Mayor Adams Helps Negotiate Agreement to add Nearly 50 Percent More Affordable Housing Units to Largest Real Estate Development in U.S. History at Hudson Yards West

June 10, 2025

New Agreement With Related Companies Adds Roughly 50 Percent More Affordable Housing to
Hudson Yards West Project, With At Least 625 Units Now Reserved as Permanently Affordable,
Another 139 Existing Units Nearby to Be Preserved as Permanently Affordable

Phase 2 of Project Will Deliver Total of Up to 4,000 Units for New Yorkers

New Phase of Plan Would Create 35,000 Temporary Jobs, 6.6 Acres of Public Space,
New 750-Seat K-8 School, and Daycare Facility 

Phase 2 of Project Valued at Over $12 Billion, Will Make Entire
Hudson Yards Plan Valued at $32 Billion, Largest Real Estate Development in U.S. History

Agreement Continues Adams Administration’s Record Delivering
Generational Housing and Economic Development Projects

NEW YORK – New York City Mayor Eric Adams today announced a tentative agreement with Related Companies he helped broker to increase the amount of affordable housing at Hudson Yards West by nearly 50 percent over the previous proposal. Phase 2 of the project — which is valued at $12 billion — will now include 4,000 new homes at the site, at least 625 of which will be permanently-affordable units. Additionally, as part of today’s agreement, another 139 units nearby will also be preserved as permanently affordable. Under this tentative agreement, the city will use future tax revenues generated from the Western Rail Yards to support the financing of infrastructure, including the development of a deck over the existing rail yards. In addition to building thousands of new units of housing, the project will also include 6.6 acres of public space, a new K-8 school, and a new daycare facility on the site. The project is expected to create 35,000 temporary jobs throughout the development and construction process. The entire Hudson Yards project is now valued at $32 billion, making it the largest real estate development in U.S. history.

After proposals to redevelop the rail yards stalled for nearly two decades, the agreement announced today continues the Adams administration’s track record delivering generational projects for New Yorkers — including the largest 100 percent affordable housing project in 40 years at Willets Point, an $850 million climate research facility on Governors Island, the country’s largest offshore wind port at the South Brooklyn Marine Terminal, and more.

“When we came into office, we set an ambitious goal of building 500,000 new homes over the coming decade. We said our city could not afford to kick the can down the road any longer and promised to put forward real solutions to solve our generational housing crisis and keep families in the five boroughs. Three years later, we shattered affordable housing records year after year, passed generational zoning changes to create tens of thousands of new homes, and won a long-overdue housing deal from Albany. We’ve done exactly what we promised, and we are continuing that track record of leadership today thanks to this new agreement with Related to add nearly 50 percent more affordable housing to this project,” said Mayor Adams. “With the historic agreement, we will finally bring this decades-long project to life and build thousands of new homes for New Yorkers in the heart of Manhattan. Crucially, we fought to make even more of these units affordable so that working-class New Yorkers can live in the city they help run every day.”

“Today marks a game-changing agreement to move forward with the long-stalled Western Rail Yards project, with the opportunity to deliver thousands of homes, good jobs, a new school, and public space,” said Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrión, Jr. “As we’ve done time-and-again on complicated projects, the Adams administration is unlocking underutilized land, building new homes, and creating whole new neighborhoods.”

“This is a historic moment for New York City, and this complex and transformational project would not be moving forward without the strong support and collaboration we’ve had from our city leaders on both sides of City Hall,” said Jeff Blau, CEO, Related Companies. “Mayor Eric Adams and his administration; Speaker Adrienne Adams and her team; Councilmember Erik Bottcher, who has been committed to delivering for his community; Chair Kevin Riley, Chair Rafael Salamanca and Councilmember Justin Brannan; have all worked hard to ensure the final Hudson Yards West plan meets New York’s needs: more housing, green open space, and more access to opportunity and thousands of jobs for our workers. We are also particularly grateful to the Council staff who prepared the unique mechanism to fund housing as part of the new development. Now, we’re ready to get to work, finish the job at Hudson Yards, and create a vibrant community that will make New York City proud for generations.”

The agreement reached today with Related adds significantly more permanently affordable housing to the proposed project than previous iterations, increasing the number of units from 420 to at least 625, and builds on the Adams administration’s record as the most pro-housing administration in New York City history. As part of the agreement, Related is expected to take on the construction of the new 750-seat school. Additionally, the city will utilize future tax revenues from the project to support the construction of a new deck over the rail yards, a proven tool to finance infrastructure improvements without requiring direct public subsidies. Following today’s announcement of a framework for the project, the proposal will move forward for approvals by the New York City Council, the New York City Industrial Development Agency, and Hudson Yards Infrastructure Corporation.

Since entering office, Mayor Adams has made historic investments to create more affordable housing and ensure more New Yorkers have a place to call home. The Adams administration is advancing several robust neighborhood plans that, if adopted, would deliver more than 50,000 units over the next 15 years to New York neighborhoods. In addition to the Bronx-Metro North Station Area Plan and the Atlantic Avenue Mixed-Use Plan, both of which have been passed by the New York City Council, the Adams administration is advancing plans in Midtown South in Manhattan, as well as Jamaica and Long Island City in Queens.

Moreover, last December, Mayor Adams celebrated the passage of “City of Yes for Housing Opportunity,” the most pro-housing proposal in city history that will build 80,000 new homes over 15 years and invest $5 billion towards critical infrastructure updates and housing. Last June, City Hall and the City Council agreed to an on-time, balanced, and fiscally-responsible $112.4 billion Fiscal Year (FY) 2025 Adopted Budget that invested $2 billion in capital funds across FY25 and FY26 to the New York City Department of Housing Preservation and Development and the New York City Housing Authority’s capital budgets. In total, the Adams administration has committed $24.7 billion in housing capital in the current 10-year plan as the city faces a generational housing crisis. Mayor Adams celebrated back-to-back record breaking fiscal years, as well as back-to-back calendar years, in both creating and connecting New Yorkers to affordable housing. Last spring, the city celebrated the largest 100 percent affordable housing project in 40 years with the Willets Point transformation. 

Further, the Adams administration is using every tool available to address the city’s housing crisis. Mayor Adams announced multiple new tools, including a $4 million state grant, to help New York City homeowners create accessory dwelling units that will not only help older adults afford to remain in the communities they call home but also help build generational wealth. In addition to creating more housing opportunities, the Adams administration is actively working to strengthen tenant protections and support homeowners. The Partners in Preservation program was expanded citywide in 2024 through an $24 million investment in local organizations to support tenant organizing and combat harassment in rent-regulated housing. The Homeowner Help Desk, a trusted one-stop shop for low-income homeowners to receive financial and legal counseling from local organizations, was also expanded citywide in 2024 with a $13 million funding commitment.

Finally, Mayor Adams and members of his administration successfully advocated for new tools in the 2024 New York state budget that will spur the creation of urgently needed housing. These tools include a new tax incentive for multifamily rental construction, a tax incentive program to encourage office conversions to create more affordable units, lifting the arbitrary “floor-to-area ratio” cap that held back affordable housing production in certain high-demand areas of the city, and the ability to create a pilot program to legalize and make safe basement apartments.

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