There is an aging office building on Water Street in Lower Manhattan where it would make all the sense in the world to create apartments. The 31-story building, once the headquarters of A.I.G., has windows all around and a shape suited to extra corner units. Right across the street, one office not so different from this one has already been turned into housing, and another is on the way. But 175 Water Street has a hitch: Offices in the financial district are spared some zoning rules that make conversion hard — so long as they were built before 1977. But that idea died in the State Legislature this spring, along with the rest of the governor’s housing agenda.

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Persons: “, ”, Richard Coles, Eric Adams, Kathy Hochul, Coles, Vanbarton Organizations: Vanbarton, Gov, State Legislature Locations: Lower Manhattan, A.I.G, New York, State