the city and state work together towards a common goal.”

The vote today by the ESD Board of Directors approved an amendment to the 42nd Street Development Project General Project Plan that will enable the conversion of 5 Times Square.

5 Times Square will repurpose nearly 1 million square feet of office space while preserving more than 37,000 square feet of retail space. The project will create up to 1,250 new homes — a mix of 1,050 studio and 200 one-bedroom units — with equal access to building amenities for all residents. The project will include over 300 permanently affordable homes for New Yorkers earning up to 80 percent of the Area Median Income (AMI).

The conversion addresses the building's high office vacancy rate of 77 percent, transforming an underutilized property into much-needed housing. Construction is anticipated to begin in Q3 of 2025, with the first phase anticipated to be completed in 2027. The building’s configuration allows for a mixed-use program that can accommodate both residential and the existing commercial occupancy. The project is expected to create approximately 1,400 construction jobs and 830 permanent direct and indirect jobs. The project will also comply with the State MWBE and SDVOB policies, with an overall 30 percent MWBE participation goal.

The project's location at Seventh Avenue between 41st and 42nd Streets offers unparalleled access to 12 subway lines and regional transit connections, exemplifying Governor Hochul and Mayor Adams’ commitment to transit-oriented development that reduces car dependency and promotes sustainable urban living.

The 5 Times Square project represents an important advancement in New York's approach to solving its housing crisis. The original construction of the building is at 33.35 FAR — nearly three times the previous residential cap of 12 FAR. This means that the new development approved today would not have been possible without the Governor’s action in the FY25 Enacted Budget to change 60-year-old state laws and lift the 12 FAR cap in New York City. Combining the removal of the FAR cap with 467-m tax incentives enables the conversion of high-density office buildings into residential use properties, bringing more affordable housing to prime locations. As part of a growing trend in reimagining New York City's business districts, projects like 5 Times Square have the potential to create thousands of new homes in high-opportunity areas.