Mayor Adams’ “City of Yes for Housing Opportunity” Proposal Will Include Changes Needed to Facilitate Office Conversions That Albany Failed to Pass
City Creating an Office Conversion Accelerator to Expedite Conversion Projects Immediately, Advancing Effort to Create New Homes and Good Jobs in Midtown Manhattan
Follows Adams Administration’s Record-Breaking Year for Creating Affordable Housing and Moving New Yorkers from Shelter into Permanent Homes, While Inaction in Albany Threatens to Halt Progress
Following a record-breaking year for affordable housing production across the five boroughs, despite a severe housing shortage, New York City Mayor Eric Adams and New York City Department of City Planning (DCP) Director Dan Garodnick today took three major steps towards building much-needed new housing across the city, including by laying out a plan to convert vacant offices into housing as part of Mayor Adams’ “City of Yes” plan. The Adams administration is also launching an Office Conversion Accelerator to expedite complex office-to-housing conversion projects — speeding up the process of creating new housing while putting millions of square feet of empty offices to better use for New Yorkers. Finally, the Adams administration today kicked off the “Midtown South Neighborhood Plan,” a community planning process that will update zoning rules that currently allow only manufacturing and office space to foster a vibrant, 24/7 live-work community with new homes and good job opportunities.
While Albany failed to take critical action in the 2023 legislative session that would have facilitated office conversions with affordable housing, the city can act through the land use review process to change zoning citywide and expand the flexibility needed for these projects. With the proposed changes — which Mayor Adams first outlined in partnership with the City Council in January 2023 and highlighted again in March and May — office-to-residential conversions could produce 20,000 new homes for 40,000 New Yorkers in the next decade. This proposal will be part of Mayor Adams’ forthcoming “City of Yes for Housing Opportunity” citywide zoning text amendment that will unlock the potential for more new housing in every corner of the city. While Mayor Adams has committed a record $24 billion for affordable housing, and even though the city can act to change zoning and permit conversions, state action would still be needed for office-to-residential conversions to produce a substantial amount of new affordable homes. If the state again fails to act in the upcoming legislative session, the city’s progress in tackling the affordable housing crisis could stall.
“I’ve said it before: New York City is the ‘City of Yes’ — and today, we are saying yes to a flourishing economy, yes to thriving business districts, and yes to creating more homes for New Yorkers,” said Mayor Adams. “Today, as part of our ‘City of Yes for Housing Opportunity’ plan, we are throwing open the door to more housing — with a proposal that will allow us to create as many as 20,000 new homes where the building owner wants to convert offices into housing but needs help cutting through the red tape. With these three initiatives — converting empty offices to homes, an Office Conversion Accelerator, and the Midtown South Mixed-Use Neighborhood Plan — we continue to use every tool at our disposal to increase the supply of homes for New Yorkers.”
“It makes no sense to allow office buildings to sit empty while New Yorkers struggle to find housing. By enabling office conversions, New York will reinvigorate its business districts and deliver new homes near jobs and transit,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “Taken together, these aggressive actions deliver on Mayor Adams’ promise to make New York a ‘City of Yes.’”
“We are ready to deliver smart zoning changes that will throw a lifeline to underused office buildings and create much-needed housing in the process,” said DCP Director Dan Garodnick. “‘City of Yes for Housing Opportunity,’ the Midtown South Mixed-Use plan, and the Office Conversion Accelerator will play an important part in delivering a more affordable, prosperous city.”
In addition to advancing Mayor Adams’ vision for a “City of Yes,” these new initiatives build on his “Get Stuff Built” plan and “moonshot” goal to meet the need for 500,000 new homes across the five boroughs over the next decade. They also deliver on recommendations from the “New” New York panel’s “Making New York Work for Everyone” action plan, which highlighted Midtown South as an area ripe for updated zoning and office-to-residential conversions as a key step for reinvigorating business districts and job hubs.
Converting Empty Offices to Homes
Under the proposed actions to facilitate office conversions, the most flexible regulations would be extended to an additional 136 million square feet of office space — roughly the amount of office space in the entire city of Philadelphia — though individual property owners will ultimately decide whether to convert their buildings. The zoning changes would make buildings built before 1990 eligible to convert to housing — an update from the existing 1961 and 1977 cutoffs in various areas — and allow offices and other non-residential buildings to convert to housing anywhere in the city where housing is permitted under zoning. They would also enable conversions to a wider variety of housing types, including supportive housing, shared housing, and dorms.
