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What 467-m Is
Officially the "Affordable Housing from Commercial Conversions Tax Incentive Benefits" program, 467-m is a New York State property tax exemption created in the 2024 state budget. Its purpose: encourage developers to convert non-residential buildings — mostly underused offices — into housing, while requiring a share of affordable units in return.
It is codified in New York Real Property Tax Law Section 467-m, and administered in NYC by the Department of Housing Preservation and Development (HPD).
How It Works
Eligibility. The program applies to buildings that were predominantly (90% or more) used for commercial, manufacturing, or other non-residential purposes. Hotels and certain Class B multiple dwellings are excluded. A building must create at least six dwelling units, and the converted building must operate as rental housing.
The affordability requirement. At least 25% of the units must be income-restricted and rent-stabilized, at a weighted average of 80% of Area Median Income (AMI) or below. This is the public-benefit trade-off: developers get decades of tax relief, and the city gets permanently affordable units.
The tax benefit. The exemption is significant. Projects in the Manhattan Prime Development Area — Manhattan south of 96th Street — can receive up to a 90% tax exemption. Projects elsewhere can receive up to 65%.
The Deadline Tiers
This is the part driving the 2026 rush. The length of the benefit depends on when a project starts construction:
- Start by June 30, 2026: 35-year benefit
- Start July 1, 2026 – June 30, 2028: 30-year benefit
- Start July 1, 2028 – June 30, 2031: 25-year benefit
All projects, regardless of start date, must complete construction by December 31, 2039.
Because the most valuable tier expires June 30, 2026, developers are racing to break ground this year — which is why conversion starts are projected to more than double in 2026.
Why It Matters
For the housing supply: 467-m has made conversions financially viable that wouldn't have penciled out otherwise. The result is thousands of new rental units in former office buildings — over 6,500 conversion rentals projected by 2028 — including a meaningful share of permanently affordable, rent-stabilized apartments.
For renters: if you rent in a 467-m building, at least a quarter of the units are rent-stabilized and income-restricted. That means rent regulation protections, capped increases, and lease renewal rights on those units.
For neighborhoods: the program concentrates conversions in commercial districts — especially Lower Manhattan and Midtown — gradually shifting them from office monocultures toward mixed residential use.
The Criticism and the Catch
Not everyone is convinced. Critics note that 467-m relies on developers volunteering to convert, that the affordability requirement (80% AMI) still translates to rents many New Yorkers can't afford, and that the benefits flow heavily to property owners. There's also the durability question: because the strongest tier expires in mid-2026, the conversion wave may taper sharply afterward, raising the question of whether the program produces a one-time surge or sustained supply.
How to Tell If a Building Uses 467-m
If you're renting a unit in a recently converted office building, ask the landlord directly whether the building participates in 467-m and whether your specific unit is one of the rent-stabilized, income-restricted units. If it is, you have rent stabilization protections. You can verify a building's rent-stabilized status through DHCR — and check the building's overall record on Weverit before signing.
Frequently Asked Questions
What is the 467-m tax break in NYC? 467-m is a New York State property tax exemption that incentivizes converting commercial buildings into rental housing, requiring at least 25% of units to be income-restricted and rent-stabilized. Benefits run up to 35 years and up to a 90% tax exemption in prime Manhattan.
When does the 467-m tax break expire? The program has tiered deadlines. Projects starting by June 30, 2026 get the maximum 35-year benefit; the benefit shrinks for later start dates, with the program's final start window ending June 30, 2031. All projects must finish by December 31, 2039.
Are 467-m apartments rent-stabilized? At least 25% of the units in a 467-m building must be income-restricted and rent-stabilized. The remaining units are market-rate.
What is the difference between 467-m and 485-x? 467-m incentivizes converting existing commercial buildings to residential. 485-x (Affordable Neighborhoods for New Yorkers) incentivizes new residential construction. They are separate programs with different rules.
Related NYC Housing Guides
- NYC Office-to-Residential Conversions Are Doubling in 2026
- How to Check If Your Apartment Is Rent-Stabilized in 2026
- What Is NYC's COPA Law?
Sources: NY Real Property Tax Law §467-m; NYC HPD 467-m program page; Rosenberg & Estis analysis, 2026; Cushman & Wakefield conversion data, December 2025. This article is for informational purposes only and does not constitute legal or financial advice.
