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Governor Kathy Hochul, Mayor Eric Adams and New York City Comptroller Brad Lander today announced a $500 million dollar investment from the Battery Park City Authority’s Joint Purpose Fund to build and maintain affordable housing across New York City. Through an agreement between the BPCA, the Mayor, and the Comptroller, the BPCA will disburse $500 million in excess operating funds to New York City’s Affordable Housing Accelerator Fund for the purpose of building affordable housing.

The agreement builds on commitments by Governor 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. From our landmark budget agreement to tackle the housing crisis to transformative investments that get housing built, I am continuing to work with partners like the BPCA, Mayor Adams and Comptroller Lander and fighting for a more affordable and more livable New York.”

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 serves as the primary source of funding for this 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 said, “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.”

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 said, “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.”

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 percent 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. In this way, BPCA has played a direct role in promoting the construction of affordable housing in Battery Park City, as well as contributed money to New York’s City’s affordable housing programs, for decades.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $500 million investment in affordable housing is a true testament to cooperation between our government partners. Investments like this complement Governor Hochul's housing plan that prioritizes increasing our housing supply and making New York a more affordable place to live. We look forward to continuing our work with Mayor Adams, Comptroller Lander, and the BPCA as we tackle the housing crisis.”

New York City Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer said, “Our administration is dedicated to solving our housing crisis by building together with partners across government. This historic investment with our administration, Governor Hochul, Comptroller Lander, and the Battery Park City Authority meets the moment, provides affordable housing for New Yorkers, and advances our moonshot goal of 500,000 new homes for New Yorkers by 2032.”

New York City Housing Development Corporation President Eric Enderlin said, “As New York City’s housing crisis deepens and the cost to build new affordable housing continues to rise, we appreciate the efforts of our city and state leaders in securing new and innovative financing sources essential to increasing our housing supply. We look forward to collaborating with our partners to leverage this vital funding and provide more housing for New Yorkers.”

New York City Department for Housing Preservation and Development Commissioner Adolfo Carrión Jr. said, "This multi-year $500 million investment in affordable housing is an agreement that will do more than build more brick-and-mortar buildings, it will transform lives and create new futures for individuals and families waiting for secure, affordable housing. Today, in collaboration with city and state leaders, we recommit and extend this partnership to collectively do all we can to tackle the housing crisis. When considered alongside recently secured state legislative tools, a significant city investment in housing funding from the adopted budget, and the possibility of once-in-a-generation zoning changes to accelerate construction and supply, we have a roadmap that puts us in the direction we need to create the housing access we deserve.”

New York City Executive Director for Housing Leila Bozorg said, “Building and preserving more affordable homes is an absolute priority in the face of our ongoing housing crisis. I extend my sincere appreciation to Mayor Adams for his clear-eyed leadership on investing in housing, and to Governor Hochul, Comptroller Lander, and the Battery Park City Authority for this meaningful partnership that aims to make affordable housing options in our city more abundant.”

State Senate Majority Leader Andrea Stewart-Cousins said, “Housing was unequivocally at the forefront of this legislative session, and we've worked tirelessly to ensure that every New Yorker has access to safe, affordable housing. The years of stagnation in the building of new affordable housing in New York State has come to an end. This $500 million investment will continue our ongoing commitment to boost our housing supply and revitalize our existing affordable housing stock. As Majority Leader, I am proud to support initiatives that prioritize affordable housing, ensuring all New Yorkers have a place to call home. I would like to thank Governor Hochul, Mayor Adams, and NYC Comptroller Lander for their partnership and work to secure this important investment.”

State Senator Brian Kavanagh said, “This allocation of $500 million continues an important long-term commitment by the State, the City, and the Battery Park City Authority to support our efforts to ensure that all New Yorkers have access to safe, affordable, and sustainable housing. I thank Governor Hochul, Mayor Adams, Comptroller Lander, and BPCA Director Raju Mann for their leadership and dedication to addressing the housing crisis. I look forward to continuing to work with them, with our colleagues at all levels of government, and our communities to help ensure that this funding has the greatest possible impact, and particularly to identify opportunities to increase affordability in Lower Manhattan.”

