Governor Kathy Hochul today announced the development of approximately 71,000 new apartments in New York City, including 21,000 affordable units. This achievement is attributed to an extension of the construction completion deadline for the 421-a tax incentive program. The New York City Department of Housing Preservation and Development received letters of intent from around 650 building owners, signaling a collaborative effort between Governor Hochul and the Adams administration to provide innovative solutions to 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 stated. “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.”

Today’s announcement not only ensures the creation of significant additional housing options under the 421-a program but also extends the construction completion deadline from June 15, 2026, to June 15, 2031, for eligible projects that commenced construction after December 31, 2015, and on or prior to June 15, 2022. This extension is crucial for housing projects that risk missing the deadline due to factors such as market fluctuations exacerbated by the pandemic.

Governor Hochul emphasized the importance of this initiative, saying, “My administration is committed to combating the affordability crisis in every region of the State.”

Mayor Eric Adams expressed pride in the collaboration, stating, “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.”

New York City First Deputy Mayor Maria Torres-Springer noted the administration's swift action on the housing crisis, stating, “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.”

In addition to safeguarding over 70,000 units at risk of missing the deadline, the Enacted Budget also introduced a new affordable housing tax incentive to replace the 421-a program, along with measures encouraging office conversions into affordable units and a pilot program to legalize basement apartments.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas remarked, “Extending the 421-a program beyond its expiration date so that stalled housing developments can move forward was one of the smartest and most impactful elements of the groundbreaking FY 2025 Budget championed by Governor Hochul.”

State Senator Brian Kavanagh added, “The extension of the construction completion deadline for the 421-a tax incentive removed a defect in the program, leaving many residential projects in limbo. It is good to see that the changes we made have had the intended effect of getting many projects restarted.”

Assembly member Linda B. Rosenthal underscored the importance of building housing to address the affordability crisis, stating, “Today’s announcement signals that the State is on its way in delivering quality homes for generations of New Yorkers.”

Assembly member Jenifer Rajkumar said, “Together we passed the 421-a construction completion deadline extension, allowing us to save 21,000 affordable housing units and build another 50,000.”

Governor Hochul's comprehensive housing agenda aims to tackle New York's housing crisis, providing new tax incentives, funding for housing developments, and protections for renters and homeowners, ultimately striving to create more affordable living options for all New Yorkers.