Mayor Adams’ “City of Yes for Housing Opportunity” — with this proposal to facilitate office conversions — will begin public engagement this fall and be formally referred in early 2024.
To further use every tool in the city’s toolbox to enable conversions of empty offices and create much-needed new housing, Mayor Adams launched a new Office Conversions Accelerator, comprised of experts from across city government, to work with office building owners to advance conversion opportunities. Led by Get Stuff Built Executive Director Robert Holbrook, the accelerator will convene representatives from City Hall, the DCP, the New York City Department of Buildings (DOB), the New York City Department of Housing Preservation and Development (HPD), the Board of Standards and Appeals, the Landmarks Preservation Commission (LPC), and others to marshal the city’s resources to assist owners with complex conversion projects — from analyzing the feasibility of individual projects to helping secure necessary permits.
Beginning today, property owners and applicants can reach out online to seek the accelerator’s help.
Creating Affordable Homes and Good Jobs in Midtown
While advancing citywide action to create housing, the Adams administration continues to pursue neighborhood-level efforts to support jobs, economic growth, and vibrant communities in business districts like Midtown Manhattan. Launching today, the Midtown South Mixed-Use Neighborhood Plan will update outdated zoning to foster a 24/7, live-work, mixed-use neighborhood in the area between 23rd Street and 40th Street from Fifth Avenue to Eighth Avenue.
The plan, which will cover four areas designated for manufacturing a half-century ago, could, for the first time, enable new housing — including permanently affordable housing — to be built in the heart of Manhattan with access to economic opportunities and mass transit where new housing is not permitted under current zoning.
The plan will explore opportunities to enable conversion of non-residential buildings to housing, support economic growth and create family-sustaining jobs, and continue to drive the city’s economic recovery.
Additionally, the Midtown South Mixed-Use Neighborhood Plan will explore both zoning and non-zoning tools to support local businesses and create good jobs in an area that already supports 135,000 jobs and more than 7,000 businesses.
Public engagement is expected to begin this fall.
“When life hands you empty offices, you convert them to housing. Creating the housing New Yorkers need by converting underused office space is a no brainer,” said HPD Commissioner Adolfo Carrión, Jr. “We need new housing in every neighborhood across the city, from Midtown to Midwood. The city is stepping up to do what it takes, and office conversions will strengthen our fight — advancing our continued efforts to break records and create housing everywhere.”
“Mayor Adams’ ‘City of Yes for Housing Opportunity’ is a necessary next step to address New York City’s housing crisis while also putting to use the abundance of vacant office spaces around our city,” said New York City Economic Development Corporation President and CEO Andrew Kimball. “As key recommendations from the ‘New’ New York action plan, these proposals will continue to deliver on Mayor Adams’ vision to build vibrant, 24/7 commercial districts throughout New York City that are great places to live, work, play, and do business.”
“By loosening outdated zoning regulations that no longer serve their intended purposes, Mayor Adams and our partners at City Planning are providing builders with the flexibility necessary to convert unused office spaces into the housing our fellow New Yorkers desperately need,” said DOB Commissioner Jimmy Oddo. “My team is excited to roll up their sleeves and get to work with our agency partners and office building owners on the newly created Office Conversions Team, which will further help to break down silos in city government and get these planned office conversions projects in motion.”
“The repurposing of historic buildings to better serve modern needs while retaining historic features shows the important role that preservation can play in helping New York City evolve to meet the demands of our changing world,” said LPC Chair Sarah Carroll. “Mayor Adams’ ‘City of Yes for Housing Opportunity’ is a powerful statement of this administration’s commitment to provide much-needed housing and to ensure that our designated landmark office buildings, which include some of the most architecturally significant structures across the city, will have the opportunity to adapt and thrive while continuing to serve New York City and its residents in the years ahead.”