Assemblymember Charles D. Fall said, “I am extremely pleased to see the significant $500 million investment in affordable housing announced by Governor Hochul, Mayor Adams, and Comptroller Lander. This is a vital step in tackling the housing crisis and ensuring that New Yorkers can access stable, affordable homes. The decision to allocate funds from the Battery Park City Authority’s Joint Purpose Fund highlights a strong commitment to leveraging available resources for the public benefit. We know that affordable housing is a pressing concern in our city, and this investment will greatly ease the burden on many families facing financial struggles. I am particularly glad that this initiative will support 5 World Trade Center and the surrounding district, areas that have long needed affordable housing solutions. I look forward to seeing the positive impact this funding will have on our communities and residents.”

Assemblymember Linda B. Rosenthal said, “When a pot of $500 million is released to go toward the construction and preservation of affordable housing in New York City it is an auspicious moment and a time to applaud and start planning. When the funding is allocated in the midst of an affordable housing crisis, it is a time to cheer and become more hopeful about catching up to the desperate need for affordable housing., said Assemblymember Linda Rosenthal, Chair of the Assembly Housing Committee. I am thankful that Governor Hochul, the Mayor and Comptroller have designated the funding in the Battery Park City Authority Joint Purpose Fund for such a useful purpose, and look forward to seeing new safe, secure and affordable units spring up in all parts of the City.”

Manhattan Borough President Mark Levine said, “Every dollar that we can put toward affordable housing will make for a more livable New York. Today’s announcement marks a transformative investment in New York’s housing stock. Tackling the city’s affordable housing crisis takes creative solutions, and I’m grateful to the BPCA, Governor Hochul, Mayor Adams, and Comptroller Lander for their leadership on this.”

New York City Council Member Christopher Marte said, “We are thrilled by the leadership of Governor Hochul and Comptroller Lander in enacting this policy that the community has long been asking for. Battery Park City Authority generates a lot of revenue, mostly from its residents, who have been asking that their contributions go towards a meaningful source – not just the general fund of the city. NYC is facing an affordability crisis, and this excess funding and massive investment can go a long way to meeting the urgent need of New Yorkers who are facing ever-rising rent. We are hopeful that some of this affordable housing can be built in Battery Park City itself, as this neighborhood continues to grow and thrive.”

Chair of Manhattan Community Board 1 Tammy Meltzer said, “Building socio-economic diverse housing in every neighborhood is an essential component for ensuring the resilience of New York City and all its communities. We are thrilled that all disbursements of BPCA’s excess operating revenues will be dedicated to funding affordable housing. CB1 looks forward to collaborating with our Elected Leadership to identify ways to restore affordability in areas that have lost thousands of affordable housing units, like Lower Manhattan and hope the funds facilitate housing stability for New Yorkers who want to work and live here.”

Governor Hochul’s Housing Agenda

Governor Hochul remains committed to increasing the supply of safe, stable, and affordable housing across New York and reducing housing costs for all New Yorkers. As part of the FY25 Enacted Budget, Governor Hochul fought to secure a landmark housing agreement to increase New York’s housing supply by incentivizing new housing construction, including affordable rental housing and homeownership opportunities, in New York City; extending the construction deadline for projects in the now-expired 421-a incentive program; encouraging affordability in commercial to residential conversions in New York City; authorizing New York City to lift outdated restrictions on residential density in New York City; and creating a pathway to legalize existing basement and cellar apartments in certain areas of New York City.

In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan, to create and preserve 100,000 affordable homes statewide. More than 40,000 homes have been created or preserved to date.

Fitch Ratings has affirmed the following Battery Park City Authority, NY (BPCA) revenue bonds:

--Outstanding senior lien revenue bonds series 2023A, B&C and series 2019A, B&C at 'AAA';

--Outstanding junior lien revenue bonds series 2019D-1 and series 2019D-2 (and associated bank bonds) at 'AA+'.

The Rating Outlook is Stable.

The 'AAA' and 'AA+' ratings on the senior and junior lien bonds, respectively, reflect solid growth prospects for pledged revenues and expected strong resilience to revenue declines, which offset concerns about concentration risk of commercial office properties and the financial services sector. The potential for higher leverage leads to slightly weaker resilience for the junior lien bonds and warrants the one-notch distinction.

