Manhattan Housing Lottery Opens for 162 Affordable Apartments at 77 Water Street

New Yorkers looking for affordable housing have a new opportunity in Manhattan’s Financial District. A housing lottery is now accepting applications for 162 income-restricted apartments at 1 Gouverneur Lane, formerly known as 77 Water Street. The project is transforming a 1970s office tower into a residential building with studios, one-bedroom apartments, and two-bedroom units.

The application deadline is November 17, 2026. Eligible applicants must meet the income requirements for their selected apartment category.

Monthly rents reportedly range from approximately $1,056 to $2,823, depending on apartment size and income eligibility. The apartments are being offered through NYC Housing Connect.

Key Details About the Housing Lottery

• Location: 1 Gouverneur Lane, Financial District, Manhattan
• Affordable apartments available: 162
• Apartment types: Studios, one-bedroom, and two-bedroom units
• Monthly rent: Approximately $1,056 to $2,823
• Income eligibility: 40%, 80%, or 100% of the area median income (AMI)
• Application deadline: November 17, 2026

Applicants who already receive a qualifying housing voucher or rental subsidy may not need to meet the minimum income requirements, according to the reported Housing Connect listing. Applicants should review the official eligibility rules before applying.

Rent Prices and Apartment Availability

The 162 apartments are divided among three income categories, giving eligible New Yorkers different options based on their household income.

Reports differ slightly on how the rent range corresponds to apartment sizes. However, the reported monthly prices start at $1,056 and reach $2,823 for the largest or higher-priced units. More than half of the affordable apartments are reportedly studios intended for households earning 100% of the area median income.

According to the reported listing, all the lottery rents are at least $557 below the estimated cost of a typical apartment in ZIP code 10005.

Interested residents should confirm the exact rents, apartment sizes, household requirements, and income limits through NYC Housing Connect before submitting an application.

A Former Office Tower Gets a Residential Makeover

The 26-story building sits near the East River, close to the Seaport District, the Pier 11 ferry terminal, and other Lower Manhattan destinations.

Vanbarton Group is leading the conversion, with architecture firm CetraRuddy handling the design. Plans call for adding seven floors and approximately 50,000 square feet to the existing structure, which originally covered around 525,000 square feet.

The final apartment count remains unclear across published reports. Different sources have cited totals ranging from 625 to 649 apartments, while building department filings reportedly reference 647 units. The 162 apartments included in the current affordable housing lottery represent roughly one-quarter of the 647-unit figure.

The purchase price has also been reported differently. Some reports put Vanbarton Group's acquisition at $90 million, while others cite $95 million. The developer confirmed acquiring the property on December 4, 2024.

New Amenities Planned for Residents

The redevelopment is expected to bring more than apartments to the Financial District. Plans reportedly include approximately 30,000 square feet of amenities designed to give residents additional spaces for fitness, relaxation, and socializing.

Proposed features include:

• Fitness and wellness facilities
• Resident lounges and outdoor spaces
• An indoor-outdoor lounge
• A speakeasy
• A golf simulator
• A full-service spa
• A yoga studio

The project is expected to be completed by the second quarter of 2027. Reports also indicate that the building may qualify for a New York State 467-m tax exemption, which supports certain conversions of commercial properties into residential housing.

For questions about the housing lottery, applicants can contact NYC Housing Connect through 311 or consult the official program for application instructions and eligibility details.

Manhattan's Office-to-Apartment Conversion Trend Continues

The 77 Water Street project is part of a broader effort to turn underused office buildings into housing across New York City.

In June 2025, another Financial District development at 55 Broad Street launched a lottery offering 143 apartments, with reported rents starting at around $912 per month.

The trend extends well beyond Lower Manhattan. According to figures from the New York City Comptroller's Office, 44 completed, ongoing, or potential office-to-residential conversion projects were being tracked across the city as of the first quarter of 2025. Together, they represented approximately 15.2 million gross square feet.

The shift toward residential development gained momentum as remote and hybrid work changed how businesses use office space. With some buildings struggling to attract tenants, developers have increasingly explored converting commercial properties into apartments.

One major example is 25 Water Street, also known as SoMA, in Lower Manhattan. The development has been described as the country's largest office-to-residential conversion, with 1,320 apartments and approximately 100,000 square feet of amenities. About one-quarter of its apartments were designated as affordable housing.

Construction Challenges Highlight the Risks

Not every office-to-residential conversion has progressed without problems.

At 222 Broadway, a separate project expected to deliver nearly 800 apartments faced a stop-work order after cracked concrete beams and concerns about previous repairs were discovered.

Another conversion involving the former Pfizer headquarters also encountered structural issues on July 7, 2026, when columns reportedly buckled and floors sagged. That project was expected to include approximately 1,600 apartments.

These incidents are unrelated to the 77 Water Street redevelopment, but they highlight the engineering challenges involved in converting older commercial buildings into residential properties.

For eligible New Yorkers, the new lottery at 1 Gouverneur Lane offers an opportunity to apply for below-market housing in a central Manhattan location. With applications closing on November 17, 2026, interested residents should review the requirements and submit their applications before the deadline.