Interest in Office-to-Residential Conversions Continues to Escalate in NYC

Since New York City’s launch of its Office Conversion Accelerator Program last year, it has attracted the interest of the owners of 64 NYC office buildings according to new data from the Department of City Planning’s office. The program that is “supposed to serve as a one-stop shop to help building owners navigate the complex rules and building codes by connecting them with representatives from various city agencies” has been further incentivized by the June 7th implementation of the Affordable Housing from Commercial Conversions Tax Incentive Benefits (AHCC) program. Although there are no geographic restrictions as to where within the five boroughs a conversion can happen, the “tax benefits will be greater for those in the Manhattan prime development area, which is any tax lot in the borough below 96th Street.” Among the owners that have contacted the city’s Office Conversion Accelerator Program, four buildings have successfully completed or launched construction creating a total of about 2,100 new housing units; and permits have been received to begin renovations at 650 First Avenue and 980 Sixth Avenue.

Source:    https://gothamist.com/news/64-office-buildings-in-nyc-could-become-new-housing

Source:    https://www.nyc.gov/site/hpd/services-and-information/tax-incentives-467-m.page