New York Governor Andrew Cuomo is proposing to convert large workplace and hospitality properties into residential use as they continue to go empty amid the COVID-19 global pandemic.
During his 11th State of the State address, Cuomo said that the health crisis could be an excellent opportunity for Manhattan's central business district to innovate and address the shortage in affordable housing.
Since the pandemic has put the tourism industry on hold, and employees continue to work from home, most of the spaces were left empty to prevent further spreading the COVID-19.
"The housing problem in our cities has worsened. But the crisis of growing vacancies in our commercial property provides an opportunity. We should convert vacant commercial spaces into affordable, supportive housing, and we should do it now," Andrew Cuomo said.
According to the New York Post, Cuomo's office will create five years plan allowing midtown Manhattan landlords to convert their commercial spaces into residential properties. While Cuomo did not layout further details of the project, a spokesperson from his office said that the proposal's facts would be presented soon.
Supporting Cuomo's Idea
The Real Estate Board of New York (REBNY), which has been advocating the idea to convert commercial properties in recent months applauds Governor Cuomo's proposal.
"New York will remain a global commercial hub by instilling a 24/7 environment in its central business districts, which will simultaneously strengthen its retail and small business sectors, create 'walk to work' environments and provide much-needed housing and affordable housing," REBNY said in a statement.
"This forward-thinking approach will make such areas even more attractive to cutting edge businesses and their employees."
NYC Hotel Association president Vijay Dandapani supports the proposal saying it will help the hotel industry maximize the value of their properties.
"With no prospect of a meaningful revival for another three to four years, the Governor's proposal that seeks to make it easier for owners and operators of hotels to maximize the value of their severely negatively affected assets will be welcomed by many," Dandapani explained.
Meanwhile, the State Senate Housing Committee also gave a thumbs up to Cuomo's idea.
"The governor is smart to focus on the opportunities that may be available to convert commercial and retail space, but it'll take some smart thinking to figure out how to do that effectively," Committee Chairman Brian Kavanagh said.
"We can incentivize localities to look for potential sites, and incentivize them to permit these kinds of projects to happen more easily," he added.
Other officials, including Mayor Bill de Blasio and Council Speaker Corey Johnson, said they are looking forward to reviewing Andrew Cuomo's proposal's details.
Property Conversions in the Past
It is not the first time that property owners will be allowed to have a conversion. During the September 11, 2001 attacks, most of the Wall Street buildings' buildings were transformed into housing. At present, the financial district turned residential area now caters to over 60,000 residents.
