Mayor Adams, Hochul announce major boost to affordable housing in NYC

Mayor Eric Adams and Governor Kathy Hochul has announced the success of the 421-a(16) tax incentive extension program, which aims to build tens of thousands of affordable housing units.

The city’s Department of Housing Preservation and Development (HPD) has received Letters of Intent from 650 buildings, representing 71,000 new homes, including 21,000 affordable apartments.

“With a rental vacancy rate of just 1.4 percent, New York is in dire need of affordable housing,” said Mayor Adams. “The 421-a tax incentive extension, which our administration fought for, is now proving its worth. We’ve secured commitments for 71,000 new homes, and we’re inviting the City Council to join us in building a ‘City of Yes for Housing Opportunity.’”

Governor Hochul emphasized the broader impact of the program, noting, “Extending the 421-a construction deadline has put more than 70,000 new homes back on track. This is a critical step forward as we continue tackling the housing crisis, not just in New York City but across the state.”

The announcement also highlighted the inclusion of minority- and women-owned business enterprises (M/WBEs) in the program, ensuring that smaller developers are engaged in the effort to expand affordable housing.

HPD Commissioner Adolfo Carrion Jr. described the initiative as transformative: “The overwhelming response to the 421-a extension speaks volumes about our commitment to creating affordable housing. This program is not just about buildings; it’s about transforming lives.”

The city’s broader housing strategy, which includes the “City of Yes for Housing Opportunity” zoning proposal, aims to add more than 108,000 homes over the next 15 years. As part of this comprehensive plan, Mayor Adams has committed a record $26 billion in housing capital.

Industry leaders praised the program’s progress. Kirk Goodrich, president of Monadnock Development, remarked, “You can’t fight every fight, nor can you win every fight. But, I am grateful that Governor Hochul and Mayor Adams had the courage to fight for more housing in a time of unprecedented crisis and need. That is what leadership is all about.”