Hotel And Office Conversions — An Update

Since January 2021, multiple proposals were introduced in the New York State legislature to permit underutilized hotel and/or office buildings, many of which have become financially distressed due to the COVID-19 pandemic, to be converted to residential use and to override local zoning or building code requirements that would otherwise prevent such conversions. These proposals varied with respect to geographic applicability, affordability requirements and involvement of the private sector. With the legislative session concluding, it now seems clear that only one of the proposals, the Housing Our Neighbors With Dignity Act, a funding mechanism that does not override local zoning or building code requirements, is likely to be enacted.