Governor Hochul Announces Groundbreaking for $278 Million Affordable Development in Queens, Expanding Homeownership and Increasing Housing Supply in Far Rockaway

Governor Kathy Hochul today announced the start of construction on the third phase of Arverne East in Far Rockaway. This $278 million affordable mixed-use project will create 89 cooperative homeownership units and 229 rental units. It is the latest building in the transformative Arverne East plan and the first and largest residential portion of the project. Built on a vacant, oceanfront site that was impacted by Superstorm Sandy, the development includes several sustainability and resiliency features designed to protect it from future storms. Under Governor Hochul's leadership, New York State Homes and Community Renewal (HCR) has created or preserved nearly 3,000 homes in Queens. Arverne East Building D continues this effort and is part of Governor Hochul's $25 billion five-year Housing Plan which is on track to create or preserve 100,000 affordable homes statewide.

"The latest phase of Arverne East will give more New Yorkers the opportunity to own affordable, sustainable and resilient homes," said Governor Hochul. "As we work to tackle the housing crisis impacting New York, we know that our only path forward is to build more housing, build it faster and more affordably. Arverne East is a perfect example of how we can accomplish those goals while also producing homes that can endure the test of time."

Designed to appeal to households and families of different sizes, the building, known as Building D, will have a mix of one-, two- and three-bedroom apartments. The cooperative homeownership units in the East Wing of Building D will be affordable to households earning up to 100 percent of the Area Median Income. There will be five co-op units designed to accommodate residents with mobility impairments and two units for residents with sensory disabilities.

The rental apartments in the West Wing of Building D will be affordable to households earning up to 90 percent of the Area Median Income. Thirty-five of the rental units will be supportive apartments for eligible youth aging out of foster care. On-site support services will be provided by Camba. There will be 12 apartments designed to accommodate residents with mobility impairments and five apartments reserved for residents with sensory disabilities.

In addition to the residential units, the building will feature outdoor terraces, a lounge, playroom, fitness center, bike storage, two superintendent units and various community spaces.

Arverne East prioritizes sustainability and resiliency design elements to address the impacts Superstorm Sandy had on the local community. Building D will be all-electric and fossil fuel-free, and a solar panel system will be installed on the roof. It will be built to Passive House standards and pursue certification through the Passive House Institute US. The building will also be connected to the Arverne East geothermal loop, which will provide Building D - and all the Arverne East buildings - with efficient heating, cooling and hot water through ground source heat pumps. These technologies will work together to drastically lower the carbon footprint of the building and energy costs for residents.

All ground floor residential and non-residential spaces will be located above design flood elevation, with the first floor raised to the 500-year flood elevation. All entrances and exits will be raised to the same extent. As an additional precaution, no residential units will be located on the first floor, and all first-floor spaces will be equipped with a full suite of floodproofing measures to aid in quick recovery in the event of a major storm or flood.

When fully built, the entire Arverne East project will consist of 1,650 homes, including apartments and town homes, of which approximately 80 percent will be affordable. There will be 270,000 square feet of commercial space and 76,000 square feet of community facility space. The plan also includes open space, retail, restaurants and the future Arverne East Aquatic Center. The completed first two phases feature a nature preserve, the Coastal Conservation Center, an urban farm and the reconstruction of Edgemere Avenue and related infrastructure.

Arverne East Building D is developed by L+M Development Partners, Triangle Equities, The Bluestone Organization, Mega Development and Urbane Development.

The homeownership portion of the project is supported by $17.3 million from New York State Homes and Community Renewal's (HCR) Affordable Homeownership Opportunity Program, which provides financing to affordable housing developers to create affordable single-family houses, condos and co-ops. Additional support includes $25.9 million from the New York City Department of Housing Preservation and Development's (HPD) Open Door program, $1.5 million in funding from Borough President Donovan Richards and $1 million in funding from City Council Member Selvena Brooks-Powers.

