New York City Mayor Eric Adams announced on Tuesday, July 2nd, a $2 billion investment in affordable housing initiatives as part of the city’s newly adopted $112.4 billion budget for Fiscal Year 2025.
This substantial allocation intends to address the city’s ongoing housing crisis and affordability challenges.
The $2 billion in capital funds, spread across FY25 and FY26, will be divided between the New York City Department of Housing Preservation and Development (HPD) and the New York City Housing Authority (NYCHA).
This investment is part of a larger $26 billion commitment to housing capital in the current 10-year plan, marking a record level of funding for affordable housing in the city.
Mayor Adams expressed the importance of this investment, stating, “We are investing a historic $2 billion in capital funds to HPD and NYCHA, bringing our total investment in affordable housing to more than $26 billion — a new record level. We must throw open the doors to new solutions and housing in our city to keep New York a city for everyone. With these investments, we are going to build a city that is more affordable, and that provides opportunity and security for all.”
Of the $2 billion, $700 million is earmarked for NYCHA, primarily supporting PACT (Permanent Affordability Commitment Together) and Public Housing Trust projects. These initiatives aim to renovate and upgrade existing public housing units and properties, including improvements to bathrooms, kitchens, heating systems, and security measures.
The remaining $1.3 billion will fund HPD programs focused on preserving and constructing new affordable housing, supportive housing, and homeownership opportunities.
This investment comes at a critical time when the city faces low vacancy rates and high housing costs.
Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer stated, “With an additional $2 billion in funding for affordable and public housing, we are building off our legislative wins in Albany, advancing our pathbreaking ‘City of Yes’ proposal, and continuing to demonstrate how Mayor Adams is the most pro-housing mayor in our city’s history.”
The housing investment aligns with the Adams administration’s ambitious “moonshot” goal of building 500,000 new homes by 2032.
It also coincides with efforts to pass the “City of Yes for Housing Opportunity” initiative, described as the most pro-housing zoning proposal in the city’s history.
Lisa Bova-Hiatt, NYCHA Chief Executive Officer, said, “The preservation of NYCHA’s housing stock is absolutely critical amid the current housing crisis.”
Housing advocates have praised the budget for its commitment to addressing the city’s housing crisis. The investment is seen as a crucial step in making New York more livable and affordable for its residents, particularly in the face of ongoing economic challenges.
