The New York City Department of Housing Preservation and Development (HPD) has released its first report on the results of the new the 485-x Affordable Neighborhoods for New Yorkers Tax Incentive program, which launched in January. Introduced following a housing legislative package passed in Albany in April 2024, the 485-x program replaces the former 421-a incentive and is designed to stimulate residential development while ensuring deeper levels of affordability. Since the program opened, 118 buildings have registered intent to apply, representing approximately 2,600 new homes, including about 540 income-restricted, rent-regulated units.
The majority of projects showing early interest are concentrated in the outer boroughs, particularly in Brooklyn, The Bronx, and Queens. Data indicates an average building size of under 25 homes, signaling a strong uptake among mid-sized developments and individual homeowners. Thirteen projects representing 243 homes have opted for the homeownership component of the program, a significant increase compared to the predecessor program’s figures.
The 485-x program functions alongside the City’s recently adopted “City of Yes for Housing Opportunity” zoning package. This collaboration supports high-density development, accessory dwelling units, and the Universal Affordability Preference (UAP) for as-of-right affordable housing. Additional housing incentives and rezoning plans are in motion citywide, including office-to-residential conversions such as the large-scale 25 Water Street project in Lower Manhattan.
Subscribe to YIMBY’s daily e-mail
Follow YIMBYgram for real-time photo updates
Like YIMBY on Facebook
Follow YIMBY’s Twitter for the latest in YIMBYnews
we need to start with 30,40,60% AMI in these affordable housing units, and especially in better off neighborhoods, end the segregation AMI in these neighborhoods, ALL NEIGHBORHOODS NEED TRULY AFFORDABLE HOUSING, for profit developers gets big tax breaks, and then they shell out ‘affordable’ housing for the middle and market rate incomers, we will probably see way much more high priced so called affordable housing in the rich amenities/ gentrifying neighborhoods, and see the low incomers housing in the undesired neighborhoods, our taxes at work, smh
What’s wrong with building more units for low-incomers in less desired neighborhoods? Why should tax money be used to house them near central park or hudson river
Everyone who works,or retired pay taxes, you can put your confederate/ segregated mindset in the dumpster
What a pitiful amount of units. Shows that the program in its current form is not nearly enough incentive to build anything substantial in the most regulated and expensive market in the US.