On June 12, the New York City Council approved a new tax incentive program targeting affordable housing development in Queens, aiming to add more than 2,000 new units by 2026.

  • The Council passed the measure on June 12, 2024, with broad support.

  • Tax benefits will be available to developers building affordable units in Queens.

  • Over 2,000 new affordable apartments are projected under this plan by 2026.

New York City Council’s vote on June 12 marks a significant push to address Queens’ affordable housing shortage. The tax incentive package, supported by Council Speaker Adrienne Adams and Queens Borough President Donovan Richards, is set to encourage development near key transit corridors and underutilized sites. Rising rents and population growth have made Queens one of the city’s most challenging housing markets.

The approved measures provide substantial property tax abatements for developers who commit to below-market-rate units. According to the Council’s analysis, the program could reduce development costs by up to 35% for qualifying projects. In exchange, developers must reserve at least 30% of new units for households earning less than 60% of the area median income (AMI), a critical affordability threshold in New York City.

Business groups including the Real Estate Board of New York (REBNY) praised the move, citing the urgent need for new supply to combat record-low vacancy rates. However, some local advocacy organizations warn that incentives must be paired with strong tenant protections to prevent displacement and ensure long-term affordability. City officials expect shovels in the ground for the first projects by early 2025, following a streamlined permitting process.

Elected officials hope the new incentives will serve as a model for other boroughs facing similar housing pressures. With the city’s rental vacancy rate now below 2.5%, policymakers argue that ambitious action is essential to maintain New York’s economic diversity and competitiveness.

Frequently Asked Questions

What tax incentives were approved by the City Council?

The incentive package offers property tax abatements and exemptions for developers who build affordable housing in Queens. Key requirements include reserving at least 30% of units for households making less than 60% of AMI. The goal is to lower the financial barrier to new construction and accelerate affordable housing delivery.

Who benefits from these new affordable housing units?

Households in Queens earning below 60% of the area median income will be eligible for the new affordable units. Local residents facing rising rents and housing instability are the primary beneficiaries. The plan aims to help workers, families, and seniors remain in their communities.

When will construction on new units begin?

City officials project that qualified developments will begin as early as the first quarter of 2025, following a streamlined permits process. The program is expected to deliver over 2,000 new affordable units in Queens by 2026, with more projects in planning for subsequent years.

Frequently Asked Questions

What tax incentives did the NYC Council approve for affordable housing in Queens?

The NYC Council approved property tax abatements and exemptions for developers who build affordable housing in Queens, requiring at least 30% of units to be reserved for households earning less than 60% of the area median income.

How many new affordable housing units are expected in Queens under the new program?

Over 2,000 new affordable apartments are projected to be built in Queens by 2026 under the new tax incentive program.

Who is eligible for the new affordable housing units in Queens?

Households in Queens earning below 60% of the area median income will be eligible for the new affordable units.

When will construction on the new affordable housing units in Queens begin?

Construction on qualified developments is expected to begin as early as the first quarter of 2025, following a streamlined permitting process.

What are the requirements for developers to receive the new tax incentives in Queens?

Developers must reserve at least 30% of new units for households earning less than 60% of the area median income to qualify for the tax incentives.

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