The $206 million rental portion of the project is participating in NYC Housing Development Corporation's (HDC) and HPD's ELLA program. It is supported by $94.1 million from HPD's Extremely Low- and Low-Income Affordability Program and Housing Infrastructure Fund and $71.9 million from HDC. The project was also awarded $1 million from the New York State Energy Research and Development Authority's Buildings of Excellence Competition. Urban Investment Group at Goldman Sachs Alternatives supported both the rental and homeownership elements of this project as tax credit equity investors.

The Affordable Homeownership Opportunity Program complements HCR's work to advance affordable homeownership, including its MOVE-IN NY program that invests in factory-built homes, HOME Homebuyer Development Program, Manufactured Home Advantage Program and the State of New York Mortgage Agency's suite of homebuyer mortgage programs.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "When we build a home, we build a community. Arverne East epitomizes the connection between affordable homeownership and growing communities. With our $17 million investment, we're giving nearly 90 households the opportunity to own a home for decades to come and to create a resilient, vibrant community. HCR is grateful to the L+M Development, HPD and all of our partners who are making this project a reality, as well as Governor Hochul for making affordable homeownership a priority in New York State."

New York State Energy Research and Development Authority (NYSERDA) President and CEO Doreen M. Harris said, "As the first residential phase of the Arverne East project, Building D will showcase how New Yorkers in affordable housing can benefit from all-electric, modern buildings that integrate onsite solar and geothermal systems. These smart building design features will save energy, lower costs for residents, and provide comfortable, resilient living spaces."

Housing Preservation and Development Deputy Commissioner of Development Patrick Love said, "Every New Yorker deserves a home they can afford. With Arverne East Building D, over 300 families will have access to affordable housing in the Rockaways, including both rental and homeownership opportunities that help families build equity and stability in the community. This is what it looks like when the City and State build together-we're focused on creating more affordable homes faster, and at lower cost. Thank you to Governor Hochul, Borough President Richards, and the City Council for investing in affordable housing."

NYC Housing Development Corporation President Eric Enderlin, said, "As New York City's first net-zero community, Arverne East is a prime example of how we can collectively work to address the affordable housing crisis while simultaneously advancing the city's goals to combat climate change. HDC looks forward to working with all our partners to deliver this sustainable and affordable development to the Rockaways."

State Senator James Sanders, Jr. said, "Arverne East Building D represents the kind of investment our community has been waiting for. Far Rockaway families deserve real pathways to stability, and creating new homeownership opportunities, alongside affordable rental units, moves us closer to that goal. For years, residents have asked for housing that is both attainable and rooted in the long-term future of this neighborhood. This project answers that call. I'm grateful to see construction begin, and I look forward to the positive impact it will have on local families for generations to come."

Assemblywoman Stacey Pheffer Amato said, "Today we take a major step forward as we start construction on the Arverne East project. Not only are we creating rental opportunities, but even more importantly, homeownership opportunities with a public pool! I was proud to secure $250,000 in Assembly Capital funding for this project and thank Speaker Heastie and Governor Hochul for their help. This is the type of investment and partnership our community deserves."

Queens Borough President Donovan Richards, Jr. said, "Today, we take another massive step forward in fundamentally changing the Rockaway Peninsula for the better. Arverne East represents exactly the kind of holistic, forward-facing vision of community development that our city should be taking to address our affordability and housing crises, and I could not be more excited to welcome 320 families home to this community in due time. From thousands of units of affordable housing across the development to state-of-the-art sustainability measures and beyond, Arverne East embodies responsible building. I'm deeply grateful to our friends at L+M Development Partners, our state and city partners and everyone else who is helping to advance the Rockaway Renaissance."

New York City Council Member Selvena N. Brooks-Powers said, "Arverne East Building D reflects an important step toward expanding affordable homeownership opportunities in Southeast Queens. I have been a strong advocate for ensuring this project includes a meaningful homeownership component, as well as for advancing tools like Article XI to make these units financially viable for working families. As this project moves forward, it is critical that we continue prioritizing pathways to ownership and long-term affordability for the communities we serve."

