What is 467-m, in plain terms?
It's a property tax exemption, formally called "Affordable Housing from Commercial Conversions" (RPTL §467-m), created in the 2024 state budget for converting non-residential buildings into apartments. It replaced 421-g, the old Lower Manhattan-only office conversion program, and it's far more generous and far more widely available.
Does my building qualify?
It needs to have been at least 90% non-residential floor area before conversion — this covers a lot more than glass office towers, including commercial lofts, showroom buildings, and light-manufacturing structures. Hotels and Class B multiple dwellings are excluded. The converted building needs six or more units, and it has to be operated as rental housing — condo conversions don't qualify.
Does location matter?
Yes, significantly. The program is available citywide, but the benefit is much richer inside the Manhattan Prime Development Area (MPD) — generally Manhattan south of 96th Street:
90% property tax exemption inside the Manhattan Prime Development Area
65% property tax exemption everywhere else in the city
How long does the benefit last?
It's tied to when construction starts:
- Start by June 30, 2026 → 35 years
- Start July 1, 2026 – June 30, 2028 → 30 years
- Start July 1, 2028 – June 30, 2031 → 25 years
The overall window runs from projects commencing after December 31, 2022 through June 30, 2031, with completion required by December 31, 2039. If you're weighing whether to sell to a conversion developer now versus waiting, that commencement clock is the single most consequential date on your calendar — the same site can be worth meaningfully less to a buyer once the longest benefit tier is off the table.
What does the building give up for the exemption?
At least 25% of the resulting units must be permanently affordable, at a weighted average of 80% AMI or below across no more than three income bands — and unlike some older programs, this affordability is permanent, not term-limited. Buildings with 30 or more units also owe building-service employees (porters, doormen, cleaners) a prevailing wage. There does not appear to be a separate construction-worker wage floor the way there is under 485-x, which is one of the more meaningful differences between the two programs.
Why does this matter if I'm not planning to convert the building myself?
Because a buyer evaluating your office or commercial building is running the 467-m math whether or not you are. If your building sits in the Manhattan Prime Development Area, has clean floor plates and a workable window-to-core ratio, and can be delivered vacant, its value to a conversion buyer may have very little to do with its current office income — and everything to do with the 90% exemption a converted building could carry for the next three and a half decades.
What's a bad conversion candidate?
Deep, windowless floor plates are the most common dealbreaker — residential units need natural light, and a lot of mid-century commercial buildings simply weren't designed with that in mind. A building's core placement, window line, and floor plate depth matter as much as its zoning eligibility.