Made Possible by Governor’s Action To Change 60-Year-Old State Law To Lift 12 FAR Cap and Incentivize Major Office-to-Housing Conversions in New York City
Since Governor’s Action Last Year, Approximately 10,000 New Homes Completed or Under Construction in New York City Through Office Conversions
Governor Also Delivered $1 Billion This Year To Secure New York City’s “City of Yes for Housing Opportunity,” Which Will Create up to 18,000 New Homes Through Conversions
Continues Governor's Commitment To Build More Housing Statewide
Governor Kathy Hochul and Mayor Eric Adams today announced the Empire State Development (ESD) Board of Directors voted to enable a massive office-to-housing conversion at 5 Times Square, transforming underused office space into a mixed-use development with up to 1,250 new homes, including up to 313 permanently affordable homes. This project was made possible by Governor Hochul’s historic move last year to change 60-year-old state laws and lift the 12 Floor Area Ratio (FAR) cap on residential development in New York City, which had blocked new housing development since 1961. The 313 permanently affordable homes at 5 Times Square are a result of the Governor’s enactment of the Affordable Housing from Commercial Conversions Tax Incentive program (467-m).
As a result of these and other actions, approximately 10,000 new apartments have been completed or begun construction through office-to-housing conversions in New York City since last April. Additionally, the Governor’s FY26 budget includes $1 billion in State funding to secure the City of Yes for Housing Opportunity, an initiative that has made changes to New York City's Zoning Code that are expected to allow for up to 120 million new square feet for conversion and up to 18,000 new homes.
“We took bold action to unlock major office-to-housing conversions in New York City, and transforming 5 Times Square from underused offices into 1,250 new homes — including over 300 permanently affordable apartments — is a prime example of how we’re getting it done,” Governor Hochul said. “As I’ve made clear, the only way to address our housing crisis is to build more of the homes New Yorkers need — and I’ll never stop working to make that a reality.”
New York City Mayor Eric Adams said, “Confronting a decades-long housing crisis requires creating new housing in every neighborhood at an accelerated pace — even here at the ‘Crossroad of the World’ in Times Square. The transformation of 5 Times Square from an underutilized office building into 1,250 new homes capitalizes on hard-fought Adams and Hochul administration victories while fulfilling my plan to build 100,000 new homes in Manhattan over the next decade. Thank you, Governor Hochul, for your continued partnership in delivering the affordable housing New Yorkers need and for proving, once again, what can be accomplished when the city and state work together towards a common goal.”
The vote today by the ESD Board of Directors approved an amendment to the 42nd Street Development Project General Project Plan that will enable the conversion of 5 Times Square.