Mayor Eric Adams has unveiled the “Manhattan Plan,” an ambitious initiative to add 100,000 new homes in Manhattan over the next decade as part of broader efforts to address New York City’s housing crisis. Announced during his 2025 State of the City address, the plan leverages tools from the “City of Yes for Housing Opportunity” to unlock housing potential across the borough.
Key Highlights of the Manhattan Plan:
- Midtown South Rezoning: Focused on 42 blocks between 23rd and 40th Streets, from 5th to 8th Avenues.Transitioning the area into high-density, mixed-use neighborhoods with new zoning allowing developments with FAR caps of 15 to 18. Expected to create 9,700 new homes, 2,800 of which will be permanently affordable under Mandatory Inclusionary Housing (MIH).
- Family-Friendly Development: The “City of Yes for Families” initiative will build housing alongside schools, playgrounds, grocery stores, libraries, and transit, making neighborhoods more family-centric.
- Office-to-Residential Conversions: Acceleration of adaptive reuse projects to repurpose underutilized office spaces for housing.
- Infrastructure and Funding Commitments: $1 billion allocated for housing developments. $2 billion for infrastructure upgrades, including sewers, flood prevention, and street improvements. An additional $1 billion over the next decade for tenant protections. Governor Hochul has pledged $1 billion in state funding over five years to support housing projects.
Broader City Initiatives:
- “24 in 24” Program: Development of 24 public sites to deliver 12,000 housing units.
- Bronx Metro-North Rezoning: Aiming to create 50,000 homes around four new stations over 15 years.
- New Tax Incentives: The 485-x tax break aims to encourage developers but has faced hesitancy due to wage and affordability requirements.
While Adams’ plan marks a significant step toward alleviating the housing crisis, its success depends on balancing affordability requirements, incentivizing developers, and securing community buy-in during the upcoming engagement process.
Governor Hochul’s Housing Agenda
Governor of the State Kathy Hochul has introduced a housing agenda in 2024 centered on incentives and regulatory changes rather than strict mandates, aiming to address New York’s housing shortage and affordability crisis.
Highlights of the Plan:
- Faster Approvals: Small projects (up to 10,000 sq. ft., ~14 units) exempt from environmental reviews to accelerate construction.
- Developer Support: $1.5 billion revolving loan fund for mixed-income projects, requiring 20% of units for low-income households.
- Investor Limits: A 75-day waiting period for institutional bids on small homes and restricted tax benefits for large investors.
- Pro-Housing Incentives: $100 million for infrastructure in housing-friendly communities and grants for municipalities expanding housing supply.
- Tax Advocacy: Federal push to restore the full SALT deduction.
Replacing her ambitious but unpopular “New York Housing Compact,” Hochul now focuses on collaboration and incentives. With parallels to NYC’s “City of Yes,” the agenda represents a step forward but highlights the ongoing struggle to balance political resistance and meaningful progress, as it faces critiques for omitting aggressive reforms like statewide zoning changes and faith-based affordable housing initiatives.
