Governor Hochul, Mayor Adams, and NYC Comptroller Lander Announce $500 Million Investment to Build and Preserve Affordable Housing in New York City

Governor Kathy Hochul, Mayor Eric Adams and New York City Comptroller Brad Lander today announced a $500 million dollar investment from the Battery Park City Authority’s Joint Purpose Fund to build and maintain affordable housing across New York City. Through an agreement between the BPCA, the Mayor, and the Comptroller, the BPCA will disburse $500 million in excess operating funds to New York City’s Affordable Housing Accelerator Fund for the purpose of building affordable housing.

The agreement builds on commitments by Governor Hochul, Mayor Adams and Comptroller Lander to address the housing crisis, build safer, more stable and more affordable homes, and reduce housing costs for New Yorkers.

“When it comes to building the affordable homes that New Yorkers deserve, my administration is leaving no stone unturned,” Governor Hochul said. “This agreement will turn excess funds from the Battery Park City Authority into a massive $500 million investment to help New York City realize its housing potential. From our landmark budget agreement to tackle the housing crisis to transformative investments that get housing built, I am continuing to work with partners like the BPCA, Mayor Adams and Comptroller Lander and fighting for a more affordable and more livable New York.”

The BPCA is a New York State public benefit corporation charged with operating, maintaining, and improving Battery Park City, a 92-acre community of residential, commercial, retail, and open space in lower Manhattan. As Battery Park City was being developed, the BPCA entered into long term ground leases with developers, generating lease revenue from commercial and residential buildings that serves as the primary source of funding for this affordable housing commitment.

Today’s Joint Purpose Fund agreement succeeds the previous agreement for the disbursement of BPCA’s excess operating revenues, which since 2010 has contributed $461 million in dedicated funding for affordable housing across the five boroughs and helped build or preserve over 10,000 units of affordable housing.

New York City Mayor Eric Adams said, “To solve a generational housing and affordability crisis, every sector has a role in providing relief to working-class New Yorkers. Today’s announcement takes us one step closer to delivering that relief. Our administration and our partners are united by a common cause: building more affordable housing. The only way to solve these dual crises is to simply build more, and with this $500 million commitment, we are coming together to use our dollars to make a difference and better support working-class New Yorkers.”

New York City Comptroller Brad Lander said, “Financing the production of affordable housing remains the City’s most powerful tool in combating the city’s housing affordability crisis. This landmark $500 million investment will help ensure that New York City and State have the resources we need to effectively deliver safe and affordable housing to New Yorkers.”

BPCA Board Chair Don Capoccia said, “I’m proud that as a result of the strong financial stewardship of Battery Park City we’re in a position to recommit to address New York’s affordable housing challenges. I want to thank the Governor, Mayor, and Comptroller for their partnership in this effort and for ensuring this money will all go to building and preserving affordable housing.”

BPCA President and CEO Raju Mann said, “Battery Park City Authority has a legacy of funding affordable housing across New York, and we’re thrilled to build on that legacy today. We’re facing a housing crisis and this $500 million will help create stable affordable housing for thousands of New Yorkers.”

BPCA owns the 92 acres that comprise the neighborhood, with all third-party owned buildings within Battery Park City on ground sub-leases to the Authority. The BPCA financing structure has, since its inception, supported both the Battery Park City neighborhood – funding maintenance of open spaces, neighborhood beautification and programming, and supporting debt service used to fund portions of BPCA’s capital projects – and the City of New York – contributing to both its General Fund and affordable housing initiatives citywide.

BPCA collects revenue from these ground sub-leases in the form of ground rent, Payments in lieu of Taxes (PILOT), and other fees. These revenues first fund BPCA’s operating expenses and debt service, with the majority of remaining funds, known as “excess revenues,” annually distributed to the City. The share associated with PILOT (approximately 80 percent of BPCA’s excess revenues) flows to the New York City General Fund and the share associated with ground rent is allocated to a Joint Purpose Fund, the use of which is decided unanimously by the Mayor, New York City Comptroller, and BPCA. In this way, BPCA has played a direct role in promoting the construction of affordable housing in Battery Park City, as well as contributed money to New York’s City’s affordable housing programs, for decades.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $500 million investment in affordable housing is a true testament to cooperation between our government partners. Investments like this complement Governor Hochul's housing plan that prioritizes increasing our housing supply and making New York a more affordable place to live. We look forward to continuing our work with Mayor Adams, Comptroller Lander, and the BPCA as we tackle the housing crisis.”

New York City Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer said, “Our administration is dedicated to solving our housing crisis by building together with partners across government. This historic investment with our administration, Governor Hochul, Comptroller Lander, and the Battery Park City Authority meets the moment, provides affordable housing for New Yorkers, and advances our moonshot goal of 500,000 new homes for New Yorkers by 2032.”

New York City Housing Development Corporation President Eric Enderlin said, “As New York City’s housing crisis deepens and the cost to build new affordable housing continues to rise, we appreciate the efforts of our city and state leaders in securing new and innovative financing sources essential to increasing our housing supply. We look forward to collaborating with our partners to leverage this vital funding and provide more housing for New Yorkers.”