Community Board 14 District Manager Felicia Johnson said, "Arverne East Building D is a major step toward a healthier, more resilient, and more affordable future for this community. With 320 new affordable homes and a design centered on sustainability and quality of life, this project will have a lasting impact. We're proud to celebrate the region's first net-zero community and grateful to L+M Development Partners for being strong partners in bringing this vision forward."

L+M Development Partners Managing Director Sara Levenson said, "This is a proud moment for all who have contributed to making the Arverne East project possible. As we begin construction on Arverne D, we are one step closer to making New York's first net-zero community a reality. The revitalization of this vacant 116-acre oceanfront site in Far Rockaway will ensure the community benefits for generations to come by providing local access to housing opportunities for all income levels and creating economic development in the area, all supported by a model of sustainable, resilient design. We are grateful to our local, city, state, and private partners for reaching this milestone and look forward to continued collaboration to bring this bold vision to life."

Triangle Equities Chief Operating Officer Evan Petracca said, "This groundbreaking marks a major step toward creating homes for New Yorkers across every income level. Triangle Equities is especially grateful to Governor Hochul and HCR for their steadfast commitment to affordable housing, to L+M Development Partners for their leadership in bringing Arverne East Building D to life, our development partners and to the City of New York for its essential role in making this milestone possible."

Urbane Development Principal & CEO James Johnson-Piett said, "Breaking ground on Arverne D is a proud moment in our mission to build community wealth, not just real estate. This project brings together the essential elements of inclusive development-quality affordable housing, homeownership opportunities that create pathways to generational wealth and spaces for small businesses and local economic development, all anchored by sustainable, climate-resilient design. We're excited to work alongside our partners and the Rockaway community to make New York's first net-zero community a model for how development can truly serve community prosperity for generations to come."

Urban Investment Group at Goldman Sachs Chair Asahi Pompey, said, "Goldman Sachs has invested over $160 million in this development because we believe that affordable housing is the first step in fostering stable, thriving communities. Families should also have access to pathways to ownership. Arverne delivers both, opening the door to homeownership for New York families while creating quality rental homes for hundreds more."

Bluestone Organization President Eric Bluestone said, "This groundbreaking represents the collaborative commitment of our public sector and joint development partners to building vibrant and sustainable housing that will serve the Far Rockaway community for the long term. By combining high-efficiency design with deep affordability, we are ensuring that Arverne East will be a place where everyone, regardless of income, can afford to live in a healthy, modern environment."

Governor Hochul's Housing Agenda

Governor Hochul is dedicated to addressing New York's housing crisis and making the State more affordable and livable for all New Yorkers. Since FY23, the Governor has worked to increase housing supply to make housing more affordable by launching a $25 billion five-year comprehensive Housing Plan, enacted the most significant housing deal in decades and implemented new protections for renters and homeowners. Under Governor Hochul's leadership, HCR has created new programs that jumpstart development of affordable and mixed-income homes - for both renters and homebuyers. These include the Pro-Housing Community Program, which allows certified localities exclusive access to up to $750 million in discretionary State funding. More than 410 communities throughout the state have been certified Pro-Housing, including New York City.

As part of Governor Hochul's 2026 State of the State, the Governor proposed her "Let Them Build" agenda, a series of landmark reforms to speed up housing and infrastructure development and lower costs. This initiative will spur a series of common-sense reforms to New York's State Environmental Quality Review Act (SEQRA) and executive actions to expedite critical categories of projects that have been consistently found to not have significant environmental impacts, but for too long have been caught up in red tape and subject to lengthy delays.

The FY27 Executive Budget completes the Governor's current five-year Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations plus the electrification of an additional 50,000 homes. More than 81,000 affordable homes have been created or preserved to date. The Executive Budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes.

Contact the Governor's Press Office