Fitch's dedicated tax analysis considers full leveraging up to the authority's general resolution additional bonds test (ABT) for both the senior and junior liens, despite the potentially lower issuance resulting from New York City's role in oversight and the approval of BPCA's debt issuance. The tests essentially allow bonds if current pledged revenues cover pro forma debt service by 2x for senior lien bonds and 1.55x for junior and senior lien bonds.

New York City Mayor Eric Adams today announced the groundbreaking of Battery Coastal Resilience, a critical, $200-million component of the overall Lower Manhattan Coastal Resiliency strategy. Led by the New York City Economic Development Corporation (NYCEDC), the New York City Department of Parks and Recreation (NYC Parks), and the Mayor’s Office of Climate & Environmental Justice (MOCEJ), Battery Coastal Resilience — a key initiative announced in Mayor Adams’ State of the City address earlier this year — will rebuild and elevate the wharf promenade in The Battery, staying true to the character and uses of the park while protecting against projected sea level rise in the year 2100. The project is expected to be complete in 2026 and will protect the 100,000 residents, 300,000 jobs, and 12,000 businesses that call lower Manhattan home. Additionally, the project will create 400 construction jobs.

Mayor Adams today also called on the federal government to create a regular, recurring source of federal funding for coastal infrastructure that would enable New York City to complete critical resiliency projects. For every $1 invested in coastal infrastructure projects, $6 is saved in recovery costs. A regular, recurring funding program would help New York City more reliably access federal funding for crucial projects to protect more New Yorkers from climate change hazards.

“We’re building a more resilient, more sustainable city for today’s New Yorkers and for generations to come, and our coastal resiliency projects are key pieces of that work,” said Mayor Adams. “The Battery Coastal Resilience project will help protect Lower Manhattan from the stronger storms that climate change is bringing while ensuring that New Yorkers can still enjoy the beautiful green space and cultural icons that The Battery has come to be known for. We’re investing billions in green and grey infrastructure across the city to ensure that New York City is ready for whatever Mother Nature can throw at us. And because the need for these projects isn’t going away any time soon, we need the federal government to establish reliable sources of funding for key coastal resiliency work across the country.”

“Climate change is the defining fight of our generation; the Lower Manhattan Coastal Resiliency strategy is a bold effort to protect this jewel of a city. It is also just one tool in a huge and growing toolkit that we are using to protect not just Manhattan but all five boroughs against heat, stronger storms, increased rain, and even smoke," said Deputy Mayor for Operations Meera Joshi. "From barrier walls to protect us from storm surges to bluebelts to capture rain, we need to commit to every component of our broad-based fight against this crisis. And we need every tool — with better, faster, cheaper capital delivery — to ensure we win."
  
“As we made clear in the recently-published Green Economy Action Plan, the City of New York is the world's leader on climate-forward policies, which includes upgrading our built environment to be more resilient in the face of more frequent and more powerful storms,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “I'd like to thank my colleagues across city government for their collaboration on this project, with special thanks to EDC. With this groundbreaking, we are mitigating the threat of sea-level rise to lower Manhattan for decades to come and advancing the city's position as a global pioneer in the fight against climate change.”

According to the New York City Panel on Climate Change (NPCC), coastal New York City is experiencing higher rates of sea level rise than the global average. NPCC projects, at the higher end, 23 inches of sea level rise by the 2050s and 65 inches of sea level rise by 2100. The project will protect New Yorkers from that sea level rise and will include the reconstruction of the deteriorating wharf; preservation and enhancement of the park’s character, gardens, and community amenities; memorials and historic monuments; adaptability to future passenger ferry needs, universally accessible design principles; and more.

Battery Coastal Resilience has received a Platinum award from the Institute for Sustainable Infrastructure’s Envision program, which promotes industry-wide sustainability metrics and fosters cost-effective, energy-efficient, and adaptable long-term infrastructure investments. Battery Coastal Resilience is the first major project in the city to meet the commitments of the NYC Clean Construction Accelerator of reducing embodied emissions by over 50 percent. Battery Coastal Resilience will use low-carbon and recycled materials, and it will reduce truck traffic through using barge transportation. This equates to the removal of more than 2,000 trucks from the roadways in Lower Manhattan, avoiding approximately 400 metric tons of carbon emissions. Battery Coastal Resilience exemplifies the way that mitigating greenhouse gas emissions and adapting to climate change can be complementary in major capital projects. This strategy will be critical as more coastal resiliency projects continue throughout the city and raises the bar to achieve for future climate solutions.  Battery Coastal Resilience exemplifies the way that mitigating greenhouse gas emissions and adapting to climate change can be complementary in major capital projects.

