The Empire State Development Gowanus Program: Gov. Hochul’s Plan to Replace 421-a(16) for Residential Gowanus

Inside R&E

In this episode of Inside R&E, Daniel M. Bernstein, Head of the firm's Tax Incentives & Affordable Housing Department, and Nicholas DiLorenzo, Of Counsel with the firm, discuss Governor Hochul’s recently-announced Executive Order to replace the 421-a(16) Program for Gowanus residential projects. The Executive Order, signed July 18 of this year, will allow residential projects currently under construction and located in the Gowanus rezoning area to apply to participate in an equivalent program to be run by the NYS Empire State Development (“ESD”) (the “ESD Gowanus Program”). The application deadline is September 29, 2023.

In their discussion, Daniel and Nick differentiate between the ESD Gowanus Program and Affordable New York, explaining what the new program means for projects which commenced in time to vest for Affordable New York but might not be able to meet the June 15, 2026 Completion Date deadline. While detailing the requirements of the ESD Gowanus Program and what lenders and developers should expect, Daniel and Nick provide a forecast of what this program might mean for Gov. Hochul’s Housing Plan and for future legislative movement in Albany.

If you have any questions about the ESD Gowanus Program’s applicability to your Gowanus project or possible expansion to other areas of NYC, please contact Daniel at [e-mail], [phone] and Nick at [e-mail], [phone].