Manhattan Plaza

Manhattan Plaza is a large federally subsidized residential complex of 46 floors and 428 feet (130 m) at 400 and 484 West 43rd Street in midtown Manhattan, New York City. Opened in 1977, it has 1,689 units and about 3,500 tenants. 70% of the tenants are from the performing arts, 15% are neighborhood residents, and 15% are elderly. It occupies the city block bounded north by 43rd Street, east by Ninth Avenue, south by 42nd Street, and west by Tenth Avenue. Developed by HRH Construction, since January 2004 it has been owned by The Related Companies.

Construction on this "superblock" development West of Manhattan's Times Square neighborhood was begun in 1974 by HRH Construction, a real estate construction and development firm led at the time by Richard Ravitch. The project consisted of two 45-story residential towers at opposite ends of the block designed for middle- and upper-middle class rental tenants, with townhouses, shops, a health club and parking facility in the mid-block, financed with a $95 million mortgage by the City of New York under the New York State Mitchell-Lama Housing Program for middle-income housing. However, during construction, New York City went into a steep recession, and faced with mounting financial difficulties, the city was able to fund only $65 million of its commitment. The financial crisis also affected the city's housing market, and it became apparent that there would be little to no market for the apartments as originally been planned. This was in part due to the location of the development in the heart of New York's then rough-and-tumble Clinton neighborhood—historically known as "Hell's Kitchen"—and the rapidly declining environment of the Times Square area, at that point the epicenter of New York's 'adult' and pornographic activities.

With no other options available, New York City applied for Federal funds under the Section 8 program to re-purpose the project as deeply subsidized housing for poor and moderate-income families. Under Section 8, tenants would pay no more than 30% of their income for rent. The plan aroused widespread, intractable opposition from the surrounding working class community, concerned about a potential influx of thousands of dysfunctional, poor neighbors. At that point, an innovative solution was conceived by Daniel Rose, the real estate developer whose company had been retained to manage the project. Rose had been searching for a tenant population that would meet the income requirements for deeply subsidized public housing, assuage the community's fears about dysfunctional neighbors, and contribute to the revitalization of the Times Square neighborhood. Quoting Mike Todd, who once said that while growing up, his "family had been often broke, but never poor", Rose proposed limiting occupancy in the new project solely to residents who were, or had been, engaged in the performing arts. By seeding the 1,600 apartments with families of actors, musicians, directors, stagehands and others in the entertainment industry, the idea was to fill the project, stabilize the neighborhood, and support the regrowth of legitimate theater in Times Square.

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