Mayor Zohran Mamdani wants to transform an underused NYPD parking lot in the East Village into an affordable housing development, marking the first city-owned site designated for housing under his administration.

The project at 324 East 5th St. would bring 131 affordable homes to the neighborhood, with 30% of the apartments reserved for formerly homeless New Yorkers. Plans also call for a senior center, community space and replacement parking.

Current view of the city-owned NYPD parking lot at 324 East 5th St. in the East Village.

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The proposal comes as Mamdani pushes an ambitious housing agenda to address New York City's affordability crisis. The city's recently adopted budget includes roughly $5 billion for affordable housing initiatives.

“Manhattan is facing an unprecedented housing crisis, and 324 East 5th Street represents the exact kind of project this moment demands: the conversion of an underutilized parking lot into 131 deeply affordable homes for low-income New Yorkers, including seniors," Manhattan Borough President Brad Hoylman-Sigal said in a statement.

A community land trust will be part of the development team, a structure city officials said will help preserve long-term affordability and give the community an ongoing role in overseeing the property.

"Today's announcement is a testament to what can happen when we are able to cut through the red tape and unlock public land to build new affordable housing," Housing Preservation and Development Commissioner Dina Levy said in a statement on Monday.

Mamdani has pledged to build 200,000 affordable homes and preserve another 200,000 over the next decade.

The mayor's broader housing agenda also includes expanding the CityFHEPS rental assistance program, which became a point of contention during budget negotiations. City Council members had pushed for a larger investment in housing vouchers than the administration ultimately proposed.