Related Companies has agreed to increase the number of affordable housing units it will build as part of the next phase of Hudson Yards.
First Deputy Mayor Randy Mastro announced Tuesday that the developer agreed to build a minimum of 625 affordable units, or 25 percent of the total apartments built, whichever is greater. That means if Related builds more than 2,500 apartments, the developer will set aside 25 percent of the units as below-market-rate. The developer has set its sights on building up to 4,000 housing units, though some of those could be condominiums.
The commitment is an increase from the minimum of 400 affordable units Related previously promised. But the increase may be a product of how many market-rate apartments the developer plans to build anyway.
Even without the promise announced on Tuesday, Related would have to set aside more than 400 apartments as affordable if it builds more than 1,600 total units and wants to receive a sizeable tax break. The developer is seeking 485x, which sets its own affordable housing minimums (at least 25 percent for a project of this scale).
Still, the mayor on Tuesday credited Mastro and Deputy Mayor Adolfo Carrión for “landing the plan” on the project.
“We’re very happy to say that Related has upped its commitment, first working with the City Council and now this administration, it has now committed to create at least 625 affordable housing units as part of this development,” Mastro said.
Related CEO Jeff Blau said in a statement that the project would be “transformational” and wouldn’t have moved “forward without the strong support and collaboration we’ve had from our city leaders on both sides of City Hall.”
Last month, Related and its partner Oxford Properties announced that they had reached a deal with the City Council to move forward with the project. At the time, the developer dropped its bid for one of three state casino licenses and agreed to include a 6.6-acre public park as part of the proposal.
The concessions appeared key for the project to move forward: Council member Erik Bottcher made clear that he did not support a casino on the site. The developer also agreed to reduce the height of podiums that will be built over the railyard, in response to concerns raised by Friends of the High Line.
The deal follows more than two years of Related trying to sell its $12 billion casino proposal. The developer began negotiations by proposing 1,500 apartments, considerably fewer than the unit count Hudson Yards’ second phase previously proposed. Over time, the developer upped its proposal to secure approvals.
Before dropping out of the casino competition, Related tried to sweeten its proposal even more by increasing the number of housing units planned for the Western Yards to as many as 4,000.
A rezoning set to be voted on by the City Council on Wednesday is an amended version of one approved in 2009. Related filed an application last year to change the rezoning, which called for 5,800 housing units. That unit count included luxury condominium units, which Related said were no longer financially viable. The developer proposed building 1,500 housing units instead.
The developer had argued that a casino would be needed to fund the development of the next phase of Hudson Yards to cover the cost of a $2 billion platform over the active train tracks on the development site. Last month, the developer pitched a new way to pay for the platform: using payments in lieu of taxes — a similar financial scheme to what was used for the Eastern Yards.
Now, Related is pursuing that payment method and replacing the casino with an office building and hotel.
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