Battery Park City Authority to Provide $500 Million to Build, Preserve Affordable Housing in NYC

NEW YORK—New York State and New York City officials announced earlier today (July 22) that the Battery Park City Authority has agreed to invest $500 million from its Joint Purpose Fund to build and maintain affordable housing across New York City.

Through an agreement between the BPCA, New York City Mayor Eric Adams, Comptroller Brad Lander, the BPCA will disburse the funds in excess of its operating funds to New York City’s Affordable Housing Accelerator Fund for the purpose of building affordable housing.

The agreement builds on commitments by New York Gov. Kathy Hochul, Mayor Adams and Comptroller Lander to address the housing crisis, build safer, more stable and more affordable homes, and reduce housing costs for New Yorkers.

“When it comes to building the affordable homes that New Yorkers deserve, my administration is leaving no stone unturned,” Governor Hochul said. “This agreement will turn excess funds from the Battery Park City Authority into a massive $500 million investment to help New York City realize its housing potential.”

The BPCA is a New York State public benefit corporation charged with operating, maintaining, and improving Battery Park City, a 92-acre community of residential, commercial, retail, and open space in lower Manhattan. As Battery Park City was being developed, the BPCA entered into long-term ground leases with developers, generating lease revenue from commercial and residential buildings that serve as the primary source of funding for the $500-million affordable housing commitment.

Today’s Joint Purpose Fund agreement succeeds the previous agreement for the disbursement of BPCA’s excess operating revenues, which since 2010 has contributed $461 million in dedicated funding for affordable housing across the five boroughs and helped build or preserve over 10,000 units of affordable housing.

New York City Mayor Eric Adams said, “To solve a generational housing and affordability crisis, every sector has a role in providing relief to working-class New Yorkers. Today’s announcement takes us one step closer to delivering that relief. Our administration and our partners are united by a common cause: building more affordable housing. The only way to solve these dual crises is to simply build more, and with this $500 million commitment, we are coming together to use our dollars to make a difference and better support working-class New Yorkers.”

New York City Comptroller Brad Lander added, “Financing the production of affordable housing remains the City’s most powerful tool in combating the city’s housing affordability crisis. This landmark $500-million investment will help ensure that New York City and State have the resources we need to effectively deliver safe and affordable housing to New Yorkers.”

The BPCA owns the 92 acres that comprise the neighborhood, with all third-party-owned buildings within Battery Park City on ground sub-leases to the authority. The BPCA financing structure has, since its inception, supported both the Battery Park City neighborhood—funding maintenance of open spaces, neighborhood beautification and programming, and supporting debt service used to fund portions of BPCA’s capital projects—and the City of New York—contributing to both its General Fund and affordable housing initiatives citywide.

BPCA collects revenue from these ground sub-leases in the form of ground rent, Payments in lieu of Taxes (PILOT), and other fees. These revenues first fund BPCA’s operating expenses and debt service, with the majority of remaining funds, known as “excess revenues,” annually distributed to the City. The share associated with PILOT (approximately 80% of BPCA’s excess revenues) flows to the New York City General Fund and the share associated with ground rent is allocated to a Joint Purpose Fund, the use of which is decided unanimously by the mayor, New York City Comptroller, and BPCA.

BPCA Board Chair Don Capoccia said, “I’m proud that as a result of the strong financial stewardship of Battery Park City we’re in a position to recommit to address New York’s affordable housing challenges. I want to thank the Governor, Mayor, and Comptroller for their partnership in this effort and for ensuring this money will all go to building and preserving affordable housing.”

BPCA President and CEO Raju Mann added, “Battery Park City Authority has a legacy of funding affordable housing across New York, and we’re thrilled to build on that legacy today. We’re facing a housing crisis and this $500 million will help create stable affordable housing for thousands of New Yorkers.”