The Impact of the 421a Extension

On April 20, 2024, the New York State Legislature enacted the State’s FY2025 Budget, which, among other things, extended the construction completion deadline for projects in the now expired 421-a (16) Affordable Housing New York Program from June 15, 2026 to June 15, 2031. Developers of vested 421-a projects had until September 12, 2024, to file a Letter of Intent (LOI) with NYC’s Department of Housing Preservation and Development (HPD) to qualify their project for the extension.

On October 16, 2024, HPD publicly released a data set that lists all LOI filings it received from developers. The data set lists 740 projects with 78,861 total units including duplicate entries. REBNY has analyzed the developer-submitted data published by HPD without adjustment.

These findings demonstrate the success of the completion deadline extension. With the City facing a severe housing shortage and new construction filings at persistently low levels, these units will provide a much needed boost to New York City’s housing stock in all five boroughs in the coming years.