NEW YORK — In a landmark decision for Manhattan’s housing future, Mayor Eric Adams announced the New York City Council’s approval of the Midtown South Mixed-Use (MSMX) Plan — a transformative rezoning covering 42 blocks in one of the city’s most transit-accessible neighborhoods.

The move marks the first time residential construction will be permitted in this section of Midtown South, which for decades has been limited by industrial-era zoning rules. The plan is expected to unlock nearly 10,000 new homes, with up to 2,800 permanently affordable units reserved under the city’s Mandatory Inclusionary Housing program.

“This is about making Midtown South a place where people don’t just work, but can actually live and raise their families,” Mayor Adams said.

$470 Million in Public Investments

The MSMX Plan includes a major $470 million public investment package aimed at enhancing public spaces, boosting the local economy, and improving infrastructure:

• Broadway Vision Plan — $325 million to transform Broadway from West 21st to West 42nd Streets into a pedestrian-friendly green corridor with plazas, bike lanes, and public art.

• McCaffrey Playground Renovation — $13.5 million for a full-scale upgrade of the public play space.

• Transit Upgrades — Finalization of the 34th Street Busway to reduce congestion and improve travel speeds.

• Support for Fashion & Garment Industry — $50 million to create a permanent innovation hub and launch a branding campaign for local designers and manufacturers.

Zoning Milestone

The plan also introduces New York City’s first R11 and R12 residential zones, enabled by the state’s recent removal of the decades-old Floor Area Ratio (FAR) cap. This change will allow for taller buildings and conversion of underused office spaces into housing, greatly increasing the area’s residential capacity.

Part of the ‘Manhattan Plan’

The MSMX Plan is a flagship project within Mayor Adams’ broader Manhattan Plan, which aims to create more than 100,000 new homes across the borough over the next decade. Other major initiatives include:

• Redevelopment of 100 Gold Street.

• Construction of 700 homes above a future Second Avenue Subway station in East Harlem.

Deputy Mayor Adolfo Carrión Jr. called the rezoning “a direct result of New York saying yes to practical housing policies,” while Dan Garodnick, Director of the Department of City Planning, described it as “a win-win-win — more homes, more jobs, and more vibrant streets.”