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Manhattan office conversions need more affordable housing, Council says
By
David Brand
Published Feb 28, 2023
Modified Feb 28, 2023
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C. Taylor Crothers
By
David Brand
Published Feb 28, 2023
Modified Feb 28, 2023
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A joint plan by Mayor Eric Adams and Gov. Kathy Hochul to turn empty Midtown offices into thousands of new apartments must have more homes for low-income New Yorkers, members of the City Council said at a hearing on Tuesday.
Members of the Council’s Land Use committee questioned Adams administration officials on their office conversion plan, which the mayor said could pave the way for 20,000 new apartments.
The blueprint calls for a tax break for developers who include income-restricted units in their renovations — the kinds of apartments missing from the residential conversions currently happening throughout the Financial District.
Meanwhile, Hochul proposed an “Affordable Housing from Commercial Conversions” benefit, which would waive a chunk of the property taxes for developers if they reserve a fifth of newly converted units for New Yorkers earning an average of 70% of the area median income. That’s families of three earning around $84,000 or individuals making about $65,000.
But several councilmembers said the voluntary program doesn’t go nearly far enough to address an affordable housing crisis that's taking the heaviest toll on the poorest New Yorkers.
“I need to see our lowest-income community in all of these proposals and I hope the administration will join in pushing the state to change these considerations,” said Councilmember Pierina Sánchez, who represents a Bronx district where median income for an individual is closer to $28,000 a year. “This is a matter of fair housing.”
Fewer than 1% of apartments priced below $1,500 a month were vacant and available for rent at the time of the city’s most recent housing survey. Meanwhile, median rents continue to break records in Manhattan and Brooklyn, all while the city’s homeless population exceeds 70,000.
“We especially need to build affordable housing with convenient access to well paying jobs, high-quality schools and other services,” said Councilmember Rafael Salamanca, who chairs the Council's land use committee. “Manhattan neighborhoods should be accessible to more than just the wealthiest.”
Testifying on behalf of City Hall, Dan Garodnick, the director of the Department of City Planning, agreed with the need for income-restricted apartments and called it a key priority. Under city rules, those units would also be a requirement as part of any rezoning, like a plan targeting a swath of Midtown where housing is currently prohibited.
He said the challenge lies in offsetting the cost of the conversions, which can require sweeping renovations to comply with city housing laws. Ensuring permanently affordable housing will also take hefty tax breaks, Garodnick said.
“Today, there is no provision for the conversion of office-to-affordable and we think that we should incentivize the creation of affordable [housing] that would be permanent and it’s something that is consistent with our city’s fair housing goals,” he said.
The conversions could also include supportive housing for formerly homeless New Yorkers, he added. Previous plans to turn empty hotels into supportive housing have sputtered as tourism rebounded and unions blocked sales.
The Council has mostly backed Adams' and Hochul’s office conversion plans, with two members representing Midtown expressing their support for a residential rezoning early on.
Garodnick called on state lawmakers to approve changes to local zoning laws in the upcoming state budget. That would allow for the immediate conversion of 120 million square feet of office space in buildings constructed before 1991. Without state action, the changes could only be made through the city’s lengthy land use review process.
He said the conversion process could begin within months of the state approving the measures, though housing policy experts say it will likely be years before people actually move into the newly created apartments.
“This idea of office to residential conversion makes sense and can be a win-win for the city,” Garodnick said.
Tagged
new york state
new york city
housing
manhattan
Kathy Hochul
eric adams
David Brand
David is a reporter covering housing for Gothamist and WNYC. Got a tip? Email [email protected] or Signal 908-310-3960.
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