Also highlighted today was the South Battery Park City Resiliency Project (SBPCR), a Lower Manhattan Coastal Resiliency initiative led by the Battery Park City Authority (BPCA) and currently under construction adjacent to the Battery Coastal Resilience site. Creating a physical tie-in with Battery Coastal Resilience, SBPCR will create an integrated coastal flood risk management system extending along the northern border of Battery Park, across Pier A Plaza, through a rebuilt Wagner Park, and to the Museum of Jewish Heritage.

Under the Adams administration, the city is embarking on historic, multibillion-dollar work to fight climate hazards and advance environmental justice. The projects in The Battery are part of over $1.7 billion in Lower Manhattan Coastal Resiliency climate adaptation capital investments. These investments include the $350 million Brooklyn Bridge-Montgomery Coastal Resilience, which began construction in fall of 2022. Construction is also advancing on the $1.45 billion East Side Coastal Resiliency project, with the first two public areas opening in 2022 and 2023, and other coastal projects are in progress in all five boroughs. For example, as part of the city’s citywide efforts to reduce coastal risk, the administration recently completed construction on the Old Howard Beach Street project, which will protect New Yorkers from what would have been routine tidal flooding in 2050.

“Climate change presents a real, ongoing threat to New York City, and Lower Manhattan in particular,” said New York City Chief Climate Officer and New York City Department of Environmental Protection (DEP) Commissioner Rohit T. Aggarwala. “These coastal resiliency projects are important steps toward protecting the area against rising sea levels, flooding, and extreme weather events that continue to happen more frequently. DEP is proud to be a part of New York City’s efforts to improve The Battery’s resilience against climate change and ensure that Lower Manhattan remains a vibrant neighborhood for New Yorkers and visitors to enjoy for many years to come.”

“The Battery first became a critical part of Lower Manhattan's coastal defenses 400 years ago. Today, we are building on that history to respond to the new threat of rising seas, while also restoring its magnificent gardens and enhancing its iconic views,” said NYC Parks Commissioner Sue Donoghue. “Parks is proud of our work with our partners on this urgent project to replace the deteriorated wharf and esplanade with a new, higher structure, providing uninterrupted ferry access to the Statue of Liberty for many decades to come and increasing accessibility to the waterfront, using sustainable construction methods and protecting the park's character.”

“"Battery Coastal Resilience is a key part of our strategy to protect our ever-evolving shorelines from the intensifying impacts of climate change,” said MOCEJ Executive Director Elijah Hutchinson. “New York City is executing complex coastal resilience projects in our dense urban environment and this project is a window into the future of sustainable and clean construction practices where we use our waterways and marine highway instead of trucks, and where we use low-carbon and recycled materials for construction in a cost-effective way that reduces construction impacts to our neighbors.” 

“The Lower Manhattan Coastal Resiliency project sets the standard for future projects of this kind, marrying coastal protection with an ambitious sustainability agenda,” said NYCEDC President and CEO Andrew Kimball. “Breaking ground on the Battery Coastal Resiliency portion of Lower Manhattan Coastal Resiliency marks a huge win in advancing the work to protect our city from future sea-level rising and flooding due to climate change. NYCEDC is thrilled to work on this with MOCEJ and NYC Parks to deliver a sustainable and resilient future for all New Yorkers.”

“DDC installed the city’s first flood gate on Manhattan’s east side in 2022, and we are cumulatively building 3.2 miles of shoreline protection from the Brooklyn Bridge up to East 25th Street,” said New York City Department of Design and Construction Commissioner Thomas Foley. “Soon we will start similar work in Red Hook, Brooklyn. These projects are protecting New Yorkers in NYCHA and other housing, as well as important public buildings such as firehouse and clinics, from the effects of future storms and anticipated tidal flooding. They also are an opportunity to enhance public recreation spaces and expand access to the river, which our Lower Manhattan resiliency projects are doing. We opened the improved Stuyvesant Cove Park last summer and this fall we anticipate opening the first parts of the new East River Park.”

