New York City housing agencies closed on financing to create a record 14,227 affordable homes last year, announced city leaders.
Officials noted that 51% of these units benefited from the expired 421-A affordable housing tax incentive program.
While announcing the 2023 numbers, Mayor Eric Adams called on state lawmakers in Albany to partner with Gov. Kathy Hochul and provide the city with critical tools—including a new affordable housing tax incentive, a pathway to make basement and cellar apartments safe and legal, a tax incentive to turn empty office buildings into affordable homes, and the lifting of a cap on density for new construction—to create the new housing New Yorkers need.
Hochul has called for a replacement of the 421-A tax abatement program.
The record number of affordable homes financed last year was supported by the city Department of Housing Preservation and Development (HPD) and the city Housing Development Corp. (HDC).
Overall, HPD and HDC financed 27,911 units in calendar year 2023 through new construction and preservation deals, an increase of 80% from 2022, fueled by a 47% jump in the financing of new affordable homes. The Adams administration said it additionally continued to prioritize new homes for the most vulnerable New Yorkers, setting records by creating 3,926 new homes for households who formerly experienced homelessness and 1,670 new supportive homes with restricted rents and social services, reported city officials.
The city's accelerated new housing production in 2023 stands in contrast to the private housing market where construction slowed, driven in part by the loss of the 421-A incentive program and the absence of action in Albany to replace it. According to the Department of City Planning Housing Database, new unit permits dropped by approximately 84% between the first six months of 2023 and the first six months of 2022.