The incoming mayoral administration will need to fund a $1-billion financing program for affordable housing projects at risk of default to restructure debt, the New York Housing Conference (NYCH) said. The financing program is one of a series of policy reforms the conference recommends to address the “alarming” share of New York City affordable properties that are in financial distress.

Mayor-elect Zohran Mamdani campaigned on a vow to freeze rents for rent-regulated housing and offer property tax relief for owners to offset the freeze. “Freezing rent will help these tenants, with average incomes of $60,000, to better afford living in NYC,” according to NYHC. “However, a multi-year rent freeze will exacerbate financial difficulties for distressed affordable housing while undermining the city’s own affordable housing financing assumptions of 2% rent growth.”

In a new report, NYHC said more than half of NYC’s affordable buildings are likely experiencing operating deficits.

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