Building New Homes with Office-to-Housing Conversions

Today, the New York Daily News published an op-ed by Governor Kathy Hochul regarding her commitment to addressing New York’s housing crisis, including converting the vacant 5 Times Square office building into 1,250 new homes. Text of the op-ed can be viewed online and is available below:

Behind each one of my housing reforms — each proposal to build more and build better — are New Yorkers like Niya Newman, who I helped move into a permanently affordable unit in Gowanus. For Niya and her son, a few hundred dollars rent isn’t just the difference between new clothes or a family vacation, it’s the difference between staying in New York or joining the ranks of hard-working families who just couldn’t get by in the city they love.

As I handed Niya the keys, her eyes were filled with tears. I know that feeling as a mom — that sense of possibility that comes when you have the dignity of a home that makes you feel valued. Whether it’s converting an existing office building or investing in an area that had been left behind, like the Gowanus area, hearing stories like Niya’s remind me of the extraordinary importance of this fight.

For decades, community and state leaders have failed to harness the aspiration and boldness needed to break through barriers and build the future New Yorkers deserve. Even as our neighbors in New Jersey and Connecticut have implemented ambitious plans to build more housing and drive down costs, New York’s supply has been stagnant.

To create more stories like Niya’s means using every tool in our toolkit — new strategies and projects that weren’t even possible just a few years ago. We have the tools now because I fought for and secured historic changes to bring our laws into the 21st century and put your families at the forefront.

Just look at converting underused and vacant offices into apartments — it is a simple concept: What if we took the most costly part of development — building the actual buildings — out of the equation, and put to use otherwise unused space? But in many parts of New York City where the opportunity was greatest, it wasn’t even possible due to 60-year-old laws and a lack of key tools to keep up with the demand.

Over my last three budgets, I have been determined to break through these barriers. In the aftermath of the pandemic, we saw the over supply of empty office space looming over the skyline. With the housing crisis only worsening, we knew this was an opportunity to be innovative. We were able to break through those barriers — lifting the residential Floor Area Ratio cap, providing tax incentives for affordable housing and office conversions to housing.

Now we are starting to see those actions take shape. The latest example is a massive office-to-housing conversion announced at 5 Times Square — bringing us one step closer to solving the housing crisis by proving that we can create more supply with what already exists. This conversion of a 38-story office tower in one of the largest business hubs in the world, will create up to 1,250 new homes, including 313 that will be permanently affordable.

And we’re not stopping there. It’s part of a wave of new, innovative office-to-housing conversions throughout New York City since we took action last year, with approximately 10,000 new apartments completed or currently under construction since last April. We need to see that number of conversions increase even more.

And conversions are only part of what we’re doing to increase our housing supply. As part of my state budget this year, I invested more than $1 billion for affordable housing to help secure “City of Yes for Housing Opportunity,” the most significant pro-housing rezoning in the city’s history, which is expected to create more than 80,000 homes.

I also fought hard to extend the completion deadline for 421-a projects, and as a result, up to 71,000 homes, including 21,000 affordable homes — like Niya’s — which were previously at risk can now be built. Building for the future has to be our first priority — these programs are about incentivizing housing growth in communities of all shapes and sizes.

I’m fighting to make New York more affordable for families by tackling the highest cost that New Yorkers have to endure, the cost of their rent or their mortgage. I am committed to using every lever of power to break down the barriers that have held us back and suppressed housing growth. And as governor, I will partner with anyone who shares that vision.

New Yorkers deserve safe, stable and affordable homes — and the only way we can do that is to build more housing.