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evelopers are now seeking to build 71,000 apartments with an extension to the lapsed 421a property tax break, a significant increase from initial projections. Governor Kathy Hochul announced that nearly 650 buildings have sent letters of intent to qualify for the extension, which would give them until June 15, 2031, to complete their projects. However, these letters do not guarantee the units will be built or receive the tax break.

    The unit count exceeds industry predictions that only 33,000 planned apartments would be completed without an extended deadline. The discrepancy may stem from developers filing letters as a contingency measure or to make their properties more marketable, rather than a genuine intention to build housing.

    Hochul made her announcement at Two Trees Management's office building in Brooklyn, where the company is seeking the 421a extension for a 1,000-unit project. The governor touted the passage of a package of housing policies in the state budget, including the 421a extension and incentives for office-to-residential conversions.

    Hochul also launched an incentive-based approach called the "Pro-Housing Communities Program," making $650 million in state funding available to localities that allow for housing growth. New York City has joined over 200 communities certified as pro-housing under this program. The City Council will hold hearings next week on Mayor Eric Adams' signature housing policy, the City of Yes for Housing Opportunity.