In 2021, NYC rezoned 82 blocks of mainly industrial property in the neighborhood surrounding Brooklyn's Gowanus Canal to allow mixed-use developments in the hope of generating more than 8,500 new apartments, about a third of which would be reserved for affordable housing.
At least 18 Gowanus projects were initiated but building them got mired down due to a variety of factors, including the expiration of 421a tax breaks in 2022.
Numerous developers rushed to pour foundations in order to meet the June 2022 deadline to qualify for the 421a tax credits, but a frozen lending market in 2023 put most of those projects on ice without hope of meeting a 2026 deadline for completion required under 421a.
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