BROOKLYN, N.Y. — A surface parking lot in one of Brooklyn's most transit-rich neighborhoods is about to become one of New York's most closely watched residential construction projects, as the Metropolitan Transportation Authority opens the bidding on a development that will deliver approximately 300 new housing units just steps from the subway.
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Gov. Kathy Hochul announced March 24 that the MTA is seeking proposals to transform an underutilized MTA-owned lot into a residential development with approximately 300 new housing units in the Crown Heights neighborhood of Brooklyn. The development was made possible by 2025's Atlantic Avenue Mixed-Use District rezoning.
Proposals are due in May. For developers and general contractors tracking emerging New York City residential work, the deadline is an early entry point into a project that carries both the MTA's institutional backing and the Governor's direct political support.
The opportunity is larger than a single parking lot. The offering includes both the lot at 1119 Pacific St. and the air rights from the New York City Subway's adjacent Franklin Avenue Shuttle, creating a larger development opportunity than the lot alone would allow.
The site was formerly used as part of New York City Transit's Atlantic Avenue Cable Shop, which is currently being relocated to a modernized facility at 2016 Pitkin Ave. in East New York, Brooklyn. The Cable Shop itself is being transferred to the City of New York for development as affordable housing, part of a collaborative agreement reached during the AAMUP rezoning.
That transfer makes the Pacific Street site shovel-ready in a way that many city development opportunities are not — the prior industrial use has been relocated, the rezoning is complete, and the land is in state hands, avoiding the lengthy land-use approvals that typically precede private-sector construction projects of this scale.
The project will deliver approximately 300 new housing units, including at least 75 permanently affordable homes under New York City's Mandatory Inclusionary Housing program.
But the scope extends beyond housing. The MTA is also encouraging respondents to incorporate transit accessibility improvements in proposals in exchange for a density bonus through the Zoning for Accessibility program, as well as a new MTA Arts & Design installation along the Franklin Shuttle wall on the south side of Lefferts Place.
For developers, the density bonus is a direct financial incentive to invest in station upgrades — and for contractors with transit construction experience, it creates a potential scope of work within the same project that blends residential and infrastructure delivery.
State officials were direct about the dual purpose of the transaction. "This project represents a major investment in Brooklyn's future — delivering much-needed housing and transit accessibility improvements to the local community. And every dollar from this sale is going right back into the system, meaning all riders will feel the impact," MTA Construction & Development President Jamie Torres-Springer said.
MTA Chair and CEO Janno Lieber said: "It's a fact that transit-oriented development drives job and housing growth across the region. The Pacific Street project checks all the boxes — unbeatable proximity to transit in one of Brooklyn's hottest neighborhoods — and we're proud to partner with the Governor to get the best use out of this property."
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The Crown Heights project is one piece of a broader effort by the Hochul administration to convert idle government land into housing stock. The redevelopment is guided by the goals set out in Executive Order 30, which directs state agencies to identify and activate underutilized state-owned sites for housing.
Since fiscal year 2023, the Governor has worked to increase housing supply by launching a $25 billion five-year comprehensive Housing Plan and enacted the most significant housing deal in decades. More than 78,000 affordable homes have been created or preserved to date. The executive budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes.
For contractors, the May proposal deadline is the starting gun. Developer teams can access the full RFP through the MTA's procurement channels.
This article is based on a press release originally published March 24, 2026, by the Office of Gov. Kathy Hochul. The original announcement is available at governor.ny.gov.
