Mamdani Administration Unveils Plans for 140-Unit Housing Project in East Harlem

The NYCEDC is seeking developers for a 140-unit project at 2453 Second Avenue, using a land-subsidy model to bypass city funding delays.

By: AXL Media

Published: Apr 9, 2026, 11:39 AM EDT

Source: Bisnow

The Cross-Subsidy Financial Model

In a departure from typical city-funded projects, the Second Avenue development will not receive direct cash subsidies from the Department of Housing Preservation and Development (HPD). Instead, the NYCEDC will provide the land to developers at little to no cost. In exchange, the selected developer must:

Incorporate at least 35 affordable homes.

Utilize the state’s 485-x tax abatement.

Apply the "land savings"—the capital that would have been spent on acquisition—directly toward subsidizing the affordable units.

This model is designed to overcome the "capital logjam" currently affecting NYC housing. By avoiding the HPD waitlist, which can stretch up to 10 years, projects can theoretically move from Request for Proposals (RFP) to groundbreaking much faster.