“Under Mayor Adams’ leadership, a relentless focus on addressing the city’s most vexing problems is producing solutions for a more resilient New York, and bringing the city’s underutilized office buildings back to life with desperately needed homes for New Yorkers is the latest example,” said Chief Policy and Delivery Officer Sherif Soliman. “Office-to-residential conversion is a proven success when the zoning barriers intended to shape new construction are removed. These zoning changes, coupled with the creation of the Office Conversion Accelerator, will provide consistent rules citywide and facilitate the conversion process to enhance the vibrancy of our neighborhoods.”
“These zoning changes will unlock opportunities for building owners and, more importantly, for everyday New Yorkers in need of housing,” said “Get Stuff Built” Executive Director Rob Holbrook. “I am grateful to have the opportunity to lead the Office Conversion Accelerator, which will help building owners map a path to residential conversions and then facilitate the multiagency coordination needed to move through the regulatory processes.”
“Addressing New York’s housing crisis requires a multi-faceted approach that will result in the equitable production of housing,” said New York City Council Speaker Adrienne Adams. “Our city needs every tool at its disposal to create more affordable, sustainable, and long-term housing for all people who call our city home. The Council will carry out its Charter mandate and engage in various efforts to expand housing and economic opportunities, including the start of the Midtown South Neighborhood Plan. I look forward to working collaboratively with all stakeholders to help realize our shared goals of advancing solutions to the housing crisis that impacts all New Yorkers.”
“The regulations that currently govern the conversion of nonresidential buildings in New York City into housing are decades out of date and do not account for the many buildings and building types that have become obsolete in recent years,” said Sarah Watson, deputy director, Citizens Housing and Planning Council. “The ‘City of Yes’ proposals will help revitalize business districts and meet housing needs in high-opportunity neighborhoods. They also up the ante for the state to deliver a tax incentive that enables privately financed mixed-income conversions.”
“During a time in which our state needs to build more than 800,000 housing units, it is critical that we think outside the box. NYSAFAH applauds the Adams administration for proposing as-of-right office-to-residential conversions across the city and is enthusiastic to learn they are setting up an interagency Office Conversion Accelerator,” said Jolie Milstein, president and CEO, New York State Association for Affordable Housing (NYSAFAH). “This will enable the creation of thousands of new units of housing, including supportive housing — which will help ease the crisis facing our shelter system. We look forward to seeing this proposal enter public review next year.”
“We applaud the 'City of Yes' Plan and its transformative approach to our city's challenges,” said Melva M. Miller, CEO, Association for a Better New York. "Converting vacant offices to housing is necessary to unlock the potential for new housing across New York City, and the Office Conversion Accelerator shows visionary leadership in addressing housing shortages swiftly. The 'Midtown South Mixed-Use Plan' further exemplifies the administration's commitment to a dynamic and livable New York, with diversified spaces that offer homes and job opportunities. These initiatives mark crucial steps towards a more equitable and vibrant city.”
“The ability of the private sector to invest in projects that restore the vitality of older Manhattan commercial properties absolutely depends on the proposed zoning and regulatory changes put forward in the Mayor’s City of Yes plan,” said Kathryn Wylde, president and CEO, Partnership for New York City.
“We applaud the mayor and our local elected officials for taking action to address our city’s housing shortage through efforts to facilitate office-to-residential conversions,” said James Mettham, president, Flatiron NoMad Partnership. “In Flatiron and NoMad, we have seen how the combination of a thriving residential community, office-based companies, and a diverse range of ground-floor businesses create a vibrant 24/7, mixed-use district. Creating more housing throughout Midtown South will expand the economic benefits that come with mixed-use districts, while making our city more livable for more people.”
“Today’s announcement is an important step in the development of the Garment District as a more vibrant, mixed-use community,” said Barbara A. Blair, president, Garment District Alliance. “From our district’s close proximity to major transportation hubs, to top-notch restaurants, office space and more, the Garment District is a premier location for residential development in New York City. We applaud Mayor Eric Adams, the Department of City Planning, and our elected officials for addressing the compelling need for housing and we look forward to our work together to position Midtown for the future.”
“Expanding and modernizing these zoning laws will allow for more housing which will help New York City tackle its 500,000-housing unit goal. REBNY applauds the Adams administration for its leadership in conversions and hopes that this leadership will inspire much needed regulatory reform to unlock more opportunities to house New Yorkers,” said Basha Gerhards, senior vice president of planning, Real Estate Board of New York (REBNY).
