On Wednesday, September 25, the City Planning Commission adopted a sweeping set of zoning text amendments aimed at addressing the city’s housing crisis. Dubbed “City of Yes for Housing Opportunity,” this proposal could significantly impact development potential across all five boroughs. The proposal now heads to the City Council for final approval, where it faces an uncertain future. A final vote is expected in late Fall.
Here are the key takeaways for real estate professionals:
- Citywide FAR Bonus for Affordable and Supportive Housing
The proposal introduces a “Universal Affordability Preference” (UAP) framework, increasing FAR for affordable and supportive housing in medium and high-density districts. This would replace the existing Voluntary Inclusionary Housing Program (VIH) and would apply citywide in areas that are not subject to Mandatory Inclusionary Housing. The affordability requirements are designed to compliment the recently enacted 485-x tax incentives for new residential development.
- Relaxed Regulations in Low-Density Areas
Several changes aim to enable more housing in low-density (R1-R5) districts, including:
- Increased FAR and adjusted building envelopes.
- Allowances for multifamily housing in commercial corridors and near transit.
- Provisions for accessory dwelling units (ADUs).
- Elimination of Parking Requirements
The proposal would eliminate parking requirements for new residential development citywide. This could unlock development potential on many sites where parking requirements currently make projects infeasible. We note however that this proposal has proven to be very unpopular in the outer boroughs.
- Expanded Conversion Opportunities
The plan extends and improves the existing framework for converting non-residential buildings to residential use, including:
- Updating the cutoff date for eligible buildings from 1961/1977 to 1990.
- Expanding geographic applicability citywide.
- Allowing conversion to a wider variety of housing types.
- Streamlined Processes
Several discretionary actions would be eliminated or simplified, potentially reducing the time and cost associated with certain projects.
- New Zoning Districts
The proposal introduces new zoning districts to fill FAR gaps, including higher-density R11 and R12 districts that could only be mapped with Mandatory Inclusionary Housing.
Implications for Developers and Property Owners
These proposed changes could create significant new development opportunities, particularly for affordable housing and in areas previously restricted by low-density zoning.
Projects that have started construction under the current zoning regulations will be allowed to continue. For projects currently in the pre-development pipeline, the proposal would allow the developments to continue under current zoning regulations under the following conditions:
- Applications to DOB/BSA/DCP are filed prior to the adoption of the final text amendments, and
- Zoning approval is obtained within a year.
- Affordable housing projects in the HPD pipeline will have two years in which to vest under current zoning.
Given the nature of these proposed changes, we encourage you to reach out for a detailed discussion of how this proposal could impact your specific projects or properties. We will continue to provide updates as the proposal moves through the City Council. If you are interested in learning more about the City of Yes for Housing Opportunity, please contact your trusted R&E attorney or David J. Rosenberg, Counsel in the firm’s Zoning and Land Use Department who authored the above.