NYC Rent Cut Plan: What We Know

NEW YORK, NY— The City will lower rents for some residents, cutting required payments in certain city-subsidized apartments from 30 percent of household income to 25 percent under a new housing plan aimed at easing pressure on low-income tenants.

The policy applies to households classified as “extremely low-income,” including families of four earning no more than $50,880 annually.

The lower rent requirement will affect new housing projects financed by the city’s Department of Housing Preservation and Development, or HPD, that close financing beginning in June.

The change will not apply to tenants using housing vouchers.

“One of the things we’re trying to do is think about ‘affordable to whom,’” HPD Commissioner Dina Levy said.

The rent reduction marks one piece of a broader housing strategy from the Mamdani administration, which set a goal of building 200,000 affordable homes over the next decade while preserving existing affordable apartments and expanding homeownership opportunities.

The administration plans to build 8,000 affordable apartments annually over the next two years, a 35 percent increase from the prior two-year period. The plan includes about 2,400 apartments each year for households earning 30 percent of Area Median Income or less and another 1,600 units for households earning between 31 percent and 50 percent of AMI.

Area Median Income, a federal measure set by the U.S. Department of Housing and Urban Development, determines eligibility for affordable housing programs and rental rates tied to income bands.

Levy said the city will rely on preserving existing affordable housing, expanding homeownership programs and using tax-credit financing to help meet the administration’s long-term housing target.

“It is a big leap toward getting to that 200,000 units,” Levy said. “There’s a ramp up period, so we are in the first phase of that ramp up.”

The housing plan also commits the city to building 1,000 senior housing units annually, a 20 percent increase over average production in 2024 and 2025. Officials said future developments will increasingly combine senior housing with apartments for residents of all ages.

The administration also plans to open two community resilience hubs in buildings with large senior populations. The sites will build on programs launched after Hurricane Ida in 2021 that transformed developments in Brownsville and Coney Island into emergency support centers offering shelter, resources and social services during disasters.

Beyond rentals, the city plans to double homeownership opportunities over the next two years through new construction and the conversion of rental buildings into cooperatives.

Officials also plan to launch a no-interest loan program for up to 100 homeowners annually who risk falling behind on mortgage payments. The city will increase home repair loan limits from $60,000 to $100,000.

The administration said it will pursue rezonings in neighborhoods with lower levels of housing production and areas with strong transit access, including sections southeast of Prospect Park and parts of the north Bronx, to allow denser residential development.