Mayor Zohran Mamdani has said he wanted to build affordable housing on the site of the Elizabeth Street Garden, but seems to have changed his mind.
Thousands of New Yorkers may not have a place to live by the end of the year as funds for a federal housing voucher program run out, years ahead of schedule.
During a housing crisis in New York City, there are thousands of city-run apartments sitting empty and the number has grown since 7 On Your Side started tracking the problem.
New York City has the lowest vacancy rate of any major city in America.
Despite the announcement, Mamdani has come under fire for continuing to fight against a popular housing voucher program the City Council voted to expand.
Rents in Manhattan and Brooklyn reportedly soared to an all-time high last month.