New York City Department for Housing Preservation and Development Commissioner Adolfo Carrión Jr. said, "This multi-year $500 million investment in affordable housing is an agreement that will do more than build more brick-and-mortar buildings, it will transform lives and create new futures for individuals and families waiting for secure, affordable housing. Today, in collaboration with city and state leaders, we recommit and extend this partnership to collectively do all we can to tackle the housing crisis. When considered alongside recently secured state legislative tools, a significant city investment in housing funding from the adopted budget, and the possibility of once-in-a-generation zoning changes to accelerate construction and supply, we have a roadmap that puts us in the direction we need to create the housing access we deserve.”

New York City Executive Director for Housing Leila Bozorg said, “Building and preserving more affordable homes is an absolute priority in the face of our ongoing housing crisis. I extend my sincere appreciation to Mayor Adams for his clear-eyed leadership on investing in housing, and to Governor Hochul, Comptroller Lander, and the Battery Park City Authority for this meaningful partnership that aims to make affordable housing options in our city more abundant.”

State Senate Majority Leader Andrea Stewart-Cousins said, “Housing was unequivocally at the forefront of this legislative session, and we've worked tirelessly to ensure that every New Yorker has access to safe, affordable housing. The years of stagnation in the building of new affordable housing in New York State has come to an end. This $500 million investment will continue our ongoing commitment to boost our housing supply and revitalize our existing affordable housing stock. As Majority Leader, I am proud to support initiatives that prioritize affordable housing, ensuring all New Yorkers have a place to call home. I would like to thank Governor Hochul, Mayor Adams, and NYC Comptroller Lander for their partnership and work to secure this important investment.”

State Senator Brian Kavanagh said, “This allocation of $500 million continues an important long-term commitment by the State, the City, and the Battery Park City Authority to support our efforts to ensure that all New Yorkers have access to safe, affordable, and sustainable housing. I thank Governor Hochul, Mayor Adams, Comptroller Lander, and BPCA Director Raju Mann for their leadership and dedication to addressing the housing crisis. I look forward to continuing to work with them, with our colleagues at all levels of government, and our communities to help ensure that this funding has the greatest possible impact, and particularly to identify opportunities to increase affordability in Lower Manhattan.”

Assemblymember Charles D. Fall said, “I am extremely pleased to see the significant $500 million investment in affordable housing announced by Governor Hochul, Mayor Adams, and Comptroller Lander. This is a vital step in tackling the housing crisis and ensuring that New Yorkers can access stable, affordable homes. The decision to allocate funds from the Battery Park City Authority’s Joint Purpose Fund highlights a strong commitment to leveraging available resources for the public benefit. We know that affordable housing is a pressing concern in our city, and this investment will greatly ease the burden on many families facing financial struggles. I am particularly glad that this initiative will support 5 World Trade Center and the surrounding district, areas that have long needed affordable housing solutions. I look forward to seeing the positive impact this funding will have on our communities and residents.”

Assemblymember Linda B. Rosenthal said, “When a pot of $500 million is released to go toward the construction and preservation of affordable housing in New York City it is an auspicious moment and a time to applaud and start planning. When the funding is allocated in the midst of an affordable housing crisis, it is a time to cheer and become more hopeful about catching up to the desperate need for affordable housing., said Assemblymember Linda Rosenthal, Chair of the Assembly Housing Committee. I am thankful that Governor Hochul, the Mayor and Comptroller have designated the funding in the Battery Park City Authority Joint Purpose Fund for such a useful purpose, and look forward to seeing new safe, secure and affordable units spring up in all parts of the City.”

Manhattan Borough President Mark Levine said, “Every dollar that we can put toward affordable housing will make for a more livable New York. Today’s announcement marks a transformative investment in New York’s housing stock. Tackling the city’s affordable housing crisis takes creative solutions, and I’m grateful to the BPCA, Governor Hochul, Mayor Adams, and Comptroller Lander for their leadership on this.”

New York City Council Member Christopher Marte said, “We are thrilled by the leadership of Governor Hochul and Comptroller Lander in enacting this policy that the community has long been asking for. Battery Park City Authority generates a lot of revenue, mostly from its residents, who have been asking that their contributions go towards a meaningful source – not just the general fund of the city. NYC is facing an affordability crisis, and this excess funding and massive investment can go a long way to meeting the urgent need of New Yorkers who are facing ever-rising rent. We are hopeful that some of this affordable housing can be built in Battery Park City itself, as this neighborhood continues to grow and thrive.”

Chair of Manhattan Community Board 1 Tammy Meltzer said, “Building socio-economic diverse housing in every neighborhood is an essential component for ensuring the resilience of New York City and all its communities. We are thrilled that all disbursements of BPCA’s excess operating revenues will be dedicated to funding affordable housing. CB1 looks forward to collaborating with our Elected Leadership to identify ways to restore affordability in areas that have lost thousands of affordable housing units, like Lower Manhattan and hope the funds facilitate housing stability for New Yorkers who want to work and live here.”

Governor Hochul’s Housing Agenda
Governor Hochul remains committed to increasing the supply of safe, stable, and affordable housing across New York and reducing housing costs for all New Yorkers. As part of the FY25 Enacted Budget, Governor Hochul fought to secure a landmark housing agreement to increase New York’s housing supply by incentivizing new housing construction, including affordable rental housing and homeownership opportunities, in New York City; extending the construction deadline for projects in the now-expired 421-a incentive program; encouraging affordability in commercial to residential conversions in New York City; authorizing New York City to lift outdated restrictions on residential density in New York City; and creating a pathway to legalize existing basement and cellar apartments in certain areas of New York City.

In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan, to create and preserve 100,000 affordable homes statewide. More than 40,000 homes have been created or preserved to date.