New York Announces New Housing Plan to Cut Rent Burden for Low-Income Residents, Targets 200,000 Homes in 10 Years
New York City Mayor Zohran Mamdani is set to unveil a major housing initiative aimed at reducing rent pressure on the city’s lowest-income residents. The official announcement is expected on Tuesday.
Under the proposed plan, households classified as “extremely low-income”—defined as a four-member family earning $50,880 or less annually—will pay 25% of their income in rent instead of the current 30% for city-subsidized apartments. The new rate will apply to newly financed Housing Preservation and Development (HPD) projects starting from June 2026 or later. Households using housing vouchers will not be included in the policy.
HPD Commissioner Dina Levy said the administration is rethinking affordability standards. “We are thinking about who is actually being served as affordable,” she said, adding that the policy reflects urgency in addressing the city’s housing crisis.
Mayor Mamdani emphasized the need for immediate action amid rising displacement. “When working people are being pushed out of this city, there is no room for half measures or delay,” he said.
200,000 Homes in 10 Years
The administration has set a long-term target to build 200,000 affordable housing units over the next decade. As part of the plan, 8,000 new affordable apartments will be constructed annually over the next two years—about 35% higher than the average of the previous two years.
Of these, approximately 2,400 units per year will be reserved for households earning up to 30% of the area median income, while 1,600 units will target those earning between 31% and 50%.
Officials say the goal will be achieved through a combination of preserving existing affordable housing, expanding homeownership opportunities, and accelerating development through tax incentives rather than direct capital funding.
The plan also includes a commitment to build 1,000 senior housing units annually—about 20% higher than the 2024–2025 average. In addition to age-restricted housing, the strategy will promote mixed-generation developments.
“Federal support for affordable housing is not expanding—in some cases, it is shrinking,” said Commissioner Levy. “Mixed-generation housing offers a way to increase senior housing without relying on Section 8 expansion.”
The broader strategy includes housing preservation, new construction, stricter enforcement of building regulations, and zoning reforms to encourage development. Officials said early-phase work has already begun, with gradual implementation planned across multiple stages.
