Bushwick Developer Plans 10 Rental Homes With Two Affordable Units Under NYC Zoning Rules
Brooklyn, New York, USA | September 21, 2026: A new residential project planned for 142 Stockholm Street in Bushwick, Brooklyn could add 10 rental homes to a neighborhood where rents remain elevated and smaller infill developments are increasingly reshaping residential streets. The proposed building will include two affordable apartments, while the remaining eight units will be offered at market rates.
The project also highlights how New York City's recent zoning changes are enabling developers to add housing while incorporating permanently affordable units.
10-Unit Building Planned on Stockholm Street
Permits have been filed for a new 43-foot-tall residential building at 142 Stockholm Street.
The proposed development will replace the existing four-storey residential structure on the site and include:
- 10 total rental apartments
- 2 affordable units
- 8 market-rate units
- Around 5,324 square feet of total building area
- Around 4,945 square feet of residential space
- A cellar
- Concrete construction
- A 16-foot rear yard
With average apartments measuring roughly 495 square feet, the project is expected to primarily serve the rental market.
Why Two Affordable Units Matter
Two of the 10 apartments are planned as affordable housing, meaning 20% of the project's homes would be reserved under affordability requirements.
The proposal comes as New York City continues implementing its City of Yes for Housing Opportunity zoning reforms, which are designed to increase housing capacity in eligible areas while encouraging the creation of permanently affordable homes.
The city's zoning framework allows additional floor area in certain medium-density districts when developers provide qualifying affordable housing.
Bushwick Continues to See Small-Scale Housing Development
The Stockholm Street proposal is part of a broader pattern of low-rise residential construction in Bushwick.
Other recent filings have included smaller rental projects on neighborhood blocks, as developers look to add housing through redevelopment of existing structures and underused sites.
The location also benefits from access to public transportation, with the Knickerbocker Avenue M train station and the Myrtle-Wyckoff Avenues transit hub nearby.
For rental developers, proximity to transit remains an important factor in determining the potential demand for compact urban apartments.
Rising Rents Keep Rental Demand in Focus
Bushwick's rental market continues to command relatively high rents. RentCafe data cited in the report placed average Bushwick rents at approximately $3,381 in August 2026.
That rental environment provides an important backdrop for the new project, particularly because the planned apartments are relatively compact.
However, actual rents for the eight market-rate units will depend on the final building, apartment specifications, market conditions and leasing strategy.
What Property Investors Should Watch
The project demonstrates how zoning changes can affect the economics of smaller residential development.
Investors and developers evaluating similar projects should pay attention to:
- Affordable-housing requirements
- Permitted floor area and building height
- Existing building demolition requirements
- Construction and financing costs
- Local rental demand
- Transit accessibility
- Final approval and permitting timelines
The inclusion of affordable units can also affect the amount of additional development capacity available under applicable zoning rules.
Existing Building Has Not Yet Been Cleared for Demolition
While the new building plans have been filed, the project is still at the approval stage.
No demolition permit has been filed for the existing four-storey residential building, and no completion date has been announced.
The application lists Richard Herbst, affiliated with Do Well Management LLC, as the owner behind the filing, while Navkiran Cheema of KMA Designs LLC is identified as the architect.
What Happens Next
The proposal will have to move through New York City's permitting and approval process before construction can begin.
If approvals move forward, the project would add 10 rental homes to Bushwick, including two affordable units, while continuing the neighborhood's broader shift toward small-scale residential infill.
For property buyers and investors, the bigger takeaway is the growing role of zoning reforms in determining where new housing can be built, how much can be developed and how affordable units are incorporated into private projects.