“Superstorm Sandy pushed nearly 10 feet of damaging salt water over The Battery that submerged much of Lower Manhattan, including our subways and vehicular tunnels. With shovels in the ground on these coastal protection projects, we are one step closer to safeguarding this critical part of New York City,” said DEP Deputy Commissioner for Coastal Resilience Laurian Farrell. “Similarly, after years of planning and working with our federal partners and local communities, we anticipate several additional coastal protection projects to get under way soon, including in Brooklyn and on Staten Island.”

“I thank Mayor Adams and all of those in city government who have been working hard for years to envision and put forth comprehensive initiatives to create and protect resilient communities in Lower Manhattan and across the city, including this Battery Coastal Resilience initiative, which is critical piece of the puzzle,” said New York State Senator Brian Kavanagh. “I am especially pleased that this project includes rebuilding and elevating the wharf promenade in The Battery. While plans like this one will no doubt need to be reviewed and augmented as the years go by, the city has been engaging with the local community for some time now and is taking decisive action today toward preserving this area in the face of the growing threat of climate change.”

“Resiliency infrastructure is key to New York City’s very survival: sea levels may rise as much as 5.4 feet by the end of the century, threatening the 20 percent of our city lying in a floodplain,” said New York State Assemblymember Jenifer Rajkumar. “The $200 million Battery Coastal Resilience project, part of the greater Lower Manhattan Coastal Resiliency, is a cornerstone of our plan to withstand and recover from increasingly intense storms. This project will utilize an enhanced drainage system, salt-tolerant trees and plantings, and permeable pavers to safeguard 100,000 of our fellow New Yorkers from the devastation of climate change. We will also use this project as an opportunity to rebuild the wharf, beautify the park, and make it inviting and accessible for all. This plan is advancing our goal of making New York City.”

“My district knows all too well the need for increased resiliency to protect against future weather events,” said New York City Councilmember Joann Ariola. “This project will go a long way towards protecting the people of Manhattan, and I hope that it expands to safeguard other portions of the city as well.”

“New York City and State partners are at work across Lower Manhattan to adapt our coastline to our changing climate and, in the process, reinvent incredible new public spaces along the waterfront we all cherish,” said BPCA president and CEO Raju Mann. “Lower Manhattanites have a front-row seat to the threats presented by more frequent and intense storms, and with the leadership of Governor Hochul and Mayor Adams, we’re addressing these challenges head-on.” 

“As the climate crisis bears down and the impacts of extreme weather become greater and more frequent, it is absolutely essential that New York City takes steps now to build up its coastal resilience before it’s too late,” said Julie Tighe, president, New York League of Conservation Voters. “NYLCV applauds Mayor Adams for launching the Battery Coastal Resilience project, which is a key component of ensuring Lower Manhattan is protected from rising sea levels and remains a robust center of commerce for generations to come.

“The Waterfront Alliance is pleased to see yet more progress in New York City’s initiatives to work against the acceleration of climate change,” said Cortney Koenig Worrall, president and CEO, Waterfront Alliance. “The Battery Coastal Resilience Project is a vital step forward in the coastal protection portfolio for lower Manhattan. With each new project the city gains the resources, skills, and experience that must bring similar projects faster to neighborhoods across all five boroughs.  Projects that combine resilient infrastructure with waterfront access for boats, ferries, and recreation are essential for a city surrounded by water. We are motivated to continuing to partner and work with the city’s climate teams as the agenda continues to be defined and as tools are developed to deliver infrastructure more quickly.”

“The Battery Coastal Resilience will help protect the residents and businesses that call Lower Manhattan home from rising sea levels while ensuring the park retains its character and its historical significance,” said Jessica Lappin, president, Downtown Alliance. “Lower Manhattan's unparalleled access to the waterfront helps set us apart, and we're encouraged to see tangible progress on this crucially important project.”

“The city's investment in fortifying the Battery's coastal defenses is vital to safeguarding this historic neighborhood and iconic public spaces from the increasing threat of storm surge and sea level rise,” said Alice Blank, vice chair, Manhattan Community Board 1. “New York is leading the way in climate resiliency by undertaking critical infrastructure upgrades in vulnerable areas like the Battery to protect residents, businesses, and treasured landmarks for generations to come.”