As Mayor Eric Adams prepares to leave office, several real estate initiatives and unresolved policy matters remain for the incoming administration. When Adams assumed office in 2022, he committed to reducing bureaucratic obstacles for building in New York City and pledged a comprehensive overhaul of the property tax system. While his administration made progress on housing development by streamlining some approval processes and enacting zoning changes, the promise of property tax reform was not fulfilled.
“It is a balancing sort of thought process between ‘how I, as a new administration, can make a big splash, and ensure what I do is feasible,’” said Anita Laremont, partner at Fried Frank and former director of the Department of City Planning.
The “City of Yes for Housing Opportunity,” approved in December 2024, marked a significant part of Adams’ housing strategy. This amendment removed parking requirements for certain new housing projects, legalized accessory dwelling units (ADUs), introduced density bonuses for affordable housing, and expanded opportunities to convert offices into residential spaces. Implementation is ongoing; for instance, applications for homeowners to add ADUs only became available in September.
Laremont noted that developers are working to determine how best to integrate these changes into their projects and highlighted the need for coordination among city agencies: “There will need to be a ‘reckoning’ between the City Planning, the Department of Buildings and the Department of Housing Preservation and Development to ensure that the agencies are implementing the changes uniformly.”
Mayor-elect Zohran Mamdani’s administration will be responsible for overseeing these reforms and implementing recent ballot measures aimed at expediting affordable housing approvals. These measures include allowing some projects to bypass City Council approval and establishing an appeals board with authority over rejected affordable housing proposals.
The Adams administration also saw five neighborhood rezonings approved by the City Council, projected to yield nearly 50,000 new housing units. Fulfilling commitments tied to these rezonings—such as nearly $2 billion pledged during the Long Island City rezoning—will fall under Mamdani’s oversight.
A major initiative expected before Adams departs is the release of the Manhattan Plan. The plan aims to guide construction of 100,000 new housing units over ten years through strategies like upzoning parts of Manhattan and leveraging already-approved actions such as Midtown South rezoning.
“It is not uncommon for planning initiatives to span multiple mayoral administrations,” stated a spokesperson from City Planning. Laremont added that long-term windows are typical in urban planning: “In most planning things, there are really long-term windows to get things done.”
Basha Gerhards from the Real Estate Board of New York pointed out that policy ideas often take time before gaining traction: “Sometimes these things just take a long time to be socialized,” she said. “People need to get used to big changes.”
Other pending land-use efforts include a proposal requiring special permits for large last-mile facilities—a measure supported by some policymakers but opposed by REBNY due to economic concerns—and public engagement around potential rezoning near White Plains Road in the Bronx.
Mamdani has signaled support for advancing specific projects such as senior housing at Elizabeth Street Garden—a site recently designated as parkland by Adams’ administration—leading developers selected for that project to file suit against City Hall. Another project awaiting action is One45 in Harlem; while increased affordability levels have been discussed, additional public subsidies would be necessary.
Evan Thies, former advisor to Adams, commented on priorities facing Mamdani: “One point of concern, from the real estate industry, is that if you are too focused on just building city housing…then you won’t be putting resources into housing that is low-hanging fruit on the private side.”
Upon taking office in January, Mamdani’s stated priority will be freezing rents for stabilized tenants—a campaign promise opposed by landlord groups who cite rising defaults and foreclosures among rent-stabilized properties. Nonprofit lender Community Preservation Corp. reported an eightfold increase in foreclosures within its rent-stabilized portfolio since 2022 alongside more than double delinquency rates.
While landlords have called for easing regulations on rent increases after vacancies, state lawmakers have shown little interest in changing current laws. Under Adams’ tenure, rent increases were approved following years of freezes during Bill de Blasio’s mayoralty; he emphasized supporting small landlords with rising costs.
A pilot program launched by HPD aimed at helping landlords finance repairs saw no participation due largely to inadequate funding relative to needs within stabilized buildings.
Mamdani supports efforts such as lowering ownership costs through alternative insurance options and revisiting property tax policies. Despite campaign promises from Adams in 2021 regarding reforming what he described as an “unfair and overly complicated” property tax system during his first year in office, substantive change did not materialize during his term.
Tax Equity Now New York (TENNY) continues legal efforts pushing for adjustments in how homes and co-ops are assessed while awaiting possible court intervention or further recommendations based on work begun under de Blasio’s administration.
Another item likely requiring state action is extension or modification of programs like J-51—which provides tax abatements linked primarily with affordable or subsidized buildings—and amendments affecting construction wage requirements under exemption 485x. Whether there will be sufficient political momentum next year remains uncertain given factors such as Governor Kathy Hochul’s reelection campaign and potential opposition from construction unions regarding wage rollbacks.
