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NY developers test 485-x by capping projects at 99 units
Between April 2024 and April 2026, at least 154 permits were issued for 99-unit-plus projects, but only about 1 percent reached over 100 units, according to City Reporter data cited in the story.
Commercial Observer reports New York City developers are increasingly focused on the state’s 485-x multifamily incentive program, which ties tax incentives for new residential development to the inclusion of affordable housing. The criticism highlighted in the story centers on 485-x’s higher construction wage requirements in much of Manhattan and outer-borough areas for projects above 99 units.
The story says the de facto ceiling of 99 units is showing up in permitting outcomes. It cites City Reporter data indicating at least 154 permits for projects with more than 99 units between April 2024, when 485-x took effect, and April 2026, and it adds that only 1 percent of those projects were over 100 units.
Commercial Observer also profiles developer Andrea Gjini of AG Holdings Group, who said he will not go above the 99-unit mark even if doing so could be justified in theory. Gjini told the outlet that costs have been 25% to 30% higher, while refinancing timing and changing interest rates make it feel too uncertain to move beyond 99 units.
The article further describes how regulatory and macro risks affect development decisions. It says Gjini cited a three-month delay at the New York City Department of Buildings for a project at 19 East 198th Street that contributed to three $150,000 monthly interest payments, and it adds that geopolitical instability and shifting logistics since the war with Iran began have increased both material costs and supplier uncertainty.